← Back to Stock Screener← Stock Screener

ZYBERNO

Stock Report

Updated Aug 30, 2026

BREAD FINANCIAL HOLDINGS, INC. (BFH)

Financial Services • NYSE

$105.74

Bread Financial Holdings Inc. (formerly Alliance Data Systems' card services business) is an American tech-forward financial services company headquartered in Columbus, Ohio, that provides simple, personalized payment and lending solutions. The company issues private label credit cards and co-branded credit cards for retailers and brands including Victoria's Secret, Burlington, Big Lots, and Ulta Beauty, and offers a direct bank product.

Professional Investment Analysis

ZYBERNO SCORE →

Is it a great business? Is it getting better?

33.0/100

WEAK BUSINESS

BREAD FINANCIAL HOLDINGS, INC. (BFH) scores 33/100 — weak fundamentals with mixed indicators requiring careful analysis before acting.

📊 How is the Zyberno Score calculated? +

The Zyberno Score answers one question: "Is this a quality business worth owning?" It's a 0-100 investment grade that evaluates business fundamentals across four critical dimensions, based on principles from Warren Buffett, Benjamin Graham, Peter Lynch, and Charlie Munger.

The 4 Core Categories (25 points each):

1. PROFITABILITY (25 pts)

Metrics: ROE, ROIC, Net Margin, Operating Margin
Thresholds: ROE >20% excellent • ROIC >20% excellent • Net Margin >20% excellent • Operating Margin >25% excellent

2. FINANCIAL STRENGTH (25 pts)

Metrics: Debt-to-Equity, Current Ratio, Interest Coverage, Altman Z-Score
Thresholds: D/E <0.3 excellent • Current Ratio >2.5 excellent • Interest Coverage >10x excellent • Altman Z >3.0 safe

3. CASH FLOW QUALITY (25 pts)

Metrics: Free Cash Flow, OCF vs Net Income, FCF Margin
Thresholds: Positive & growing FCF excellent • OCF/NI >1.2x excellent (cash earnings exceed accounting)

4. GROWTH & CONSISTENCY (25 pts)

Metrics: Revenue Growth, Net Income Growth, FCF Growth, Piotroski F-Score
Thresholds: Growth via log-linear regression • Piotroski 8-9 excellent, 6-7 good

Score Interpretation:

75-100

GREAT BUSINESS

65-74

GOOD BUSINESS

50-64

AVERAGE BUSINESS

30-49

WEAK BUSINESS

0-29

POOR BUSINESS

→ View full BFH quality analysis & detailed breakdown

VALUATION SIGNAL

MARGIN OF SAFETY

Is this stock cheap or expensive relative to what the business has historically generated for owners?

Margin of Safety unavailable — insufficient data for the owner-earnings DCF.

BRINA GAP ↗

Is the market underestimating or overestimating what this business is capable of going forward?

+0.7%

Fairly Priced

💰 How is Margin of Safety calculated? +

Margin of Safety measures how much discount or premium you're paying relative to a stock's intrinsic value. It's Benjamin Graham's core principle: the larger the margin, the lower your downside risk.

Formula: (Intrinsic Value − Current Price) ÷ Intrinsic Value × 100%

How We Calculate Intrinsic Value (DCF Method):

Step 1: Calculate current Owner Earnings (OCF − Maintenance CapEx)

Step 2: Calculate company-specific growth rate using log-linear regression on 16 quarters of Owner Earnings

Step 3: Project 10 years forward using the calculated growth rate

Step 4: Discount each year's cash flow to present value using 10% discount rate

Step 5: Calculate terminal value using 3% perpetual growth rate

Step 6: Sum all discounted cash flows = Intrinsic Value

What The Percentages Mean:

+50% or more

EXCELLENT — Very undervalued

+25% to +50%

GOOD — Attractive discount

0% to +25%

FAIR — Reasonable value

0% to -25%

CAUTION — Slight premium

-25% or worse

POOR — Overvalued

"Price is what you pay, value is what you get." — Warren Buffett

→ View full BFH valuation analysis · → View full BFH Brina Gap analysis

📈 How is Brina Gap calculated? +

Brina Gap measures the difference between the growth a business can fundamentally sustain and the growth the market is already pricing in.

Formula: Fundamental Growth Rate − Market-Implied Growth Rate

The Two Components:

Fundamental Growth Rate = ROIC × Reinvestment Rate

What the business can sustainably grow at based on how much it reinvests and what return it earns on that capital. Grounded in historical financials.

Market-Implied Growth Rate = Reverse DCF

The growth rate the current Enterprise Value implicitly assumes. Calculated by back-solving a 10-year DCF model (10% WACC, 3% terminal growth) until the present value of projected cash flows equals EV.

