Bread Financial Holdings Stock Buy Hold or Sell Recommendation
| BFH Stock | USD 56.80 0.38 0.66% |
Considering the 90-day investment horizon and your above-average risk tolerance, our recommendation regarding Bread Financial Holdings is 'Cautious Hold'. The recommendation algorithm takes into account all of Bread Financial's available fundamental, technical, and predictive indicators you will find on this site.
Check out Bread Financial Analyst Recommendation to compare Macroaxis Buy or Sell Recommendation with the current analyst consensus. To check ratings for multiple equity instruments, please use the Instant Ratings tool. In addition, we conduct extensive research on individual companies such as Bread and provide practical buy, sell, or hold advice based on investors' investing horizon and their risk tolerance towards Bread Financial Holdings. Also, note that the market value of any company could be closely tied with the direction of predictive economic indicators such as signals in census.
Bread |
Execute Bread Financial Buy or Sell Advice
The Bread recommendation should be used to complement the buy-or-sell advice compiled from the current analysts' consensus on Bread Financial Holdings. Macroaxis does not own or have any residual interests in Bread Financial Holdings or other equities on which the buy-or-sell advice is provided. Please provide your input below to execute Bread Financial's advice using the current market data and latest reported fundamentals.
Time Horizon
Risk Tolerance
 |  |
Cautious Hold
Market Performance | Weak | Details | |
Volatility | Very steady | Details | |
Hype Condition | Low key | Details | |
Current Valuation | Overvalued | Details | |
Odds Of Distress | Very Low | Details | |
Economic Sensitivity | Hyperactively responds to market trends | Details | |
Investor Sentiment | Alarmed | Details | |
Analyst Consensus | Buy | Details | |
Financial Strenth (F Score) | Poor | Details | |
Financial Leverage | Not Rated | Details | |
Reporting Quality (M-Score) | Unlikely Manipulator | Details |
Bread Financial Trading Alerts and Improvement Suggestions
| Bread Financial had very high historical volatility over the last 90 days | |
| Bread Financial has a poor financial position based on the latest SEC disclosures | |
| Over 99.0% of the company shares are held by institutions such as insurance companies | |
| Latest headline from thelincolnianonline.com: Meeder Asset Management Inc. Acquires 4,202 Shares of Bread Financial Holdings, Inc. |
Bread Financial Returns Distribution Density
The distribution of Bread Financial's historical returns is an attempt to chart the uncertainty of Bread Financial's future price movements. The chart of the probability distribution of Bread Financial daily returns describes the distribution of returns around its average expected value. We use Bread Financial Holdings price's Value At Risk and its Upside Potential as a relative measure of the distribution. The graph of the distribution of Bread Financial returns is essential to provide solid investment advice for Bread Financial.
| Mean Return | 0.12 | Value At Risk | -4.01 | Potential Upside | 3.78 | Standard Deviation | 3.54 |
Return Density |
| Distribution |
Investment risk management requires an estimate of the probability of extreme price changes. Therefore, the correct representation of the distribution of Bread Financial historical returns presented in an easy-to-digest graphical form helps investors and money managers understand the risk-reward trade-off of different investement strategies.
