BBBY investors are bailing out this morning. As Barrons's reports: "Bed Bath & Beyond Expresses 'Substantial Doubt' About Its Ability to Continue." For more coverage, read the full article here. On the back of this news, Bed Bath & Beyond sank -23.3% to a price of $1.85.
Here's an overview of Bed Bath & Beyond's bleak financial situation:
| 2019-02-28 | 2020-02-29 | 2021-02-28 | 2022-02-28 | |
|---|---|---|---|---|
| Revenue (MM) | $12,029 | $11,159 | $9,233 | $7,868 |
| Revenue Growth | n/a | -7.23% | -17.26% | -14.79% |
| Gross Margins | 34.1% | 31.7% | 33.8% | 31.6% |
| Gross Margins Growth | n/a | -7.04% | 6.62% | -6.51% |
| Operating Margins | 3.5% | -1.7% | -1.2% | -2.6% |
| Operating Margins Growth | n/a | -148.57% | 29.41% | -116.67% |
| Earnings Per Share | -$1.02 | -$4.94 | -$1.24 | -$5.64 |
| EPS Growth | n/a | -384.31% | 74.9% | -354.84% |
| Free Cash Flow (MM) | $593 | $314 | $85 | -$336 |
| FCF Growth | n/a | -47.12% | -72.88% | -495.54% |
| Capital Expenditures (MM) | -$325 | -$277 | -$183 | -$354 |
| Net Debt / EBITDA | 1.29 | 6.27 | 0.84 | 12.81 |
Note the outsize leverage amunts, as expressed by its debt to EBITDA ratio. At today's price of $1.85 per share, Bed Bath & Beyond is -42.75% away from its target price of $3.23, and on average, analysts give the stock a rating of underperform. 57.1% of the company's shares are linked to short positions, and 54.6% of the shares are owned by institutional investors.
