Bath & Body Works, Inc. (LB) Stock Recommendation | Score, Valuation, Technicals & Financial Trend

Score

Click here to find our call on this stock

Strong Sell

Sell

Hold

Buy

Strong Buy

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Comparison

Company

Score

Quality

Valuation

Financial

Technical

Ross Stores, Inc.

The TJX Cos., Inc.

Urban Outfitters, Inc.

Abercrombie & Fitch Co.

Gap, Inc.

Burlington Stores, Inc.

Tapestry, Inc.

American Eagle Outfitters, Inc.

Carter's, Inc.

Bath & Body Works, Inc.

Capri Holdings Ltd.

Why is Bath & Body Works, Inc. ?

With a Negative Book Value, the company has a Weak Long Term Fundamental Strength

Poor long term growth as Net Sales has grown by an annual rate of -8.28% and Operating profit at 8.12% over the last 5 years

Negative results in Jul 25

INTEREST COVERAGE RATIO(Q) Lowest at 325
CASH AND EQV(HY) Lowest at USD 1,000 MM
INVENTORY TURNOVER RATIO(HY) Lowest at 4.44 times

Risky - Negative Book Value

The stock is trading risky as compared to its average historical valuations
Over the past year, while the stock has generated a return of -48.47%, its profits have fallen by -6.2%

Consistent Underperformance against the benchmark over the last 3 years

Along with generating -48.47% returns in the last 1 year, the stock has also underperformed S&P 500 in each of the last 3 annual periods

Real-Time Research Report

Verdict Report

How much should you sell?

All quantity irrespective of whether you are making profits or losses

(If sector exposure > 30%, please use optimiser tool to see which are the best stocks to hold in Footwear)

When to re-enter? - We will constantly monitor the company and review our call based on new data

Is Bath & Body Works, Inc. for you?

High Risk, Low Return

Absolute

Risk Adjusted

Volatility

Bath & Body Works, Inc.

-50.1%

-1.02

57.32%

S&P 500

13.22%

0.64

20.20%

Quality

Management Risk

Growth

Capital Structure

Quality grade scale :

Below Average, Average, Good, Excellent

Quality key factors

Factor

Value

Sales Growth (5y)

-8.28%

EBIT Growth (5y)

8.12%

EBIT to Interest (avg)

4.72

Debt to EBITDA (avg)

1.94

Net Debt to Equity (avg)

-2.38

Sales to Capital Employed (avg)

2.75

Tax Ratio

22.73%

Dividend Payout Ratio

22.16%

Pledged Shares

Institutional Holding

100.00%

ROCE (avg)

87.78%

ROE (avg)

Valuation

Valuation Scorecard

Valuation grade scale :

Very Risky, Risky, Very Expensive, Expensive, Fair, Attractive, Very Attractive

Valuation Key Factors

Factor

Value

P/E Ratio

Industry P/E

Price to Book Value

-4.16

EV to EBIT

7.38

EV to EBITDA

6.08

EV to Capital Employed

4.74

EV to Sales

1.29

PEG Ratio

Dividend Yield

4.55%

ROCE (Latest)

64.30%

ROE (Latest)

Negative BV

Technicals

Technical key factors

Indicator

Weekly

Monthly

MACD

Bearish

RSI

No Signal

Bollinger Bands

Mildly Bearish

Bearish

Moving Averages

Bearish (Daily)

KST

Bearish

Dow Theory

No Trend

Mildly Bearish

OBV

No Trend

Bearish

Technical Indicator Scale: Bearish, Mildly Bearish, Sideways, Mildly Bullish, Bullish Turned

Technical Movement

Analyse All Technical Factors

Financial Trend

Financial Trend Scorecard

Financial Trend scale:

Very Negative, Negative, Flat, Positive, Very Positive, Outstanding

3What is working for the Company

DIVIDEND PAYOUT RATIO(Y)

Highest at 65.94%

RAW MATERIAL COST(Y)

Fallen by -0.75% (YoY

DEBTORS TURNOVER RATIO(HY)

Highest at 53.22 times

-18What is not working for the Company

INTEREST COVERAGE RATIO(Q)

Lowest at 325

CASH AND EQV(HY)

Lowest at USD 1,000 MM

INVENTORY TURNOVER RATIO(HY)

Lowest at 4.44 times

OPERATING PROFIT(Q)

Lowest at USD 221 MM

OPERATING PROFIT MARGIN(Q)

Lowest at 14.27 %

PRE-TAX PROFIT(Q)

Lowest at USD 95 MM

NET PROFIT(Q)

Lowest at USD 64 MM

EPS(Q)

Lowest at USD 0.3

Here's what is working for Bath & Body Works, Inc.

Debtors Turnover Ratio

Highest at 53.22 times

in the last five Semi-Annual periods

MOJO Watch

Company has been able to sell its Debtors faster

Debtors Turnover Ratio

Dividend Payout Ratio

Highest at 65.94%

in the last five years

MOJO Watch

Company is distributing higher proportion of profits generated as dividend

DPR (%)

Raw Material Cost

Fallen by -0.75% (YoY)

MOJO Watch

The company's ability to pass on the cost of raw materials to customers has improved; this may lead to a rise in profit margin

Raw Material Cost as a percentage of Sales

Here's what is not working for Bath & Body Works, Inc.

Net Profit

At USD 64 MM has Fallen at -58.44%

Year on Year (YoY)

MOJO Watch

Near term Net Profit trend is very negative

Net Profit (USD MM)

Interest Coverage Ratio

Lowest at 325

in the last five periods

MOJO Watch

The company's ability to manage interest payments is deteriorating

Operating Profit to Interest

Pre-Tax Profit

At USD 95 MM has Fallen at -38.71%

Year on Year (YoY)

MOJO Watch

Near term Pre-Tax Profit trend is very negative

Pre-Tax Profit (USD MM)

Operating Profit

Lowest at USD 221 MM

in the last five periods

MOJO Watch

Near term Operating Profit trend is negative

Operating Profit (USD MM)

Operating Profit Margin

Lowest at 14.27 %

in the last five periods

MOJO Watch

Company's profit margin has deteriorated

Operating Profit to Sales

Pre-Tax Profit

Lowest at USD 95 MM

in the last five periods

MOJO Watch

Near term Pre-Tax Profit trend is negative

Pre-Tax Profit (USD MM)

Net Profit

Lowest at USD 64 MM

in the last five periods

MOJO Watch

Near term Net Profit trend is negative

Net Profit (USD MM)

EPS

Lowest at USD 0.3

in the last five periods

MOJO Watch

Declining profitability; company has created lower earnings for shareholders

EPS (USD)

Cash and Eqv

Lowest at USD 1,000 MM

in the last six Semi-Annual periods

MOJO Watch

Short Term liquidity is deteriorating

Cash and Cash Equivalents

Inventory Turnover Ratio

Lowest at 4.44 times

in the last five Semi-Annual periods

MOJO Watch

Company's pace of selling inventory has slowed

Inventory Turnover Ratio