BBBY  Bed Bath & Beyond Inc.

Exchange

NASDAQ

Sector

Consumer Services

Industry

Home Furnishings

Market Cap.

5.93B

Vuru Grade

81.65/100

Current Price

$40.40
-0.74 (-1.80%)

Growth Price

$64.35
Undervalued by 59.29%

Stability Price

$108.14
Undervalued by 167.68%

Company Metrics

  • P/E 8.58
  • P/S 0.50
  • P/B 2.31
  • EPS 4.71
  • Cash ROIC 25.78%
  • Cash Ratio 0.32
  • Dividend 0.50 / 1.21 %
  • Avg. Vol. 2.49M
  • Shares 165.02M
  • Market Cap. 5.93B

Company Description

Bed Bath & Beyond Inc., together with its subsidiaries, operates a chain of retail stores. It sells a range of domestic merchandise, such as bed linens and related items, bath items, and kitchen textiles; and home furnishings, including kitchen and tabletop items, fine tabletop, basic housewares, general home furnishings, consumables, and certain juvenile products. The company also offers giftware... more


Download 10 Years of Financial Statements:
Income Statement   Balance Sheet   Cash Flow

News

Bed Bath & Beyond Inc. Profits Plunge 29%
Motley Fool - Dec 22, 2016
On a comparable basis, sales fell 1.4%, compared with a 0.4% increase in the year-ago quarter, as the impact of "low-single-digit" declines in Bed Bath & Beyond's same-store sales more than offset a greater than 20% increase in comps from the company's ...
Bed Bath & Beyond is beyond hope in the near-term - MarketWatch
First Week of April 21st Options Trading For Bed, Bath & Beyond
Nasdaq - Jan 23, 2017
Investors in Bed, Bath & Beyond, Inc. (Symbol: BBBY) saw new options become available this week, for the April 21st expiration.
Stock Price of Bed Bath & Beyond Inc. (BBBY) Increases 2.21%
Highland Mirror - Feb 21, 2017
Bed Bath & Beyond Inc. s chart and data analysis indicates that the stock price has dropped -9.62% in the past 12 Weeks but analyzing the 6 month chart of the stock, the price of the stock has managed to drop negative and it has dropped down to -10.93% .
Earnings Clues on STORE Capital Corporation (STOR), Bed Bath & Beyond Inc ... - StockNewsJournal
The Renaissance Group LLC Has $1851000 Position in Bed Bath & Beyond Inc. (BBBY) - DailyQuint
Bed Bath & Beyond Does Not Have The Right Board Of Directors
Seeking Alpha - Feb 16, 2017
Well, ok, it is fine. Old retailers do need to compete with Amazon, but definitely they are not going to disappear. I believe that they will only have to transform their business.
Dividend Growth of Bed Bath & Beyond Inc.(BBBY) - Highland Mirror
Today's Brokerage Rating: VeriSign, Inc. (VRSN), Bed Bath & Beyond Inc. (BBBY) - StockNewsJournal
The State Street Corp Reduces Position in Bed Bath & Beyond Inc. (BBBY)
DailyQuint - 3 hours ago
State Street Corp reduced its stake in Bed Bath & Beyond Inc. (NASDAQ:BBBY) by 0.4% during the fourth quarter, according to its most recent 13F filing with the Securities and Exchange Commission.
Bed Bath & Beyond Inc. (BBBY) Upgrade to Buy at the Vetr Inc. - Petro Global News 24
BBBY's financials look great but are not reflecting the company's actual value.
Seeking Alpha - Jan 31, 2017
Bed Bath & Beyond (Nasdaq: BBBY) metrics have been beefed up due to consistent share buybacks. For a long-term hold, BBBY's financials appear great and near a fair value level.
Bed Bath & Beyond Inc. (NASDAQ:BBBY) PEG Ratio At 1.47 - Equities Focus
Successful Earnings Option Trading: Bed Bath & Beyond Inc (NASDAQ:BBBY) - CML News
Bed Bath & Beyond: How Much Is This Firm Worth?
Seeking Alpha - Feb 1, 2017
BBBY's stock is down 50% from highs due to lethargic management and poor pivot toward e-conmmerce. Even so BBBY is a cash cow with a lot of value.
Traders Alert: Analyst mean rating stands at 3.30 while Bed Bath & Beyond Inc ... - Hot Stocks Point
Broker Outlook For The Week Ahead Bed Bath & Beyond Inc. (NASDAQ:BBBY) - Fiscal Standard
Traders Secrets on CommScope Holding Company, Inc. (COMM), Bed Bath & Beyond ...
StockNewsJournal - Feb 16, 2017
Bed Bath & Beyond Inc. (NASDAQ:BBBY), at its latest closing price of $41.28, it has a price-to-book ratio of 2.36, compared to an industry average at 3.61.
Bed Bath & Beyond Inc Price Volatility Hits A Rock Bottom Low
CML News - Feb 17, 2017
This is a proprietary realized volatility rating created by Capital Market Laboratories (CMLviz) based on a large number of data interactions for Bed Bath & Beyond Inc (NASDAQ:BBBY) . We examine the little used gem of daily stock volatility over a 20 ...
Analyst's Predictions on Sinclair Broadcast Group, Inc. (SBGI), Bed Bath ...
StockNewsJournal - Feb 22, 2017
Bed Bath & Beyond Inc. (NASDAQ:BBBY), at its latest closing price of $41.46, it has a price-to-book ratio of 2.36, compared to an industry average at 3.51.
Growth Rate Assumed by Market

