Is Bread Financial Stock a Good Investment?
Bread Financial Investment Advice | BFH |
- Examine Bread Financial's financial health by looking at its balance sheet, income statement, and cash flow statement. Analyze key financial ratios, such as Price-to-Earnings (P/E), Price-to-Sales (P/S), and Price-to-Book (P/B), to determine whether the stock is fairly valued or over/undervalued.
- Research Bread Financial's leadership team and their track record. Good management can help Bread Financial navigate difficult times and make strategic decisions that benefit shareholders and increases its net worth.
- Consider the overall health of the Consumer Finance space and any emerging trends that could impact Bread Financial's business and its evolving consumer preferences.
- Compare Bread Financial's performance and market position to its competitors. Analyze how Bread Financial is positioned in terms of product offerings, innovation, and market share.
- Check if Bread Financial pays a dividend and its dividend yield and payout ratio.
- Review what financial analysts are saying about Bread Financial's stock and their price targets. However, remember that analysts' opinions can vary, and their predictions may not always be accurate.
It's important to note that investing in Bread Financial Holdings stock, carries risks, and you should carefully consider your investment goals and risk tolerance before making any investment decisions. Also, remember that it's important for investors to have a long-term perspective and a well-diversified portfolio to manage the impact of stock market volatility on their investments. Below is a detailed guide on how to decide if Bread Financial Holdings is a good investment.
Sell | Buy |
Strong Hold
Market Performance | OK | Details | |
Volatility | Very steady | Details | |
Hype Condition | Over hyped | Details | |
Current Valuation | Overvalued | Details | |
Odds Of Distress | Very Low | Details | |
Economic Sensitivity | Hyperactively responds to market trends | Details | |
Investor Sentiment | Alarmed | Details | |
Analyst Consensus | Buy | Details | |
Financial Strenth (F Score) | Poor | Details | |
Financial Leverage | Not Rated | Details | |
Reporting Quality (M-Score) | Unlikely Manipulator | Details |
Examine Bread Financial Stock
Researching Bread Financial's stock involves analyzing various aspects of the company and its industry to make an informed investment decision. The key areas to focus on are fundamentals, business model and competitive advantage. It is also important to analyze trends in revenue, net income, and cash flow, as well as key financial ratios, such as price-to-earnings (P/E), price-to-sales (P/S), and debt-to-equity (D/E). About 99.0% of the company shares are held by institutions such as insurance companies. The company has price-to-book (P/B) ratio of 0.83. Some equities with similar Price to Book (P/B) outperform the market in the long run. Bread Financial Holdings has Price/Earnings To Growth (PEG) ratio of 0.26. The entity recorded earning per share (EPS) of 9.78. The firm last dividend was issued on the 9th of August 2024. Bread Financial had 1253:1000 split on the 8th of November 2021.
To determine if Bread Financial is a good investment, evaluating the company's potential for future growth is also very important. This may include expanding into new markets, launching new products or services, or improving operational efficiency. Companies with strong growth prospects can be more attractive investments. This aspect of the research should be conducted in the context of the overall market and industry in which the company operates and should include an analysis of growth potential, competitive landscape, and any regulatory or economic factors that could impact the business. Some of the essential points regarding Bread Financial's research are outlined below:
| Bread Financial had very high historical volatility over the last 90 days | |
| Bread Financial has a poor financial position based on the latest SEC disclosures | |
| Over 99.0% of the company shares are held by institutions such as insurance companies | |
| On 13th of September 2024 Bread Financial paid $ 0.21 per share dividend to its current shareholders | |
| Latest headline from finance.yahoo.com: YouTube ads can play even when your screen is paused now |
Bread Financial uses earnings reports to provide investors with an update of all three financial statements, including the income statement, the balance sheet, and the cash flow statement. Therefore, it is also crucial when considering investing in Bread Financial Holdings. Every quarterly earnings report provides investors with an overview of sales, expenses, and net income for the most recent period. It also may provide a comparison to Bread Financial's previous reporting period. The quarterly earnings reports are usually disseminated to the public via Form 10-Q, which is a legal document filed with the Securities and Exchange Commission every quarter.