Bread Stock Institutional Investors
| Shares | Geode Capital Management, Llc | 2024-06-30 | 1.1 M | Pzena Investment Management, Llc | 2024-09-30 | 880.8 K | Macquarie Group Ltd | 2024-06-30 | 879.8 K | Jacobs Levy Equity Management, Inc. | 2024-06-30 | 861 K | Citadel Advisors Llc | 2024-06-30 | 743.7 K | Charles Schwab Investment Management Inc | 2024-09-30 | 730.5 K | Arrowstreet Capital Limited Partnership | 2024-06-30 | 727.9 K | Deutsche Bank Ag | 2024-06-30 | 695.4 K | Point72 Asset Management, L.p. | 2024-06-30 | 645.7 K | Vanguard Group Inc | 2024-09-30 | 5.8 M | Blackrock Inc | 2024-06-30 | 4.8 M |
Bread Financial Cash Flow Accounts
| 2019 | 2020 | 2021 | 2022 | 2023 | 2024 (projected) | ||
| Change In Cash | (9.6M) | (494.9M) | 460M | 4M | (311M) | (295.5M) | |
| Free Cash Flow | 1.1B | 1.8B | 1.5B | 1.8B | 2.0B | 1.0B | |
| Depreciation | 249.3M | 183.8M | 123M | 113M | 116M | 213.6M | |
| Other Non Cash Items | 1.1B | 1.4B | 646M | 1.8B | 1.1B | 1.2B | |
| Capital Expenditures | 142.3M | 54M | 84M | 68M | 48M | 45.6M | |
| End Period Cash Flow | 4.0B | 3.5B | 3.9B | 3.9B | 3.6B | 3.8B | |
| Net Income | 310.9M | 213.7M | 801M | 223M | 718M | 753.9M | |
| Change To Inventory | (157.1M) | 20M | 250.9M | 95.1M | 109.4M | 114.8M | |
| Dividends Paid | 125.2M | 127.4M | 60.6M | 42M | 43M | 39.9M | |
| Investments | 40M | 37M | (20M) | (5.1B) | (1.0B) | (1.1B) | |
| Net Borrowings | (3.2B) | (1.7B) | (1.1B) | 560M | 504M | 529.2M | |
| Change To Netincome | 749M | 1.2B | 589M | 1.4B | 1.7B | 1.2B |
Bread Financial Greeks
Most traded equities are subject to two types of risk - systematic (i.e., market) and unsystematic (i.e., nonmarket or company-specific) risk. Unsystematic risk is the risk that events specific to Bread Financial or Consumer Finance sector will adversely affect the stock's price. This type of risk can be diversified away by owning several different stocks in different industries whose stock prices have shown a small correlation to each other. On the other hand, systematic risk is the risk that Bread Financial's price will be affected by overall stock market movements and cannot be diversified away. So, no matter how many positions you have, you cannot eliminate market risk. However, you can measure a Bread stock's historical response to market movements and buy it if you are comfortable with its volatility direction. Beta and standard deviation are two commonly used measures to help you make the right decision.
α | Alpha over Dow Jones | -0.12 | |
β | Beta against Dow Jones | 2.65 | |
σ | Overall volatility | 3.57 | |
Ir | Information ratio | 0.01 |
Bread Financial Volatility Alert
Bread Financial Holdings shows above-average downside volatility for the selected time horizon. Understanding different market volatility trends often help investors to time the market. Properly using volatility indicators enable traders to measure Bread Financial's stock risk against market volatility during both bullish and bearish trends. The higher level of volatility that comes with bear markets can directly impact Bread Financial's stock price while adding stress to investors as they watch their shares' value plummet. This usually forces investors to rebalance their portfolios by buying different financial instruments as prices fall.Bread Financial Fundamentals Vs Peers
Comparing Bread Financial's fundamentals to the average values of its peers is one of the most widely used and accepted methods of equity analyses. It helps to analyze Bread Financial's direct or indirect competition across all of the common fundamentals between Bread Financial and the related equities. This way, we can detect undervalued stocks with similar characteristics as Bread Financial or determine the stocks which would be an excellent addition to an existing portfolio. Peer analysis of Bread Financial's fundamental indicators could also be used in its relative valuation, which is a method of valuing Bread Financial by comparing valuation metrics with those of similar companies.
