Bed Bath & Beyond (BBBY) AI Stock Analysis

• Market Cap: $414.47M
• Dividend Yield: N/A
• Average Volume (3M): 1.83M
• Price to Earnings (P/E): ―
• Beta (1Y): 2.66
• Revenue Growth: -27.23%
• EPS Growth: 62.19%
• Country: US
• Employees: 32,000
• Sector: Consumer Cyclical
• Sector Strength: 84
• Industry: Specialty Retail
• EPS (TTM): -0.07
• Shares Outstanding: 68,848,750
• 10 Day Avg. Volume: 1,913,460
• 30 Day Avg. Volume: 1,831,627
• PEG Ratio: 0.05
• Price to Book (P/B): 1.41
• Price to Sales (P/S): 0.16
• P/FCF Ratio: -1.18
• Enterprise Value/Market Cap: 1.02
• Enterprise Value/Revenue: 0.39
• Enterprise Value/Gross Profit: 1.73
• Enterprise Value/Ebitda: -3.39
• 1Y Price Target: $11.67
• Price Target Upside: 93.85% Upside
• Rating Consensus: Hold
• Number of Analyst Covering: 5
• EPS Forecast (FY): -1.98
• Revenue Forecast (FY): $1.03B

• Rating: 44 Neutral
• Price Target: $6.00 ▼(-0.33% Downside)

The overall stock score of 44 reflects significant financial challenges and bearish technical indicators. While recent corporate events and earnings call improvements provide some optimism, the company's financial instability and valuation concerns weigh heavily on the score.

Positive Factors

Leadership Changes

The appointment of Nora Gomez as Chief Merchandising Officer brings experienced leadership in assortment strategy, potentially improving product offerings and market competitiveness.

Strategic Investments

Strategic investments in GrainChain and Kirkland's home IP enhance technological capabilities and product portfolio, supporting long-term growth and market differentiation.

Merger with TBHC

The merger with TBHC is expected to enhance market presence and operational synergies, potentially leading to improved financial performance and competitive positioning.

Negative Factors

Revenue Decline

A significant decline in revenue indicates challenges in maintaining market share and consumer demand, potentially impacting long-term financial stability and growth prospects.

Financial Instability

Ongoing financial instability and erosion of equity suggest difficulties in sustaining operations and investing in growth, posing risks to future profitability and shareholder value.

Cash Flow Issues

Negative cash flow indicates liquidity challenges and an inability to generate sufficient cash from operations, threatening the company's ability to fund strategic initiatives and manage debt.

Bed Bath & Beyond Business Overview & Revenue Model

Company Description

Bed Bath & Beyond (BBBY) is a leading retail chain specializing in home goods, including bed linens, bath accessories, kitchenware, and home décor. Established in 1971, the company operates a network of retail stores across the United States, Canada, and Mexico, offering a wide variety of products aimed at enhancing the home experience. BBBY also provides online shopping options, allowing customers to access its extensive inventory from the comfort of their homes.

How the Company Makes Money

Bed Bath & Beyond generates revenue primarily through the sale of home goods and related products in its physical stores and online platform. The company operates a multi-channel retail model, combining brick-and-mortar locations with e-commerce capabilities. Key revenue streams include sales of bedding, bath products, kitchenware, and home décor items. Additionally, BBBY leverages various promotional strategies, including coupons and loyalty programs, to drive customer engagement and repeat purchases. The company has historically partnered with various brands and suppliers to offer exclusive products, which can enhance its market presence and sales. Seasonal sales events and holiday promotions also contribute significantly to its earnings, as consumers tend to spend more during these periods.

Bed Bath & Beyond Financial Statement Overview

Summary

Bed Bath & Beyond is facing significant financial challenges across all verticals. The income statement shows declining revenues and persistent losses, the balance sheet reflects financial instability and erosion of equity, and the cash flow statement highlights liquidity issues and cash burn. The company needs to address these issues to stabilize its financial position and return to profitability.

Income Statement

Bed Bath & Beyond's income statement reveals significant challenges. The company has experienced declining revenue growth, with a negative growth rate in recent periods, indicating a shrinking market presence. Profitability metrics such as gross profit margin and net profit margin are weak, with the latter being negative, highlighting ongoing losses. The EBIT and EBITDA margins are also negative, underscoring operational inefficiencies. Overall, the income statement reflects a struggling business with declining revenues and profitability issues.

Balance Sheet

The balance sheet shows a mixed picture. While the debt-to-equity ratio is relatively low, indicating manageable leverage, the return on equity is negative, reflecting poor profitability and returns for shareholders. The equity ratio is also low, suggesting limited financial stability. The company's assets are shrinking, and equity has been eroded over time. Overall, the balance sheet indicates financial instability and challenges in maintaining shareholder value.

