Bed Bath & Beyond Inc (BBBY) Stock Analysis
Verdict: AVOID
Terminal revenue decay and zero liquidity margin outweigh insider buying; the model views this as a high-probability value trap.
Investment score: 28/100
Analysis as of
Is Bed Bath & Beyond Inc stock worth reviewing? The TradeMates thesis
The TradeMates model identifies BBBY as a distressed asset with deteriorating fundamentals. Despite a significant discount to peers on P/S (0.28x vs sector ~1.0x), the -7% net margins and widening EPS losses make the current valuation unsustainable without a capital infusion.
7-factor investment score
- Valuation: 35/100 (weight 20%)
- Financial Health: 10/100 (weight 15%)
- Technical Momentum: 15/100 (weight 15%)
- Earnings Quality: 20/100 (weight 15%)
- Insider Sentiment: 60/100 (weight 10%)
- Analyst Consensus: 45/100 (weight 10%)
- Risk-Adjusted Return: 25/100 (weight 15%)
Bed Bath & Beyond Inc opportunities and risks
What speaks for BBBY
- CEO Alignment
What speaks against BBBY
- Liquidity Exhaustion / Insolvency
Peers and competitors
| Ticker | P/E | P/S | EV/EBITDA | Gross margin | Net margin | FCF yield |
|---|---|---|---|---|---|---|
| BBBY | n/a | 0.3x | n/a | 26.0% | -7.1% | -28.8% |
| W | n/a | 1.1x | 151.3x | 30.1% | -2.5% | 3.5% |
| RH | 32.8x | 1.0x | 13.8x | 43.5% | 3.0% | 6.5% |
| BOBS | 23.5x | 1.3x | 14.8x | 47.2% | 5.5% | 2.2% |
| ARHS | 19.5x | 0.8x | 9.5x | 39.1% | 4.0% | 3.0% |
| HVT | 38.2x | 0.6x | 12.2x | 60.9% | 1.5% | 8.4% |
| Peer median | 23.5x | 1.0x | 13.8x | 43.5% | 3.0% | 3.5% |
Frequently asked questions about Bed Bath & Beyond Inc (BBBY)
Is BBBY stock a good investment?
The TradeMates model rates Bed Bath & Beyond Inc as AVOID with an investment score of 28/100. The TradeMates model identifies BBBY as a distressed asset with deteriorating fundamentals. Despite a significant discount to peers on P/S (0.28x vs sector ~1.0x), the -7% net margins and widening EPS losses make the current valuation unsustainable without a capital infusion. This is algorithmic model output, not personal investment advice.
Is BBBY stock a buy?
The TradeMates model verdict for BBBY is AVOID with an investment score of 28/100. Treat this as a model signal to review, not a personal buy recommendation.