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, Cash-back Card, Digital Wallet, Savings Account

BFH EPS (Earnings per Share)

EPS Growth (3Y CAGR): 139.46%
EPS Trend (3Y Correlation): 9.0%

BFH Revenue

Revenue Growth (3Y CAGR): 0.74%
Revenue Trend (3Y Correlation): -20.4%

Description: BFH Bread Financial Holdings

Bread Financial Holdings, Inc. (NYSE:BFH) is a leading provider of tech-forward payment and lending solutions in North America, catering to customers and consumer-based industries. The companys comprehensive suite of services includes credit card and loan financing, risk management, account origination, and funding for private label and co-brand credit card programs.

The companys diverse product offerings also encompass installment loans, split-pay products, and marketing services, as well as data and analytics solutions. Through its digital payments platform, Bread, the company enables merchants and partners to integrate online point-of-sale financing and other digital payment products, promoting credit payment options earlier in the shopping experience.

Key performance indicators (KPIs) that can be used to evaluate the companys performance include revenue growth, net interest margin, delinquency rates, and return on equity (RoE). With a RoE of 9.23%, the company demonstrates a reasonable return on shareholder equity. Additionally, the companys price-to-earnings (P/E) ratio of 11.29 and forward P/E of 9.49 suggest a relatively attractive valuation.

To further assess the companys prospects, it is essential to monitor its ability to expand its customer base, enhance its digital suite, and integrate new technologies. The companys market capitalization of $2.98 billion and its presence in the consumer finance industry (GICS Sub Industry) provide a solid foundation for analysis. By examining these factors, investors can gain a deeper understanding of Bread Financial Holdings strengths, weaknesses, and potential for growth.

BFH Stock Overview

Market Cap in USD	2,572m
Sub-Industry	Consumer Finance
IPO / Inception	2001-06-15

BFH Stock Ratings

Growth Rating	34.1%
Fundamental	62.0%
Dividend Rating	36.9%
Return 12m vs S&P 500	-1.77%
Analyst Rating	3.31 of 5

BFH Dividends

Dividend Yield 12m	1.42%
Yield on Cost 5y	2.12%
Annual Growth 5y	-4.38%
Payout Consistency	90.5%
Payout Ratio	10.1%

BFH Growth Ratios

Growth Correlation 3m	-33.3%
Growth Correlation 12m	16.1%
Growth Correlation 5y	-25.7%
CAGR 5y	28.17%
CAGR/Max DD 3y (Calmar Ratio)	0.62
CAGR/Mean DD 3y (Pain Ratio)	1.81
Sharpe Ratio 12m	-0.82
Alpha	-4.57
Beta	1.441
Volatility	44.64%
Current Volume	832k
Average Volume 20d	744k
Stop Loss	56.6 (-4.1%)
Signal	0.30

Piotroski VR‑10 (Strict, 0-10) 5.0

Net Income (286.0m TTM) > 0 and > 6% of Revenue (6% = 283.2m TTM)

FCFTA 0.09 (>2.0%) and ΔFCFTA -1.07pp (YES ≥ +1.0pp, WARN ≥ +0.5pp)

NWC/Revenue -198.4% (prev 35.91%; Δ -234.3pp) (YES ≤20% & Δ≤-1pp; WARN ≤25% & Δ≤0 oder ≤40% & Δ≤-3pp)

CFO/TA 0.08 (>3.0%) and CFO 1.85b > Net Income 286.0m (YES >=105%, WARN >=100%)

Net Debt (428.0m) to EBITDA (470.0m) ratio: 0.91 <= 3.0 (WARN <= 3.5)

Current Ratio 0.30 (target 1.5–3.0; WARN 1.2–<1.5 or >3.0–5.0; CFO/TA gate active)

Outstanding Shares last Quarter (47.2m) change vs 12m ago -5.98% (target <= -2.0% for YES)

Gross Margin 51.86% (prev 52.42%; Δ -0.55pp) >=18% & Δ>=+0.5pp (WARN >=15% & Δ>=0)

Asset Turnover 21.47% (prev 22.24%; Δ -0.76pp) >=50% & Δ>=+2pp (WARN >=35% & Δ>=0)

Interest Coverage Ratio 0.42 (EBITDA TTM 470.0m / Interest Expense TTM 916.0m) >= 6 (WARN >= 3)

Altman Z'' -2.44

(A) -0.43 = (Total Current Assets 3.98b - Total Current Liabilities 13.34b) / Total Assets 21.82b

(B) 0.06 = Retained Earnings (Balance) 1.25b / Total Assets 21.82b

(D) 0.07 = Book Value of Equity 1.24b / Total Liabilities 18.66b

Total Rating: -2.44 = (6.56 * A) + (3.26 * B) + (6.72 * C) + (1.05 * D)

ValueRay F-Score (Strict, 0-100) 61.97

1. Piotroski 5.0pt = 0.0

2. FCF Yield 62.67% = 5.0

3. FCF Margin 39.83% = 7.50

4. Debt/Equity 1.34 = 1.67

5. Debt/Ebitda 0.91 = 1.89

6. ROIC - WACC (= -3.02)% = -3.78

7. RoE 9.23% = 0.77

8. Rev. Trend -20.38% = -1.53

9. EPS Trend 8.97% = 0.45

What is the price of BFH shares?