| Better Than Average | Worse Than Average | Compare Bread Financial to competition |
| Fundamentals | Bread Financial | Peer Average |
| Return On Equity | 0.11 | -0.31 |
| Return On Asset | 0.0146 | -0.14 |
| Profit Margin | 0.13 % | (1.27) % |
| Operating Margin | 0.07 % | (5.51) % |
| Current Valuation | 3.98 B | 16.62 B |
| Shares Outstanding | 49.72 M | 571.82 M |
| Shares Owned By Insiders | 0.70 % | 10.09 % |
| Shares Owned By Institutions | 99.30 % | 39.21 % |
| Number Of Shares Shorted | 3.38 M | 4.71 M |
| Price To Earning | 3.78 X | 28.72 X |
| Price To Book | 0.91 X | 9.51 X |
| Price To Sales | 1.15 X | 11.42 X |
| Revenue | 3.06 B | 9.43 B |
| Gross Profit | 1.6 B | 27.38 B |
| EBITDA | 1.08 B | 3.9 B |
| Net Income | 718 M | 570.98 M |
| Cash And Equivalents | 3.89 B | 2.7 B |
| Cash Per Share | 62.41 X | 5.01 X |
| Total Debt | 5.44 B | 5.32 B |
| Debt To Equity | 3.27 % | 48.70 % |
| Current Ratio | 1.77 X | 2.16 X |
| Book Value Per Share | 62.62 X | 1.93 K |
| Cash Flow From Operations | 1.99 B | 971.22 M |
| Short Ratio | 5.02 X | 4.00 X |
| Earnings Per Share | 6.34 X | 3.12 X |
| Price To Earnings To Growth | 0.26 X | 4.89 X |
| Target Price | 56.41 | |
| Number Of Employees | 7 K | 18.84 K |
| Beta | 1.97 | -0.15 |
| Market Capitalization | 2.84 B | 19.03 B |
| Total Asset | 23.14 B | 29.47 B |
| Retained Earnings | 767 M | 9.33 B |
| Annual Yield | 0.01 % |
Note: Acquisition by Tammy McConnaughey of 2820 shares of Bread Financial subject to Rule 16b-3 [view details]
Bread Financial Market Momentum
Traders often use several daily momentume indicators to supplement a more traditional technical analysis when analyzing securities such as Bread . With many different options, investors must choose the best indicators for them and familiarize themselves with how they work. We suggest combining traditional momentum indicators with more near-term forms of technical analysis such as Accumulation Distribution or Daily Balance Of Power. With their quantitative nature, daily value technical indicators can also be incorporated into your automated trading systems.
| Accumulation Distribution | 33951.17 | |||
| Daily Balance Of Power | (0.17) | |||
| Rate Of Daily Change | 0.99 | |||
| Day Median Price | 57.1 | |||
| Day Typical Price | 57.0 | |||
| Price Action Indicator | (0.49) | |||
| Period Momentum Indicator | (0.38) | |||
| Relative Strength Index | 67.67 |
About Bread Financial Buy or Sell Advice
When is the right time to buy or sell Bread Financial Holdings? Buying financial instruments such as Bread Stock isn't very hard. However, what challenging for most investors is doing it at the right time to beat the market. Proper market timing is something most people cannot do without sophisticated tools, which help to isolate the right opportunities. Macroaxis provides hands-on modules to deliver winning trades and diversify your portfolios on a daily basis. Most of our advising modules are very easy to use and apply.
Please read more on our stock advisor page.
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Check out Bread Financial Analyst Recommendation to compare Macroaxis Buy or Sell Recommendation with the current analyst consensus. To check ratings for multiple equity instruments, please use the Instant Ratings tool. You can also try the Equity Valuation module to check real value of public entities based on technical and fundamental data.
Is Consumer Finance space expected to grow? Or is there an opportunity to expand the business' product line in the future? Factors like these will boost the valuation of Bread Financial. If investors know Bread will grow in the future, the company's valuation will be higher. The financial industry is built on trying to define current growth potential and future valuation accurately. All the valuation information about Bread Financial listed above have to be considered, but the key to understanding future value is determining which factors weigh more heavily than others.
Quarterly Earnings Growth (0.99) | Dividend Share 0.84 | Earnings Share 6.34 | Revenue Per Share 49.838 | Quarterly Revenue Growth (0.15) |
The market value of Bread Financial Holdings is measured differently than its book value, which is the value of Bread that is recorded on the company's balance sheet. Investors also form their own opinion of Bread Financial's value that differs from its market value or its book value, called intrinsic value, which is Bread Financial's true underlying value. Investors use various methods to calculate intrinsic value and buy a stock when its market value falls below its intrinsic value. Because Bread Financial's market value can be influenced by many factors that don't directly affect Bread Financial's underlying business (such as a pandemic or basic market pessimism), market value can vary widely from intrinsic value.
Please note, there is a significant difference between Bread Financial's value and its price as these two are different measures arrived at by different means. Investors typically determine if Bread Financial is a good investment by looking at such factors as earnings, sales, fundamental and technical indicators, competition as well as analyst projections. However, Bread Financial's price is the amount at which it trades on the open market and represents the number that a seller and buyer find agreeable to each party.