BFH Stock Analysis: Bread Financial Holdings | NYSE
Credit Services | NYSE, USA | Market Cap: 4.377m USD | 12M Return: 86.2% | US0185811082 | Charts, Fundamentals & Technical Analysis
Avg Turnover: 57.2M
EPS Trend: 24.2%
Qual. Beats: 5
Rev. Trend: -89.1%
Qual. Beats: 1
Warnings
No concerns identified
Tailwinds
Seasonality 11.6 years of data
How good or bad each month usually is (without trend). The score below shows how much you can trust it: 0 = pure chance, >40 gets interesting and >55 is strong.
Bread Financial Holdings, Inc. (BFH) is a U.S.-based consumer finance company that provides payment and lending solutions to consumers and merchants across North America. Its core business revolves around private label and co-brand credit card programs, where the company handles underwriting, funding, risk management, and ongoing loan servicing for its partner retailers. It also offers installment loans and split-pay products through its Bread Pay digital payments platform, which uses application programming interfaces (APIs) to integrate point-of-sale financing into merchants checkout experiences.
The company extends beyond lending by providing marketing, data analytics, and a unified software development kit (SDK) that surfaces credit payment options earlier in the shopping journey. To fund its loan portfolio, Bread Financial also gathers retail deposits through certificates of deposit, high-yield savings accounts, and Individual Retirement Accounts (IRAs) offered under the Bread Savings brand. This combination of credit origination and deposit-based funding is characteristic of the consumer finance sub-industry, in which firms typically rely on securitization, whole-loan sales, or stable deposit bases to support lending activity.
Bread Financial operates under multiple consumer-facing brands, including Bread, Bread Cashback, Bread Rewards, Bread Pay, and Bread Savings. The company was originally incorporated in 1995 as Alliance Data Systems Corporation and adopted its current name in March 2022. It is headquartered in Columbus, Ohio, and is classified within the GICS Consumer Finance sub-industry of the Financials sector.
- Consumer credit losses rise pressuring card portfolio profit margins
- Interest income pressured by elevated deposit funding costs
- Retail partner brand growth drives credit card receivables expansion
| Net Income: 568.0m TTM > 0 and > 6% of Revenue |
| FCF/TA: 0.12 > 0.02 and ΔFCF/TA 3.29 > 1.0 |
| NWC/Revenue: -231.4% < 20% (prev -198.3%; Δ -33.12% < -1%) |
| CFO/TA 0.12 > 3% & CFO 2.68b > Net Income 568.0m |
| Net Debt (14.6b) to EBITDA (763.0m): 19.17 < 3 |
| Current Ratio: 0.25 > 1.5 & < 3 |
| Outstanding Shares: last quarter (40.7m) vs 12m ago -13.77% < -2% |
| Gross Margin: 63.99% > 18% (prev 51.89%; Δ 12.09% > 0.5%) |
| Asset Turnover: 21.48% > 50% (prev 21.64%; Δ -0.17% > 0%) |
| Interest Coverage Ratio: 0.86 > 6 (EBIT TTM 683.0m / Interest Expense TTM 797.0m) |
| A: -0.49 (Total Current Assets 3.68b - Total Current Liabilities 14.7b) / Total Assets 22.5b |
| B: 0.08 (Retained Earnings 1.78b / Total Assets 22.5b) |
| C: 0.03 (EBIT TTM 683.0m / Avg Total Assets 22.1b) |
| D: 0.18 (Book Value of Equity 3.37b / Total Liabilities 19.1b) |
| Altman-Z'' = -2.56 = D |
As of August 16, 2026, the stock is trading at USD 113.40 with a total of 307,352 shares traded. Over the past week, the price has changed by +4.69%, over one month by +15.14%, over three months by +30.94% and over the past year by +86.23%.
Current recommended Stop Loss: 104.90 (which is 7.5% or 2.6 ATR below the current price).
Bread Financial Holdings has received a consensus analysts rating of 3.31. Therefore, it is recommended to hold BFH.
