Bath & Body Works logged a 0.1% change during today's morning session, and is now trading at a price of $36.55 per share. The S&P 500 index moved -1.0% and the Nasdaq posted a -0.0% change.
Bath & Body Works shares moved -19.8% over the last 52 weeks, with a high of $58.17 and a low of $25.75. During this time, the stock lagged the S&P 500 index by -12.0%. As of January 2022, the company's 50-day average price is $40.78. 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 2.2% dividend yield over the last 12 months.
The Company Has a Steady Stream of Positive Cash Flows:
| 2020-01-31 | 2021-01-31 | 2022-01-31 | 2023-01-31 | |
|---|---|---|---|---|
| Revenue (MM) | $12,914 | $11,847 | $7,882 | $7,560 |
| Revenue Growth | n/a | -8.26% | -33.47% | -4.09% |
| Gross Margins | 34.5% | 39.4% | 48.9% | 43.1% |
| Gross Margins Growth | n/a | 14.2% | 24.11% | -11.86% |
| Operating Margins | 7.6% | 13.3% | 25.5% | 18.2% |
| Operating Margins Growth | n/a | 75.0% | 91.73% | -28.63% |
| Net Margins | -2.83% | 7.12% | 16.91% | 10.58% |
| Net Margins Growth | n/a | 351.59% | 137.5% | -37.43% |
| Earnings Per Share | -$1.33 | $3.0 | $4.88 | $3.4 |
| EPS Growth | n/a | 325.56% | 62.67% | -30.33% |
| Diluted Shares (MM) | 276 | 282 | 273 | 229 |
| Free Cash Flow (MM) | $778 | $1,811 | $1,222 | $816 |
| FCF Growth | n/a | 132.78% | -32.52% | -33.22% |
| Capital Expenditures (MM) | -$458 | -$228 | -$270 | -$328 |
| Net Debt / EBITDA | 2.69 | 1.2 | 1.32 | 2.25 |
Bath & Body Works Is Fairly Priced at Current Levels:
Compared to the Consumer Cyclical sector's average of 22.33, Bath & Body Works has a trailing twelve month P/E ratio of 10.8 and, according to its EPS guidance of 3.57, an expected P/E ratio of 10.2.
Bath & Body Works's elevated P/B ratio notwithstanding, the company's strong cash flows, decent earnings multiple, and healthy debt levels factor towards it being fairly valued.
Bath & Body Works Benefits From Positive Market Indicators:
17 analysts are following Bath & Body Works and have set target prices ranging from $35.0 to $76.0 per share. On average, they have given the company a rating of buy. At the current price of $36.55, BBWI is trading -27.08% away from its average analyst target price of $50.12 per share, implying an analyst consensus of strong upside potential for the stock.
The company has an average amount of shares sold short since 5.9% of the company's shares are tied to short positions. Institutions own 97.8% 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% stake in the company worth approximately $926,592,919.
