Short Report on Bath & Body Works Stock

Bath & Body Works logged a 2.3% change during today's afternoon session, and is now trading at a price of $41.22 per share. The S&P 500 index moved 1.5% and the Nasdaq posted a 1.5% change. BBWI's trading volume is 1,284,136 compared to the stock's average volume of 3,957,098.

Over the last 52 weeks, the stock moved -41.2%, with a high of $71.51 and a low of $25.75. During this time, the stock lagged the S&P 500 index by -22.6%. Bath & Body Works, Inc. operates a specialty retailer of home fragrance, body care, and soaps and sanitizer products. The mid-cap Consumer Cyclical company has 8,800 full time employees and is based in Columbus, OH. Bath & Body Works has returned a 1.9% dividend yield over the last 12 months.

Snapshot of the Company's Strong Margins and Cash Flows:

2019-01-31 2020-01-31 2021-01-31 2022-01-31
Revenue (MM) $13,237 $12,914 $11,847 $7,882
Revenue Growth n/a -2.4% -8.3% -33.5%
Gross Margins 37.01% 34.46% 39.39% 48.91%
Gross Margins Growth n/a -6.89% 14.31% 24.17%
Earnings Per Share $2.31 $-1.32 $3.0 $4.88
EPS Growth n/a -157.14% 327.27% 62.67%
Free Cash Flow (MM) $748 $778 $1,811 $1,222
FCF Growth n/a 4.01% 132.78% -32.52%
Net Debt / EBITDA 2.28 3.01 1.49 1.4

Most Valuation Metrics Show Bath & body works Is Undervalued:

Compared to the Consumer Cyclical sector's average of 24.11, Bath & Body Works has a trailing twelve month price to earnings (P/E) ratio of 11.0 and, based on its Eps guidance of 3.7, an expected P/E ratio of 11.1. However, the firm's price to earnings growth (PEG) is 4.41, which indicates that it is overvalued in terms of its expected rate of earnings growth. .

There is Positive Market Sentiment About Bath & Body Works:

19 analysts are following Bath & Body Works and have set target prices ranging from $39 to $76 per share. On average, they have given the company a rating of buy. At today's prices, BBWI is trading -17.21% away from its average analyst target price of $49.79 per share, implying an analyst consensus of some upside potential for the stock.

The company has an average amount of shares sold short since 7.6% of the company's shares are tied to short positions. Institutions own 99.0% of Bath & Body Works's shares, while the insider ownership rate stands at 2.67%. The biggest shareholder is the Vanguard Group, Inc. with a 11.04% stake in the company worth approximately $1,039,899,345.00.

The above analysis is intended for educational purposes only and was performed on the basis of publicly available data. It is not to be construed as a recommendation to buy or sell any security. Any buy, sell, or other recommendations mentioned in the article are direct quotations of consensus recommendations from the analysts covering the stock, and do not represent the opinions of Market Inference or its writers. Past performance, accounting data, and inferences about market position and corporate valuation are not reliable indicators of future price movements. Market Inference does not provide financial advice. Investors should conduct their own review and analysis of any company of interest before making an investment decision.

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