DB:BBY

Stock Analysis Report

Bed Bath & Beyond

Executive Summary

Bed Bath & Beyond Inc., together with its subsidiaries, operates a chain of retail stores.

Snowflake

Fundamentals

Adequate balance sheet and fair value.

Risks

  • Bed Bath & Beyond has significant price volatility in the past 3 months.

Similar Companies

Share Price & News

How has Bed Bath & Beyond's share price performed over time and what events caused price changes?


Latest Share Price and Events


Market Performance


7 Day Return

1.5%

DB:BBY

1.4%

DE Specialty Retail

2.6%

DE Market


1 Year Return

-54.6%

DB:BBY

-9.5%

DE Specialty Retail

-9.6%

DE Market

BBY underperformed the Specialty Retail industry which returned -10.1% over the past year.

BBY underperformed the Market in Germany which returned -10.8% over the past year.


Share holder returns

BBYIndustryMarket
7 Day1.5%1.4%2.6%
30 Day-18.0%-5.1%-3.0%
90 Day-43.1%-1.6%-1.4%
1 Year-52.5%-54.6%-7.5%-9.5%-6.8%-9.6%
3 Year-81.0%-82.5%-19.6%-53.0%11.0%1.5%
5 Year-84.0%-85.4%-6.0%-51.6%25.6%8.2%

Price Volatility Vs. Market

How volatile is Bed Bath & Beyond's share price compared to the market and industry in the last 5 years?


Simply Wall St News

No news available

Valuation

Is Bed Bath & Beyond undervalued based on future cash flows and its price relative to the stock market?

>50%

Discount to future cash flow value


Intrinsic Value Based on Future Cash Flows

Bed Bath & Beyond's share price is below the future cash flow value, and at a moderate discount (> 20%).

Bed Bath & Beyond's share price is below the future cash flow value, and at a substantial discount (> 40%).


Price Based on Earnings

Bed Bath & Beyond is loss making, we can't compare its value to the DE Specialty Retail industry average.

Bed Bath & Beyond is loss making, we can't compare the value of its earnings to the Germany market.


Price Based on Expected Growth

Unable to calculate PEG ratio for Bed Bath & Beyond, we can't assess if its growth is good value.


Price Based on Value of Assets

Bed Bath & Beyond is good value based on assets compared to the DE Specialty Retail industry average.


Next Steps

Future Growth

How is Bed Bath & Beyond expected to perform in the next 1 to 3 years based on estimates from 20 analysts?

57.2%

Forecasted annual earnings growth


Earnings and Revenue Growth Estimates


Future Annual Growth Analysis

Bed Bath & Beyond's revenue is expected to decrease over the next 1-3 years, this is not considered high growth.

Bed Bath & Beyond's earnings are expected to grow significantly at over 20% yearly.

Bed Bath & Beyond's revenues are expected to decrease over the next 1-3 years, this is below the Germany market average.

Bed Bath & Beyond's earnings growth is expected to exceed the Germany market average.

Bed Bath & Beyond's earnings growth is expected to exceed the low risk savings rate of 0.2%.


Earnings per Share Growth Estimates


Future Return on Equity

Bed Bath & Beyond is not expected to efficiently use shareholders’ funds in the future (Return on Equity less than 20%).


Next Steps

Past Performance

How has Bed Bath & Beyond performed over the past 5 years?

-33.2%

Historical annual earnings growth


Earnings and Revenue History


Past Earnings Growth Analysis

Bed Bath & Beyond does not make a profit and their year on year earnings growth rate was negative over the past 5 years.

Unable to compare Bed Bath & Beyond's 1-year earnings growth to the 5-year average as it is not currently profitable.

Unable to compare Bed Bath & Beyond's 1-year growth to the DE Specialty Retail industry average as it is not currently profitable.


Return on Equity

It is difficult to establish if Bed Bath & Beyond has efficiently used shareholders’ funds last year (Return on Equity greater than 20%) as it is loss-making.


Return on Assets

It is difficult to establish if Bed Bath & Beyond has efficiently used its assets last year compared to the DE Specialty Retail industry average (Return on Assets) as it is loss-making.


Return on Capital Employed

It is difficult to establish if Bed Bath & Beyond improved its use of capital last year versus 3 years ago (Return on Capital Employed) as it is currently loss-making.


Next Steps

Financial Health

How is Bed Bath & Beyond's financial position?


Financial Position Analysis

Bed Bath & Beyond is able to meet its short term (1 year) commitments with its holdings of cash and other short term assets.

Bed Bath & Beyond's cash and other short term assets cover its long term commitments.


Debt to Equity History and Analysis

Bed Bath & Beyond's level of debt (72.2%) compared to net worth is high (greater than 40%).

Bed Bath & Beyond had negative shareholder equity 5 years ago, it is now positive therefore their debt level has improved.

Debt is well covered by operating cash flow (51.3%, greater than 20% of total debt).

Bed Bath & Beyond is making a loss, therefore interest payments are not well covered by earnings.


Balance Sheet

High level of physical assets or inventory.

Debt is covered by short term assets, assets are 2.5x debt.


Next Steps

Dividend

What is Bed Bath & Beyond's current dividend yield, its reliability and sustainability?

8.96%

Expected Dividend Yield


Upcoming Dividend Payment

Purchase Bed Bath & Beyond before the 'Buy Limit' to receive their next dividend payment.


Dividend Yield and Payments Analysis

Bed Bath & Beyond's pays a higher dividend yield than the bottom 25% of dividend payers in Germany (1.55%).

Bed Bath & Beyond's dividend is above the markets top 25% of dividend payers in Germany (4.22%).

Whilst dividend payments have been stable, Bed Bath & Beyond has been paying a dividend for less than 10 years.

