📊 BFH-PA Key Takeaways
Investment Thesis
Bread Financial demonstrates strong fundamental growth with 21% revenue expansion and exceptional net income growth of 87% YoY, coupled with healthy profitability margins (10.5% net margin). The company maintains solid liquidity metrics and generates robust free cash flow of $2.0B, though moderate leverage at 1.29x debt-to-equity and tight interest coverage of 2.5x warrant monitoring.
BFH-PA Strengths
- Strong net income growth of 87% YoY with revenue growing 21%, indicating operational leverage and improved cost management
- Excellent free cash flow generation at $2.0B with 41.2% FCF margin, demonstrating cash conversion quality
- Solid liquidity position with current ratio of 1.50x and substantial cash reserves of $3.6B relative to long-term debt of $4.3B
- Healthy ROE of 15.6% and operating margin of 12.5% indicating effective capital deployment in consumer credit operations
BFH-PA Risks
- Elevated leverage with debt-to-equity ratio of 1.29x exposes the company to refinancing risk and interest rate sensitivity
- Weak interest coverage ratio of 2.5x leaves limited cushion for earnings deterioration or rising rates in credit-sensitive business
- Consumer credit institutions face cyclical downturn risk; rapid growth may not be sustainable if economic conditions deteriorate
- High proportion of liabilities (85% of total assets) suggests significant reliance on debt funding and potential margin compression if credit performance deteriorates
Key Metrics to Watch
- Charge-off rates and delinquency ratios in credit portfolio to assess credit quality deterioration
- Net interest margin trends and funding costs as interest rate environment evolves
- Operating cash flow sustainability and free cash flow generation to validate earnings quality
- Debt-to-equity ratio and interest coverage trends to monitor leverage management
- Revenue growth rate sustainability and operating leverage continuation
BFH-PA Financial Metrics
💡 AI Analyst Insight
The 41.2% free cash flow margin provides substantial flexibility for dividends, buybacks, and strategic investments.
BFH-PA Profitability Ratios
BFH-PA vs Default Sector
How BREAD FINANCIAL HOLDINGS, INC. compares to Default sector averages
Sector benchmarks are approximate industry averages. Actual sector performance may vary.
BFH-PA Balance Sheet & Liquidity
BFH-PA 5-Year Financial Trend
5-Year Trend Summary: BREAD FINANCIAL HOLDINGS, INC.'s revenue has declined by 21% over the 5-year period, indicating business contraction. The most recent EPS of $14.34 reflects profitable operations.
BFH-PA Growth Metrics (YoY)
BFH-PA Quarterly Performance
| Quarter | Revenue | Net Income | EPS |
|---|---|---|---|
| Q3 2021 | $104.3M | $133.3M | $2.79 |
| Q2 2021 | $96.1M | $38.4M | $0.81 |
| Q1 2021 | $140.8M | $11.8M | $0.63 |
| Q3 2020 | $134.5M | -$107.6M | $-2.13 |
| Q2 2020 | $119.5M | $38.4M | $0.81 |
| Q1 2020 | $164.3M | $11.8M | $0.63 |
| Q3 2019 | $198.6M | -$107.6M | $-2.13 |
| Q2 2019 | $217.0M | $135.7M | $2.64 |
Data sourced from SEC EDGAR 10-Q quarterly filings. Figures may represent quarterly or cumulative values.
BFH-PA Capital Allocation
BFH-PA SEC Filings
Access official SEC EDGAR filings for BREAD FINANCIAL HOLDINGS, INC. (CIK: 0001101215)
📋 Recent SEC Filings
❓ Frequently Asked Questions about BFH-PA
What is the AI rating for BFH-PA?
BREAD FINANCIAL HOLDINGS, INC. (BFH-PA) has an AI rating of BUY with 75% confidence, based on fundamental analysis of SEC EDGAR filings.
What are BFH-PA's key strengths?
Strong net income growth of 87% YoY with revenue growing 21%, indicating operational leverage and improved cost management. Excellent free cash flow generation at $2.0B with 41.2% FCF margin, demonstrating cash conversion quality.
What are the risks of investing in BFH-PA?
Elevated leverage with debt-to-equity ratio of 1.29x exposes the company to refinancing risk and interest rate sensitivity. Weak interest coverage ratio of 2.5x leaves limited cushion for earnings deterioration or rising rates in credit-sensitive business.
What is BFH-PA's revenue and growth?
BREAD FINANCIAL HOLDINGS, INC. reported revenue of $4.9B.
Does BFH-PA pay dividends?
BREAD FINANCIAL HOLDINGS, INC. pays dividends, with $40.0M distributed to shareholders in the trailing twelve months.
Where can I find BFH-PA SEC filings?
Official SEC filings for BREAD FINANCIAL HOLDINGS, INC. (CIK: 0001101215) including 10-K, 10-Q, and 8-K reports are available on SEC EDGAR.
What is BFH-PA's EPS?
BREAD FINANCIAL HOLDINGS, INC. has a diluted EPS of $10.89.
How is the AI analysis conducted?
Our AI (Claude) analyzes publicly available SEC EDGAR filings including 10-K annual reports and 10-Q quarterly reports to evaluate financial health, profitability ratios, balance sheet strength, and growth metrics.