Bath & Body Works, Inc. (BBWI) is a Specialty Retail company in the Consumer Cyclical sector, currently trading at $18.30. It has a SharesGrow Score of 57/100, indicating a above average investment profile with 2 out of 7 criteria passed.
SharesGrow calculates the intrinsic value of BBWI = $29.96 (+63.7% from the current price, the stock appears undervalued). Analyst consensus target is BBWI = $21 (+14.8% upside).
Valuation: BBWI trades at a trailing Price-to-Earnings (P/E) of 5.8 (S&P 500 average ~25) with a forward Price/Earnings-to-Growth (PEG) of 0.74.
Financials: revenue is $7.3B, -0.6%/yr average growth. Net income is $649M, growing at -9.3%/yr. Net profit margin is 8.9% (thin). Gross margin is 43.7% (+0.1 pp trend).
Balance sheet: total debt is $5.0B with negative equity of -$1.3B — this means total liabilities exceed total assets. This is a warning sign that may indicate accumulated losses, aggressive share buybacks, heavy debt financing, or aggressive dividend payouts. Companies like McDonald's and Starbucks also carry negative equity due to buybacks and dividends, but investors should assess whether the business generates sufficient cash flow to service its debt and sustain payouts. Current ratio is 1.27 (adequate). Debt-to-assets is 97.7%. Total assets: $5.1B.
Analyst outlook: 9 / 22 analysts rate BBWI as buy (41%) — mixed sentiment.
SharesGrow 7-Criteria breakdown: Value 88/100 (Pass), Growth 15/100 (Fail), Past 100/100 (Pass), Health 50/100 (Partial), Moat 63/100 (Partial), Future 40/100 (Partial), Income 45/100 (Partial).
