Fact based stock research
Bath & Body Works (NYSE:LB)

US0708301041

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For every stock, we judge its performance against its peers and rank it on a scale of 1 to 100. The higher the rank, the better the stock performs than its peers. And, we do this for six investment strategies:
Value - shows how good of a value the stock is. Green is "inexpensive"; red is "expensive".

Growth - shows a company's growth potential. Green is "high growth" expected; red is "tough times ahead".

Safety - relates to the amount of debt a company has. Green is low debt level; red is high debt level.

Combined Financial - this isn't an average of the first three ranks but rather a consolidated view across several financial indicators. Green = good; red = tread carefully.

(NEW) Sentiment - quantifies professional analyst ratings and holdings as well as market pulse. Green = positive sentiment; red = skepticism (Only available to Premium Subscribers).

(NEW) 360° View - the ultimate rating with all financial and non-financial indicators.

Bath & Body Works stock research in summary

bbwinc.com

ANALYSIS: With an Obermatt Combined Rank of 55 (better than 55% compared with investment alternatives), Bath & Body Works (Specialty Stores, USA) shares have above-average financial characteristics compared with similar stocks. Shares of Bath & Body Works are a good value (attractively priced) with a consolidated Value Rank of 95 (better than 95% of alternatives) but show below-average growth (Growth Rank of 43), and are riskily financed (Safety Rank of 12), which means above-average debt burdens. ...read more

RECOMMENDATION: A Combined Rank of 55, is a buy recommendation based on Bath & Body Works's financial characteristics. As the company Bath & Body Works's key financial metrics exhibit good value (Obermatt Value Rank of 95) but low growth (Obermatt Growth Rank of 43) and risky financing practices (Obermatt Safety Rank of 12), it may be a risky investment, because debt in times of crises can make things worse. The good value, better than 95% of comparable companies, may indicate the company's future is challenging. If you believe that low growth is temporary or just due to a specific current event, you may conclude that the good value of the stock provides an attractive investment opportunity. Obermatt Premium subscribers can further check the stock’s Sentiment Ranks, which also flow into the Obermatt 360° View for investors. ...read more

Latest Obermatt Ranks


360° View^new
Sentiment Rank^new
Value Rank	95
Growth Rank	43
Safety Rank	12
Combined Rank	55

Country	USA
Industry	Specialty Stores
Index	Dividends USA, S&P US Luxury, S&P 500
Size class	X-Large

This stock has achievements: Top 10 Stock.

19-Dec-2024. Stock data may be delayed. Log in or sign up to get the most recent research.

Further information

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Review the performance ranks of the individual metrics that form each investment strategy.

Research History: Bath & Body Works

RESEARCH HISTORY	2021	2022	2023	2024
VALUE
VALUE	89	63	88	95
GROWTH
GROWTH	93	43	25	43
SAFETY
SAFETY	45	23	16	12
SENTIMENT
SENTIMENT	n/a	93	80	^new
360° VIEW
360° VIEW	n/a	67	57	^new

Most recent update of the stock research: 19-Dec-2024. Financial reporting date used for calculating ranks: 2-Nov-2024. Stock research history is based on the Obermatt Method. The higher the rank, the better Bath & Body Works is in the corresponding investment strategy.
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Combined financial peformance in Detail

RESEARCH HISTORY	2021	2022	2023	2024
VALUE
VALUE	89	63	88	95
GROWTH
GROWTH	93	43	25	43
SAFETY
SAFETY	45	23	16	12
COMBINED
COMBINED	97	34	30	55

Last update of combined financial performance: 19-Dec-2024. Stock analysis on combined financial performance: The higher the rank of Bath & Body Works the better the performance.

Value Metrics in Detail

ANALYSIS: With an Obermatt Value Rank of 95 (better than 95% compared with alternatives) for 2024, Bath & Body Works shares are significantly less expensive than comparable stocks. The Value Rank is based on consolidating four value indicators, with three out of four indicators above average for Bath & Body Works. Price-to-Profit (also referred to as price to earnings, P/E ratio) is 77 which means that the stock price compared with what market professionals expect for future profits is lower than for 77% of comparable companies, indicating a good value concerning Bath & Body Works's profit levels. The same is valid for the expected Price-to-Book Capital ratio (also referred to as market-to-book ratio) with a Price-to-Capital Rank of 89, and for Dividend Yield with a Dividend Yield Rank of 86. But, compared with other companies in the same industry, the stock price is higher than average as regards expected revenues; only 64% of all competitors have an even higher stock price as regards to sales revenues (a Price-to-Sales Rank of 36). Profits, the level of invested capital, and dividend policy suggest that this stock is attractively priced. ...read more

RECOMMENDATION: The overall picture with a consolidated Value Rank of 95, is a buy recommendation based on Bath & Body Works's stock price compared with the company's operational size and dividend yields. Since it is on the expensive side for Price-to-Sales, it may mean that Bath & Body Works has pricing power in its distribution market because it can charge higher prices than its competitors. If this is the case, all four value indicators are positive signals for purchasing Bath & Body Works shares. 9. We recommend further analyzing the stock with Obermatt’s Value, Safety, and Sentiment Ranks, including the 360° View, before making an investment decision. ...read more

VALUE METRICS	2021	2022	2023	2024
PRICE VS. REVENUES (P/S)
PRICE VS. REVENUES (P/S)	41	14	21	36
PRICE VS. PROFITS (P/E)
PRICE VS. PROFITS (P/E)	85	36	63	77
PRICE VS. CAPITAL (Market-to-Book)
PRICE VS. CAPITAL (Market-to-Book)	100	92	91	89
DIVIDEND YIELD
DIVIDEND YIELD	41	76	76	86
CONSOLIDATED RANK: VALUE
CONSOLIDATED RANK: VALUE	89	63	88	95

Last update of Value Rank: 19-Dec-2024. Stock analysis on value ratios: The higher the rank, the lower the value ratio of Bath & Body Works; except for dividend yield where the rank is higher, the higher the yield.

