Bath & Body Works Inc (BBWI) Stock Analysis
Verdict: WATCH (do not buy)
Deep 27.4% FCF yield and 5.0x P/E offer strong margin of safety, but negative equity and store sales headwinds cap immediate rerating.
Investment score: 57/100
Analysis as of
Is Bath & Body Works Inc stock worth reviewing? AI model thesis
The model assesses BBWI as a HOLD. Unusually cheap valuation (4.97x P/E) and robust free cash flow ($865M FY26) provide downside support, but revenue contraction and leverage keep upside constrained until store traffic stabilizes.
7-factor investment score
- Valuation: 85/100 (weight 20%)
- Financial Health: 45/100 (weight 15%)
- Technical Momentum: 30/100 (weight 15%)
- Earnings Quality: 75/100 (weight 15%)
- Insider Sentiment: 50/100 (weight 10%)
- Analyst Consensus: 45/100 (weight 10%)
- Risk-Adjusted Return: 55/100 (weight 15%)
Bath & Body Works Inc opportunities and risks
What speaks for BBWI
- Extremely Low Valuation vs Specialty Retail Peers
What speaks against BBWI
- Heavy Debt Burden and Deficit Equity Structure
Peers and competitors
| Ticker | P/E | P/S | EV/EBITDA | Gross margin | Net margin | FCF yield |
|---|---|---|---|---|---|---|
| BBWI | 5.0x | 0.5x | 5.4x | 44.1% | 10.8% | 27.4% |
| ULTA | 19.6x | 1.8x | 14.5x | 39.3% | 9.3% | 4.6% |
| TSCO | 18.1x | 1.2x | 12.8x | 32.5% | 6.4% | 1.7% |
| FIVE | 30.9x | 2.7x | 19.2x | 34.8% | 8.7% | 3.7% |
| DKS | 13.9x | 0.5x | 10.9x | 32.1% | 4.0% | 2.1% |
| CHWY | 48.5x | 0.7x | 25.6x | 29.7% | 1.6% | 6.2% |
| Peer median | 19.6x | 1.2x | 14.5x | 32.5% | 6.4% | 3.7% |
Frequently asked questions about Bath & Body Works Inc (BBWI)
Is BBWI stock a good investment?
The cached TradeMates AI model rates Bath & Body Works Inc as WATCH (do not buy) with an investment score of 57/100. The model assesses BBWI as a HOLD. Unusually cheap valuation (4.97x P/E) and robust free cash flow ($865M FY26) provide downside support, but revenue contraction and leverage keep upside constrained until store traffic stabilizes. This is algorithmic model output, not personal investment advice.
Is BBWI stock a buy?
The TradeMates model verdict for BBWI is WATCH (do not buy) with an investment score of 57/100. Treat this as a model signal to review, not a personal buy recommendation.