Is Bread Financial Stock a Good Investment?
Bread Financial Investment Advice | BFH |
- Examine Bread Financial's financial health by looking at its balance sheet, income statement, and cash flow statement. Analyze key financial ratios, such as Price-to-Earnings (P/E), Price-to-Sales (P/S), and Price-to-Book (P/B), to determine whether the stock is fairly valued or over/undervalued.
- Research Bread Financial's leadership team and their track record. Good management can help Bread Financial navigate difficult times and make strategic decisions that benefit shareholders and increases its net worth.
- Consider the overall health of the Consumer Finance space and any emerging trends that could impact Bread Financial's business and its evolving consumer preferences.
- Compare Bread Financial's performance and market position to its competitors. Analyze how Bread Financial is positioned in terms of product offerings, innovation, and market share.
- Check if Bread Financial pays a dividend and its dividend yield and payout ratio.
- Review what financial analysts are saying about Bread Financial's stock and their price targets. However, remember that analysts' opinions can vary, and their predictions may not always be accurate.
It's important to note that investing in Bread Financial Holdings stock, carries risks, and you should carefully consider your investment goals and risk tolerance before making any investment decisions. Also, remember that it's important for investors to have a long-term perspective and a well-diversified portfolio to manage the impact of stock market volatility on their investments. Below is a detailed guide on how to decide if Bread Financial Holdings is a good investment.
Sell | Buy |
Hold
Market Performance | Very Weak | Details | |
Volatility | Very steady | Details | |
Hype Condition | Over hyped | Details | |
Current Valuation | Undervalued | Details | |
Odds Of Distress | Very Low | Details | |
Economic Sensitivity | Actively responds to the market | Details | |
Investor Sentiment | Alarmed | Details | |
Analyst Consensus | Not Available | Details | |
Financial Strenth (F Score) | Healthy | Details | |
Financial Leverage | Not Rated | Details | |
Reporting Quality (M-Score) | Unlikely Manipulator | Details |
Examine Bread Financial Stock
Researching Bread Financial's stock involves analyzing various aspects of the company and its industry to make an informed investment decision. The key areas to focus on are fundamentals, business model and competitive advantage. It is also important to analyze trends in revenue, net income, and cash flow, as well as key financial ratios, such as price-to-earnings (P/E), price-to-sales (P/S), and debt-to-equity (D/E). About 99.0% of the company shares are held by institutions such as insurance companies. The company has price-to-book (P/B) ratio of 0.84. Some equities with similar Price to Book (P/B) outperform the market in the long run. Bread Financial Holdings has Price/Earnings To Growth (PEG) ratio of 1.57. The entity recorded earning per share (EPS) of 5.54. The firm last dividend was issued on the 14th of February 2025. Bread Financial had 1253:1000 split on the 8th of November 2021.
To determine if Bread Financial is a good investment, evaluating the company's potential for future growth is also very important. This may include expanding into new markets, launching new products or services, or improving operational efficiency. Companies with strong growth prospects can be more attractive investments. This aspect of the research should be conducted in the context of the overall market and industry in which the company operates and should include an analysis of growth potential, competitive landscape, and any regulatory or economic factors that could impact the business. Some of the essential points regarding Bread Financial's research are outlined below:
| Bread Financial generated a negative expected return over the last 90 days | |
| Over 99.0% of the company shares are held by institutions such as insurance companies |
Bread Financial uses earnings reports to provide investors with an update of all three financial statements, including the income statement, the balance sheet, and the cash flow statement. Therefore, it is also crucial when considering investing in Bread Financial Holdings. Every quarterly earnings report provides investors with an overview of sales, expenses, and net income for the most recent period. It also may provide a comparison to Bread Financial's previous reporting period. The quarterly earnings reports are usually disseminated to the public via Form 10-Q, which is a legal document filed with the Securities and Exchange Commission every quarter.
| 25th of April 2024 Upcoming Quarterly Report | View | |
| 25th of July 2024 Next Financial Report | View | |
| 31st of March 2024 Next Fiscal Quarter End | View | |
| 23rd of January 2025 Next Fiscal Year End | View | |
| 31st of December 2023 Last Quarter Report | View | |
| 31st of December 2023 Last Financial Announcement | View |
Bread Financial's market capitalization trends
The company currently falls under 'Mid-Cap' category with a total capitalization of 2.57 B.Bread Financial's profitablity analysis
The company has Net Profit Margin of 0.11 %, which implies that it may need a different competitive strategy as even a very small decline in it revenue may erase profits and result in a net loss. This is way below average. In the same way, it shows Net Operating Margin of 0.16 %, which entails that for every 100 dollars of revenue, it generated $0.16 of operating income.Determining Bread Financial's profitability involves analyzing its financial statements and using various financial metrics to determine if Bread Financial is a good buy. For example, gross profit margin measures Bread Financial's profitability after accounting for the cost of goods sold, while net profit margin measures profitability after accounting for all expenses. Other important metrics include return on assets, return on equity, and free cash flow. By reviewing multiple sources and metrics, you can gain a complete picture of Bread Financial's profitability and make more informed investment decisions.
