Bath & Body Works Inc. (BBWI)

FairStock Score: 77/100 — HIGH CONVICTION

Key Financials

AI Analysis

AI-generated, general educational analysis — not personal investment advice.

I look for understandable businesses bought at a sensible price. Bath & Body Works sells candles, hand soaps, and personal-care items through stores and e-commerce in the U.S. and Canada. In fiscal Q2 2026, the quarter ended 2026-08-01, revenue was $1.5B and net income was $118.0M, with diluted EPS of $0.58, up from $0.30 in fiscal Q2 2025. That recent improvement is encouraging. But the long record is uneven. In FY2025, ended 2026-01-31, revenue was $7.3B, net income $649.0M, and diluted EPS $3.11, down from $798.0M and $3.61 in FY2024 and $878.0M and $3.84 in FY2023. FairStock labels it a SLOW GROWER — Shrinking, with profit down 5.1% a year over five years and revenue 2.5%. The company does throw off cash: $1.0B in trailing free cash flow, a 28.4% FCF yield, and a 4.44% dividend yield. At the 2026-10-13 close of $18.00, FairStock’s P/E is 4.74 and EV/EBITDA is 5.10, which is cheap if those cash flows hold. ROCE is 13.41%, decent. But Altman Z-Score 0.53 and Piotroski 5/9 tell me the balance sheet and quality are not fortress-like. This looks like a cigar butt with a brand, not a wide-moat compounder. The price offers potential margin of safety, but only if management stabilizes sales and strengthens the balance sheet.

In plain English: Bath & Body Works sells candles, soaps, lotions and home fragrances through stores and online in the U.S. and Canada. The business makes a lot of cash and pays a 4.44% dividend, but sales are not growing much and profits have been uneven. At the recent price, the stock looks cheap compared with its profits and cash flow, though the company has some financial risk.

The full AI analysis, bull and bear case and key monitorables are in FairStock Pro.

Data as of 2026-10-13 close · note generated 2026-10-15 · model deepseek-flash

Sources (SEC EDGAR): fiscal Q2 2026 10-Q (period ended 2026-08-01) · fiscal Q1 2026 10-Q (period ended 2026-05-02) · fiscal Q3 2025 10-Q (period ended 2025-11-01) · fiscal Q2 2025 10-Q (period ended 2025-08-02) · FY2025 10-K (period ended 2026-01-31) · FY2024 10-K (period ended 2025-02-01) · FY2023 10-K (period ended 2024-02-03)

Fundamentals from company filings and market-data providers; prices are end-of-day, not real-time. AI-generated analysis is general and educational — not personal investment advice. Scoring methodology · Score test · Disclaimer