We did a reverse valuation to calculate the growth rate the market is assuming for BBBY to be considered fairly valued at its current market price. It's useful to compare this to the growth rate we're assuming for the Growth Price.

Future Free Cash Flow Growth Rate

This is the annual growth rate we've applied to calculate BBBY's Free Cash Flow for the next 10 years. To calculate it, we looked at several time periods of the last 10 years. Feel free to adjust it, but we limit the initial growth rate to 20% and slow it down over the years. Otherwise, long-term sustainability issues come into play.

Discount Rate

The discount rate is the annual rate of return an investor requires to take the risk of investing in a single stock. To account for that risk, this should be above 8-10%, as this is the avg. annual rate of return for the S&P500 over the past 100 years.

$40.40 Current Price

$64.35 Growth Price (DCF)

Undervalued by 59.29%


Growth Rate Assumed by Market: -1.77%


Future Free Cash Flow Growth Rate: 15.0%


Discount Rate: 15.0%


Show Free Cash Flow numbers

$108.14 Stability Price (EPV)

Undervalued by 167.68%


Discount Rate: 15.0%

$54.43 Book Price

Undervalued by 34.73%


Excellent Cash Return on Invested Capital over the past 5 years

BBBY has efficiently invested its financial resources in buildings, projects, and equipment, resulting in strong returns. Annual Reports can be useful in identifying the cause of one-time events and future sustainability.

BBBY has created $25.78 of cash for every $100 invested.
Figures in USD. Fiscal year ends in February
20122013201420152016
Free Cash Flow 981.91M 838.31M 1.07B 855.21M 683.79M
divided by
Invested Capital 2.63B 3.63B 3.66B 3.83B 4.03B
Cash ROIC 37.39% 23.09% 29.12% 22.32% 16.97%

Excellent Return on Equity over the past 5 years

Over the past 5 years, BBBY has generated strong profits with money shareholders have invested. This is considered one of the best indicators of quality management. Beware of extremely high Return on Equity (> 50%) as this is often unsustainable.

BBBY has generated $28.88 of Earnings for every $100 of Shareholders' Equity.
Figures in USD. Fiscal year ends in February
20122013201420152016
Net Income 989.54M 1.04B 1.02B 957.47M 841.49M
divided by
Stockholders' Equity 3.92B 4.08B 3.94B 2.74B 2.56B
Return on Equity 25.23% 25.44% 25.94% 34.90% 32.88%

Excellent Business Performance over the past 10 years

BBBY has been able to maintain profitability in good times and bad. This could mean BBBY has an extremely strong business or has the ability to scale down costs when needed. This should be a fairly resilient business, but double check for future sustainability by looking at its Risk Factors in the Annual Report.

BBBY has created positive free cash flow for 9 or more of the past 10 years.
Figures in USD. Fiscal year ends in February
2007200820092010201120122013201420152016
Free Cash Flow 296.13M 256.33M 368.11M 751.73M 803.93M 981.91M 838.31M 1.07B 855.21M 683.79M

Weak Balance Sheet

BBBY's financial position is not ideal. The key is to check whether BBBY is using debt to fuel its growth and the sustainability of that tendency. Highly capital intensive businesses (see Economic Moat) follow this route, which can deeply impact the future prospects of the business.
Figures in USD. Fiscal year ends in February
2007200820092010201120122013201420152016
Cash 988.26M 224.08M 670.21M 1.53B 1.79B 1.76B 1.01B 855.85M 985.57M 601.77M
Current Assets 2.70B 2.08B 2.56B 3.56B 4.07B 4.14B 3.87B 3.81B 4.08B 3.83B
Total Assets 3.96B 3.84B 4.27B 5.15B 5.65B 5.72B 6.28B 6.36B 6.76B 6.50B
Current Liabilities 1.15B 1.01B 952.97M 1.15B 1.32B 1.34B 1.64B 1.84B 1.94B 1.87B
Total Liabilities 1.31B 1.28B 1.27B 1.50B 1.71B 1.80B 2.20B 2.41B 4.02B 3.94B
Stockholder' Equity 2.65B 2.56B 3.00B 3.65B 3.93B 3.92B 4.08B 3.94B 2.74B 2.56B
Current Ratio 2.36 2.05 2.69 3.10 3.08 3.09 2.37 2.07 2.10 2.05
TL-to-TA 0.33 0.33 0.30 0.29 0.30 0.31 0.35 0.38 0.59 0.61

