BFH

Bread Financial Holdings, Inc.

Fundamental data last updated:October 24, 2026

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

company profile

SECTOR

Financial Services

industry

Financial - Credit Services

Exchange

NYSE

County of HQ

US

Next Earnings Date

Pending Announcement

Business Summary

Bread Financial Holdings, Inc. provides tech-forward payment and lending solutions to customers and consumer-based industries in North America. It offers credit card and other loans financing services, including risk management solutions, account origination, and funding services for approximately 130 private label and co-brand credit card programs, as well as through Bread partnerships to approximately 500 small-and medium-sized businesses merchants; and Comenity-branded general purpose cash-back credit. The company also manages and services the loans it originates for private label, co-brand, and general-purpose credit card programs and Bread BNPL (installment loans, split-pay) products; and provides marketing, and data and analytics services. In addition, it offers an enhanced digital suite that includes a unified software development kit, which provides access to its suite of products, as well as promotes credit payment options earlier in the shopping experience. Further, the company through Bread, a digital payments platform and robust suite of application programming interfaces allows merchants and partners to integrate online point-of-sale financing and other digital payment products, including installment and split-pay solutions. The company was formerly known as Alliance Data Systems Corporation and changed its name to Bread Financial Holdings, Inc. in March 2022. Bread Financial Holdings, Inc. was founded in 1996 and is headquartered in Columbus, Ohio.

 


VALUATION

P/E

6.75

Market Cap ($M USD)

$3.57B

Forward P/E

6.14

PEG

0.62

PRICE TO SALES

0.76

PRICE TO BOOK

1.14

EV / EBITDA

5.31

5-Year Average P/E

Free Cash Flow Yield

60.93%

DCF Value

$91.84

Graham Number

$151.36

Price to FCF

1.64

EV to FCF

1.75

Earnings Yield

14.82%

FCF Yield

60.93%

DIVIDEND

Yield

1.02%

Annual Payout

$0.90

Payout Ratio

7.84%

Consecutive Years of Dividend Growth

5-Year Dividend Growth Rate

Financial Health & Profitability

Earnings Per Share

$13.11

Next Year EPS Growth Estimate

$14.41

Next Year Revenue Growth Estimate

$4.24B

Return on Equity (ROE)

17.08%

FREE CASH FLOW

Operating Margin

14.00%

Debt-to-Equity

1.32

Piotroski F-Score

7

Altman Z-Score

0.72

Return on Invested Capital (ROIC)

2.96%

Current Ratio

0.00

Quick Ratio

0.00

Net Debt to EBITDA

0.34

Interest Coverage

0.80

Gross Profit margin

63.99%

FCF PER SHARE

$50.89

REVENUE PER SHARE

$110.16

Gainseekers Quantitative Analysis

Summary

BFH Bread Financial Holdings, Inc. presents a compelling valuation story. With a Forward P/E of 6.21 and an Earnings Yield of 15.01%, the market seems to be undervaluing its earnings potential. The stock has traded below its DCF Value, suggesting a mispricing opportunity. However, the Altman Z-score of 0.72 raises red flags about financial distress risk. Despite these concerns, the Graham Number indicates potential upside, hinting at a disconnect between market perception and intrinsic value.

AI Exposure / Tech Reliance

Operating in the Financial - Credit Services industry, BFH is well-positioned to leverage AI for credit risk assessment and customer service automation. The sector's inherent reliance on data analytics provides a natural advantage in adopting AI-driven solutions. However, the company's ability to integrate these technologies will be crucial for maintaining competitiveness.

The Bull Case

For the discerning value investor, BFH offers a tantalizing proposition. The Piotroski F-Score of 7 indicates strong financial health, while a robust ROIC of 2.96% and a solid FCF Yield of 0.62% highlight efficient capital allocation. Its operating margin of 14% underscores effective cost management, suggesting pricing power in its niche. These metrics paint a picture of a company with the potential for sustainable growth and profitability.

The Bear Case

Despite its strengths, BFH faces significant structural risks. The Altman Z-score suggests potential financial instability, and the stock's proximity to its 52-week high raises concerns of technical overextension. The Price/Book ratio of 1.12 and Price/Sales ratio of 0.75, while not exorbitant, indicate limited margin for error. Additionally, a Current Ratio of 0 points to liquidity challenges that could hinder operational flexibility.

Market Sentiment & Smart Money

Short Interest %

Analyst Consensus

Hold

Average Analyst Price Target

$93.14

Institutional Ownership %

1-Year Beta

1.15

Insider Buying % (6 Mo)

Distance to 52-Week High

12.06%

Distance to 52-Week Low

44.42%

EARNINGS SURPRISE %

39.33%

50-DAY SMA

$82.66

200-DAY SMA

$71.42

⚠️ 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.