BBBY  Bed Bath & Beyond Inc.

Exchange

NASDAQ

Sector

Consumer Services

Industry

Home Furnishings

Market Cap.

2.97B

Vuru Grade

80.11/100

Current Price

$21.38
-0.09 (-0.42%)

Growth Price

$58.73
Undervalued by 174.67%

Stability Price

$64.08
Undervalued by 199.73%

Company Metrics

  • P/E 5.46
  • P/S 0.25
  • P/B 1.1
  • EPS 3.91
  • Cash ROIC 21.39%
  • Cash Ratio 0.24
  • Dividend 0.6 / 2.79%
  • Avg. Vol. 4.44M
  • Shares 138.91M
  • Market Cap. 2.97B

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

Retail Model Throws Wet Blanket Over Bed Bath & Beyond's Sizable Margin Of Safety
Seeking Alpha - Oct 18, 2017
Bed Bath & Beyond, Inc. is an omnichannel chain of on-ground and online stores engaged in the sale of a wide assortment of domestic merchandise that it refers to as "home and heart-related life events products.
Earnings Clues on Overstock.com, Inc. (OSTK), Bed Bath & Beyond Inc. (BBBY ... - StockNewsJournal
Going Through the Figures for Bed Bath & Beyond Inc. (BBBY) and Williams ... - Economic News
Rowland & Co Investment Counsel Buys Bed Bath & Beyond Inc, Berkshire Hathaway ...
Nasdaq - Oct 12, 2017
Rowland & Co Investment Counsel initiated holdings in Patterson Companies Inc. The purchase prices were between $36.27 and $47.51, with an estimated average price of $40.06.
How Retailers Like Bed Bath & Beyond Dug Their Own Graves
Motley Fool - Sep 30, 2017
Bed Bath & Beyond, Inc. (NASDAQ:BBBY) shares nosedived last week after the home-furnishings retailer posted disappointing earnings numbers.
Bed Bath & Beyond: Look Beyond The Headlines - Seeking Alpha
Bed Bath & Beyond Inc. (BBBY): Scrutinizing the Chart - Economic News
Pastel & Associes Sa Buys Loews Corp, Bed Bath & Beyond Inc, Sells Ternium SA ...
Nasdaq - Oct 13, 2017
Pastel & Associes Sa added to the holdings in Bed Bath & Beyond Inc by 86.66%. The purchase prices were between $22.25 and $31.15, with an estimated average price of $28.06.
Bed Bath & Beyond Gets Ravaged
Seeking Alpha - Sep 25, 2017
Bed Bath & Beyond (BBBY) has been quite the example of an epic meltdown in the past couple of years. The company's struggles to stay relevant in an Amazon-dominated landscape have been palpable and the evidence shows in the chart below.
Bed Bath & Beyond (BBBY) Continues to Decline: 3 Reasons Why - Nasdaq
The market capitalization of Bed Bath & Beyond Inc. (BBBY) is at $3.08 Billion
StandardOracle - 15 hours ago
“CEO at Bed Bath & Beyond Inc., TEMARES STEVEN H on 2017-05-09 Sell 96109 shares of the company at a price of $37.37.
Is This A Worrisome Sign Of A Downside? – Bed Bath & Beyond Inc. (BBBY ... - Post Analyst
Bed Bath & Beyond Owed Refund Over Store Credits: NJ Court
Bloomberg BNA - Sep 25, 2017
21 decision on two consolidated appeals sheds light on how gift cards may be treated under New Jersey's unclaimed property statute, which the state amended in 2010 to include escheat of “stored value cards” ( Bed Bath & Beyond, Inc. v. New Jersey ...
Bed Bath & Beyond: Still Waiting On Sidelines
Seeking Alpha - Oct 11, 2017
Bed Bath & Beyond is cheap, but it was cheap when it was trading at $36, $28 and even now. The only difference now is that the company is approaching critical technical levels coinciding with even lower multiples and book value of the company.
Bed Bath & Beyond Inc. (BBBY) Dips 2.66% for October 09 - Equities.com
Bed Bath & Beyond Inc. (NASDAQ:BBBY) Might Be Profitable In Future - Stock Traders Daily
What Falling Estimates & Price Mean for Bed Bath & Beyond Inc. (BBBY)
Nasdaq - Oct 5, 2017
One such stock that you may want to consider dropping is Bed Bath & Beyond Inc. BBBY , which has witnessed a significant price decline in the past four weeks, and it has seen negative earnings estimate revisions for the current quarter and the current ...
Traders Secrets on Dynegy Inc. (DYN), Bed Bath & Beyond Inc. (BBBY)
StockNewsJournal - Oct 20, 2017
Bed Bath & Beyond Inc. (NASDAQ:BBBY), at its latest closing price of $21.20, it has a price-to-book ratio of 0.00, compared to an industry average at 0.49.
Bank of Nova Scotia Buys 500182 Shares of Bed Bath & Beyond Inc. (BBBY) - Dispatch Tribunal
The Bottom Line on Bed Bath & Beyond Inc. (BBBY), Ford Motor Company (F) - AllStockNews
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.

