Bread Financial Holdings, Inc. (BFH) 10-Year Financial Performance & Capital Metrics

BFH • • Banking & Credit

Financial ServicesCredit ServicesConsumer Lending & Credit CardsGeneral Purpose Credit Cards

AboutBread Financial Holdings, Inc. provides tech-forward payment and lending solutions to customers and consumer-based industries in North America. It offers credit card and other loans financing services, including risk management solutions, account origination, and funding services for approximately 130 private label and co-brand credit card programs, as well as through Bread partnerships to approximately 500 small-and medium-sized businesses merchants; and Comenity-branded general purpose cash-back credit. The company also manages and services the loans it originates for private label, co-brand, and general-purpose credit card programs and Bread BNPL (installment loans, split-pay) products; and provides marketing, and data and analytics services. In addition, it offers an enhanced digital suite that includes a unified software development kit, which provides access to its suite of products, as well as promotes credit payment options earlier in the shopping experience. Further, the company through Bread, a digital payments platform and robust suite of application programming interfaces allows merchants and partners to integrate online point-of-sale financing and other digital payment products, including installment and split-pay solutions. The company was formerly known as Alliance Data Systems Corporation and changed its name to Bread Financial Holdings, Inc. in March 2022. Bread Financial Holdings, Inc. was founded in 1996 and is headquartered in Columbus, Ohio.Show more

Net Interest Income $4.06B -4.7%
Total Revenue $4.8B -7.3%
Net Income $277M -61.4%
Return on Equity 9.28% -66.5%
Net Interest Margin 17.75% -3.7%
Efficiency Ratio 42.93% +5.9%
ROA 1.2% -59.3%
Equity / Assets 13.33% +5.7%
Book Value per Share 60.54 +3.7%
Tangible BV/Share 45.73 +6.1%
Debt/Equity 1.86

Technical Analysis

Key Insights

Based on financial data analysis

✓Strengths

✓Strong NIM of 17.8%
✓Efficient operations: 42.9% efficiency ratio
✓Well capitalized: 13.3% equity/assets
✓Good 3Y average ROE of 15.7%
✓Trading at only 1.2x book value

✗Weaknesses

✗Weak Piotroski F-Score: 3/9

Price & Volume

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Growth Metrics

Revenue CAGR

10Y-1%

5Y7.46%

3Y9.49%

TTM-

Profit (Net Income) CAGR

10Y-5.85%

5Y-0.07%

3Y-29.81%

TTM51.28%

EPS CAGR

10Y-3.52%

5Y-13.64%

3Y-29.98%

TTM56.89%

ROCE

10Y Avg6.11%

5Y Avg4.36%

3Y Avg3.66%

Latest2.38%

Peer Comparison

General Purpose Credit Cards

Name	Market Cap	Current Price	P/E Ratio	Revenue Growth 1Y	Net Margin	ROE	FCF Yield	Debt/Equity
AXPAmerican Express Company	246.61B	358.00	25.54	10.15%	13.65%	32.52%	4.92%	1.69
COFCapital One Financial Corporation	147.12B	231.41	19.97	9%	8.81%	1.24%	11.53%	0.75
BFHBread Financial Holdings, Inc.	3.18B	69.79	12.69	-7.27%	5.77%	14.23%	58.41%	1.86
SYFSynchrony Financial	28.11B	78.06	9.13	19.73%	16.86%	20.95%	35.03%	0.93
SYF-PBSynchrony Financial	9.5B	26.37	3.08	52.34%	16.86%	20.95%	100%	0.93

