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Bread Financial Holdings

BFH
56
Financial - Credit Services · Financial Services
Also trades as: 0HCR.L GBP 1.00 (-5.80%)
Price
$99.89
-2.56 (-2.50%)
Market Cap
$3.84B
Exchange
New York Stock Exchange
Winston Score
56
Winston is curious
A decent business — some strong pillars, some weaker.
Data as of Oct 25, 2026 · filings through Jun 30, 2026

§How the score breaks down

Quality
Good
17/30
Growth
Good
13/20
Cash Flow
Exceptional
10/10
Stability
Mixed
3/10
Valuation
Strong
7/10
Ownership
Mixed
4/15
Dividends
Mixed
2/5

56 of 100 counted points = Winston Score 56.

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Share count falling — buybacks

−8.0% over 4y

The company has reduced its share count over this period, returning value to shareholders through buybacks.

Diluted shares outstanding: 50.0M (2021) → 46.0M (2025)

§Winston Score History

The full picture

Bread Financial Holdings is a financial services company that helps people pay for things using credit cards and buy-now-pay-later loans. Its main products are store-branded credit cards and general-purpose credit cards, which it offers in partnership with retailers, healthcare providers, and other businesses. The company essentially acts as the lender behind the scenes when a customer signs up for a store credit card at checkout.

Bread Financial makes money by charging interest and fees on the credit balances its cardholders carry. It operates primarily in the United States and generates roughly $3–4 billion in annual revenue, with its competitive edge coming from deep partnerships with well-known retail brands that make it harder for customers to switch lenders. The main risk the company faces is credit losses — when consumers struggle to repay their balances, defaults rise and profits fall, making Bread Financial's earnings sensitive to changes in the broader U.S. economy and consumer financial health.

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Growth Profile

When traditional metrics don't capture the full picture, these are the signals growth stock investors use instead.

Revenue Growth

+3.4% YoY

YoY Growth Rate

Slow revenue growth

Reported EPS Growth

+21.1% YoY

Quarterly reporting periods ended:

30 Jun 2025: $2.98

30 Jun 2026: $3.61

Reported/statutory EPS, not adjusted or underlying earnings. One-off items can affect this figure. Provider rounding can affect the growth rate.

YoY Growth Rate

Reported EPS increased year over year

R&D Spend

$0/ year

0.0% of revenue

Below sector average (7%)

Research and development spending

Insider Activity

1.8%ownership

↓ Declining

Insider ownership declining — could be dilution or selling

Cash Position

Cash flow positive

$20.4B cash & investments

Quarterly Free Cash Flow

↓ Burn rate worsening

Company generates more cash than it spends — no dilution risk from fundraising

Growth context

Bread Financial Holdings is growing revenue at 3% year-over-year. The Winston Score measures business quality today — these growth metrics show what could matter tomorrow.

The Winston Score above measures business quality today. Growth stocks often score lower because they invest in the future rather than maximising current profits. These metrics show what matters most for evaluating that future.

Score breakdown

Every number that matters to educated investors.

Each metric is explained in plain language so you know exactly what you're looking at. Start your free trial now.

Quality

Profit per sale
Gross Margin
57.2%
Premium pricing power — 57.2% gross margin
Profit after running costs
Operating Margin
16.6%
Healthy — 16.6% operating margin
Return on the money invested
ROCE
10.3%
Below par — 10.3% return on capital

ROIC between 5% and 15%. They earn 5 to 15 cents back per year on every dollar invested.

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Growth

Sales growth
Sales YoY
+0.7%
Nearly flat sales (+0.7% YoY)
Profit growth
EPS YoY
+117.9%
Earnings growing fast (+117.9% YoY)

Earnings growing 25%+ a year. The compounder zone.

How steady the profit is
EPS Consistency
6/8 quarters
Earnings grew in most of the last 8 quarters

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Cash Flow

Profit that turns into cash
Cash Conversion
386%
Turns 386% of profit into real cash
Spare cash per sale
FCF Margin
46.0%
Converts sales into free cash efficiently (46.0%)

Free cash flow margin above 20%. Out of every $100 in sales, more than $20 is real cash they keep.

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Stability

What it owes vs what it owns
Debt / Equity
0.98
Moderate — manageable debt (0.98)
Covers its interest
Interest Cover
0.86x
Dangerous — barely covers interest (0.9x)

Interest coverage below 1. Their profits don't cover the interest bill.

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Valuation

Price vs profit
P/E Ratio (TTM)
7.7x
Attractive valuation — P/E 7.7

P/E under 10. The price tag is small relative to last year's profit.

Cheaper or dearer next year
P/E vs Forward
+0.3
GROWING
Earnings roughly flat

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Dividends

Dividend
Dividend Yield
0.85%
Small dividend — 0.85% yield

Modest yield. The bulk of any return needs to come from price appreciation.

Dividend record
Dividend Growth
+9.5%
Dividend growing modestly (9.5% YoY)
Payout Ratio
8%
no trend
Pays out a modest share of profit and keeps the rest to reinvest. Room to keep paying through a weak year.

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