Bread Financial Holdings (BFH)
NYSE:BFH
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Bread Financial Holdings
(NYSE:BFH)
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Rating:74Outperform
Price Target:
$99.00
▲(9.30% Upside)
Action:ReiteratedDate:04/28/26
The score is driven primarily by improving financial performance (TTM recovery and solid cash generation) balanced by earnings cyclicality and meaningful leverage. Technicals are supportive with a strong uptrend across key moving averages. Valuation is a notable positive given the low P/E, while the latest earnings call reinforces steady guidance and strengthening credit/capital, tempered by near-term noninterest-income and expense pressures.
Positive Factors
Improved leverage and capital
Leverage has materially improved since 2021–2022 (debt-to-equity ~1.17) while CET1 sits at 13.3%. Stronger capital and lower leverage increase resilience to credit shocks, preserve access to funding, and provide capacity for buybacks, dividends, or targeted balance-sheet optimization.
Negative Factors
Elevated credit loss run-rate
A mid-7% net loss rate is a structurally higher loss baseline for a consumer credit franchise. Persistently elevated losses compress net income and capital generation, increase provisioning volatility, and heighten sensitivity to economic downturns and consumer-stress cycles over the medium term.
Read all positive and negative factors
Positive Factors
Negative Factors
Improved leverage and capital
Leverage has materially improved since 2021–2022 (debt-to-equity ~1.17) while CET1 sits at 13.3%. Stronger capital and lower leverage increase resilience to credit shocks, preserve access to funding, and provide capacity for buybacks, dividends, or targeted balance-sheet optimization.
Read all positive factors
Bread Financial Holdings (BFH) vs. SPDR S&P 500 ETF (SPY)
Market Cap
$3.45B
Dividend Yield1.12%
Average Volume (3M)640.69K
Price to Earnings (P/E)4.4
Beta (1Y)1.38
Revenue Growth-0.65%
EPS Growth118.03%
CountryUS
Employees6,000
SectorFinancial
Sector Strength70
IndustryFinancial - Credit Services
Share Statistics
EPS (TTM)4.18
Shares Outstanding41,422,670
10 Day Avg. Volume663,574
30 Day Avg. Volume640,691
Financial Highlights & Ratios
PEG Ratio0.06
Price to Book (P/B)1.00
Price to Sales (P/S)0.71
P/FCF Ratio1.59
Enterprise Value/Market Cap1.09
Enterprise Value/Revenue0.80
Enterprise Value/Gross Profit1.25
Enterprise Value/Ebitda5.26
Forecast
1Y Price Target
$96.56Price Target Upside6.60% Upside
Rating ConsensusModerate Buy
Number of Analyst Covering9
EPS Forecast (FY)11.02
Revenue Forecast (FY)$3.96B
Bread Financial Holdings Business Overview & Revenue Model
Company Description
Bread 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 ...
How the Company Makes Money
Bread Financial primarily makes money by originating and servicing credit card receivables through private label and co-brand card programs with partner merchants/brands. Key revenue streams typically include: (1) Net interest income: interest cha...
Bread Financial Holdings Earnings Call Summary
Earnings Call Date:Apr 23, 2026
(Q1-2026)
| % Change Since: |
Next Earnings Date:Jul 23, 2026
Earnings Call Sentiment Positive
The call presents a predominantly positive picture: solid top-line momentum (7% credit sales growth), an inflection to loan growth, improving credit metrics, stronger margins and robust capital and liquidity positions. Offsetting items include pressure on noninterest income from higher retailer share arrangements (with an expected ~$40 million Q2 headwind), reduced billed late fees as delinquencies improve, ongoing investment-driven expense increases, and macroeconomic uncertainty (notably fuel prices and low consumer sentiment). On balance the operational progress, capital generation and improving credit trends outweigh the near-term income headwinds and cautious guidance.Positive Updates
Revenue and Profitability
Q1 revenue of $1.0+ billion increased $48 million, or 5% year over year; net income of $181 million and diluted EPS of $4.15.
