BBBY  Bed Bath & Beyond Inc.

Exchange

NASDAQ

Sector

Consumer Services

Industry

Home Furnishings

Market Cap.

4.98B

Vuru Grade

80.11/100

Current Price

$34.85
+0.08 (+0.23%)

Growth Price

$57.09
Undervalued by 63.81%

Stability Price

$62.30
Undervalued by 78.75%

Company Metrics

  • P/E 7.61
  • P/S 0.41
  • P/B 1.83
  • EPS 4.58
  • Cash ROIC 21.39%
  • Cash Ratio 0.24
  • Dividend 0.60 / 1.72 %
  • Avg. Vol. 2.43M
  • Shares 142.90M
  • Market Cap. 4.98B

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 Upgraded, But Not On Fundamentals
Benzinga - May 12, 2017
Loop Capital Markets' Anthony Chukumba upgraded Bed Bath & Beyond Inc. (NASDAQ: BBBY)'s rating from Sell to Hold but with an unchanged $35 price target.
Hartford Investment Management Co. Sells 2331 Shares of Bed Bath & Beyond Inc ... - The Cerbat Gem
Bed Bath & Beyond Inc. (BBBY) Dips 2.66% for May 11 - Equities.com
Why Is Bed Bath & Beyond (BBBY) Down 5.1% Since the Last Earnings Report?
Zacks.com - May 8, 2017
Bed, Bath & Beyond's gross profit improved 1.8% to $1,343.1 million in the reported quarter, while the gross profit margin contracted 60 basis points (bps) to 38%.
Analyst's Proposition on Bed Bath & Beyond Inc. (BBBY), KB Home (KBH) - The USA Commerce
Can Bed Bath & Beyond's (BBBY) Strategies Help its Revival?
Zacks.com - May 16, 2017
Bed Bath & Beyond Inc. (BBBY - Free Report) is committed toward long-term growth that is backed by strategic investments, omni-channel development and enhancement of product assortments through innovation.
Waiting For Signs Of Stabilization - Seeking Alpha
How Does Bed Bath & Beyond Inc. (BBBY) Stack Up Right Now? - StockNewsJournal
Gabelli Funds LLC Has $1381000 Stake in Bed Bath & Beyond Inc. (BBBY)
Sports Perspectives - 59 minutes ago
Bed Bath & Beyond logo Gabelli Funds LLC maintained its position in shares of Bed Bath & Beyond Inc. (NASDAQ:BBBY) during the first quarter, according to its most recent 13F filing with the Securities and Exchange Commission.
Airain ltd Takes Position in Bed Bath & Beyond Inc. (BBBY) - Chaffey Breeze
Solar Alliance Energy (SAN) EPS Estimated At $0.00; Bed Bath & Beyond Inc ... - HuronReport
What Does The Chart For Bed Bath & Beyond Inc. (BBBY) Tell Us Presently?
NY Stock News - May 26, 2017
Bed Bath & Beyond Inc. (BBBY) has presented a rich pool of technical data in recent sessions. These are the trends we've been tracking and how we feel they should be played in the current environment.
Top Analyst Upgrades and Downgrades: Ambac, Bed Bath & Beyond, GE, Tiffany ...
24/7 Wall St. - May 12, 2017
Bed Bath & Beyond Inc. (NASDAQ: BBBY) was raised to Hold from Sell at Loop Capital. It closed down 2.6% at $36.66 on Thursday but was indicated up 0.9% at $37.00 on Friday.
Bed Bath & Beyond Inc. (BBBY) Insider Arthur Stark Sells 8933 Shares
AppsforPCdaily - May 25, 2017
09/22/2016 - Bed Bath & Beyond Inc. had its "neutral" rating reiterated by analysts at Guggenheim. The firm has "Hold" rating by Evercore given on Monday, November 16.
The Case for and Against Bed Bath & Beyond Inc. (BBBY) - StockNewsJournal
Bed Bath & Beyond Inc. (BBBY) Stake Maintained by Meiji Yasuda Life Insurance Co - The Cerbat Gem
Bed Bath & Beyond Inc. (BBBY) Lays Out A Strong Argument Through Its Technicals
NY Stock News - May 17, 2017
Bed Bath & Beyond Inc. (BBBY) is looking very interesting as a trading opportunity right now. The technical setup offers the best window into what traders can expect whether they are bullish on the play or bearish.
Stock Alert: Bed Bath & Beyond Inc Stock Volatility Hits A Rock Bottom Low
CML News - May 21, 2017
Before we cover the full analysis we make a quick alert here that Bed Bath & Beyond Inc (NASDAQ:BBBY) has seen its stock price move at a tumbling low level.
Time Inc. Announces New Coastal Living Line, COASTAL LIVING Collection at Bed ...
Business Wire (press release) - May 15, 2017
NEW YORK--(BUSINESS WIRE)--Time Inc.'s (NYSE:TIME) COASTAL LIVING brand today announced the COASTAL LIVING Collection at Bed Bath & Beyond®, a collaborative line of furniture, bedding and bath items inspired by the colors and lifestyle of the ...
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.

$34.85 Current Price

$57.09 Growth Price (DCF)

Undervalued by 63.81%


Growth Rate Assumed by Market: -17.40%


Future Free Cash Flow Growth Rate: 5.9%


Discount Rate: 15.0%


Show Free Cash Flow numbers

$62.30 Stability Price (EPV)

Undervalued by 78.75%


Discount Rate: 15.0%

$62.74 Book Price

Undervalued by 80.02%


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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