BFH Stock Analysis: Bread Financial Holdings | NYSE
Credit Services | NYSE, USA | Market Cap: 4.251m USD | 12M Return: 71.4% | Charts, Fundamentals & Technical Analysis
Avg Turnover: 73.5M
EPS Trend: 2.7%
Qual. Beats: 4
Rev. Trend: -79.6%
Qual. Beats: 0
Warnings
No concerns identified
Tailwinds
Seasonality 10.5 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: 561.0m TTM > 0 and > 6% of Revenue |
| FCF/TA: 0.10 > 0.02 and ΔFCF/TA 1.62 > 1.0 |
| NWC/Revenue: -221.3% < 20% (prev -183.3%; Δ -38.02% < -1%) |
| CFO/TA 0.10 > 3% & CFO 2.19b > Net Income 561.0m |
| Net Debt (389.0m) to EBITDA (738.0m): 0.53 < 3 |
| Current Ratio: 0.26 > 1.5 & < 3 |
| Outstanding Shares: last quarter (43.2m) vs 12m ago -12.90% < -2% |
| Gross Margin: 63.99% > 18% (prev 51.43%; Δ 12.56% > 0.5%) |
| Asset Turnover: 21.10% > 50% (prev 21.24%; Δ -0.14% > 0%) |
| Interest Coverage Ratio: 0.80 > 6 (EBIT TTM 660.0m / Interest Expense TTM 822.0m) |
| A: -0.47 (Total Current Assets 3.64b - Total Current Liabilities 14.1b) / Total Assets 22.3b |
| B: 0.07 (Retained Earnings 1.64b / Total Assets 22.3b) |
| C: 0.03 (EBIT TTM 660.0m / Avg Total Assets 22.3b) |
| D: 0.18 (Book Value of Equity 3.33b / Total Liabilities 19.0b) |
| Altman-Z'' = -2.45 = D |
As of July 05, 2026, the stock is trading at USD 102.21 with a total of 672,900 shares traded. Over the past week, the price has changed by -2.62%, over one month by +15.67%, over three months by +36.33% and over the past year by +71.39%.
Current recommended Stop Loss: 98.10 (which is 4% or 1.3 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 | 97 | -5.1% |
P/E Trailing = 8.5886
P/E Forward = 9.1996
P/S = 1.6079
P/B = 1.2749
P/EG = 2.4217
Revenue TTM = 4.71b USD
EBIT TTM = 660.0m USD
EBITDA TTM = 738.0m USD
Long Term Debt = 3.94b USD (from longTermDebt, last quarter)
Short Term Debt = 13.9b USD (from shortTermDebt, last fiscal year)
Debt = 4.03b USD (from shortLongTermDebtTotal, last quarter) + Leases 85.0m
Net Debt = 389.0m USD (calculated: Debt 4.03b - CCE 3.64b)
Enterprise Value = 4.64b USD (4.25b + Debt 4.03b - CCE 3.64b)
Interest Coverage Ratio = 0.80 (Ebit TTM 660.0m / Interest Expense TTM 822.0m)
EV/FCF = 2.13x (Enterprise Value 4.64b / FCF TTM 2.18b)
FCF Yield = 46.94% (FCF TTM 2.18b / Enterprise Value 4.64b)
FCF Margin = 46.19% (FCF TTM 2.18b / Revenue TTM 4.71b)
Net Margin = 11.90% (Net Income TTM 561.0m / Revenue TTM 4.71b)
Gross Margin = 63.99% ((Revenue TTM 4.71b - Cost of Revenue TTM 1.70b) / Revenue TTM)
Gross Margin QoQ = 59.04% (prev 83.05%)
Tobins Q-Ratio = 0.21 (Enterprise Value 4.64b / Total Assets 22.3b)
Interest Expense / Debt = 20.42% (Interest Expense 822.0m / Debt 4.03b)
Taxrate = 15.0% (99.0m / 660.0m)
NOPAT = 561.0m (EBIT 660.0m * (1 - 15.00%))
Current Ratio = 0.26 (Total Current Assets 3.64b / Total Current Liabilities 14.1b)
Debt / Equity = 1.21 (Debt 4.03b / totalStockholderEquity, last quarter 3.33b)
Debt / EBITDA = 0.53 (Net Debt 389.0m / EBITDA 738.0m)
Debt / FCF = 0.18 (Net Debt 389.0m / FCF TTM 2.18b)
Total Stockholder Equity = 3.28b (last 4 quarters mean from totalStockholderEquity)
RoA = 2.51% (Net Income 561.0m / Total Assets 22.3b)
RoE = 17.08% (Net Income TTM 561.0m / Total Stockholder Equity 3.28b)
RoCE = 9.14% (EBIT 660.0m / Capital Employed (Equity 3.28b + L.T.Debt 3.94b))
RoIC = 2.56% (NOPAT 561.0m / Invested Capital 21.9b)
WACC = 14.29% (E(4.25b)/V(8.28b) * Re(11.39%) + D(4.03b)/V(8.28b) * Rd(20.42%) * (1-Tc(0.15)))
Discount Rate = 11.39% (= CAPM, Blume Beta Adj.)
Shares (quarterly) Correlation: -53.94 | Cagr: -5.96%
[DCF] Terminal Value 61.19% ; FCFF base≈2.04b ; Y1≈2.33b ; Y5≈3.43b
[DCF] Fair Price = 609.5 (EV 25.0b - Net Debt 389.0m = Equity 24.6b / Shares 40.4m; r=14.29% [WACC]; 5y FCF grow 15.0% → 2.50% )
EPS Correlation: 2.66 | EPS CAGR: 0.65% | SUE: 1.41 | # QB: 4
Revenue Correlation: -79.57 | Revenue CAGR: -1.82% | SUE: 0.80 | # QB: 0
EPS current Quarter (2026-06-30): EPS=2.75 | Chg30d=+1.37% | Revisions=+0% | Analysts=10
EPS next Quarter (2026-09-30): EPS=3.15 | Chg30d=+1.30% | Revisions=-40% | Analysts=10
EPS current Year (2026-12-31): EPS=11.33 | Chg30d=+0.62% | Revisions=-17% | GrowthEPS=-6.8% | GrowthRev=+2.7%
EPS next Year (2027-12-31): EPS=12.45 | Chg30d=+0.78% | Revisions=+17% | GrowthEPS=+9.9% | GrowthRev=+3.7%
[Analyst] Revisions Ratio: -15% (up=4, down=6)