QualityDipStocks / Consumer Discretionary · Business Services
Bread Financial BFH
Outside our quality screen, so we don’t track its dips. It’s 6% below its 52-week high.
Outside our quality screen, trading well below our fair value estimate, 4% over its Market Value.
- Fair value est.
- $158.47+48%
- Market Value
- $103.53price +4%
- Off 52-wk high
- −6%
- Risk vs market
- Above marketbeta 1.17
5 bullish · 2 bearish See why
Priced in
How much growth the market assumed at the 52-week high, the low and today (a reverse DCF).
52-wk high: P/E 8.2×; now: P/E 7.7×.
| High | Now | |
|---|---|---|
| Price | $113.40Aug 14 | $107.16 |
| P/E | 8.2× | 7.7× |
What this means: a lower P/E than at the high means you pay less for each dollar of profit than buyers did then.
How it’s computed
Banks, insurers and lenders: cash flow includes deposits and loans, so a cash-flow model doesn't fit; we show P/E at each point instead. P/E = that day's close × diluted shares / 12-month net income, using only the filings that were public on that day.
Valuation
What we estimate it's worth, and how it ranks on value vs every stock we cover.
Fair value estimate
How the range is computed
Financials model (residual income). Same residual-income model as the base: cost of equity 9.5% ±1 point and return on equity 18.6% ±2 points. Bear = 10.5% and 16.6%; bull = 8.5% and 20.6%. A model estimate from public filings, not a forecast of where the price will go.
Price is below even the bear case.
What the price implies To be worth today’s price, BFH would need a return on equity of about 12% a year; our estimate uses 19%.
Risk vs market
How risk vs market is measured
One year of daily returns (Oct 31 to Nov 2, 252 sessions). Beta = how much BFH moved for each 1% move in the S&P 500 (SPY); 1.0 moves with the market. Volatility is the yearly standard deviation of daily returns. Past behavior, not a forecast.
Swings more than the market, and its own price swings are 3.1× the S&P 500’s.
- Beta vs S&P 500
- 1.17
- Volatility
- 39% vs 13% SPY
- Correlation SPY
- 0.38
- Correlation QQQ
- 0.29
Valuation details
DCF $158.47 · MV $103.53
Financials model (residual income): book value $91.20 a share on Sep 30, 2026, plus the earnings above a 9.5% cost of equity. ROE 18.6%, the average of 15.8% for the trailing 12 months to Sep 30, 2026 and 21.5% over fiscal 2021–2025, on average common equity; payout 100% of earnings (dividends 7% + net buybacks 99%; capped at 100%), so book grows by the retained rest; the return above 9.5% fades halfway toward 9.5% over 10 years, then grows at 3% (terminal value). From the 10-Q filed Oct 27, 2026.
Fundamentals
The business itself: sales, profits, cash and debt, from SEC filings.
Bull vs bear
Rule-based from the data on this page, strongest first. Not advice.
Top bullish points 5 of 5
ValuationOur residual-income fair value estimate is $158.47, 48% above the price.
ValuationP/E of 7.7× vs a 20.7× median for the 341 Consumer Discretionary companies we cover.
Cash returnsShare count down 17.3% in a year: $595M of buybacks over 12 months.
GrowthDiluted EPS grew 98% in the last fiscal year, above the 4.2% median for the 293 Consumer Discretionary companies we cover.
ProfitabilityReturn on equity of 16% over the last 12 months.
Top bearish points 2 of 5
ProfitabilityReturn on equity fell 9 points in two fiscal years, to 16% in FY2025.
Cash returnsDividend yield of 1.0%, below the 1.8% median for the 229 Consumer Discretionary companies we cover.
All fundamentals
P/E 7.7 · ROE 16%
Valuation
- P/E
- 7.7×Consumer Discretionary median 20.7×
- Price / FCF
- n/acash flow isn't a clean measure for a lender
- FCF yield
- n/acash flow isn't a clean measure for a lender
- EV / EBITDA
- n/anot meaningful for a lender
- Price / sales
- n/anot reported in its SEC filings
- Price / book
- 1.18×
- Market cap
- $4.1Bprice × diluted shares
- Enterprise value
- n/anot reported in its SEC filings
Growth
- Revenue, 12 months
- n/anot reported in its SEC filings
- Sales growth, 12 months
- n/ano year-ago 12-month revenue
- Sales growth, 3 yrs
- n/anot reported in its SEC filings
- Diluted EPS, 12 months
- $12.78
- EPS growth, last FY
- +98.4%
- Net income, 12 months
- $527M
- Net income growth
- +12%12 months vs before
Profitability
- Gross margin
- n/anot meaningful for a lender
- Operating margin
- n/anot reported in its SEC filings
- Net margin
- n/anot reported in its SEC filings
- FCF margin
- n/anot reported in its SEC filings
- Return on equity
- 16%
- Return on invested capital
- n/anot meaningful for a lender
Balance sheet
- Cash & short-term inv.
- $4.0B
- Total debt
- n/anot reported in its SEC filings
- Net cash
- n/anot meaningful for a lender
- Debt / equity
- n/adeposits/float make debt/equity not comparable for a lender
- Interest coverage
- n/anot meaningful for a lender
Cash flow & returns
- Free cash flow, 12 months
- n/anot reported in its SEC filings
- FCF growth, 12 months
- n/anot reported in its SEC filings
- Dividend yield
- 0.96%$39M paid
- Payout ratio
- 7%
- Buybacks, 12 months
- $595M14.6% of market cap
- Share count, 1 year
- −17.3%diluted shares vs a year ago
- Stock-based comp
- $61M
Trailing 12 months to Sep 30, 2026; balance sheet at Sep 30, 2026. From Bread Financial’s SEC filings. Sparklines show up to six fiscal years. n/a means we don’t hold that number, with the reason. How each is computed.
The business
Sales +4%
- Gross margin0%
- Operating margin30%
- Return on invested capital25%
- Return on equity16%
- Sales growth (latest quarter vs year-ago quarter)+4%
Chart & levels
Where the price is vs its key levels and trends.
Key levels
Every level vs today’s $107.16
- 52-wk lowlowest close, 1 year$59.98−44.0%
- Market Valueavg paid since Oct 22$103.53−3.4%
- PriceMon Nov 2 close$107.16you are here
- 52-wk highhighest close, 1 year$113.40+5.8%
- Fair value est.base case$158.47+47.9%
Momentum & 52-week range
RSI 58 · 5 days +5.3%
Signals
Reversal signal setups, the public ledger and the next earnings date.
Setup & signals
No setup armed
No setup armed, so there’s no trigger or stop to track yet. Reversal signal rules only run on companies that pass our quality screen.
BFH is outside our quality screen
One text when a published rule fires on one of the 332 quality companies we track: the ticker, the price, the stop and a link to the numbers. Nothing else.
Voices & buzz
Who is talking about it, and how it compares with peers.
Who’s talking about it
Notable investors, executives, analysts and public figures on Bread Financial in the last 48 hours. Headlines as published, each linked. Their words, not ours.
No notable mentions in the last 48 hours. Checked Nov 3, 1:01 PM ET.
Compare with peers
Closest in size in Business Services
Information only, not investment advice. Fair value estimates and talking points are rule-based model output from public data and can be wrong; stop levels are reference points, not orders. How every number is computed.