BBWIBBWI
US • —
$23.13
P/E
6.48
PEG
—
FCF Yield
—
Rev Growth YoY
-1.4% YoY
Gross Margin
43.2%
Health Score
3/10
D/E Ratio
262.33
Confidence
LOW
Business Snapshot
Bath & Body Works operates as a specialty retailer of personal care and home fragrance products, including body lotions, soaps, candles, and hand sanitizers, primarily through its namesake stores and e-commerce platform. The company occupies a leading position within the specialty fragrance and body care market, with a strong brand identity and a loyal customer base focused on accessible luxury and seasonal product drops. With market capitalisation data unavailable, the company's financial scale cannot be precisely determined in this analysis, though its TTM revenue was not reported in the data payload. A defining characteristic is its highly capital-light retail model, which supports strong cash generation when executed well, but also leaves it vulnerable to shifts in consumer discretionary spending and mall traffic.
Financial Health
Gross margin sits at 43.2%, while net margin (TTM) is 10.0% — no prior-year comparison for gross margin is available to assess directional change. The balance sheet is significantly stretched, with a Debt/Equity ratio of 262.33x and a current ratio of 1.27x, indicating heavy leverage and only adequate short-term liquidity...
Risk Assessment
- DEBT / LIQUIDITY — Debt/equity of 262.33x is extremely high, placing the company in a financially leveraged position that limits operational flexibility and raises bankruptcy risk.
- REVENUE DECELERATION — Revenue declined 1.4% year-over-year, a contraction that, in combination with a 5.1% earnings decline, points to a deteriorating core business.
- EARNINGS QUALITY — Only 2 of the last 4 quarterly earnings reports beat estimates, indicating inconsistent earnings delivery and limited management forecasting credibility.
- TECHNICALS — RSI, MACD, and moving average data unavailable for this period; momentum cannot be independently confirmed.
- VALUATION DIVERGENCE — P/E of 6.48x appears deeply discounted relative to the sector average of 22x, but this likely reflects the market's pricing of the company's high leverage and declining earnings rather than a mispricing....
Gross margin sits at 43.2%, while net margin (TTM) is 10.0% — no prior-year comparison for gross margin is available to assess directional change. The balance sheet is significantly stretched, with a Debt/Equity ratio of 262.33x and a current ratio of 1.27x, indicating heavy leverage and only adequate short-term liquidity. Free cash flow and FCF yield were not reported in the data payload, making it impossible to assess whether the business is generating or consuming cash. Return on equity (ROE) of 3,138.9% — note this figure may be distorted or reflect a data error — further underscores that equity is extremely thin relative to earnings, a direct consequence of excessive leverage. Overall, the financial health is weak, characterised by a precarious capital structure that leaves limited capacity for dividends or reinvestment and elevates risk of dilution or restructuring.
- DEBT / LIQUIDITY — Debt/equity of 262.33x is extremely high, placing the company in a financially leveraged position that limits operational flexibility and raises bankruptcy risk. - REVENUE DECELERATION — Revenue declined 1.4% year-over-year, a contraction that, in combination with a 5.1% earnings decline, points to a deteriorating core business. - EARNINGS QUALITY — Only 2 of the last 4 quarterly earnings reports beat estimates, indicating inconsistent earnings delivery and limited management forecasting credibility. - TECHNICALS — RSI, MACD, and moving average data unavailable for this period; momentum cannot be independently confirmed. - VALUATION DIVERGENCE — P/E of 6.48x appears deeply discounted relative to the sector average of 22x, but this likely reflects the market's pricing of the company's high leverage and declining earnings rather than a mispricing.
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