$21.38 Current Price

$58.73 Growth Price (DCF)

Undervalued by 174.67%


Growth Rate Assumed by Market: -91.80%


Future Free Cash Flow Growth Rate: 5.9%


Discount Rate: 15.0%


Show Free Cash Flow numbers

$64.08 Stability Price (EPV)

Undervalued by 199.73%


Discount Rate: 15.0%

$62.74 Book Price

Undervalued by 193.44%


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 $21.39 of cash for every $100 invested.
Figures in USD. Fiscal year ends in February
20132014201520162017
Free Cash Flow 838.31M 1.07B 855.21M 683.79M 668.21M
divided by
Invested Capital 3.63B 3.66B 3.83B 4.03B 4.33B
Cash ROIC 23.09% 29.12% 22.32% 16.97% 15.45%

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 $28.87 of Earnings for every $100 of Shareholders' Equity.
Figures in USD. Fiscal year ends in February
20132014201520162017
Net Income 1.04B 1.02B 957.47M 841.49M 685.11M
divided by
Stockholders' Equity 4.08B 3.94B 2.74B 2.56B 2.72B
Return on Equity 25.44% 25.94% 34.90% 32.88% 25.19%

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
2008200920102011201220132014201520162017
Free Cash Flow 256.33M 368.11M 751.73M 803.93M 981.91M 838.31M 1.07B 855.21M 683.79M 668.21M

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
2008200920102011201220132014201520162017
Cash 224.08M 670.21M 1.53B 1.79B 1.76B 1.01B 855.85M 985.57M 601.77M 488.33M
Current Assets 2.08B 2.56B 3.56B 4.07B 4.14B 3.87B 3.81B 4.08B 3.83B 3.81B
Total Assets 3.84B 4.27B 5.15B 5.65B 5.72B 6.28B 6.36B 6.76B 6.50B 6.85B
Current Liabilities 1.01B 952.97M 1.15B 1.32B 1.34B 1.64B 1.84B 1.94B 1.87B 2.03B
Total Liabilities 1.28B 1.27B 1.50B 1.71B 1.80B 2.20B 2.41B 4.02B 3.94B 4.13B
Stockholder' Equity 2.56B 3.00B 3.65B 3.93B 3.92B 4.08B 3.94B 2.74B 2.56B 2.72B
Current Ratio 2.05 2.69 3.10 3.08 3.09 2.37 2.07 2.10 2.05 1.87
TL-to-TA 0.33 0.30 0.29 0.30 0.31 0.35 0.38 0.59 0.61 0.60

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
2008200920102011201220132014201520162017
Retained Earnings 3.73B 4.15B 4.75B 5.55B 6.54B 7.57B 8.60B 9.55B 10.39B 11.00B
Retained Earnings Growth - 11.40% 14.44% 16.64% 17.84% 15.88% 13.50% 11.14% 8.81% 5.86%

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 $8.00 of every $100 of Revenue have been profit, on average over the past 10 years.
Figures in USD. Fiscal year ends in February
2008200920102011201220132014201520162017
Net Income 562.81M 425.12M 600.03M 791.33M 989.54M 1.04B 1.02B 957.47M 841.49M 685.11M
divided by
Revenue 7.05B 7.21B 7.83B 8.76B 9.50B 10.91B 11.50B 11.88B 12.10B 12.22B
Net Profit Margin 7.98% 5.90% 7.66% 9.04% 10.42% 9.51% 8.89% 8.06% 6.95% 5.61%

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.

$45.81 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
2008200920102011201220132014201520162017
Gross Profit 2.93B 2.87B 3.21B 3.62B 9.50B 4.39B 4.57B 4.62B 4.62B 4.58B
divided by
Revenue 7.05B 7.21B 7.83B 8.76B 9.50B 10.91B 11.50B 11.88B 12.10B 12.22B
Gross Margin 41.50% 39.86% 40.98% 41.36% 100.00% 40.21% 39.69% 38.88% 38.17% 37.46%

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.

38.11% 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
2008200920102011201220132014201520162017
Capital Expenditure 358.21M 215.86M 153.68M 183.47M 243.37M 354.68M 317.18M 330.64M 328.40M 373.57M
divided by
Net Income 562.81M 425.12M 600.03M 791.33M 989.54M 1.04B 1.02B 957.47M 841.49M 685.11M
Capital Expenditure Ratio 63.65% 50.78% 25.61% 23.19% 24.59% 34.18% 31.03% 34.53% 39.03% 54.53%

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
2008200920102011201220132014201520162017
Dividend Paid - - - - - - - - - -
divided by
Shares Outstanding 268.41M 258.62M 260.38M 258.08M 243.89M 227.72M 213.36M 188.88M 165.02M 149.71M
Dividend Paid Per Share - - - - - - - - - -
Price at Year End 25.34 39.23 49.41 57.97 54.91 80.13 75.83 48.61 40.64 36.10
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
2008200920102011201220132014201520162017
Shares Outstanding 268.41M 258.62M 260.38M 258.08M 243.89M 227.72M 213.36M 188.88M 165.02M 149.71M
Stock Bought Back - 3.79% -0.67% 0.89% 5.82% 7.10% 6.73% 12.96% 14.46% 10.23%
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