Basic technical analysis of Bread Stock
As of the 26th of March, Bread Financial shows the mean deviation of 1.73, and Risk Adjusted Performance of (0.11). Bread Financial Holdings technical analysis gives you the methodology to make use of historical prices and volume patterns to determine a pattern that approximates the direction of the firm's future prices.Bread Financial's insider trading activities
Some recent studies suggest that insider trading raises the cost of capital for securities issuers and decreases overall economic growth. Trading by specific Bread Financial insiders, such as employees or executives, is commonly permitted as long as it does not rely on Bread Financial's material information that is not in the public domain. Local jurisdictions usually require such trading to be reported in order to monitor insider transactions. In many U.S. states, trading conducted by corporate officers, key employees, directors, or significant shareholders must be reported to the regulator or publicly disclosed, usually within a few business days of the trade. In these cases Bread Financial insiders are required to file a Form 4 with the U.S. Securities and Exchange Commission (SEC) when buying or selling shares of their own companies.
Bread Financial's Outstanding Corporate Bonds
Bread Financial issues bonds to finance its operations. Corporate bonds make up one of the largest components of the U.S. bond market, which is considered the world's largest securities market. Bread Financial Holdings uses the proceeds from bond sales for a wide variety of purposes, including financing ongoing mergers and acquisitions, buying new equipment, investing in research and development, buying back their own stock, paying dividends to shareholders, and even refinancing existing debt. Most Bread bonds can be classified according to their maturity, which is the date when Bread Financial Holdings has to pay back the principal to investors. Maturities can be short-term, medium-term, or long-term (more than ten years). Longer-term bonds usually offer higher interest rates but may entail additional risks.
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Understand Bread Financial's technical and predictive indicators
Using predictive indicators to make investment decisions involves analyzing Bread Financial's various financial and market-based factors to help forecast future trends and identify investment opportunities. Select the indicators that are most relevant to your investment strategy. Each indicator has its own strengths and weaknesses, so it's essential to combine multiple indicators to get a more comprehensive view of the market and reduce the risk of making poor decisions based on limited data.
| Risk Adjusted Performance | (0.11) | |||
| Market Risk Adjusted Performance | (0.19) | |||
| Mean Deviation | 1.73 | |||
| Coefficient Of Variation | (724.66) | |||
| Standard Deviation | 2.24 | |||
| Variance | 5.02 | |||
| Information Ratio | (0.14) | |||
| Jensen Alpha | (0.32) | |||
| Total Risk Alpha | (0.31) | |||
| Treynor Ratio | (0.20) | |||
| Maximum Drawdown | 8.63 | |||
| Value At Risk | (4.19) | |||
| Potential Upside | 3.6 | |||
| Skewness | 0.2293 | |||
| Kurtosis | (0.27) |
| Risk Adjusted Performance | (0.11) | |||
| Market Risk Adjusted Performance | (0.19) | |||
| Mean Deviation | 1.73 | |||
| Coefficient Of Variation | (724.66) | |||
| Standard Deviation | 2.24 | |||
| Variance | 5.02 | |||
| Information Ratio | (0.14) | |||
| Jensen Alpha | (0.32) | |||
| Total Risk Alpha | (0.31) | |||
| Treynor Ratio | (0.20) | |||
| Maximum Drawdown | 8.63 | |||
| Value At Risk | (4.19) | |||
| Potential Upside | 3.6 | |||
| Skewness | 0.2293 | |||
| Kurtosis | (0.27) |
Consider Bread Financial's intraday indicators
Bread Financial intraday indicators are useful technical analysis tools used by many experienced traders. Just like the conventional technical analysis, daily indicators help intraday investors to analyze the price movement with the timing of Bread Financial stock daily movement. By combining multiple daily indicators into a single trading strategy, you can limit your risk while still earning strong returns on your managed positions.
| Accumulation Distribution | 15692.93 | |||
| Daily Balance Of Power | (0.11) | |||
| Rate Of Daily Change | 1.0 | |||
| Day Median Price | 51.63 | |||
| Day Typical Price | 51.57 | |||
| Price Action Indicator | (0.24) | |||
| Period Momentum Indicator | (0.14) | |||
| Relative Strength Index | 27.36 |
Bread Stock media impact
Far too much social signal, news, headlines, and media speculation about Bread Financial that are available to investors today. That information is available publicly through Bread media outlets and privately through word of mouth or via Bread internal channels. However, regardless of the origin, that massive amount of Bread data is challenging to quantify into actionable patterns, especially for investors that are not very sophisticated with ever-evolving tools and techniques used in the investment management field.
A primary focus of Bread Financial news analysis is to determine if its current price reflects all relevant headlines and social signals impacting the current market conditions. A news analyst typically looks at the history of Bread Financial relative headlines and hype rather than examining external drivers such as technical or fundamental data. It is believed that price action tends to repeat itself due to investors' collective, patterned thinking related to Bread Financial's headlines and news coverage data. This data is often completely overlooked or insufficiently analyzed for actionable insights to drive Bread Financial alpha.
Bread Financial Corporate Management
| Rajesh Natarajan | Independent Director | Profile | |
| Sharen Turney | Independent Director | Profile | |
| Wes Hunt | Senior Excellence | Profile | |
| Greg Betchkal | Chief Officer | Profile | |
| Mike Boghosian | Senior Officer | Profile |
Check out Trending Equities to better understand how to build diversified portfolios, which includes a position in 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. You can also try the Watchlist Optimization module to optimize watchlists to build efficient portfolios or rebalance existing positions based on the mean-variance optimization algorithm.
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.
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.
In summary, please note that there is a difference between Bread Financial's value and its price, as these two are different measures arrived at by various 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.