Will Bed Bath & Beyond Stock React to Today's News?

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.

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.