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

Comparison

Company

Score

Quality

Valuation

Financial

Technical

The TJX Cos., Inc.

Ross Stores, Inc.

Tapestry, Inc.

Abercrombie & Fitch Co.

Gap, Inc.

Urban Outfitters, Inc.

Burlington Stores, Inc.

American Eagle Outfitters, Inc.

Carter's, Inc.

Capri Holdings Ltd.

Bath & Body Works, Inc.

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 -47.99%, its profits have fallen by -6.2%

Consistent Underperformance against the benchmark over the last 3 years

Along with generating -47.99% 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.

-43.89%

-0.99

57.08%

S&P 500

13.68%

0.70

20.15%

Quality

Management Risk

Growth

Capital Structure

Quality grade scale :

Below Average, Average, Good, Excellent

Quality key factors

Factor

Value

Sales Growth (5y)

-8.92%

EBIT Growth (5y)

-2.53%

EBIT to Interest (avg)

4.72

Debt to EBITDA (avg)

1.94

Net Debt to Equity (avg)

-2.38

Sales to Capital Employed (avg)

2.78

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

-2.77

EV to EBIT

6.87

EV to EBITDA

5.64

EV to Capital Employed

3.66

EV to Sales

1.12

PEG Ratio

Dividend Yield

4.98%

ROCE (Latest)

53.37%

ROE (Latest)

Negative BV

Technicals

Technical key factors

Indicator

Weekly

Monthly

MACD

Bearish

RSI

No Signal

Bullish

Bollinger Bands

Bearish

Moving Averages

Bearish (Daily)

KST

Mildly Bullish

Bearish

Dow Theory

Mildly Bearish

Mildly Bullish

OBV

Mildly Bullish

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

OPERATING CASH FLOW(Y)

Highest at USD 1,180 MM

DIVIDEND PAYOUT RATIO(Y)

Highest at 53.5%

-11What is not working for the Company

RAW MATERIAL COST(Y)

Grown by 5.18% (YoY

CASH AND EQV(HY)

Lowest at USD 600 MM

INVENTORY TURNOVER RATIO(HY)

Lowest at 3.39 times

OPERATING PROFIT MARGIN(Q)

Lowest at 14.05 %

PRE-TAX PROFIT(Q)

Fallen at -28.97%

NET PROFIT(Q)

Fallen at -27.36%

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

Operating Cash Flow

Highest at USD 1,180 MM

in the last three years

MOJO Watch

The company has generated higher cash revenues from business operations

Operating Cash Flows (USD MM)

Dividend Payout Ratio

Highest at 53.5%

in the last five years

MOJO Watch

Company is distributing higher proportion of profits generated as dividend

DPR (%)

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

Operating Profit Margin

Lowest at 14.05 %

in the last five periods

MOJO Watch

Company's profit margin has deteriorated

Operating Profit to Sales

Pre-Tax Profit

Fallen at -28.97%

Year on Year (YoY)

MOJO Watch

Near term Pre-Tax Profit trend is negative

Pre-Tax Profit (USD MM)

Net Profit

Fallen at -27.36%

Year on Year (YoY)

MOJO Watch

Near term Net Profit trend is negative

Net Profit (USD MM)

Cash and Eqv

Lowest at USD 600 MM

in the last six Semi-Annual periods

MOJO Watch

Short Term liquidity is deteriorating

Cash and Cash Equivalents

Inventory Turnover Ratio

Lowest at 3.39 times

in the last five Semi-Annual periods

MOJO Watch

Company's pace of selling inventory has slowed

Inventory Turnover Ratio

Raw Material Cost

Grown by 5.18% (YoY)

MOJO Watch

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

Raw Material Cost as a percentage of Sales

Non Operating Income

Highest at USD 0.1 MM

in the last five periods

MOJO Watch

Increased income from non business activities may not be sustainable

Non Operating income