Dividend payments have increased, but Bed Bath & Beyond only paid a dividend in the past 3 years.


Current Payout to Shareholders

The company is paying a dividend however it is incurring a loss.


Future Payout to Shareholders

Dividends after 3 years are expected to be well covered by earnings (3.4x coverage).


Next Steps

Management

What is the CEO of Bed Bath & Beyond's salary, the management and board of directors tenure and is there insider trading?

1.2yrs

Average management tenure


CEO

Mary Winston (57yo)

0.3yrs

Tenure

0

Ms. Mary A. Winston has been Independent Director of Dover Corporation since January 1, 2005. Ms. Winston serves as an Independent Director at Bed Bath & Beyond Inc. since May 1, 2019 and has been its Inte ...


Management Age and Tenure

1.2yrs

Average Tenure

57yo

Average Age

The average tenure for the Bed Bath & Beyond management team is less than 2 years, this suggests a new team.


Board Age and Tenure

0.3yrs

Average Tenure

60yo

Average Age

The average tenure for the Bed Bath & Beyond board of directors is less than 3 years, this suggests a new board.


Insider Trading

No 3 month open market individual insider trading information.


Recent Insider Transactions

BuyUS$32,39813 May 19
Ancora Advisors, LLC
EntityCompany
Shares2,300
Max PriceUS$14.09
BuyUS$31,020,91729 Mar 19
Ancora Advisors, LLC
EntityCompany
Shares2,278,081
Max PriceUS$13.80
BuyUS$35,148,27629 Mar 19
Legion Partners Asset Management, LLC
EntityCompany
Shares2,577,138
Max PriceUS$15.09
SellUS$6,370,80129 Mar 19
Ancora Advisors, LLC
EntityCompany
Shares497,630
Max PriceUS$12.88
SellUS$261,88317 Jan 19
Jordan Heller
EntityIndividual
Shares19,554
Max PriceUS$13.39

Ownership Breakdown


Management Team

  • Ronald Curwin

    Senior Vice President of Investor Relations

    • Tenure: 13.6yrs
  • Arthur Stark (64yo)

    Senior Advisor to Chief Executive Officer

    • Tenure: 1.2yrs
    • Compensation: US$6.11m
  • Matthew Fiorilli (62yo)

    Senior Vice President of Stores

    • Tenure: 20.6yrs
    • Compensation: US$3.94m
  • Mary Winston (57yo)

    Interim CEO & Director

    • Tenure: 0.3yrs
  • Kevin Wanner

    Vice President of Technology & Operations

    • Tenure: 0.0yrs
  • Connie Van Dyke

    Vice President of Human Resources

    • Tenure: 0.0yrs
  • Allan Rauch

    Chief Legal Officer & General Counsel

    • Tenure: 0.0yrs
  • Sue Lattmann (51yo)

    Chief Administrative Officer

    • Tenure: 1.2yrs
    • Compensation: US$3.18m
  • Scott Hames

    Senior VP and Chief Marketing & Analytics Officer

    • Tenure: 0.0yrs
  • Robyn D’Elia (47yo)

    CFO & Treasurer

    • Tenure: 1.2yrs
    • Compensation: US$1.09m

Board Members

  • Harsha Ramalingam (60yo)

    Independent Director

    • Tenure: 0.3yrs
  • Andrea Weiss (63yo)

    Independent Director

    • Tenure: 0.3yrs
  • Harriet Edelman (63yo)

    Independent Director

    • Tenure: 0.3yrs
  • Mary Winston (57yo)

    Interim CEO & Director

    • Tenure: 0.3yrs
  • John Fleming (60yo)

    Independent Director

    • Tenure: 0.3yrs
  • Stephanie Bell-Rose (61yo)

    Independent Director

    • Tenure: 1.3yrs
    • Compensation: US$152.46k
  • Ann Yerger (57yo)

    Independent Director

    • Tenure: 0.3yrs
  • Virginia Ruesterholz (58yo)

    Independent Director

    • Tenure: 2.2yrs
    • Compensation: US$175.01k
  • Patrick Gaston (61yo)

    Independent Chairman

    • Tenure: 0.3yrs
    • Compensation: US$179.00k
  • JB Osborne (38yo)

    Independent director

    • Tenure: 1.3yrs
    • Compensation: US$171.61k

Company Information

Bed Bath & Beyond Inc.'s company bio, employee growth, exchange listings and data sources


Key Information

  • Name: Bed Bath & Beyond Inc.
  • Ticker: BBY
  • Exchange: DB
  • Founded: 1971
  • Industry: Homefurnishing Retail
  • Sector: Retail
  • Market Cap: US$961.670m
  • Listing Market Cap: US$866.657m
  • Shares outstanding: 124.25m
  • Website: https://www.bedbathandbeyond.com

Number of Employees


Location

  • Bed Bath & Beyond Inc.
  • 650 Liberty Avenue
  • Union
  • New Jersey
  • 7083
  • United States

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
BBBYNasdaqGS (Nasdaq Global Select)YesCommon StockUSUSDJun 1992
BBYDB (Deutsche Boerse AG)YesCommon StockDEEURJun 1992
BBBY *BMV (Bolsa Mexicana de Valores)YesCommon StockMXMXNJun 1992

Biography

Bed Bath & Beyond Inc., together with its subsidiaries, operates a chain of retail stores. It sells a range of domestics merchandise, including bed linens and related items, bath items, and kitchen textile ...


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2019/08/21 20:37
End of Day Share Price2019/08/21 00:00
Earnings2019/06/01
Annual Earnings2019/03/02


Unless specified all financial data is based on a yearly period but updated quarterly. This is known as Trailing Twelve Month (TTM) or Last Twelve Month (LTM) Data. Learn more here.