Profit & Loss

	Dec 2015	Dec 2016	Dec 2017	Dec 2018	Dec 2019	Dec 2020	Dec 2021	Dec 2022	Dec 2023	Dec 2024
Net Interest Income+	-179.5M	-218.2M	-173.7M	-156.4M	-130M	-108.5M	3.48B	4.18B	4.27B	4.06B
NII Growth %	-0.36%	-0.22%	0.2%	0.1%	0.17%	0.17%	33.12%	0.2%	0.02%	-0.05%
Net Interest Margin %	-	-	-	-	-	-	-	-	-	-
Interest Income	0	0	0	0	4.83B	0	3.87B	4.68B	5.14B	5.02B
Interest Expense	179.5M	218.2M	173.7M	156.4M	638M	499M	383M	503M	879M	960M
Loan Loss Provision	3.97B	4.49B	2.75B	2.92B	2.62B	-499M	1.21B	1.59B	1.23B	1.4B
Non-Interest Income+	6.44B	7.14B	5.47B	5.67B	-1.48B	2.03B	-213M	-311M	29M	-226M
Non-Interest Income %	-	-	-	-	-	-	-	-	-	-
Total Revenue+	6.44B	7.14B	5.47B	5.67B	3.35B	2.03B	3.65B	4.37B	5.17B	4.8B
Revenue Growth %	0.21%	0.11%	-0.23%	0.04%	-0.41%	-0.39%	0.8%	0.2%	0.18%	-0.07%
Non-Interest Expense	1.03B	1.17B	1.03B	829.8M	-1.22B	1.05B	633M	1.98B	2.1B	2.06B
Efficiency Ratio	-	-	-	-	-	-	-	-	-	-
Operating Income+	1.26B	1.27B	1.52B	1.76B	1.31B	983M	1.04B	300M	968M	381M
Operating Margin %	-	-	-	-	-	-	-	-	-	-
Operating Income Growth %	0.15%	0%	0.2%	0.16%	-0.26%	-0.25%	0.06%	-0.71%	2.23%	-0.61%
Pretax Income+	931.6M	837M	1.06B	1.22B	662M	301M	1.04B	300M	968M	381M
Pretax Margin %	-	-	-	-	-	-	-	-	-	-
Income Tax+	326.2M	319.4M	293.3M	269.5M	156M	93M	247M	76M	231M	102M
Effective Tax Rate %	-	-	-	-	-	-	-	-	-	-
Net Income+	596.5M	515.8M	788.7M	963.1M	278M	214M	801M	223M	718M	277M
Net Margin %	-	-	-	-	-	-	-	-	-	-
Net Income Growth %	0.18%	-0.14%	0.53%	0.22%	-0.71%	-0.23%	2.74%	-0.72%	2.22%	-0.61%
Net Income (Continuing)	605.4M	517.6M	769.2M	945.5M	506M	208M	797M	224M	737M	279M
EPS (Diluted)+	8.85	7.34	14.10	17.48	11.45	4.46	16.02	4.46	14.36	5.50
EPS Growth %	0.12%	-0.17%	0.92%	0.24%	-0.34%	-0.61%	2.59%	-0.72%	2.22%	-0.62%
EPS (Basic)	8.91	7.37	14.17	17.54	11.45	4.47	16.12	4.47	14.42	5.58
Diluted Shares Outstanding	62.3M	58.9M	55.9M	55.1M	50M	47.9M	50M	50M	50M	50.4M