Growth Metrics in Detail

ANALYSIS: With an Obermatt Growth Rank of 43 (better than 43% compared with alternatives), Bath & Body Works shows a below-average growth dynamic in its industry. There is limited momentum in this company. The Growth Rank is based on consolidating four value indicators, with three out of four indicators below average for Bath & Body Works. Only Capital Growth has a good rank of 67, which means that currently professionals expect the company to grow its invested capital more than 48% of its competitors. The other three indicators are pointing South: Sales Growth has a rank of 37 which means that currently professionals expect the company to grow less than 63% of its competitors. Profit Growth with a rank of 48 and Stock Returns with a rank of 43 are also low (below 57% of alternative investments). ...read more

RECOMMENDATION: The overall picture with a consolidated Growth Rank of 43, is a hold recommendation for growth and momentum investors. The good news from the invested capital side is surprising. A company with disappointing revenues, profits, and disappointed shareholders typically doesn't invest above average. Overall, the growth momentum for Bath & Body Works is thus negative. As it is intriguing to see that company executives are optimistic about their investment policy, it is worthwhile looking into the details of the capital investment projects. They may indicate future growth and profits and thus if accompanied by a good value, a sign of good timing to invest in the stock. While momentum is a popular investment factor, the value aspect might be the more important one, in the longer term. We recommend analyzing the stock with Obermatt’s Value, Safety, and Sentiment Ranks to arrive at a 360° View of the stock purchase case, especially since the growth performance is limited here. ...read more

GROWTH METRICS	2021	2022	2023	2024
REVENUE GROWTH
REVENUE GROWTH	60	55	35	37
PROFIT GROWTH
PROFIT GROWTH	12	32	62	48
CAPITAL GROWTH
CAPITAL GROWTH	n/a	14	24	67
STOCK RETURNS
STOCK RETURNS	92	77	43	43
CONSOLIDATED RANK: GROWTH
CONSOLIDATED RANK: GROWTH	93	43	25	43

Last update of Growth Rank: 19-Dec-2024. Stock analysis on growth metrics: The higher the rank, the higher the growth and returns of Bath & Body Works.

Safety Metrics in Detail

ANALYSIS: With an Obermatt Safety Rank of 12 (better than 12% compared with alternatives), the company Bath & Body Works has much riskier financing practices than comparable other companies, which means that their overall debt burden is significantly above the industry average. This doesn't mean that the business of Bath & Body Works is also risky, it only means that the company is on the riskier side in respect to bankruptcy in case things turn sour, assuming that public reporting is correct. The Safety Rank is based on consolidating three financing indicators, with all three metrics below average for Bath & Body Works. Liquidity is at 49, meaning that the company generates less profit to service its debt than 51% of its competitors. This indicates that the company is on the riskier side when it comes to debt service. Even worse, Leverage is at a rank of 6, meaning the company has an above-average debt-to-equity ratio. It has more debt than 94% of its competitors. Finally, Refinancing is at a rank of 25 which means that the portion of the debt about to be refinanced is above average. It has more debt in the refinancing stage than 75% of its competitors. ...read more

RECOMMENDATION: With a consolidated Safety Rank of 12 (worse than 88% compared with alternatives), Bath & Body Works has a financing structure that is significantly riskier than that of its competitors. This combination is rather dangerous in most situations. Only very promising companies with bright future outlooks and stellar reputations can operate with such risky financing. Investors should look at Obermatt’s Value, Growth, and Sentiment Ranks to confirm a very positive outlook or be careful with investing in stocks of Bath & Body Works because it may suffer significantly in case of future difficulties. ...read more

SAFETY METRICS	2021	2022	2023	2024
LEVERAGE
LEVERAGE	35	4	3	6
REFINANCING
REFINANCING	57	48	38	25
LIQUIDITY
LIQUIDITY	66	34	37	49
CONSOLIDATED RANK: SAFETY
CONSOLIDATED RANK: SAFETY	45	23	16	12

Last update of Safety Rank: 19-Dec-2024. Stock analysis on safety metrics: The higher the rank, the lower the leverage of Bath & Body Works and the more cash is available to service its debt.

Sentiment Metrics in Detail

SENTIMENT	2021	2022	2023	2024
ANALYST OPINIONS
ANALYST OPINIONS	n/a	84	52	^new
OPINIONS CHANGE
OPINIONS CHANGE	n/a	75	50	^new
PRO HOLDINGS
PRO HOLDINGS	n/a	81	98	^new
MARKET PULSE
MARKET PULSE	n/a	60	79	^new
CONSOLIDATED RANK: SENTIMENT
CONSOLIDATED RANK: SENTIMENT	n/a	93	80	^new

Last update of Sentiment Rank: 19-Dec-2024. Stock analysis on sentiment metrics: The higher the rank, the more positive the sentiment for Bath & Body Works.
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