Bread Financial Holdings, Inc. (ADS) 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

Atlantic Union Bankshares Corp.

Bread Financial Holdings, Inc.

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Eastern Bankshares, Inc.

Seacoast Banking Corp. of Florida

Bank of Hawaii Corp.

The Bancorp, Inc. (Delaware)

First Financial Bancorp (Ohio)

Independent Bank Corp. (Massachusetts)

CVB Financial Corp.

Hilltop Holdings, Inc.

Why is Bread Financial Holdings, Inc. ?

High Profitability with a Net Interest Margin of -5.48%

Strong Long Term Fundamental Strength with an average Return on Assets (ROA) of 1.51%

The company has declared positive results in Mar'2025 after 2 consecutive negative quarters

PRE-TAX PROFIT(Q) At USD 174 MM has Grown at 78.46%
NET PROFIT(Q) At USD 139 MM has Grown at 95.09%
CASH AND EQV(HY) Highest at USD 8,054 MM

With ROA of 1.08%, it has a fair valuation with a 0.78 Price to Book Value

Over the past year, while the stock has generated a return of 17.82%, its profits have fallen by -31.5%

Real-Time Research Report

Verdict Report

How much should you buy?

Overall Portfolio exposure to Bread Financial Holdings, Inc. should be less than 10%
Overall Portfolio exposure to Regional Banks should be less than 30%

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

When to exit? - We will constantly monitor the company and suggest at the appropriate time to exit from the stock

Is Bread Financial Holdings, Inc. for you?

High Risk, High Return

Absolute

Risk Adjusted

Volatility

Bread Financial Holdings, Inc.

17.82%

1.90

41.52%

S&P 500

13.22%

0.65

20.20%

Quality

Management Risk

Growth

Capital Structure

Quality grade scale :

Below Average, Average, Good, Excellent

Quality key factors

Factor

Value

Sales Growth (5y)

447.53%

EBIT Growth (5y)

-37.32%

EBIT to Interest (avg)

Debt to EBITDA (avg)

Net Debt to Equity (avg)

Sales to Capital Employed (avg)

Tax Ratio

Dividend Payout Ratio

15.28%

Pledged Shares

Institutional Holding

100.00%

ROCE (avg)

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

0.78

EV to EBIT

10.88

EV to EBITDA

8.42

EV to Capital Employed

0.83

EV to Sales

0.66

PEG Ratio

Dividend Yield

131.54%

ROCE (Latest)

7.64%

ROE (Latest)

9.29%

Technicals

Technical key factors

Indicator

Weekly

Monthly

MACD

Bullish

RSI

No Signal

Bollinger Bands

Bullish

Moving Averages

Bullish (Daily)

KST

Mildly Bearish

Dow Theory

Mildly Bullish

Mildly Bearish

OBV

Mildly Bullish

Mildly 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

8What is working for the Company

PRE-TAX PROFIT(Q)

At USD 174 MM has Grown at 78.46%

NET PROFIT(Q)

At USD 139 MM has Grown at 95.09%

CASH AND EQV(HY)

Highest at USD 8,054 MM

EPS(Q)

Highest at USD 2.94

-4What is not working for the Company

NII(Q)

Lowest at USD 974 MM

CREDIT DEPOSIT RATIO(HY)

Lowest at 132.35%

NET SALES(Q)

Lowest at USD 1,194 MM

Here's what is working for Bread Financial Holdings, Inc.

Pre-Tax Profit

At USD 174 MM has Grown at 78.46%

over average net sales of the previous four periods of USD 97.5 MM

MOJO Watch

Near term Pre-Tax Profit trend is very positive

Pre-Tax Profit (USD MM)

Net Profit

At USD 139 MM has Grown at 95.09%

over average net sales of the previous four periods of USD 71.25 MM

MOJO Watch

Near term Net Profit trend is very positive

Net Profit (USD MM)

EPS

Highest at USD 2.94

in the last five periods

MOJO Watch

Increasing profitability; company has created higher earnings for shareholders

EPS (USD)

Cash and Eqv

Highest at USD 8,054 MM

in the last six Semi-Annual periods

MOJO Watch

Short Term liquidity is improving

Cash and Cash Equivalents

Here's what is not working for Bread Financial Holdings, Inc.

NII

Lowest at USD 974 MM

in the last five periods

MOJO Watch

The bank's income from core business is falling

NII (USD MM)

Net Sales

Lowest at USD 1,194 MM

in the last five periods

MOJO Watch

Near term sales trend is negative

Net Sales (USD MM)

Credit Deposit Ratio

Lowest at 132.35%

in the last four Semi-Annual periods

MOJO Watch

Bank has been creating proportionately lower loans against its deposits, thereby creating fewer revenue generating assets

Credit Deposit Ratio (%)