Negative Updates
Noninterest Income Pressure from Retailer Share Arrangements
Noninterest income declined $13 million YoY driven by higher retailer share arrangements (higher credit sales-related partner payments and increased profit share), and management expects RSA dynamics to pressure noninterest income by up to $40 million in Q2 vs Q1.
Read all updates
Q1-2026 Updates
Positive
Negative
Revenue and Profitability
Q1 revenue of $1.0+ billion increased $48 million, or 5% year over year; net income of $181 million and diluted EPS of $4.15.
Read all positive updates
Company Guidance
Management reaffirmed an unchanged 2026 outlook: average credit card and other loan growth is expected to be up low single digits versus 2025 (after Q1 average loans of $18.3B and ending loans of $18.1B, with ending loans expected to finish higher than “low singles”), total revenue growth is anticipated to be up low single digits (Q1 revenue rose $48M, or 5% YoY), and net interest margin is expected to be higher than 2025 though incremental pricing benefits will slow as repricing completes; management expects to reach the low end of a 7.2%–7.4% net loss rate target for 2026, a normalized effective tax rate of 25%–27%, and to deliver positive operating leverage (excluding pretax impacts from debt repurchases). They warned Q2 noninterest income may be pressured by up to $40M versus Q1, estimated Q2 total expenses just under $500M, and reiterated strong capital and liquidity positions (Q1 CET1 13.3%, total loss-absorption capacity 25.5% of loans), with future share repurchases contingent on capital generation, potential preferred issuances, and remaining $690M repurchase authorization.Bread Financial Holdings Financial Statement Overview
Summary
Income Statement
72
Positive
Balance Sheet
61
Positive
Cash Flow
69
Positive
| Breakdown | TTM | Dec 2025 | Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 |
|---|---|---|---|---|---|---|
Income Statement | ||||||
| Total Revenue | 4.71B | 4.70B | 4.80B | 5.17B | 4.37B | 3.27B |
| Gross Profit | 3.02B | 2.98B | 2.44B | 3.07B | 2.28B | 2.06B |
| EBITDA | 719.00M | 694.00M | 471.00M | 1.08B | 413.00M | 1.17B |
| Net Income | 561.00M | 518.00M | 277.00M | 718.00M | 223.00M | 801.00M |
Balance Sheet | ||||||
| Total Assets | 22.31B | 22.66B | 22.89B | 23.14B | 25.41B | 21.75B |
| Cash, Cash Equivalents and Short-Term Investments | 3.64B | 3.77B | 3.85B | 3.76B | 3.99B | 3.22B |
| Total Debt | 3.88B | 4.39B | 5.68B | 5.44B | 8.13B | 7.58B |
| Total Liabilities | 18.98B | 19.34B | 19.84B | 20.22B | 23.14B | 19.66B |
| Stockholders Equity | 3.33B | 3.33B | 3.05B | 2.92B | 2.27B | 2.09B |
Cash Flow | ||||||
| Free Cash Flow | 1.69B | 2.09B | 1.86B | 1.99B | 1.78B | 1.46B |
| Operating Cash Flow | 1.70B | 2.09B | 1.86B | 1.99B | 1.85B | 1.54B |
| Investing Cash Flow | -2.06B | -1.37B | -1.17B | 788.00M | -5.11B | -1.69B |
| Financing Cash Flow | -245.47M | -807.00M | -592.00M | -3.09B | 3.27B | 608.00M |
Bread Financial Holdings Technical Analysis
Positive
90.58
Price Trends
75.18
Positive
74.02
Positive
67.45
Positive
Market Momentum
3.17
Negative
77.01
Negative
95.87
Negative
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For BFH, the sentiment is Positive. The current price of 90.58 is above the 20-day moving average (MA) of 77.47, above the 50-day MA of 75.18, and above the 200-day MA of 67.45, indicating a bullish trend. The MACD of 3.17 indicates Negative momentum. The RSI at 77.01 is Negative, neither overbought nor oversold. The STOCH value of 95.87 is Negative, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for BFH.
Bread Financial Holdings Risk Analysis
Bread Financial Holdings disclosed 60 risk factors in its most recent earnings report. Bread Financial Holdings reported the most risks in the "Finance & Corporate" category.