| 25th of April 2024 Upcoming Quarterly Report | View | |
| 25th of July 2024 Next Financial Report | View | |
| 31st of March 2024 Next Fiscal Quarter End | View | |
| 23rd of January 2025 Next Fiscal Year End | View | |
| 31st of December 2023 Last Quarter Report | View | |
| 31st of December 2023 Last Financial Announcement | View |
Earnings surprises can significantly impact Bread Financial's stock price both in the short term and over time. Negative earnings surprises usually result in a price decline. However, it has been seen that positive earnings surprises lead to an immediate rise in a stock's price and a gradual increase over time. This is why we often hear news about some companies beating earning projections. Financial analysts spend a large amount of time predicting earnings per share (EPS) along with other important future indicators. Many analysts use forecasting models, management guidance, and additional fundamental information to derive an EPS estimate. Below are the table of largest EPS Surprises Bread Financial's investors have experienced.
| Reported | Fiscal Date | Estimated EPS | Reported EPS | Surprise | |||
|---|---|---|---|---|---|---|---|
2003-10-15 | 2003-09-30 | 0.21 | 0.25 | 0.04 | 19 | ||
2005-10-19 | 2005-09-30 | 0.46 | 0.51 | 0.05 | 10 | ||
2005-07-20 | 2005-06-30 | 0.44 | 0.49 | 0.05 | 11 | ||
2004-07-21 | 2004-06-30 | 0.32 | 0.37 | 0.05 | 15 | ||
2005-04-20 | 2005-03-31 | 0.46 | 0.52 | 0.06 | 13 | ||
2004-01-28 | 2003-12-31 | 0.24 | 0.3 | 0.06 | 25 | ||
2003-07-16 | 2003-06-30 | 0.18 | 0.24 | 0.06 | 33 | ||
2003-04-15 | 2003-03-31 | 0.15 | 0.21 | 0.06 | 40 |
Bread Financial Target Price Consensus
We track the performance of the top 100 financial experts across various large and mid-size financial boutiques. Bread target price is determined by taking all analyst projections and averaging them out. There is no one specific way to measure analysts' performance other than comparing it to past results via a very sophisticated attribution analysis. Bread Financial's target price projections below should be used in combination with other traditional price prediction techniques such as stock price forecasting, investor sentiment analysis, technical analysis, earnings estimate, and various momentum models.
| 18 | Buy |
Most Bread analysts issue ratings four times a year, at intervals of three months. Ratings are usually accompanied by a target price to help potential investors understand Bread stock's fair price compared to its market value. Analysts arrive at stock ratings after researching the public financial statements of Bread Financial Holdings, talking to its executives and customers, or listening to those companies' conference calls.
Macroaxis Advice Exposure ValuationBread Financial Target Price Projection
Bread Financial's current and average target prices are 52.50 and 41.90, respectively. The current price of Bread Financial is the price at which Bread Financial Holdings is currently trading. On the other hand, Bread Financial's target price is what analysts think the stock is worth or could sell for in the future. The more significant the discrepancy between the two prices, the more it stimulates investors to act.Current Price
Bread Financial Market Quote on 20th of September 2024
Target Price
Analyst Consensus On Bread Financial Target Price
Bread Financial Analyst Ratings
Bread Financial's analyst stock recommendations are determined by taking an average estimate of all analysts we track and classifying them as Strong Buy, Buy, Hold, Strong Sell, or Sell. Ratings generally communicate what analysts sense about Bread Financial stock, and they use a lot of effort and time to analyze it and arrive at a rating. That suggests that analyst recommendations are the outcome of an objective and thorough examination of Bread Financial's financials, market performance, and future outlook by experienced professionals. Bread Financial's historical ratings below, therefore, can serve as a valuable tool for investors.Know Bread Financial's Top Institutional Investors
Have you ever been surprised when a price of an equity instrument such as Bread Financial is soaring high without any particular reason? This is usually happening because many institutional investors are aggressively trading Bread Financial Holdings backward and forwards among themselves. Bread Financial's institutional investor refers to the entity that pools money to purchase Bread Financial's securities or originate loans. Institutional investors include commercial and private banks, credit unions, insurance companies, pension funds, hedge funds, endowments, and mutual funds. Operating companies that invest excess capital in these types of assets may also be included in the term and may influence corporate governance by exercising voting rights in their investments.
