Bread Financial Stock Fair Value Calculation – BREAD FINANCIAL Reports Earnings for 2nd Quarter of FY 2023
August 7, 2023
🌥️Earnings Overview
BREAD FINANCIAL ($NYSE:BFH) announced its earnings results for the second quarter of fiscal year 2023, which ended on June 30, 2023. Total revenue increased by 4.2% to USD 952.0 million compared to the same period last year. Net income for the quarter was USD 48.0 million, a significant increase from the 12.0 million reported in the prior year.
Market Price
On Thursday, BREAD FINANCIAL reported earnings for the second quarter of Fiscal Year 2023. The company’s stock opened at $39.8 and closed at $40.0, representing a 0.8% increase from the previous closing price of $39.7. This marks the third consecutive quarter of growth for BREAD FINANCIAL, as the company has been gradually expanding its market share and strengthening its financial position. The company’s success in the second quarter can be attributed to its focus on expanding its customer base and increasing its presence in new markets. During the quarter, BREAD FINANCIAL launched new products and services that helped it grow its customer base and increase its revenue.
Additionally, the company invested in strategic partnerships with other financial institutions that enabled it to access new customers and channels of distribution. Overall, BREAD FINANCIAL’s second quarter performance was impressive, and investors have responded positively to the news. With the continued expansion of its product offering and customer base, the company is well-positioned for further growth in the coming quarters. Live Quote…
About the Company
Income Snapshot
Below shows the total revenue, net income and net margin for Bread Financial. More…
| Total Revenues | Net Income | Net Margin |
| 4.04k | 503 | 8.7% |
Cash Flow Snapshot
Below shows the cash from operations, investing and financing for Bread Financial. More…
| Operations | Investing | Financing |
| 1.85k | -1.35k | -838 |
Balance Sheet Snapshot
Below shows the total assets, liabilities and book value per share for Bread Financial. More…
| Total Assets | Total Liabilities | Book Value Per Share |
| 21.61k | 18.87k | 54.61 |
Key Ratios Snapshot
Some of the financial key ratios for Bread Financial are shown below. More…
| 3Y Rev Growth | 3Y Operating Profit Growth | Operating Margin |
| -8.4% | -28.5% | – |
| FCF Margin | ROE | ROA |
| 44.8% | 16.2% | 2.0% |
Analysis – Bread Financial Stock Fair Value Calculation
At GoodWhale, we have performed an analysis of BREAD FINANCIAL‘s financials and determined that the fair value of its share price is around $55.8. This figure was calculated by our proprietary Valuation Line, which has been designed to accurately assess the worth of a company. Currently, BREAD FINANCIAL stock is trading at $40.0, which indicates that it is undervalued by 28.3%. This represents an attractive opportunity for investors to acquire a valuable asset at a discounted rate. More…
Peers
Its main competitors are SBI Cards and Payment Services Ltd, eGuarantee Inc, CPI Card Group Inc.
– SBI Cards and Payment Services Ltd ($BSE:543066)
SBI Cards and Payment Services Ltd is a subsidiary of State Bank of India that provides credit card and payment services in India. As of 2022, the company has a market capitalization of $750.37 billion and a return on equity of 21.33%. The company offers a variety of credit cards, including those for cash back, travel, and shopping. It also provides payment services such as mobile payments, online payments, and point-of-sale payments.
– eGuarantee Inc ($TSE:8771)
Nike, Inc. is engaged in the design, development, marketing and selling of athletic footwear, apparel, equipment, accessories and services. The company operates its business in six segments: North America, Western Europe, Central & Eastern Europe, Greater China, Japan and Emerging Markets. Nike brand includes products in eight categories: running, NIKE Basketball, the Jordan Brand, football, training, action sports, golf and sportswear (which includes Nike’s casual shoes and apparel). The company sells its products to footwear stores, sporting goods stores, athletic specialty stores, department stores, skate, tennis and golf shops, and other retailers, including Nike-owned retail stores and Internet websites. It also markets products designed for kids, as well as for other athletic and recreational uses, such as cricket, lacrosse, auto racing, and riding motorcycles and bicycles. In addition, the company sells a line of athletic and casual footwear for women under the brand name Cole Haan.
– CPI Card Group Inc ($NASDAQ:PMTS)
CPI Card Group is a leading provider of financial and commercial card solutions, including credit, debit, prepaid, and merchant services. The company offers a wide range of products and services to businesses and consumers worldwide. CPI Card Group has a market cap of 275.76M as of 2022 and a return on equity of -40.5%. The company’s products and services are used by businesses and consumers worldwide.
Summary
BREAD FINANCIAL posted strong second quarter results for fiscal year 2023, with total revenue up 4.2% year-over-year to USD 952.0 million and net income increasing from USD 12.0 million to USD 48.0 million. This is a sign of the company’s resilience through the pandemic and likely bodes well for future earnings growth. Investors should keep an eye on BREAD FINANCIAL for possible opportunities, as it appears to be a sound long-term investment choice.
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