Finance & Corporate - Financial and accounting risks. Risks related to the execution of corporate activity and strategy
Latest Risks Added 0 New Risks
Bread Financial Holdings Peers Comparison
UnderperformOutperform
Sector (68)
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
75 Outperform | $2.59B | 16.17 | 91.62% | ― | 66.08% | 68.68% | |
74 Outperform | $3.45B | 4.43 | 17.08% | 1.12% | -0.65% | 118.03% | |
73 Outperform | $4.20B | 9.27 | 24.88% | ― | 17.46% | 46.61% | |
69 Neutral | $1.91B | 8.01 | 11.92% | ― | 11.71% | 157.08% | |
68 Neutral | $2.81B | 10.62 | 47.95% | 10.18% | -2.34% | -49.33% | |
68 Neutral | $18.00B | 11.42 | 9.92% | 3.81% | 9.73% | 1.22% | |
| ― | $2.33B | -2.39 | 0.96% | ― | ― | ― |
* Financial Sector Average
BFH
Bread Financial Holdings
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38.65
82.62%
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LU
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SEZL
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47.33%
Bread Financial Holdings Corporate Events
Business Operations and StrategyStock BuybackDividendsFinancial Disclosures
Bread Financial Highlights Strong Q1 Results and Capital Returns
Positive
Apr 23, 2026
On April 23, 2026, Bread Financial reported strong first-quarter 2026 results, highlighted by a return to loan growth and improving credit quality, with net income rising to $181 million, revenue up 5% year over year and end-of-period loans increa...
Financial Disclosures
Bread Financial Reports Stable Loan Growth, Improving Delinquencies
Positive
Apr 23, 2026
On April 23, 2026, Bread Financial reported operating metrics for the month and quarter ended March 31, 2026, highlighting modest growth in its lending portfolio and trends in credit performance. Average credit card and other loans stood at $18.04...
Business Operations and StrategyFinancial Disclosures
Bread Financial Highlights Improving Credit Metrics and Loan Growth
Positive
Mar 11, 2026
On March 11, 2026, Bread Financial Holdings reported a modest 1% year-over-year increase in average credit card and other loans to $18.3 billion for the month ended February 28, 2026, with end-of-period loans at $18.1 billion. Net principal losses...
Business Operations and StrategyStock Buyback
Bread Financial Expands Share Repurchase Authorization, Signals Confidence
Positive
Feb 26, 2026
On February 26, 2026, Bread Financial Holdings, Inc. announced that its board had approved a $600 million increase to its existing share repurchase authorization, lifting the total available capacity to $765 million. As of December 31, 2025, the c...
Business Operations and StrategyStock Buyback
Bread Financial Announces Capped Call Unwind Share Retirement
Neutral
Feb 18, 2026
On February 17, 2026, Bread Financial Holdings, Inc. entered into privately negotiated agreements with the financial institutions that were parties to its capped call transactions related to its 4.25% Convertible Senior Notes due 2028, which had n...
Business Operations and StrategyFinancial Disclosures
Bread Financial Reports Stable Loans, Slightly Improved Credit Quality
Positive
Feb 10, 2026
On February 10, 2026, Bread Financial reported January 2026 portfolio metrics showing essentially flat average credit card and other loan balances year over year at about $18.5 billion. End‑of‑period credit card and other loans were $1...
Business Operations and StrategyStock BuybackDividendsFinancial DisclosuresPrivate Placements and Financing
Bread Financial Posts Strong 2025 Results, Raises Shareholder Returns
Positive
Jan 29, 2026
On January 29, 2026, Bread Financial reported fourth-quarter and full-year 2025 results showing solid profitability and capital return alongside a stronger balance sheet. For 2025, the company generated $518 million in net income available to comm...
Financial Disclosures
Bread Financial Reports Slightly Improved Credit Quality Metrics
Neutral
Jan 29, 2026
On January 29, 2026, Bread Financial reported key credit performance metrics for the period ended December 31, 2025, showing end-of-period credit card and other loans of $18.8 billion and average loans of $18.5 billion for December, both down 1% y...
Glossary
BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
Disclaimer
This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.