BBWI

Bath & Body Works, Inc.

Fundamental data last updated:June 12, 2026

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company profile

SECTOR

Consumer Cyclical

industry

Specialty Retail

Exchange

NYSE

County of HQ

US

Next Earnings Date

08/27/2026

Business Summary

Bath & Body Works, Inc. operates a specialty retailer of home fragrance, body care, and soaps and sanitizer products. The company sells its products under the Bath & Body Works, White Barn, and other brand names through specialty retail stores and websites located in the United States and Canada, as well as through international stores operated by partners under franchise, license, and wholesale arrangements. As of January 29, 2022, it operated 1,755 company-operated retail stores and 338 international partner-operated stores. 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.

 


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VALUATION

P/E

5.66

Market Cap ($M USD)

$4.10B

Forward P/E

6.41

PEG

-0.54

PRICE TO SALES

0.57

PRICE TO BOOK

-3.64

EV / EBITDA

5.62

5-Year Average P/E

Free Cash Flow Yield

22.17%

DCF Value

$60.02

Graham Number

N/A

Price to FCF

4.51

EV to FCF

8.79

Earnings Yield

17.68%

FCF Yield

22.17%

DIVIDEND

Yield

3.93%

Annual Payout

$0.80

Payout Ratio

22.56%

Consecutive Years of Dividend Growth

5-Year Dividend Growth Rate

Financial Health & Profitability

Earnings Per Share

$3.60

Next Year EPS Growth Estimate

$3.18

Next Year Revenue Growth Estimate

$753.18B

Return on Equity (ROE)

-52.40%

FREE CASH FLOW

Operating Margin

15.85%

Debt-to-Equity

-3.87

Piotroski F-Score

5

Altman Z-Score

2.39

Return on Invested Capital (ROIC)

32.01%

Current Ratio

1.38

Quick Ratio

0.81

Net Debt to EBITDA

2.74

Interest Coverage

4.19

Gross Profit margin

43.19%

FCF PER SHARE

$4.50

REVENUE PER SHARE

$35.86

Analyze BBWI on TradingView

Gainseekers Quantitative Analysis

Summary

The market seems to be dramatically undervaluing Bath & Body Works, Inc., as indicated by its DCF value, which is significantly higher than recent pricing. With a Forward P/E of 6.14 and an Earnings Yield of 15.54%, the stock appears to offer substantial value for investors seeking growth at a reasonable price. However, the negative Price/Book ratio and a concerning Altman Z-score of 2.27 suggest potential financial distress. Despite these red flags, the company’s robust ROIC of 32.37% indicates strong capital efficiency, hinting at management’s ability to generate returns.

AI Exposure / Tech Reliance

Operating in the Specialty Retail sector, Bath & Body Works is positioned to leverage AI for inventory management and personalized marketing. However, the industry’s reliance on physical retail could pose challenges in rapidly adapting to tech shifts. The company's resilience will depend on its ability to integrate digital strategies effectively.

The Bull Case

For value and GARP investors, Bath & Body Works presents a compelling opportunity. The impressive ROIC of 32.37% highlights its efficient use of capital, while a Piotroski F-Score of 7 suggests solid financial health. With a Free Cash Flow Yield of 21.77% and a strong Operating Margin of 15.44%, the company demonstrates significant pricing power and operational efficiency. These metrics underscore its potential for sustainable growth and profitability.

The Bear Case

Despite some appealing metrics, the stock is not without its pitfalls. The negative Return on Equity of -44.22% raises serious concerns about shareholder value destruction. Additionally, the Price/Book ratio is alarmingly negative, indicating potential overvaluation relative to its assets. The company's high beta of 1.39 suggests volatility, and the debt/equity ratio is troublingly negative, pointing to financial instability. These factors could deter risk-averse investors.

Market Sentiment & Smart Money

Short Interest %

Analyst Consensus

Hold

Average Analyst Price Target

$21.50

Institutional Ownership %

1-Year Beta

1.39

Insider Buying % (6 Mo)

Distance to 52-Week High

66.80%

Distance to 52-Week Low

29.86%

EARNINGS SURPRISE %

10.34%

50-DAY SMA

$18.68

200-DAY SMA

$22.36

⚠️ Financial Disclaimer:
This content is for informational purposes only and is not financial advice. Information may be delayed or inaccurate. We may earn a commission from partner links.