Consistent Reinvestment of Profits over the past 10 years

BBBY has consistently retained profits. This may put BBBY in a strong position to invest for the future, by buying new machinery, investing in R&D or a number of other options. By effectively using these earnings, BBBY can greatly improve their long-term economic picture.
Figures in USD. Fiscal year ends in February
2007200820092010201120122013201420152016
Retained Earnings 3.15B 3.73B 4.15B 4.75B 5.55B 6.54B 7.57B 8.60B 9.55B 10.39B
Retained Earnings Growth - 18.26% 11.40% 14.44% 16.64% 17.84% 15.88% 13.50% 11.14% 8.81%

Competitive Industry over the past 10 years

BBBY is likely operating in an industry with medium to low barriers to entry. This may mean that BBBY doesn't have a characteristic that's hard to replicate, such as exclusive distribution, branding or the ability to keep costs low. If Gross Margins are at least satisfactory, it's likely that BBBY invests heavily in R&D and Sales, General & Administrative expenses.

Only $8.34 of every $100 of Revenue have been profit, on average over the past 10 years.
Figures in USD. Fiscal year ends in February
2007200820092010201120122013201420152016
Net Income 594.24M 562.81M 425.12M 600.03M 791.33M 989.54M 1.04B 1.02B 957.47M 841.49M
divided by
Revenue 6.62B 7.05B 7.21B 7.83B 8.76B 9.50B 10.91B 11.50B 11.88B 12.10B
Net Profit Margin 8.98% 7.98% 5.90% 7.66% 9.04% 10.42% 9.51% 8.89% 8.06% 6.95%

Varying Pricing Power over the past 10 years

BBBY has maintained substantial gross margins, suggesting that they have been able to set prices without consideration of the cost of goods sold. However, there is a substantial variation in their Gross Profit Margins from year-to-year, which indicates inconsistent performance. Look at reasons for this inconsistency to determine the likelihood of future sustainability.

$46.35 of every $100 worth of sales have been Gross Profit, on average over the past 10 years.
Figures in USD. Fiscal year ends in February
2007200820092010201120122013201420152016
Gross Profit 2.84B 2.93B 2.87B 3.21B 3.62B 9.50B 4.39B 4.57B 4.62B 4.62B
divided by
Revenue 6.62B 7.05B 7.21B 7.83B 8.76B 9.50B 10.91B 11.50B 11.88B 12.10B
Gross Margin 42.85% 41.50% 39.86% 40.98% 41.36% 100.00% 40.21% 39.69% 38.88% 38.17%

Medium Capital Intensity over the past 10 years

BBBY has used a reasonable amount of their financial resources to invest in facilities and equipment required to produce its goods and services. This isn't perfect, but it shouldn't be an area of concern unless this number is strongly trending upwards.

38.00% of Profits are being spent on Capital Expenditures, like Property, Plant, & Equipment, required to run the business.
Figures in USD. Fiscal year ends in February
2007200820092010201120122013201420152016
Capital Expenditure 317.50M 358.21M 215.86M 153.68M 183.47M 243.37M 354.68M 317.18M 330.64M 328.40M
divided by
Net Income 594.24M 562.81M 425.12M 600.03M 791.33M 989.54M 1.04B 1.02B 957.47M 841.49M
Capital Expenditure Ratio 53.43% 63.65% 50.78% 25.61% 23.19% 24.59% 34.18% 31.03% 34.53% 39.03%

No Dividend History over the past 10 years

BBBY has never distributed dividends or has recently suspended their dividend distribution.
Figures in USD. Fiscal year ends in February
2007200820092010201120122013201420152016
Dividend Paid - - - - - - - - - -
divided by
Shares Outstanding 284.96M 268.41M 258.62M 260.38M 258.08M 243.89M 227.72M 213.36M 188.88M 165.02M
Dividend Paid Per Share - - - - - - - - - -
Price at Year End 29.11 25.34 39.23 49.41 57.97 54.91 80.13 75.83 48.61 40.64
Dividend Yield - - - - - - - - - -

Strong History of Stock Buybacks over the past 10 years

BBBY has a strong history of delivering increased value for shareholders in the form of stock buybacks. These have helped improve financial metrics and increase each shareholders' relative ownership stake in the company, due to fewer shares outstanding and holding the same number of shares.
Figures in USD. Fiscal year ends in February
2007200820092010201120122013201420152016
Shares Outstanding 284.96M 268.41M 258.62M 260.38M 258.08M 243.89M 227.72M 213.36M 188.88M 165.02M
Stock Bought Back - 6.16% 3.79% -0.67% 0.89% 5.82% 7.10% 6.73% 12.96% 14.46%
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