What The Gap Means:

Gap > +5% Market Underestimates — potential upside

+2% to +5% Slight Underestimate

-2% to +2% Fairly Priced — market consensus matches fundamentals

-5% to -2% Slight Overestimate

Gap < -5% Market Overestimates — price embeds optimism fundamentals don't support

A positive gap (market underestimates) combined with a positive Margin of Safety is the strongest combined signal — the business is both cheap historically and forward economics are stronger than the price suggests.

Critical Financial Health Indicators

Return on Equity (Profitability):GOOD (17.0%)

Debt-to-Equity (Solvency Risk):POOR (1.32x)

Operating Margin (Operational Efficiency):GOOD (17.3%)

Return on Capital (Capital Efficiency):AVERAGE (12.6%)

📊 Valuation Trilogy

Three interconnected metrics for complete valuation analysis

Click any metric for full methodology and detailed analysis

Zyberno's Verdict

BREAD FINANCIAL HOLDINGS, INC. (BFH) stock report — Zyberno Score 33/100 (WEAK BUSINESS). Full financial analysis on Zyberno.

According to Zyberno's DCF model, BREAD FINANCIAL HOLDINGS, INC. (BFH) shows a Brina Gap of +0.7%, which strengthens the case: based on the company's ROIC (12.6%) and reinvestment rate (-15.8%), the business can fundamentally grow at -2.0% — but the current enterprise value implies the market expects -2.7%.

DIVISION I: EXECUTIVE SUMMARY

A. Market Valuation

Market Price & Capitalization (2)

Current Price:105.74

Market Cap:$4.22B

Valuation Multiples (4)

P/E Ratio:

8.22x

📊 Click to view full BFH P/E analysis →

P/B Ratio:1.25x

P/S Ratio:1.07x

Peg Ratio:0.07x

Enterprise Metrics (2)

Enterprise Value:$4.86B

Ev Ebitda Ratio:6.19x

Price Action & Momentum (3)

12-1 Momentum:

+72.3% (91th pctile)

📈 Click to view full BFH Momentum analysis →

Momentum Percentile:91 / 100

% of 52-Week High:92.3%

B. Profitability Assessment

Return Metrics (7)

ROE:

17.0%

📊 Click to view full BFH ROE analysis →

ROA:2.5%

Roic:

12.6%

📊 Click to view full BFH ROIC analysis →

Reinvestment Rate:-15.8%

Fundamental Growth Rate (g):-2.0%

Market-Implied Growth Rate:-2.7%

Brina Gap:

0.7%

☷ Click to view full BFH Brina Gap analysis →

Margin Analysis (3)

Operating Margin Ttm:17.3%

Net Margin Ttm:14.4%

Ebitda Margin:19.8%

TTM Performance (2)

Operating Margin Ttm:17.3%

Net Margin Ttm:14.4%

Yield Metrics (2)

Earnings Yield:$12.17

Dividend Yield:0.9%

C. Log-Linear Regression Growth Trends

Earnings Surprise (SUE) (3)

Earnings Surprise (SUE):

+0.26

📊 Click to view full BFH Earnings Surprise analysis →

EPS Surprise vs Expected:26.7%

Latest Earnings Filed:2026-07-28

Revenue Growth (Linear) (1)

Revenue Growth Rate (Linear):-2.3%

Earnings Growth (Linear) (1)

Net Income Growth Rate (Linear):-5.4%

Cash Flow Growth (Linear) (1)

Operating Cash Flow Growth Rate (Linear):7.8%

Operating Growth (Linear) (1)

Operating Income Growth Rate (Linear):-0.1%

D. Financial Stability

Liquidity Ratios (3)

Current Ratio:0.25x

Quick Ratio:0.25x

Cash Ratio:0.25x

Leverage Analysis (3)

Debt To Equity Ttm:1.32x

Debt-to-Equity Ratio:1.32x

Debt To Ebitda:5.51x

Coverage Ratios (2)

Interest Coverage Ratio:0.15x

Times Interest Earned:0.15

Capital Structure (4)

Working Capital:-11,049,000,000.00

Cash And Cash Equivalents:3,683,000,000.00

Long Term Debt:$4.31B

Net Debt:$645.00M

DIVISION II: FINANCIAL STATEMENTS ANALYSIS

A. Income Statement Analysis

Revenue Components (2)

Revenue TTM: $3.96B

Linear Growth: -2.3%

📊 Click to view full BFH Revenue analysis & methodology →

Cost Of Revenue Ttm:$0.00

Profitability Breakdown (2)

$0.00

Operating income TTM: $684.00M

Linear Growth: -7.0%

📊 Click to view full BFH Operating Income analysis & methodology →

Bottom Line Performance (3)

