Overview Dividends

(BFH) Bread Financial Holdings - Ratings and Ratios

Exchange: NYSE • Country: United States • Currency: USD • Type: Common Stock • ISIN: US0185811082

Credit Card, Installment Loan, Digital Payment, Cash-Back, Savings

BFH EPS (Earnings per Share)

EPS Growth (3Y CAGR): 226.57%
EPS Trend (3Y Correlation): 34.4%

BFH Revenue

Revenue Growth (3Y CAGR): -1.41%
Revenue Trend (3Y Correlation): -59.4%

Risk via 10d forecast
Volatility	43.5%
Value at Risk 5%th	65.0%

Reward
Sharpe Ratio	0.31
Alpha	-14.02

Character
Hurst Exponent	0.579
Beta	1.441

Drawdowns 3y
Max DD	45.79%
Mean DD	15.36%

Description: BFH Bread Financial Holdings November 08, 2025

Bread Financial Holdings Inc. (NYSE: BFH) delivers technology-driven payment and lending solutions across North America, servicing private-label, co-brand, and general-purpose credit card programs as well as installment and split-pay products. Its offering stack includes credit card origination, risk management, funding, loan servicing, and a unified SDK that lets merchants embed financing options early in the checkout flow. The firm operates under the Bread, Bread Financial, Bread Cashback, Bread Rewards, Bread Pay, and Bread Savings brands, and rebranded from Alliance Data Systems in March 2022.

As of FY 2023, Bread reported approximately $1.2 billion in total revenue, with a loan portfolio exceeding $10 billion and a net interest margin of roughly 4.5 %. The company’s growth is closely tied to the broader “Buy-Now-Pay-Later” (BNPL) trend, which has been accelerating as consumers seek flexible payment options amid a low-inflation environment; however, rising interest rates could compress margins and increase credit-loss provisions. Additionally, Bread’s data-analytics services have become a differentiator, enabling partners to improve underwriting accuracy and cross-sell opportunities, a key driver in the competitive consumer-finance sector.

For a deeper, data-driven assessment of BFH’s valuation dynamics, you might explore the company’s profile on ValueRay to see how its metrics stack up against peers.

BFH Stock Overview

Market Cap in USD	2,857m
Sub-Industry	Consumer Finance
IPO / Inception	2001-06-15
Return 12m vs S&P 500	-6.35%
Analyst Rating	3.31 of 5

BFH Dividends

Dividend Yield	1.36%
Yield on Cost 5y	2.24%
Yield CAGR 5y	-4.38%
Payout Consistency	89.4%
Payout Ratio	8.2%

BFH Growth Ratios

CAGR	19.67%
CAGR/Max DD Calmar Ratio	0.43
CAGR/Mean DD Pain Ratio	1.28
Current Volume	421.1k
Average Volume	805.4k

Piotroski VR‑10 (Strict, 0-10) 5.0

Net Income (472.0m TTM) > 0 and > 6% of Revenue (6% = 280.7m TTM)

FCFTA 0.09 (>2.0%) and ΔFCFTA -0.01pp (YES ≥ +1.0pp, WARN ≥ +0.5pp)

NWC/Revenue -96.26% (prev -191.9%; Δ 95.61pp) (YES ≤20% & Δ≤-1pp; WARN ≤25% & Δ≤0 oder ≤40% & Δ≤-3pp)

CFO/TA 0.09 (>3.0%) and CFO 2.00b > Net Income 472.0m (YES >=105%, WARN >=100%)

Net Debt (-3.76b) to EBITDA (624.0m) ratio: -6.03 <= 3.0 (WARN <= 3.5)

Current Ratio 0.47 (target 1.5–3.0; WARN 1.2–<1.5 or >3.0–5.0; CFO/TA gate active)

Outstanding Shares last Quarter (47.5m) change vs 12m ago -6.86% (target <= -2.0% for YES)

Gross Margin 64.45% (prev 50.40%; Δ 14.05pp) >=18% & Δ>=+0.5pp (WARN >=15% & Δ>=0)

Asset Turnover 21.53% (prev 22.53%; Δ -1.00pp) >=50% & Δ>=+2pp (WARN >=35% & Δ>=0)

Interest Coverage Ratio 0.80 (EBITDA TTM 624.0m / Interest Expense TTM 676.0m) >= 6 (WARN >= 3)

Altman Z'' -0.90

(A) -0.21 = (Total Current Assets 4.05b - Total Current Liabilities 8.55b) / Total Assets 21.71b

(B) 0.07 = Retained Earnings (Balance) 1.43b / Total Assets 21.71b

(D) 0.08 = Book Value of Equity 1.42b / Total Liabilities 18.40b

Total Rating: -0.90 = (6.56 * A) + (3.26 * B) + (6.72 * C) + (1.05 * D)

ValueRay F-Score (Strict, 0-100) 64.90

1. Piotroski 5.0pt = 0.0

2. FCF Yield 44.57% = 5.0

3. FCF Margin 42.82% = 7.50

4. Debt/Equity 1.71 = 1.19

5. Debt/Ebitda -6.03 = 2.50

6. ROIC - WACC (= 0.16)% = 0.20

7. RoE 14.98% = 1.25

8. Rev. Trend -59.44% = -4.46

9. EPS Trend 34.39% = 1.72

What is the price of BFH shares?