- StrongBuy: 4
- Buy: 1
- Hold: 8
- Sell: 2
- StrongSell: 1
| Analysts Target Price | 113.5 | 0.1% |
P/E Trailing = 8.8424
P/E Forward = 10.0402
P/S = 1.6405
P/B = 1.3164
P/EG = 3.8611
Revenue TTM = 4.75b USD
EBIT TTM = 683.0m USD
EBITDA TTM = 763.0m USD
Long Term Debt = 4.31b USD (from longTermDebt, last fiscal year)
Short Term Debt = 13.9b USD (from shortTermDebt, last fiscal year)
Debt = 18.3b USD (corrected: LT Debt 4.31b + ST Debt 13.9b) + Leases 85.0m
Net Debt = 14.6b USD (calculated: Debt 18.3b - CCE 3.68b)
Enterprise Value = 19.0b USD (4.38b + Debt 18.3b - CCE 3.68b)
Interest Coverage Ratio = 0.86 (Ebit TTM 683.0m / Interest Expense TTM 797.0m)
EV/FCF = 7.11x (Enterprise Value 19.0b / FCF TTM 2.67b)
FCF Yield = 14.06% (FCF TTM 2.67b / Enterprise Value 19.0b)
FCF Margin = 56.21% (FCF TTM 2.67b / Revenue TTM 4.75b)
Net Margin = 11.95% (Net Income TTM 568.0m / Revenue TTM 4.75b)
Gross Margin = 63.99% ((Revenue TTM 4.75b - Cost of Revenue TTM 1.71b) / Revenue TTM)
Gross Margin QoQ = 57.24% (prev 59.04%)
Tobins Q-Ratio = 0.85 (Enterprise Value 19.0b / Total Assets 22.5b)
Interest Expense / Debt = 4.35% (Interest Expense 797.0m / Debt 18.3b)
Taxrate = 16.84% (115.0m / 683.0m)
NOPAT = 568.0m (EBIT 683.0m * (1 - 16.84%))
Current Ratio = 0.25 (Total Current Assets 3.68b / Total Current Liabilities 14.7b)
Debt / Equity = 5.44 (Debt 18.3b / totalStockholderEquity, last quarter 3.37b)
Debt / EBITDA = 19.17 (Net Debt 14.6b / EBITDA 763.0m)
Debt / FCF = 5.47 (Net Debt 14.6b / FCF TTM 2.67b)
Total Stockholder Equity = 3.33b (last 4 quarters mean from totalStockholderEquity)
RoA = 2.57% (Net Income 568.0m / Total Assets 22.5b)
RoE = 17.04% (Net Income TTM 568.0m / Total Stockholder Equity 3.33b)
RoCE = 8.94% (EBIT 683.0m / Capital Employed (Equity 3.33b + L.T.Debt 4.31b))
RoIC = 2.65% (NOPAT 568.0m / Invested Capital 21.4b)
WACC = 4.87% (E(4.38b)/V(22.7b) * Re(10.11%) + D(18.3b)/V(22.7b) * Rd(4.35%) * (1-Tc(0.17)))
Discount Rate = 10.11% (= CAPM, Blume Beta Adj.)
Shares (quarterly) Correlation: -89.55 | Cagr: -8.50%
[DCF] Terminal Value 77.97% ; FCFF base≈2.36b ; Y1≈2.70b ; Y5≈3.97b
[DCF] Fair Price = 1.12k (EV 59.8b - Net Debt 14.6b = Equity 45.2b / Shares 40.4m; r=8.35% [WACC [floored]]; 5y FCF grow 15.0% → 2.50% )
EPS Correlation: 24.18 | EPS CAGR: 6.63% | SUE: 1.48 | # QB: 5
Revenue Correlation: -89.09 | Revenue CAGR: -2.06% | SUE: 0.87 | # QB: 1
EPS current Quarter (2026-09-30): EPS=3.34 | Chg30d=+6.34% | Revisions=+12% | Analysts=11
EPS current Year (2026-12-31): EPS=12.22 | Chg30d=+8.01% | Revisions=+50% | GrowthEPS=+0.5% | GrowthRev=+3.9%
EPS next Year (2027-12-31): EPS=13.37 | Chg30d=+7.64% | Revisions=+42% | GrowthEPS=+9.4% | GrowthRev=+3.9%
[Analyst] Revisions Ratio: +46% (up=16, down=5)