Net income TTM: $568.00M

Linear Growth: -5.4%

📊 Click to view full BFH Net Income analysis & methodology →

Income Before Tax:$684.00M

Ebitda Ttm:785,454,000.00

Operating Expenses (5)

Operating Expenses:1,985,000,000.00

R And D Expense:0.00

Sga Expense:0.00

Income Tax Expense:$207.00M

Interest Expense:4,184,000,000.00

Expense Ratios (3)

R And D To Revenue Percentage:0.0%

Sga To Revenue Percentage:0.0%

Ebitda Margin:19.8%

B. Balance Sheet Analysis

Asset Composition (5)

Total Assets:$22.45B

Current Assets:$3.68B

Ppe Net:104,000,000.00

Goodwill:1,342,700,000.00

Intangible Assets:$53.00M

Liability Structure (4)

Total Liabilities:19,087,000,000.00

Current Liabilities:14,732,000,000.00

Long Term Debt:$4.31B

Short Term Debt:$20.00M

Equity & Capital (3)

Equity:$3.37B

Retained Earnings:$1.78B

Common Stock:200,000,000.00

Working Capital Items (3)

Accounts Receivable:148,000,000.00

Inventory:0.00

Accounts Payable:0.00

Special Items (2)

Contract Liabilities:0.00

Stock Based Compensation:16,000,000.00

C. Cash Flow Analysis

Operating Activities (2)

Operating cash flow TTM: $2.19B

Linear Growth: 7.8%

$0.00

Investment Activities (1)

Investing Cash Flow:$317.00M

Financing Activities (3)

Financing Cash Flow:-$475.00M

Dividends Paid Ttm:38,000,000.00

Stock Repurchase:153,000,000.00

Capital Transactions (3)

Common Stock Issuance:0.00

Long Term Debt Issuance:$0.00

Long Term Debt Repayments:$0.00

Non-Cash Items (1)

Depreciation Amortization Ttm:101,454,000.00

DIVISION III: OPERATIONAL METRICS

A. Per Share Analysis

Earnings Per Share (3)

EPS (Basic TTM):13.10

Eps diluted TTM: $12.87

Linear Growth: -2.4%

📊 Click to view full BFH EPS analysis & methodology →

Earnings Per Share Ttm:$14.24

Revenue & Cash Per Share (2)

Sales Per Share Ttm:99.17

Operating Cash Flow Per Share:$52.43

Book Value & Capital (2)

Book Value Per Share:$84.34

Cash Per Share:92.31

Dividend Policy (1)

Dividend Payout Ratio:7.86x

B. Operational Efficiency

Asset Utilization (2)

Asset Turnover Ttm:0.18x

Working Capital Turnover Ttm:-999.00x

Receivables Management (2)

Receivables Turnover Ttm:26.74x

Days Sales Outstanding Ttm:13.65

Inventory Management (2)

Inventory Turnover Ttm:-999.00x

Days Inventory Outstanding Ttm:-999.00

Payables & Cash Cycle (2)

Days Payable Outstanding:-999.00

Cash Conversion Cycle:13.65

C. Quality & Risk Metrics

Financial Quality Scores (2)

Financial Strength Score:20.00

Quality Score:80.00

Market Metrics (2)

Beta:0.00x

Volatility Category:unknown

DIVISION IV: INVESTMENT ANALYSIS

A. Value Investment Framework

Damodaran Growth Analysis (4)

Reinvestment Rate:-15.8%

Fundamental Growth Rate (g):-2.0%

Market-Implied Growth Rate:-2.7%

Brina Gap:

0.7%

☷ Click to view full BFH Brina Gap analysis →

B. Log-Linear Regression Growth Analysis

Growth Rates (Log-Linear Regression) (3)

Revenue Growth Rate (Linear):-2.3%

Net Income Growth Rate (Linear):-5.4%

Operating Income Growth Rate (Linear):-0.1%

Cash Flow Growth Rates (1)

Operating Cash Flow Growth Rate (Linear):7.8%

Other Growth Rates (1)

Book Value Growth Rate (Linear):9.7%

C. Company Profile & Context

Corporate Information (6)

Symbol:BFH

Company Name:BREAD FINANCIAL HOLDINGS, INC.

Sector:Financial Services

Industry:Consumer Finance

Exchange:NYSE

Country:United States

Market Classification (3)

Market Cap Category:N/A

Price Category:high

Volume Category:N/A

Share Structure (3)

Shares Outstanding:39.90M

Shares Outstanding Basic:39.90M

Shares Outstanding Diluted:40.70M

Data Processing Info (3)

Processing Version:v3.0

Last Updated:2026-08-30 14:02:23 UTC

Data Timestamp:2026-08-30T14:02:23.674030