Balance Sheet

	Dec 2015	Dec 2016	Dec 2017	Dec 2018	Dec 2019	Dec 2020	Dec 2021	Dec 2022	Dec 2023	Dec 2024
Cash & Short Term Investments+	1000K	1000K	1000K	1000K	1000K	1000K	1000K	1000K	1000K	1000K
Cash & Due from Banks	1.17B	1.86B	4.19B	3.82B	3.87B	2.8B	3.05B	3.89B	3.59B	3.68B
Short Term Investments	0	0	0	0	0	1000K	1000K	1000K	1000K	1000K
Total Investments+	-577.32M	0	0	0	-45.2M	638.1M	528M	19.13B	424M	16.92B
Investments Growth %	-	1%	-	-	-	15.12%	-0.17%	35.23%	-0.98%	38.91%
Long-Term Investments	-577.32M	0	0	0	-45.2M	0	289M	19.03B	253M	16.75B
Accounts Receivables	1000K	-1000K	-1000K	-1000K	1000K	1000K	1000K	1000K	1000K	1000K
Goodwill & Intangibles+	-	-	-	-	-	-	-	-	-	-
Goodwill	3.81B	3.8B	3.88B	954.8M	954.9M	1.37B	634M	634M	634M	634M
Intangible Assets	1.2B	1B	800.6M	217.4M	153.3M	81.7M	53M	165M	128M	112M
PP&E (Net)	576.71M	586M	613.9M	288.2M	264.3M	233.2M	312M	283M	265M	229M
Other Assets	2.77B	514.7M	656.5M	4.17B	1.95B	1.95B	299M	590M	17.48B	463M
Total Current Assets	14.64B	19.59B	24.71B	24.71B	23.18B	18.55B	19.86B	4.15B	3.59B	3.99B
Total Non-Current Assets	7.78B	5.92B	5.98B	5.68B	3.32B	4B	1.89B	21.26B	18.75B	18.9B
Total Assets+	22.42B	25.51B	30.68B	30.39B	26.49B	22.55B	21.75B	25.41B	23.14B	22.89B
Asset Growth %	0.11%	0.14%	0.2%	-0.01%	-0.13%	-0.15%	-0.04%	0.17%	-0.09%	-0.01%
Return on Assets (ROA)	0.03%	0.02%	0.03%	0.03%	0.01%	0.01%	0.04%	0.01%	0.03%	0.01%
Accounts Payable	442.4M	568.3M	651.2M	486.2M	300.8M	354M	291M	398M	422M	326M
Total Debt+	11.56B	12.56B	14.89B	13.38B	10.45B	8.7B	7.57B	8.13B	5.44B	5.68B
Net Debt	10.39B	10.7B	10.7B	9.56B	6.57B	5.73B	4.53B	4.24B	1.85B	2.01B
Long-Term Debt	10.08B	10.1B	13.42B	10.52B	10.45B	8.5B	7.44B	8.01B	5.29B	5.56B
Short-Term Debt	4.4B	2.45B	1.47B	2.86B	3.13B	-10.99B	3.29B	0	0	0
Other Liabilities	8.85B	4.04B	4.94B	5.69B	337.7M	431.4M	136M	479M	14.51B	452M
Total Current Liabilities	6.41B	9.23B	10.15B	11.48B	922M	1B	11.77B	14.53B	273M	13.7B
Total Non-Current Liabilities	20.24B	14.63B	18.68B	16.57B	23.95B	20.02B	7.89B	8.61B	19.95B	6.14B
Total Liabilities	20.24B	23.86B	28.83B	28.06B	24.87B	21.03B	19.66B	23.14B	20.22B	19.84B
Total Equity+	2.18B	1.66B	1.86B	2.33B	1.62B	1.52B	2.09B	2.27B	2.92B	3.05B
Equity Growth %	-0.17%	-0.24%	0.12%	0.26%	-0.3%	-0.06%	0.37%	0.09%	0.29%	0.05%
Equity / Assets (Capital Ratio)	-	-	-	-	-	-	-	-	-	-
Return on Equity (ROE)	0.25%	0.27%	0.45%	0.46%	0.14%	0.14%	0.44%	0.1%	0.28%	0.09%
Book Value per Share	34.97	28.15	33.19	42.32	32.42	31.77	41.72	45.30	58.36	60.54
Tangible BV per Share	-	-	-	-	-	-	-	-	-	-
Common Stock	1.12M	1.1M	1.1M	1.1M	1.1M	1.2M	1M	1M	1M	1M
Additional Paid-in Capital	2.98B	3.05B	3.1B	3.17B	3.26B	3.43B	2.17B	2.19B	2.17B	2.07B
Retained Earnings	3.09B	3.49B	4.17B	5.01B	5.16B	4.83B	-87M	93M	767M	999M
Accumulated OCI	-137.25M	-150.7M	-140.2M	-138.1M	-99.9M	-5M	-2M	-21M	-19M	-22M
Treasury Stock	-3.93B	-4.73B	-5.27B	-5.72B	-6.73B	-6.73B	0	0	0	0
Preferred Stock	1.17M	0	0	0	32.9M	0	0	0	0	0