| Shares | Geode Capital Management, Llc | 2024-06-30 | 1.1 M | Ubs Asset Mgmt Americas Inc | 2024-06-30 | 958.7 K | Macquarie Group Ltd | 2024-06-30 | 879.8 K | Jacobs Levy Equity Management, Inc. | 2024-06-30 | 861 K | Morgan Stanley - Brokerage Accounts | 2024-06-30 | 833.8 K | Citadel Advisors Llc | 2024-06-30 | 743.7 K | Arrowstreet Capital Limited Partnership | 2024-06-30 | 727.9 K | Charles Schwab Investment Management Inc | 2024-06-30 | 717 K | Deutsche Bank Ag | 2024-06-30 | 695.4 K | Vanguard Group Inc | 2024-06-30 | 5.8 M | Blackrock Inc | 2024-06-30 | 4.8 M |
Bread Financial's market capitalization trends
The company currently falls under 'Mid-Cap' category with a total capitalization of 2.64 B.Market Cap |
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Bread Financial's profitablity analysis
| Last Reported | Projected for Next Year | ||
| Return On Tangible Assets | 0.03 | 0.03 | |
| Return On Capital Employed | 0.03 | 0.03 | |
| Return On Assets | 0.03 | 0.02 | |
| Return On Equity | 0.25 | 0.23 |
Determining Bread Financial's profitability involves analyzing its financial statements and using various financial metrics to determine if Bread Financial is a good buy. For example, gross profit margin measures Bread Financial's profitability after accounting for the cost of goods sold, while net profit margin measures profitability after accounting for all expenses. Other important metrics include return on assets, return on equity, and free cash flow. By reviewing multiple sources and metrics, you can gain a complete picture of Bread Financial's profitability and make more informed investment decisions.
Bread Financial's Earnings Breakdown by Geography
Evaluate Bread Financial's management efficiency
Bread Financial Holdings has Return on Asset of 0.0223 % which means that on every $100 spent on assets, it made $0.0223 of profit. This is way below average. In the same way, it shows a return on shareholders' equity (ROE) of 0.1649 %, implying that it generated $0.1649 on every 100 dollars invested. Bread Financial's management efficiency ratios could be used to measure how well Bread Financial manages its routine affairs as well as how well it operates its assets and liabilities. The current Return On Tangible Assets is estimated to decrease to 0.03. The current Return On Capital Employed is estimated to decrease to 0.03. As of now, Bread Financial's Debt To Assets are decreasing as compared to previous years.| Last Reported | Projected for Next Year | ||
| Book Value Per Share | 58.59 | 61.52 | |
| Tangible Book Value Per Share | 43.29 | 45.46 | |
| Enterprise Value Over EBITDA | 1.80 | 1.71 | |
| Price Book Value Ratio | 0.56 | 0.53 | |
| Enterprise Value Multiple | 1.80 | 1.71 | |
| Price Fair Value | 0.56 | 0.53 | |
| Enterprise Value | 1.8 B | 1.1 B |
The analysis of Bread Financial's management efficiency is an essential part of evaluating and assessing the financial and operational performance of the entity. It is also vital to analyze Bread Financial's future growth prospects and the overall market conditions to determine the value and potential of its stock. The analysis involves studying a range of financial metrics such as revenue, earnings, profit margins, cash flow, debt, market share, and external factors such as economic trends, industry outlook, competition, and government regulations. The goal of Bread Stock analysis is to determine whether it is undervalued, fairly valued, or overvalued and to make informed investment decisions.
Dividend Yield 0.0158 | Forward Dividend Yield 0.0158 | Forward Dividend Rate 0.84 | Beta 1.975 |
Basic technical analysis of Bread Stock
As of the 20th of September, Bread Financial shows the risk adjusted performance of 0.1244, and Mean Deviation of 2.22. Bread Financial Holdings technical analysis gives you the methodology to make use of historical prices and volume patterns to determine a pattern that approximates the direction of the firm's future prices.Bread Financial's insider trading activities
Some recent studies suggest that insider trading raises the cost of capital for securities issuers and decreases overall economic growth. Trading by specific Bread Financial insiders, such as employees or executives, is commonly permitted as long as it does not rely on Bread Financial's material information that is not in the public domain. Local jurisdictions usually require such trading to be reported in order to monitor insider transactions. In many U.S. states, trading conducted by corporate officers, key employees, directors, or significant shareholders must be reported to the regulator or publicly disclosed, usually within a few business days of the trade. In these cases Bread Financial insiders are required to file a Form 4 with the U.S. Securities and Exchange Commission (SEC) when buying or selling shares of their own companies.
