Bath & Body Works, Inc.

BBWI

Retail-Women's Clothing Stores

Mkt Cap

$11.05B

PE

12.58

Debt

$4.388B

Cash

$1.084B

EV

$14.35B

FCF

$656M

Market Cap

$11.05B

P/E Ratio

12.58

Debt

$4.388B

Cash

$1.084B

EV

$14.35B

FCF

$656M

Charts data: {"Earnings":[{"time":"2015-01-30","value":1042000000},{"time":"2016-01-29","value":1253000000},{"time":"2017-01-27","value":1158000000},{"time":"2018-02-02","value":983000000},{"time":"2019-02-01","value":644000000},{"time":"2020-01-31","value":-366000000},{"time":"2021-01-29","value":844000000},{"time":"2022-01-28","value":1333000000},{"time":"2023-01-27","value":800000000},{"time":"2024-02-02","value":878000000}],"Sales":[{"time":"2015-01-30","value":11454000000},{"time":"2016-01-29","value":12154000000},{"time":"2017-01-27","value":12574000000},{"time":"2018-02-02","value":12632000000},{"time":"2019-02-01","value":13237000000},{"time":"2020-01-31","value":12914000000},{"time":"2021-01-29","value":11847000000},{"time":"2022-01-28","value":7882000000},{"time":"2023-01-27","value":7560000000},{"time":"2024-02-02","value":7429000000}],"Net Margins":[{"time":"2015-01-30","value":0.09097258599615855},{"time":"2016-01-29","value":0.10309363172618068},{"time":"2017-01-27","value":0.09209479879115635},{"time":"2018-02-02","value":0.07781823939202026},{"time":"2019-02-01","value":0.048651507139079855},{"time":"2020-01-31","value":-0.028341334985287285},{"time":"2021-01-29","value":0.07124166455642779},{"time":"2022-01-28","value":0.16911951281400658},{"time":"2023-01-27","value":0.10582010582010581},{"time":"2024-02-02","value":0.11818548929869431}],"Assets":[{"time":"2015-01-30","value":7544000000},{"time":"2016-01-29","value":8493000000},{"time":"2017-01-27","value":8170000000},{"time":"2018-02-02","value":8149000000},{"time":"2019-02-01","value":8090000000},{"time":"2020-01-31","value":10125000000},{"time":"2021-01-29","value":11571000000},{"time":"2022-01-28","value":6026000000},{"time":"2023-01-27","value":5494000000},{"time":"2024-02-02","value":5463000000}],"Stockholders Equity":[{"time":"2015-01-30","value":19000000},{"time":"2016-01-29","value":-258000000},{"time":"2017-01-27","value":-727000000},{"time":"2018-02-02","value":-751000000},{"time":"2019-02-01","value":-865000000},{"time":"2020-01-31","value":-1495000000},{"time":"2021-01-29","value":-661000000},{"time":"2022-01-28","value":-1517000000},{"time":"2023-01-27","value":-2205000000},{"time":"2024-02-02","value":-1626000000}],"ROE":[{"time":"2015-01-30","value":54.8421052631579},{"time":"2016-01-29","value":-4.8565891472868215},{"time":"2017-01-27","value":-1.592847317744154},{"time":"2018-02-02","value":-1.3089214380825567},{"time":"2019-02-01","value":-0.7445086705202312},{"time":"2020-01-31","value":0.24481605351170568},{"time":"2021-01-29","value":-1.2768532526475038},{"time":"2022-01-28","value":-0.8787079762689519},{"time":"2023-01-27","value":-0.36281179138321995},{"time":"2024-02-02","value":-0.5399753997539976}],"ROA":[{"time":"2015-01-30","value":0.258881230116649},{"time":"2016-01-29","value":0.25809490168373955},{"time":"2017-01-27","value":0.24516523867809056},{"time":"2018-02-02","value":0.21205055835071787},{"time":"2019-02-01","value":0.15290482076637824},{"time":"2020-01-31","value":0.02548148148148148},{"time":"2021-01-29","value":0.13654826721977356},{"time":"2022-01-28","value":0.33338864918685696},{"time":"2023-01-27","value":0.2504550418638515},{"time":"2024-02-02","value":0.2352187442796998}]}

Bath & Body Works, Inc. operates a specialty retailer of home fragrance, body care, and soaps and sanitizer products. It sells its products under the Bath & Body Works, White Barn, and other brand names through retail stores and e-commerce sites located in the United States and Canada, as well as through international stores operated by partners under franchise, license, and wholesale arrangements. The company was formerly known as L Brands, Inc. and changed its name to Bath & Body Works, Inc. in August 2021. Bath & Body Works, Inc. was founded in 1963 and is headquartered in Columbus, Ohio.

Sector

10-Q
10/28/23
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7/29/23
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4/29/23
10-K
1/28/23
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10/29/22
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7/30/22
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4/30/22
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10/30/21
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7/31/21
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2/1/20
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11/2/19
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8/3/19
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5/4/19
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2/2/19
10-Q
11/3/18
10-Q
8/4/18
10-Q
5/5/18
10-K
2/3/18

DCF

Discounted Cash Flow Valuation of Bath & Body Works, Inc.