Cash Flow

	Dec 2015	Dec 2016	Dec 2017	Dec 2018	Dec 2019	Dec 2020	Dec 2021	Dec 2022	Dec 2023	Dec 2024
Cash from Operations+	1.63B	2.09B	2.61B	2.75B	1.22B	1.88B	1.54B	1.85B	1.99B	1.86B
Operating CF Growth %	0.21%	0.28%	0.25%	0.06%	-0.56%	0.55%	-0.18%	0.2%	0.08%	-0.06%
Net Income	603.2M	517.6M	788.7M	963.1M	310.9M	214M	801M	223M	718M	277M
Depreciation & Amortization	492.1M	512.1M	497.6M	487.3M	249.3M	184M	123M	113M	116M	90M
Deferred Taxes	-121.3M	-30.8M	-113.8M	16.3M	-178.9M	-223M	-15M	-245M	-68M	-85M
Other Non-Cash Items	678.4M	1.36B	1.27B	1.39B	1.08B	1.4B	646M	1.77B	1.15B	1.59B
Working Capital Changes	-120.1M	-343.6M	94.8M	-184.2M	-302M	283M	-41M	-47M	28M	-67M
Cash from Investing+	-3.28B	-4.06B	-4.29B	-1.87B	2.86B	1.77B	-1.69B	-5.11B	788M	-1.17B
Purchase of Investments	-38.79M	-1.01B	-101.4M	-89.5M	-924.8M	-40M	-93M	-43M	-50M	-31M
Sale/Maturity of Investments	1000K	1000K	1000K	1000K	1000K	1000K	1000K	1000K	1000K	1000K
Net Investment Activity	-	-	-	-	-	-	-	-	-	-
Acquisitions	-45.4M	522.1M	-945.6M	0	4.41B	-267M	-75M	0	0	0
Other Investing	-3.03B	-3.86B	-3.81B	-1.63B	-2.54B	2.06B	-1.51B	-5.03B	824M	-1.15B
Cash from Financing+	1.77B	2.66B	4B	-1.22B	-4.09B	-4.17B	608M	3.27B	-3.09B	-592M
Dividends Paid	0	-30M	-115.5M	-125.2M	-127.4M	-61M	-42M	-43M	-42M	-43M
Share Repurchases	-951.6M	-798.8M	-553.7M	-443.2M	-976.1M	0	0	-12M	-35M	-55M
Stock Issued	18M	18.4M	18.4M	17.6M	12.4M	2.8M	4M	0	0	0
Net Stock Activity	-	-	-	-	-	-	-	-	-	-
Debt Issuance (Net)	1000K	1000K	1000K	-1000K	-1000K	-1000K	-1000K	1000K	-1000K	1000K
Other Financing	564.2M	2.42B	2.47B	-57.1M	249.7M	-2.39B	1.08B	2.76B	-313M	-563M
Net Change in Cash+	90.8M	691.2M	2.33B	-347M	-9.6M	-495M	460M	4M	-311M	98M
Exchange Rate Effect	-1000K	1000K	1000K	-1000K	1000K	1000K	0	0	0	0
Cash at Beginning	1.08B	1.17B	1.86B	4.31B	3.97B	3.96B	3.46B	3.92B	3.93B	3.62B
Cash at End	1.17B	1.86B	4.19B	3.97B	3.96B	3.46B	3.92B	3.93B	3.62B	3.71B
Interest Paid	311.4M	405.1M	551.4M	719.8M	672M	488M	357M	466M	861M	922M
Income Taxes Paid	304.2M	466.6M	344.1M	234M	1.07B	268M	325M	338M	292M	227M
Free Cash Flow+	1.44B	1.88B	2.38B	2.56B	1.08B	1.83B	1.46B	1.78B	1.99B	1.86B
FCF Growth %	0.21%	0.31%	0.27%	0.07%	-0.58%	0.7%	-0.2%	0.22%	0.12%	-0.06%

Banking Ratios

Metric	2015	2016	2017	2018	2019	2020	2021	2022	2023	2024
Return on Equity (ROE)	24.8%	26.89%	44.9%	46%	14.06%	13.62%	44.41%	10.25%	27.71%	9.28%
Return on Assets (ROA)	2.79%	2.15%	2.81%	3.15%	0.98%	0.87%	3.62%	0.95%	2.96%	1.2%
Net Interest Margin	-0.8%	-0.86%	-0.57%	-0.51%	-0.49%	-0.48%	16.03%	16.46%	18.43%	17.75%
Efficiency Ratio	16.05%	16.35%	18.85%	14.64%	-36.33%	51.62%	17.32%	45.19%	40.55%	42.93%
Equity / Assets	9.72%	6.5%	6.05%	7.67%	6.12%	6.75%	9.59%	8.91%	12.61%	13.33%
Book Value / Share	34.97	28.15	33.19	42.32	32.42	31.77	41.72	45.3	58.36	60.54
NII Growth	-36.09%	-21.56%	20.39%	9.96%	16.88%	16.54%	3311.98%	19.97%	2.03%	-4.74%
Dividend Payout	-	5.82%	14.64%	13%	45.83%	28.5%	5.24%	19.28%	5.85%	15.52%