Bread Financial's Outstanding Corporate Bonds
Bread Financial issues bonds to finance its operations. Corporate bonds make up one of the largest components of the U.S. bond market, which is considered the world's largest securities market. Bread Financial Holdings uses the proceeds from bond sales for a wide variety of purposes, including financing ongoing mergers and acquisitions, buying new equipment, investing in research and development, buying back their own stock, paying dividends to shareholders, and even refinancing existing debt. Most Bread bonds can be classified according to their maturity, which is the date when Bread Financial Holdings has to pay back the principal to investors. Maturities can be short-term, medium-term, or long-term (more than ten years). Longer-term bonds usually offer higher interest rates but may entail additional risks.
Understand Bread Financial's technical and predictive indicators
Using predictive indicators to make investment decisions involves analyzing Bread Financial's various financial and market-based factors to help forecast future trends and identify investment opportunities. Select the indicators that are most relevant to your investment strategy. Each indicator has its own strengths and weaknesses, so it's essential to combine multiple indicators to get a more comprehensive view of the market and reduce the risk of making poor decisions based on limited data.
| Risk Adjusted Performance | 0.1244 | |||
| Market Risk Adjusted Performance | 0.2177 | |||
| Mean Deviation | 2.22 | |||
| Semi Deviation | 2.94 | |||
| Downside Deviation | 3.5 | |||
| Coefficient Of Variation | 692.14 | |||
| Standard Deviation | 3.2 | |||
| Variance | 10.24 | |||
| Information Ratio | 0.1054 | |||
| Jensen Alpha | 0.2016 | |||
| Total Risk Alpha | (0) | |||
| Sortino Ratio | 0.0964 | |||
| Treynor Ratio | 0.2077 | |||
| Maximum Drawdown | 18.97 | |||
| Value At Risk | (3.99) | |||
| Potential Upside | 5.67 | |||
| Downside Variance | 12.24 | |||
| Semi Variance | 8.63 | |||
| Expected Short fall | (2.33) | |||
| Skewness | (0.77) | |||
| Kurtosis | 2.96 |
| Risk Adjusted Performance | 0.1244 | |||
| Market Risk Adjusted Performance | 0.2177 | |||
| Mean Deviation | 2.22 | |||
| Semi Deviation | 2.94 | |||
| Downside Deviation | 3.5 | |||
| Coefficient Of Variation | 692.14 | |||
| Standard Deviation | 3.2 | |||
| Variance | 10.24 | |||
| Information Ratio | 0.1054 | |||
| Jensen Alpha | 0.2016 | |||
| Total Risk Alpha | (0) | |||
| Sortino Ratio | 0.0964 | |||
| Treynor Ratio | 0.2077 | |||
| Maximum Drawdown | 18.97 | |||
| Value At Risk | (3.99) | |||
| Potential Upside | 5.67 | |||
| Downside Variance | 12.24 | |||
| Semi Variance | 8.63 | |||
| Expected Short fall | (2.33) | |||
| Skewness | (0.77) | |||
| Kurtosis | 2.96 |
Consider Bread Financial's intraday indicators
Bread Financial intraday indicators are useful technical analysis tools used by many experienced traders. Just like the conventional technical analysis, daily indicators help intraday investors to analyze the price movement with the timing of Bread Financial stock daily movement. By combining multiple daily indicators into a single trading strategy, you can limit your risk while still earning strong returns on your managed positions.
| Daily Balance Of Power | (9,223,372,036,855) | |||
| Rate Of Daily Change | 0.99 | |||
| Day Median Price | 52.5 | |||
| Day Typical Price | 52.5 | |||
| Price Action Indicator | (0.28) | |||
| Period Momentum Indicator | (0.56) |
Bread Financial Corporate Filings
8K | 16th of September 2024 Report filed with the SEC to announce major events that shareholders should know about | ViewVerify |
F4 | 14th of August 2024 The report filed by a party regarding the acquisition or disposition of a company's common stock, as well as derivative securities such as options, warrants, and convertible securities | ViewVerify |
10Q | 1st of August 2024 Quarterly performance report mandated by Securities and Exchange Commission (SEC), to be filed by publicly traded corporations | ViewVerify |
| 17th of May 2024 Other Reports | ViewVerify |
Bread Stock media impact
Far too much social signal, news, headlines, and media speculation about Bread Financial that are available to investors today. That information is available publicly through Bread media outlets and privately through word of mouth or via Bread internal channels. However, regardless of the origin, that massive amount of Bread data is challenging to quantify into actionable patterns, especially for investors that are not very sophisticated with ever-evolving tools and techniques used in the investment management field.
