Now trading at a price of $50.03, Bath & Body Works has moved 2.2% so far today.
Bath & Body Works returned gains of 32.2% last year, with its stock price reaching a high of $50.45 and a low of $27.3. Over the same period, the stock outperformed the S&P 500 index by 5.8%. More recently, the company's 50-day average price was $46.36. Bath & Body Works, Inc. operates a specialty retailer of home fragrance, body care, and soaps and sanitizer products. Based in Columbus, OH, the Large-Cap Consumer Cyclical company has 8,981 full time employees. Bath & Body Works has offered a 1.6% dividend yield over the last 12 months.
The Company's Revenues Are Declining:
| 2018 | 2019 | 2020 | 2021 | 2022 | 2023 | |
|---|---|---|---|---|---|---|
| Revenue (M) | $13,237 | $5,405 | $6,434 | $7,882 | $7,560 | $7,429 |
| Gross Margins | 37% | 44% | 48% | 49% | 43% | 44% |
| Net Margins | 5% | -7% | 13% | 17% | 11% | 12% |
| Net Income (M) | $644 | -$366 | $844 | $1,333 | $800 | $878 |
| Net Interest Expense (M) | $385 | $370 | $432 | $388 | $348 | $345 |
| Depreciation & Amort. (M) | $590 | $588 | $521 | $363 | $221 | $269 |
| Diluted Shares (M) | 276 | 283 | 267 | 229 | 228 | 229 |
| Earnings Per Share | $2.31 | -$1.32 | $3.0 | $4.88 | $3.43 | $3.84 |
| EPS Growth | n/a | -157.14% | 327.27% | 62.67% | -29.71% | 11.95% |
| Avg. Price | $25.22 | $17.01 | $18.55 | $55.89 | $46.65 | $49.98 |
| P/E Ratio | 10.82 | -12.79 | 6.1 | 11.27 | 13.52 | 12.95 |
| Free Cash Flow (M) | $748 | $778 | $1,811 | $1,222 | $816 | $656 |
| CAPEX (M) | $629 | $458 | $228 | $270 | $328 | $298 |
| EV / EBITDA | 6.8 | 5.31 | 4.04 | 7.55 | 9.24 | 9.36 |
| Total Debt (M) | $5,814 | $6,375 | $4,852 | $4,860 | $4,497 | $4,388 |
| Net Debt / EBITDA | 3.0 | 2.42 | 1.61 | 1.92 | 2.56 | 2.13 |
| Current Ratio | 1.15 | 1.48 | 2.08 | 1.34 | 1.39 | 1.64 |
Bath & Body Works has wider gross margins than its peer group and positive EPS growth. Additionally, the company's financial statements display a decent current ratio of 1.64 and healthy leverage levels. However, the firm has declining revenues and decreasing reinvestment in the business. Finally, we note that Bath & Body Works has positive cash flows.
Bath & Body Works Shares Are Expensive:
Bath & Body Works has a trailing twelve month P/E ratio of 12.1, compared to an average of 22.96 for the Consumer Cyclical sector. Based on its EPS guidance of $3.74, the company has a forward P/E ratio of 12.4. The 7.1% compound average growth rate of Bath & Body Works's historical and projected earnings per share yields a PEG ratio of 1.69. This suggests that these shares are overvalued.
Analysts Give Bath & Body Works an Average Rating of Buy:
The 18 analysts following Bath & Body Works have set target prices ranging from $42.0 to $65.0 per share, for an average of $51.35 with a buy rating. The company is trading -2.6% away from its average target price, indicating that there is an analyst consensus of some upside potential.
Bath & Body Works has an average amount of shares sold short because 3.3% of the company's shares are sold short. Institutions own 98.2% of the company's shares, and the insider ownership rate stands at 0.3%, suggesting a small amount of insider investors. The largest shareholder is Vanguard Group Inc, whose 12% stake in the company is worth $1,370,731,512.