As of November 12, 2025, the stock is trading at USD 63.46 with a total of 421,119 shares traded.
Over the past week, the price has changed by +1.77%, over one month by +12.88%, over three months by +9.13% and over the past year by +8.12%.

Is Bread Financial Holdings a good stock to buy?

Neither. Based on ValueRay´s Fundamental Analyses, Bread Financial Holdings is currently (November 2025) neither a good nor a bad stock to buy. It has a ValueRay Fundamental Rating of 64.90 and therefor a neutral outlook according to the companies health.
Based on momentum, paid dividends and discounted-cash-flow analyses, the fair value of BFH is around 58.28 USD . This means that BFH is currently overvalued and has a potential downside of -8.16%.

Is BFH a buy, sell or hold?

Bread Financial Holdings has received a consensus analysts rating of 3.31. Therefor, it is recommend to hold BFH.

Strong Buy: 4
Buy: 1
Hold: 8
Sell: 2
Strong Sell: 1

What are the forecasts/targets for the BFH price?

Issuer	Target	Up/Down from current
Wallstreet Target Price	70.2	10.6%
Analysts Target Price	70.2	10.6%
ValueRay Target Price	63.7	0.3%

BFH Fundamental Data Overview November 02, 2025

Market Cap USD = 2.86b (2.86b USD * 1.0 USD.USD)
P/E Trailing = 6.3411
P/E Forward = 6.5445
P/S = 1.1386
P/B = 0.8123
P/EG = 1.4544
Beta = 1.441
Revenue TTM = 4.68b USD
EBIT TTM = 540.0m USD
EBITDA TTM = 624.0m USD
Long Term Debt = 5.56b USD (from longTermDebt, last fiscal year)
Short Term Debt = 3.24b USD (from shortTermDebt, last fiscal year)
Debt = 5.68b USD (from shortLongTermDebtTotal, last fiscal year)
Net Debt = -3.76b USD (from netDebt column, last quarter)
Enterprise Value = 4.49b USD (2.86b + Debt 5.68b - CCE 4.05b)
Interest Coverage Ratio = 0.80 (Ebit TTM 540.0m / Interest Expense TTM 676.0m)
FCF Yield = 44.57% (FCF TTM 2.00b / Enterprise Value 4.49b)
FCF Margin = 42.82% (FCF TTM 2.00b / Revenue TTM 4.68b)
Net Margin = 10.09% (Net Income TTM 472.0m / Revenue TTM 4.68b)
Gross Margin = 64.45% ((Revenue TTM 4.68b - Cost of Revenue TTM 1.66b) / Revenue TTM)
Gross Margin QoQ = 100.0% (prev 56.89%)
Tobins Q-Ratio = 0.21 (Enterprise Value 4.49b / Total Assets 21.71b)
Interest Expense / Debt = 3.87% (Interest Expense 220.0m / Debt 5.68b)
Taxrate = 4.08% (8.00m / 196.0m)
NOPAT = 518.0m (EBIT 540.0m * (1 - 4.08%))
Current Ratio = 0.47 (Total Current Assets 4.05b / Total Current Liabilities 8.55b)
Debt / Equity = 1.71 (Debt 5.68b / totalStockholderEquity, last quarter 3.32b)
Debt / EBITDA = -6.03 (Net Debt -3.76b / EBITDA 624.0m)
Debt / FCF = -1.88 (Net Debt -3.76b / FCF TTM 2.00b)
Total Stockholder Equity = 3.15b (last 4 quarters mean from totalStockholderEquity)
RoA = 2.17% (Net Income 472.0m / Total Assets 21.71b)
RoE = 14.98% (Net Income TTM 472.0m / Total Stockholder Equity 3.15b)
RoCE = 6.20% (EBIT 540.0m / Capital Employed (Equity 3.15b + L.T.Debt 5.56b))
RoIC = 6.42% (NOPAT 518.0m / Invested Capital 8.06b)
WACC = 6.26% (E(2.86b)/V(8.54b) * Re(11.33%) + D(5.68b)/V(8.54b) * Rd(3.87%) * (1-Tc(0.04)))
Discount Rate = 11.33% (= CAPM, Blume Beta Adj.)
Shares Correlation 3-Years: 0.0 | Cagr: 0.0%
[DCF Debug] Terminal Value 69.23% ; FCFE base≈2.00b ; Y1≈2.23b ; Y5≈2.94b
Fair Price DCF = 672.4 (DCF Value 30.66b / Shares Outstanding 45.6m; 5y FCF grow 13.10% → 3.0% )
EPS Correlation: 34.39 | EPS CAGR: 226.6% | SUE: 2.50 | # QB: 2
Revenue Correlation: -59.44 | Revenue CAGR: -1.41% | SUE: 1.86 | # QB: 3

Additional Sources for BFH Stock

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