A primary focus of Bread Financial news analysis is to determine if its current price reflects all relevant headlines and social signals impacting the current market conditions. A news analyst typically looks at the history of Bread Financial relative headlines and hype rather than examining external drivers such as technical or fundamental data. It is believed that price action tends to repeat itself due to investors' collective, patterned thinking related to Bread Financial's headlines and news coverage data. This data is often completely overlooked or insufficiently analyzed for actionable insights to drive Bread Financial alpha.
Bread Financial Sentiment by Major News Outlets
Investor sentiment, mood or attitude towards Bread Financial can have a significant impact on its stock price or the market as a whole. This sentiment can be positive or negative, and various factors, such as economic indicators, news events, or market trends, can influence it. When investor sentiment is positive, investors are more likely to buy stocks, increasing demand and increasing the stock price. Positive investor sentiment can be driven by good news about the company or the broader market, such as solid earnings reports or positive economic data.
Note that negative investor sentiment can cause investors to sell stocks, leading to a decrease in demand and a drop in the stock price. Negative sentiment can be driven by factors such as poor earnings reports, negative news about the company or industry, or broader economic concerns. It's important to note that investor sentiment is just one of many factors that can affect stock prices. Other factors, such as company performance, industry trends, and global economic conditions, can also play a significant role in determining the value of a stock.
Bread Financial Holdings Historical Investor Sentiment
Investor biases related to Bread Financial's public news can be used to forecast risks associated with an investment in Bread. The trend in average sentiment can be used to explain how an investor holding Bread can time the market purely based on public headlines and social activities around Bread Financial Holdings. Please note that most equities that are difficult to arbitrage are affected by market sentiment the most.
Bread Financial's market sentiment shows the aggregated news analyzed to detect positive and negative mentions from the text and comments. The data is normalized to provide daily scores for Bread Financial and other traded tickers. The bigger the bubble, the more accurate the estimated score. Higher bars for a given day show more participation in the average Bread Financial news discussions. The higher the estimate score, the more favorable the investor's outlook on Bread Financial.
Bread Financial Corporate Management
| Rajesh Natarajan | Independent Director | Profile | |
| Sharen Turney | Independent Director | Profile | |
| Wes Hunt | Senior Excellence | Profile | |
| Greg Betchkal | Chief Officer | Profile | |
| Mike Boghosian | Senior Officer | Profile |
Additional Information and Resources on Investing in Bread Stock
When determining whether Bread Financial Holdings offers a strong return on investment in its stock, a comprehensive analysis is essential. The process typically begins with a thorough review of Bread Financial's financial statements, including income statements, balance sheets, and cash flow statements, to assess its financial health. Key financial ratios are used to gauge profitability, efficiency, and growth potential of Bread Financial Holdings Stock. Outlined below are crucial reports that will aid in making a well-informed decision on Bread Financial Holdings Stock:Check out Trending Equities to better understand how to build diversified portfolios, which includes a position in Bread Financial Holdings. Also, note that the market value of any company could be closely tied with the direction of predictive economic indicators such as signals in census. You can also try the Portfolio Backtesting module to avoid under-diversification and over-optimization by backtesting your portfolios.
Is Consumer Finance space expected to grow? Or is there an opportunity to expand the business' product line in the future? Factors like these will boost the valuation of Bread Financial. If investors know Bread will grow in the future, the company's valuation will be higher. The financial industry is built on trying to define current growth potential and future valuation accurately. All the valuation information about Bread Financial listed above have to be considered, but the key to understanding future value is determining which factors weigh more heavily than others.
Quarterly Earnings Growth 1.784 | Dividend Share 0.84 | Earnings Share 9.78 | Revenue Per Share 52.048 | Quarterly Revenue Growth 0.054 |
The market value of Bread Financial Holdings is measured differently than its book value, which is the value of Bread that is recorded on the company's balance sheet. Investors also form their own opinion of Bread Financial's value that differs from its market value or its book value, called intrinsic value, which is Bread Financial's true underlying value. Investors use various methods to calculate intrinsic value and buy a stock when its market value falls below its intrinsic value. Because Bread Financial's market value can be influenced by many factors that don't directly affect Bread Financial's underlying business (such as a pandemic or basic market pessimism), market value can vary widely from intrinsic value.
In summary, please note that there is a difference between Bread Financial's value and its price, as these two are different measures arrived at by various means. Investors typically determine if Bread Financial is a good investment by looking at such factors as earnings, sales, fundamental and technical indicators, competition as well as analyst projections. However, Bread Financial's price is the amount at which it trades on the open market and represents the number that a seller and buyer find agreeable to each party.