As of October 19, 2025, the stock is trading at USD 59.03 with a total of 832,008 shares traded.
Over the past week, the price has changed by +9.15%, over one month by -4.51%, over three months by -4.90% and over the past year by +13.44%.

Is Bread Financial Holdings a good stock to buy?

Neither. Based on ValueRay´s Fundamental Analyses, Bread Financial Holdings is currently (October 2025) neither a good nor a bad stock to buy. It has a ValueRay Fundamental Rating of 61.97 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 51.59 USD . This means that BFH is currently overvalued and has a potential downside of -12.6%.

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	68.4	15.9%
Analysts Target Price	68.4	15.9%
ValueRay Target Price	56.7	-4%

Last update: 2025-10-04 03:47

BFH Fundamental Data Overview

Market Cap USD = 2.57b (2.57b USD * 1.0 USD.USD)
P/E Trailing = 9.2672
P/E Forward = 6.5445
P/S = 1.0489
P/B = 0.8123
P/EG = 1.4544
Beta = 1.441
Revenue TTM = 4.72b USD
EBIT TTM = 384.0m USD
EBITDA TTM = 470.0m USD
Long Term Debt = 4.23b USD (from longTermDebt, last quarter)
Short Term Debt = 13.34b USD (from shortTermDebt, last quarter)
Debt = 4.23b USD (from shortLongTermDebtTotal, last quarter)
Net Debt = 428.0m USD (from netDebt column, last quarter)
Enterprise Value = 3.00b USD (2.57b + Debt 4.23b - CCE 3.80b)
Interest Coverage Ratio = 0.42 (Ebit TTM 384.0m / Interest Expense TTM 916.0m)
FCF Yield = 62.67% (FCF TTM 1.88b / Enterprise Value 3.00b)
FCF Margin = 39.83% (FCF TTM 1.88b / Revenue TTM 4.72b)
Net Margin = 6.06% (Net Income TTM 286.0m / Revenue TTM 4.72b)
Gross Margin = 51.86% ((Revenue TTM 4.72b - Cost of Revenue TTM 2.27b) / Revenue TTM)
Gross Margin QoQ = 56.89% (prev 56.40%)
Tobins Q-Ratio = 0.14 (Enterprise Value 3.00b / Total Assets 21.82b)
Interest Expense / Debt = 5.20% (Interest Expense 220.0m / Debt 4.23b)
Taxrate = 20.11% (35.0m / 174.0m)
NOPAT = 306.8m (EBIT 384.0m * (1 - 20.11%))
Current Ratio = 0.30 (Total Current Assets 3.98b / Total Current Liabilities 13.34b)
Debt / Equity = 1.34 (Debt 4.23b / totalStockholderEquity, last quarter 3.17b)
Debt / EBITDA = 0.91 (Net Debt 428.0m / EBITDA 470.0m)
Debt / FCF = 0.23 (Net Debt 428.0m / FCF TTM 1.88b)
Total Stockholder Equity = 3.10b (last 4 quarters mean from totalStockholderEquity)
RoA = 1.31% (Net Income 286.0m / Total Assets 21.82b)
RoE = 9.23% (Net Income TTM 286.0m / Total Stockholder Equity 3.10b)
RoCE = 5.24% (EBIT 384.0m / Capital Employed (Equity 3.10b + L.T.Debt 4.23b))
RoIC = 3.85% (NOPAT 306.8m / Invested Capital 7.97b)
WACC = 6.87% (E(2.57b)/V(6.80b) * Re(11.33%) + D(4.23b)/V(6.80b) * Rd(5.20%) * (1-Tc(0.20)))
Discount Rate = 11.33% (= CAPM, Blume Beta Adj.)
Shares Correlation 3-Years: -33.33 | Cagr: -2.45%
[DCF Debug] Terminal Value 69.23% ; FCFE base≈1.99b ; Y1≈2.21b ; Y5≈2.91b
Fair Price DCF = 651.2 (DCF Value 30.37b / Shares Outstanding 46.6m; 5y FCF grow 13.10% → 3.0% )
EPS Correlation: 8.97 | EPS CAGR: 139.5% | SUE: -3.02 | # QB: 0
Revenue Correlation: -20.38 | Revenue CAGR: 0.74% | SUE: 1.82 | # QB: 2

Additional Sources for BFH Stock

News: Wall Street Journal | Benzinga | Yahoo Finance
Tweets: X | Stocktwits
Fund Manager Positions: Dataroma | Stockcircle