Calculate

Growth Years

Growth

Start

End

Discount

Start

End

Multiple

g\r	+10%	+11%	+12%	+13%	+14%
0%	10	9	8	8	7
+1%	11	10	9	8	8
+2%	13	11	10	9	8
+3%	14	13	11	10	9
+4%	17	14	12	11	10

Years	0	1	2	3	4	5	6	7	8	9	10	TV
FCF	$656M	$659M	$661.9M	$664.9M	$667.9M	$670.9M	$673.9M	$677M	$680M	$683.1M	$686.2M	$6.862B
DCF		$573M	$500.5M	$437.2M	$381.9M	$333.6M	$291.4M	$254.5M	$222.3M	$194.2M	$169.6M	$1.696B
Value	$5.054B

Chart P/E ratio

In the chart Earnings are multiplied by this value.

Earnings Growth -2.2%

Earnings Stability -8.7%

Competitiveness and MOAT

High margins render the company resilient under dire circumstances, hence able to drive competitors out or acquire them. ROE and ROA measure the average flow generated by each invested dollar. Their marginal value is a forecast of future growth, and it is considered by Buffett and Munger the most important single indicator.

The Net Margin is high enough to offer a good protection on the profits in case of higher costs or higher interests. Furthermore higher margins reduce earnings’ volatility.

Over time the ROA has been increasing indicating a higher marginal ROA with respect to the calculated one, giving a good sign for continued growth.

Years	01-2016	01-2017	02-2018	02-2019	01-2020	01-2021	01-2022	01-2023	02-2024	TTM
Net Margin	10%	9.2%	7.8%	4.9%	-2.8%	7.1%	17%	11%	12%	12%
ROA	26%	25%	21%	15%	2.5%	14%	33%	25%	24%	24%
ROE	-490%	-160%	-130%	-74%	24%	-130%	-88%	-36%	-54%	-54%

What is the average Net Margin?

The average Net Margin over the past 5 years is +8.08%.

What is the trend of Net Margin?

The trend of Net Margin over the past 5 years is +2.42%.

What is the average Return on Assets (ROA)?

The average ROA over the past 5 years is +18.9%.

What is the trend of Return on Assets (ROA)?

The trend of ROA over the past 5 years is +3.67%.

What is the average Return on Equity (ROE)?

The average ROE over the past 5 years is -59.3%.

What is the trend of Return on Equity (ROE)?

The trend of ROE over the past 5 years is -1.15%.

Safety & Stabiliy

Being debt the number one cause of investment losses and company death, the ratio Debt/FCF is of utmost importance to guarantee safety. On the other hand the Graham’s stability measures the drawdown of earnings, hence indicating the reliability of the flow generated by the company.

The company has high debt with respect to the cashflow it generates.

The Graham’s stability indicate a relevant drawdown, consider checking when it has occured and why.

Years	01-2016	01-2017	02-2018	02-2019	01-2020	01-2021	01-2022	01-2023	02-2024	TTM
Debt FCF	5.01	6.37	8.29	7.77	7.13	3.52	3.97	5.96	6.69	6.69
Debt Equity	-22.20	-7.89	-7.72	-6.72	-3.71	-9.63	-3.20	-2.20	-2.70	-2.70
MIN
Graham Stability	-	-	85%	57%	-39%	100%	100%	100%	88%	-39%

What is the Debt/FCF?

The Debt/FCF trailing twelve month is 6.69.

What is the trend of Debt/FCF?

The trend of Debt/FCF over the past 5 years is -0.24.

What is the Graham’s Stability?

Graham’s Stability measure stands at -0.39.

Growth

Growth can be dangerous when forecasting, simply projecting the current growth is in general wrong. A company passes through multiple phases, from being young and unprofitable, to the first periods of profitability and high growth, until it arrives at a period of regime with limited growth. Identifying in which phase the company is in may help forecasting.

Earnings growth has been increasing in past years.

Years	01-2017	02-2019	01-2021	01-2023	Trend
Revenue	-7.2%	-11%	-14%	-1.7%	-2.2%
Net Income	-3.9%	6.4%	1.3%	9.7%	0.68%
Stockholders Equity	-	-	-	-	-
FCF	-4.4%	-2.6%	-29%	-20%	-0.59%

What is the 5 year Revenue CAGR?

The Revenue CAGR over the past 5 years is -10.91%.

What is the trend of Revenue growth?

The trend of Revenue growth rate over the past 5 years is -2.25%.

What is the 5 year Earnings CAGR?

The Earnings CAGR over the past 5 years is +6.4%.

What is the trend of Earnings growth?

The trend of Earnings growth rate over the past 5 years is +0.68%.

What is the 5 year Equity CAGR?

The Equity CAGR over the past 5 years is +13.45%.

What is the trend of Equity growth?

The trend of Equity growth rate over the past 5 years is -.

What is the 5 year FCF CAGR?

The FCF CAGR over the past 5 years is -2.59%.

What is the trend of FCF growth?

The trend of FCF growth rate over the past 5 years is -0.59%.