Bath & Body Works Inc. (BBWI) Stock

Bath & Body Works Inc. trades at a P/E ratio of 8.08, which is below the market average of approximately 20. This lower valuation could indicate the market has modest growth expectations, or it might represent an undervalued opportunity if the fundamentals are strong. Looking ahead, the forward P/E of 8.58 is higher than the current P/E, indicating analysts expect earnings to decline over the next year. The PEG ratio of 0.91 suggests the stock may be undervalued relative to its growth rate.

With a beta of 1.70, Bath & Body Works Inc. is significantly more volatile than the market. For every 10% market move, this stock tends to move 17% in the same direction. Higher beta stocks offer greater potential returns but with increased risk.

Bath & Body Works Inc. achieves a profit margin of 11.10%, meaning it retains $11.10 from every $100 in revenue after all expenses. This represents a solid margin typical of well-run businesses, showing the company can effectively balance revenue generation with cost control. The operating margin of 14.70% reveals how efficiently the company runs its core business operations before interest and taxes.0

Bath & Body Works Inc.'s revenue grew by 2.90% year-over-year, showing steady progress in growing the business. This positive trajectory indicates the company maintains competitive positioning in its markets. Earnings increased by 28.90% year-over-year, outpacing revenue growth through improved margins. These growth metrics should be evaluated against RETAIL-WOMEN'S CLOTHING STORES industry averages for proper context.

Bath & Body Works Inc. offers a dividend yield of 2.66%, paying $0.80 per share annually. This above-average yield of 2-4% provides meaningful income while still allowing the company to reinvest for growth. It compares favorably to the S&P 500 average and offers competitive returns versus bonds in the current rate environment. To receive the next dividend, shares must be purchased before the ex-dividend date of 6/6/2025.

The dividend sustainability can be assessed through the payout ratio - Bath & Body Works Inc. pays $0.80 per share in dividends against earnings of $3.72 per share, resulting in a payout ratio of 21.51%. This conservative payout below 30% indicates excellent dividend safety with substantial room for future increases. The company retains most earnings for growth while still rewarding shareholders. The next dividend payment is scheduled for 6/20/2025.

Bath & Body Works Inc. has a market capitalization of $6.36B, classifying it as a mid-cap stock ($2B-$10B). Mid-caps often represent companies in their growth phase, offering higher growth potential than large-caps but with more stability than small-caps. They can be attractive takeover targets and may become tomorrow's large-caps. With 211.61M shares outstanding, the company's ownership is relatively concentrated. As a participant in the RETAIL-WOMEN'S CLOTHING STORES industry, it competes with other firms in this sector.

Bath & Body Works Inc.'s book value per share is -$6.84, while the current stock price is $33.06, resulting in a price-to-book (P/B) ratio of -4.83. Trading below book value can indicate the market perceives challenges ahead, or it might represent a value opportunity if the assets are quality and earnings can recover. Value investors often screen for P/B ratios below 1.0. As a common stock, this represents equity ownership with voting rights.

18 analysts cover BBWI with 78% recommending buy/strong buy ratings. Analyst predictions have mixed reliability - studies show consensus rarely beats market returns consistently. The strong bullish consensus may already be priced in. The consensus target of $42.01 implies 27.1% upside, but targets are often adjusted to follow price moves rather than predict them.

Current analyst recommendations:4 Strong Buy, 10 Buy, 4 Hold, 00The bullish tilt suggests optimism about future prospects, though investors should conduct independent research.Remember that analyst opinions often lag price movements and can be influenced by investment banking relationships.

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MACD and moving average data are not available for this stock.