Cash Flow

Cash flow analysis reveals significant concerns. The company has negative operating cash flow and free cash flow, indicating cash burn and liquidity issues. The free cash flow growth rate is negative, and the operating cash flow to net income ratio is unfavorable, suggesting that the company is not generating sufficient cash from operations. The free cash flow to net income ratio is positive, but this is due to negative net income, which is not a positive indicator. Overall, the cash flow statement highlights liquidity challenges and an inability to generate positive cash flows.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	1.07B	1.39B	1.56B	1.93B	2.76B	2.49B
Gross Profit	245.56M	272.55M	295.84M	427.37M	606.04M	550.37M
EBITDA	-125.12M	-236.85M	-244.91M	-11.89M	147.06M	133.69M
Net Income	-145.00M	-258.80M	-307.84M	-35.24M	108.55M	52.24M
Balance Sheet
Total Assets	414.38M	401.95M	635.82M	878.55M	1.07B	830.21M
Cash, Cash Equivalents and Short-Term Investments	167.37M	159.17M	302.61M	371.26M	503.34M	496.62M
Total Debt	24.77M	32.66M	3.75M	42.51M	51.35M	59.69M
Total Liabilities	211.44M	239.22M	276.69M	232.72M	321.58M	393.89M
Stockholders Equity	202.60M	162.73M	359.13M	645.83M	744.39M	373.69M
Cash Flow
Free Cash Flow	-95.35M	-194.66M	-63.58M	-1.32B	-336.33M	181.60M
Operating Cash Flow	-71.89M	-174.30M	-18.59M	-990.98M	17.85M	196.47M
Investing Cash Flow	1.06M	24.93M	-44.63M	-298.74M	-349.18M	-23.55M
Financing Cash Flow	123.75M	32.72M	-5.49M	967.03M	-606.02M	231.36M

Bed Bath & Beyond Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 6.02
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Negative
• MACD: Negative
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For BBBY, the sentiment is Negative. The current price of 6.02 is below the 20-day moving average (MA) of 6.12, below the 50-day MA of 6.96, and below the 200-day MA of 7.15, indicating a bearish trend. The MACD of -0.19 indicates Negative momentum. The RSI at 41.44 is Neutral, neither overbought nor oversold. The STOCH value of 28.80 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for BBBY.

Bed Bath & Beyond Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
WSM	75 Outperform	$22.79B	20.99	56.92%	1.37%	5.10%	7.59%
ASO	75 Outperform	$3.58B	9.81	18.34%	0.97%	-0.65%	-10.35%
MNSO	72 Outperform	$6.14B	20.24	20.83%	3.09%	13.37%	-19.37%
BBY	62 Neutral	$15.05B	23.71	22.49%	5.29%	-0.95%	-48.28%
Sector *	61 Neutral	$18.38B	12.79	-2.54%	3.03%	1.52%	-15.83%
W	52 Neutral	$13.26B	-39.74	―	―	3.35%	42.99%
BBBY	44 Neutral	$414.47M	-2.14	-72.72%	―	-27.23%	62.19%

Bed Bath & Beyond Corporate Events

Bed Bath & Beyond Acquires Loans from Container Store

On November 25, 2025, Bed Bath & Beyond, Inc. acquired a portion of loans from The Container Store, Inc. through a participation agreement. This transaction, valued at $6,461,843.09, allows the company to gain rights to interest payments and loan repayments, potentially impacting its financial operations and stakeholder interests.

Bed Bath & Beyond Announces Merger with TBHC

On November 24, 2025, Bed Bath & Beyond, Inc. announced a merger agreement with The Brand House Collective, Inc., where TBHC will become a wholly owned subsidiary. The merger involves an exchange of shares and is subject to customary conditions, including shareholder approval and regulatory compliance. Additionally, Bed Bath & Beyond has amended its credit agreement to increase its loan commitments by $10 million, indicating a strategic financial maneuver to support the merger and future operations.

Bed Bath & Beyond Approves New Equity Incentive Plan

On November 14, 2025, Bed Bath & Beyond‘s board of directors approved the 2025 Employment Inducement Equity Incentive Plan, allowing the issuance of up to 1,500,000 shares of common stock as equity-based awards to eligible recipients. This plan, adopted without stockholder approval under NYSE Rule 303A.08, aims to attract and retain employees by offering stock options and other incentives, potentially impacting the company’s talent acquisition and retention strategies.

Bed Bath & Beyond Distributes Shareholder Warrants

On September 22, 2025, Bed Bath & Beyond announced a distribution of warrants to its shareholders, allowing them to purchase additional shares of common stock. The warrants, distributed on October 7, 2025, are exercisable for cash at a price of $15.50 per share and will expire on October 7, 2026, unless certain conditions trigger an earlier expiration. The warrants are expected to trade on the NYSE under the ticker ‘BBBY WS’ starting October 13, 2025, and are part of the company’s strategy to engage shareholders and potentially raise capital.

Bed Bath & Beyond Issues Special Shareholder Warrants

On October 2, 2025, Bed Bath & Beyond announced the distribution of special warrants to its shareholders, providing one warrant for every ten shares held as of the record date. These warrants, which allow holders to purchase shares at a set price, will be tradable on the New York Stock Exchange and are part of the company’s strategy to enhance shareholder value.

Bed Bath & Beyond Amends Credit Agreement and Acquires Kirkland’s

On September 15, 2025, Bed Bath & Beyond, Inc. entered into an amended credit agreement with The Brand House Collective, establishing a $20 million delayed-draw term loan commitment convertible into equity. Concurrently, the company increased its purchase price for the Kirkland’s Brand from $5.233 million to $10 million, acquiring trademarks and domain names. The company also amended a trademark license agreement, allowing The Brand House Collective to continue operating Kirkland’s-branded stores and e-commerce sites, with an exclusive license expiring in 2027.

Bed Bath & Beyond Announces Special Dividend Warrants

On September 22, 2025, Bed Bath & Beyond, Inc. announced a special dividend in the form of warrants to its common stockholders, with distribution expected on October 7, 2025. Each warrant allows the purchase of one share of common stock at $15.50, expiring on October 7, 2026, and is expected to be tradable on the NYSE under the ticker BBBYW. This initiative aims to provide shareholders with added value and the opportunity to participate in capital raising on a non-dilutive basis, potentially generating up to $100 million in gross proceeds for general corporate purposes.