BFH
Bread Financial·NYSE
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7.84 / 10
Outperform
BFH’s fundamentals are robust, highlighted by an 18.24% total operating revenue YoY growth and a 64.3962% operating revenue YoY growth, both ranking in high-performing quartiles. Asset efficiency metrics—Current assets turnover ratio (2.5586) and Total assets turnover ratio (0.9278)—also contribute positively, earning quality scores of 2/3 and 3/3 respectively. However, a high Asset-liability ratio (85.32%) and Equity multiplier (6.81) signal elevated leverage, tempering the overall strength. The Return on Equity (diluted) shows a healthy 14.33% YoY growth, placing it in group 3. These factors collectively support a highly favorable investment view despite some balance-sheet challenges.
Analysis Checks(8/10)
Asset-liability ratio (%)
Value85.32
Score1/3
Weight0.02%
1M Return0.09%
Value85.32
Score1/3
Weight0.02%
1M Return0.09%
Equity multiplier
Value6.81
Score3/3
Weight18.29%
1M Return77.17%
Value6.81
Score3/3
Weight18.29%
1M Return77.17%
Equity ratio (Total liabilities / Shareholders’ equity attributable to parent company) (%)
Value5.81
Score3/3
Weight18.24%
1M Return77.26%
Value5.81
Score3/3
Weight18.24%
1M Return77.26%
Current assets turnover ratio
Value2.56
Score2/3
Weight0.62%
1M Return2.45%
Value2.56
Score2/3
Weight0.62%
1M Return2.45%
Total assets turnover ratio
Value0.93
Score3/3
Weight19.73%
1M Return79.11%
Value0.93
Score3/3
Weight19.73%
1M Return79.11%
Total operating revenue (YoY growth rate %)
Value0.18
Score2/3
Weight0.45%
1M Return1.83%
Value0.18
Score2/3
Weight0.45%
1M Return1.83%
ROE (diluted) (YoY growth rate %)
Value14.33
Score3/3
Weight22.83%
1M Return82.15%
Value14.33
Score3/3
Weight22.83%
1M Return82.15%
Total profit / EBIT (%)
Value100.00
Score1/3
Weight0.40%
1M Return1.76%
Value100.00
Score1/3
Weight0.40%
1M Return1.76%
Operating revenue (YoY growth rate %)
Value64.40
Score3/3
Weight19.24%
1M Return80.29%
Value64.40
Score3/3
Weight19.24%
1M Return80.29%
Current ratio
Value2.88
Score2/3
Weight0.17%
1M Return0.77%
Value2.88
Score2/3
Weight0.17%
1M Return0.77%
Asset-liability ratio (%)
Value85.32
Score1/3
Weight0.02%
1M Return0.09%
Value85.32
Score1/3
Weight0.02%
1M Return0.09%
Total operating revenue (YoY growth rate %)
Value0.18
Score2/3
Weight0.45%
1M Return1.83%
Value0.18
Score2/3
Weight0.45%
1M Return1.83%
Equity multiplier
Value6.81
Score3/3
Weight18.29%
1M Return77.17%
Value6.81
Score3/3
Weight18.29%
1M Return77.17%
ROE (diluted) (YoY growth rate %)
Value14.33
Score3/3
Weight22.83%
1M Return82.15%
Value14.33
Score3/3
Weight22.83%
1M Return82.15%
Equity ratio (Total liabilities / Shareholders’ equity attributable to parent company) (%)
Value5.81
Score3/3
Weight18.24%
1M Return77.26%
Value5.81
Score3/3
Weight18.24%
1M Return77.26%
Total profit / EBIT (%)
Value100.00
Score1/3
Weight0.40%
1M Return1.76%
Value100.00
Score1/3
Weight0.40%
1M Return1.76%
Current assets turnover ratio
Value2.56
Score2/3
Weight0.62%
1M Return2.45%
Value2.56
Score2/3
Weight0.62%
1M Return2.45%
Operating revenue (YoY growth rate %)
Value64.40
Score3/3
Weight19.24%
1M Return80.29%
Value64.40
Score3/3
Weight19.24%
1M Return80.29%
Total assets turnover ratio
Value0.93
Score3/3
Weight19.73%
1M Return79.11%
Value0.93
Score3/3
Weight19.73%
1M Return79.11%
Current ratio
Value2.88
Score2/3
Weight0.17%
1M Return0.77%
Value2.88
Score2/3
Weight0.17%
1M Return0.77%
Is BFH undervalued or overvalued?
- BFH scores 7.84/10 on fundamentals and holds a Discounted valuation at present. Backed by its 16.24% ROE, 13.47% net margin, 6.77 P/E ratio, 1.05 P/B ratio, and 98.39% earnings growth, these metrics solidify its Outperform investment rating.
