Last Updated: 10 Nov 2024
Executive Summary
Bread Financial Holdings Inc. (BFH) is a leading provider of lending and payment technology solutions in North America. The company has a strong financial position, with a market capitalization of $29.37 billion and an EBITDA of $682 million. BFH's trailing price-to-earnings (PE) ratio of 9.32 is below the industry average, indicating potential undervaluation. The company has a consistent dividend payout and a dividend yield of 0.0142%.
Company Overview
Bread Financial Holdings Inc. provides a range of financial products and services to consumers and businesses. The company's core business segments include:
Consumer Lending: Provides personal loans, credit cards, and retail financing.
Commercial Lending: Offers loans and lines of credit to small and medium-sized businesses.
Payment Technology: Provides payment processing and merchant services.
BFH has a strong customer base and a diversified portfolio of products and services. The company has a wide distribution network and partnerships with major retailers and financial institutions.
Fundamental Analysis
BFH's financial performance has been solid in recent years. The company's revenue has grown steadily, and its earnings per share (EPS) have increased significantly. In the latest quarter, BFH reported a quarterly revenue growth of -0.155% and a quarterly earnings growth of -0.988% year-over-year. The company's profit margin is 0.127%, and its operating margin is 0.0652%. BFH has a strong balance sheet with low debt and ample liquidity.
Technical Analysis
BFH's stock price has been trending higher in recent months. The stock is currently trading above its 50-day and 200-day moving averages. The relative strength index (RSI) is above 50, indicating that the stock is in a bullish trend.
Short Term Outlook
In the short term, BFH's stock price is expected to continue to trend higher. The company's strong financial performance and positive technical indicators suggest that the stock is undervalued and has potential for further appreciation.
Long Term Outlook
In the long term, BFH is expected to continue to grow its business and increase its profitability. The company's strong customer base, diversified portfolio, and wide distribution network provide a solid foundation for future growth.
Analyst Recommendations
Analysts are generally positive on BFH's stock. The consensus analyst rating is "Hold," with a target price of $53.15. Three analysts recommend a "Strong Buy," two recommend a "Buy," ten recommend a "Hold," three recommend a "Sell," and none recommend a "Strong Sell."