Bath & Body Works Inc
Exchange: NYSESector: Consumer CyclicalIndustry: Specialty Retail
L Brands, Inc., formerly Limited Brands, Inc operates in the specialty retail business. The Company is a specialty retailer of women's intimate and other apparel, beauty and personal care products and accessories. It operates in two segments: Victoria's Secret and Bath & Body Works. It sells its merchandise through Company-owned specialty retail stores in the United States, Canada and the United Kingdom, which are primarily mall-based, and through Websites, catalogue and international franchise, license and wholesale partners. It operates in brands, such as Victoria's Secret, Victoria's Secret Pink, Bath & Body Works, La Senza, and Henri Bendel. Its business for both the Victoria's Secret and Bath & Body Works segments is principally conducted from office, distribution and shipping facilities located in the Columbus, Ohio area. As of February 2, 2013, it operated 2,619 retail stores located in leased facilities, primarily in malls and shopping centers, throughout United States.
Did you know?
BBWI's revenue grew at a 5.1% CAGR over the last 6 years.
Current Price
$18.57
-3.93%GoodMoat Value
$33.72
81.6% undervaluedProfile
Valuation (TTM)
Market Cap$3.80B
P/E5.86
EV$7.80B
P/B—
Shares Out204.72M
P/Sales0.52
Revenue$7.29B
EV/EBITDA5.53
Bath & Body Works Inc (BBWI) Stock Analysis
GoodMoat Analysis
Bath & Body Works appears to be a financially strong, cash-generative business trading at a significant discount to its estimated fair value. The key question for a value investor is the durability of its competitive advantages in a challenging retail environment.
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Bath & Body Works is a leading specialty retailer of fragrant body care, home fragrance, and soaps. Applying the GoodMoat framework, the company's primary moat likely stems from a powerful brand with deep cultural relevance (Criterion 6) and a dominant position in its niche of accessible personal fragrance and home scent (Criterion 10). While a formal Moat Score cannot be precisely calculated without more data, these factors suggest a potentially durable advantage. The business demonstrates high quality indicators, with a strong operating margin of 15.4%, a very high free cash flow yield of 23.2%, and a low P/E of 5.7, indicating significant cash generation relative to its price. The GoodMoat target price of $33.72 implies a margin of safety of approximately 86% from the current $18.19 price, which falls into the 'Deeply Undervalued' band (>40%) per the framework's valuation assessment. According to the Decision Framework, this combination of a potential moat, strong cash generation, and deep valuation discount makes the stock worth investigating further. A value investor's due diligence should focus on verifying the strength and sustainability of the brand moat, assessing the risks in the consumer cyclical sector, and understanding the drivers behind the large gap between market price and estimated intrinsic value. Analysis based on data as of 2024-05-15.
Market Cap$3.80B
Current Price$18.57
P/E Ratio5.86
Forward P/E—
PEG Ratio-1.10
EPS$3.11
Book Value$-6.26
P/B Ratio—
BBWI Financial Charts
FCF vs CAPEX
FCFCAPEX
Forward estimates use 1.8% FCF growth (CAGR)
Cash vs Debt
Net Debt: 4.0B
Revenue
5.4B
FY20
6.4B
FY21
7.9B
FY22
7.6B
FY23
7.4B
FY24
7.3B
FY25
7.3B
FY26
Net Income
—
FY20
844M
FY21
1.3B
FY22
800M
FY23
878M
FY24
798M
FY25
649M
FY26
BBWI 52-Week Range
$14.73
$32.85
50-Day MA: $21.26200-Day MA: $24.21
Did you know?
BBWI's revenue grew at a 5.1% CAGR over the last 6 years.
Bath & Body Works Inc (BBWI) Financial Summary
Bath & Body Works Inc (BBWI) is a Consumer Cyclical company in the Specialty Retail industry, listed on NYSE. The stock currently trades at $18.57 with a market capitalization of $3.80B.
Key valuation metrics include a P/E ratio of 5.86, and EPS of $3.11. The company reports a profit margin of 8.9%.
BBWI Key Financial Metrics
| Metric | Value |
|---|---|
| Market Cap | $3.80B |
| P/E Ratio | 5.86 |
| EPS | $3.11 |
| P/S Ratio | 0.52 |
| EV/EBITDA | 5.53 |
| Dividend Yield | 4.39% |
| Profit Margin | 8.9% |
BBWI Revenue & Earnings History
| Year | Revenue | Net Income |
|---|---|---|
| FY20 | $5.41B | $-366.00M |
| FY21 | $6.43B | $844.00M |
| FY22 | $7.88B | $1.33B |
| FY23 | $7.56B | $800.00M |
| FY24 | $7.43B | $878.00M |
| FY25 | $7.31B | $798.00M |
| FY26 | $7.29B | $649.00M |
Bath & Body Works Inc (BBWI) Valuation
Based on GoodMoat's DCF model, Bath & Body Works Inc has a fair value estimate of $33.72. At the current price of $18.57, the stock appears 44.9% undervalued relative to our intrinsic value estimate.
BBWI Quality Indicators
Bath & Body Works Inc maintains a profit margin of 8.9% and an operating margin of 15.4%. The current ratio is 1.27.
About Bath & Body Works Inc
L Brands, Inc., formerly Limited Brands, Inc operates in the specialty retail business. The Company is a specialty retailer of women's intimate and other apparel, beauty and personal care products and accessories. It operates in two segments: Victoria's Secret and Bath & Body Works. It sells its merchandise through Company-owned specialty retail stores in the United States, Canada and the United Kingdom, which are primarily mall-based, and through Websites, catalogue and international franchise, license and wholesale partners. It operates in brands, such as Victoria's Secret, Victoria's Secret Pink, Bath & Body Works, La Senza, and Henri Bendel. Its business for both the Victoria's Secret and Bath & Body Works segments is principally conducted from office, distribution and shipping facilities located in the Columbus, Ohio area. As of February 2, 2013, it operated 2,619 retail stores located in leased facilities, primarily in malls and shopping centers, throughout United States.
BBWI Free Cash Flow
Bath & Body Works Inc generated $865.00M in trailing twelve-month free cash flow, representing an FCF yield of 22.75%. This strong FCF yield suggests the company generates substantial cash relative to its market value.
BBWI Shares Outstanding
Bath & Body Works Inc has 0.20 billion shares outstanding at a share price of $18.57, giving it a market capitalization of $3.80B.