Revenue by Segment

	2011	2012	2013	2014	2015	2016	2017	2018	2019	2020
Short Term Loyalty Programs	-	-	-	-	-	-	-	613.8M	635.5M	487.7M
Short Term Loyalty Programs Growth	-	-	-	-	-	-	-	-	3.54%	-23.26%
Coalition Loyalty Program	-	-	-	-	-	-	-	352.3M	290.1M	262.5M
Coalition Loyalty Program Growth	-	-	-	-	-	-	-	-	-17.66%	-9.51%
Other	-	-	-	-	-	-	-	90.8M	95.3M	1.9M
Other Growth	-	-	-	-	-	-	-	-	4.96%	-98.01%
Servicing Fees Net	-	-	-	-	-	-	-	-97.3M	-180.7M	-174.9M
Servicing Fees Net Growth	-	-	-	-	-	-	-	-	-85.71%	3.21%
Technology Service	-	-	-	-	-	-	-	1.02B	-	-
Technology Service Growth	-	-	-	-	-	-	-	-	-	-
Digital Media Services	-	-	-	-	-	-	-	772M	-	-
Digital Media Services Growth	-	-	-	-	-	-	-	-	-	-
Agency Services	-	-	-	-	-	-	-	329.7M	-	-
Agency Services Growth	-	-	-	-	-	-	-	-	-	-
Private Label Services And Credit	-	-	-	2.4B	2.97B	3.67B	4.17B	-	-	-
Private Label Services And Credit Growth	-	-	-	-	24.19%	23.56%	13.49%	-	-	-
Epsilon	-	-	1.38B	1.52B	2.14B	2.16B	2.27B	-	-	-
Epsilon Growth	-	-	-	10.29%	40.61%	0.68%	5.42%	-	-	-
Loyalty One	-	-	919.48M	1.41B	1.35B	1.34B	1.3B	-	-	-
Loyalty One Growth	-	-	-	53.01%	-3.86%	-1.09%	-2.57%	-	-	-
Private Label Services and Credit	-	-	2.03B	-	-	-	-	-	-	-
Private Label Services and Credit Growth	-	-	-	-	-	-	-	-	-	-

Revenue by Geography

	2011	2012	2013	2014	2015	2016	2017	2018	2019	2020
U	-	-	-	3.87B	5.02B	5.73B	6.34B	6.66B	4.59B	3.77B
U Growth	-	-	-	-	29.82%	14.14%	10.57%	5.07%	-31.08%	-17.88%
E M E A	-	-	-	463.3M	536.7M	537.4M	485.1M	526.7M	449.1M	332.6M
E M E A Growth	-	-	-	-	15.84%	0.13%	-9.73%	8.58%	-14.73%	-25.94%
C	-	-	-	851.64M	761.18M	706.5M	742.8M	427.3M	352.2M	286.9M
C Growth	-	-	-	-	-10.62%	-7.18%	5.14%	-42.47%	-17.58%	-18.54%
Asia Pacific	-	-	-	101.25M	113.69M	154.5M	140.4M	131.3M	121.7M	80.5M
Asia Pacific Growth	-	-	-	-	12.30%	35.89%	-9.13%	-6.48%	-7.31%	-33.85%
Other Geographic Regions	-	-	-	-	-	-	-	48.8M	70M	53.7M
Other Geographic Regions Growth	-	-	-	-	-	-	-	-	43.44%	-23.29%
Non Us	-	-	-	-	-	9.4M	15M	-	-	-
Non Us Growth	-	-	-	-	-	-	59.57%	-	-	-
Foreign	-	-	84.92M	19.74M	7.93M	-	-	-	-	-
Foreign Growth	-	-	-	-76.75%	-59.85%	-	-	-	-	-
UNITED STATES	-	2.66B	3.33B	-	-	-	-	-	-	-
UNITED STATES Growth	-	-	25.31%	-	-	-	-	-	-	-
CANADA	-	913.19M	906.46M	-	-	-	-	-	-	-
CANADA Growth	-	-	-0.74%	-	-	-	-	-	-	-
Segment, Geographical, Groups of Countries, Group One	75.52M	72.7M	-	-	-	-	-	-	-	-
Segment, Geographical, Groups of Countries, Group One Growth	-	-3.74%	-	-	-	-	-	-	-	-
US	2.26B	-	-	-	-	-	-	-	-	-
US Growth	-	-	-	-	-	-	-	-	-	-
CA	833.43M	-	-	-	-	-	-	-	-	-
CA Growth	-	-	-	-	-	-	-	-	-	-

Frequently Asked Questions

Valuation & Price

Bread Financial Holdings, Inc. (BFH) has a price-to-earnings (P/E) ratio of 12.7x. This may indicate the stock is undervalued or faces growth challenges.

Growth & Financials

Bread Financial Holdings, Inc. (BFH) saw revenue decline by 7.3% over the past year.

Yes, Bread Financial Holdings, Inc. (BFH) is profitable, generating $472.0M in net income for fiscal year 2024 (5.8% net margin).

Dividend & Returns

Yes, Bread Financial Holdings, Inc. (BFH) pays a dividend with a yield of 1.22%. This makes it attractive for income-focused investors.

Bread Financial Holdings, Inc. (BFH) has a return on equity (ROE) of 9.3%. This is below average, suggesting room for improvement.

Industry Metrics

Bread Financial Holdings, Inc. (BFH) has a net interest margin (NIM) of 17.8%. This indicates healthy earnings from lending activities.

Bread Financial Holdings, Inc. (BFH) has an efficiency ratio of 42.9%. This is excellent, indicating strong cost control.

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