Bread Financial Holdings Inc. Common Stock (BFH)

FairStock Score: 79/100 — HIGH CONVICTION

Key Financials

AI Analysis

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

I see Bread Financial as a consumer lender built around private-label and co-brand credit cards, plus Bread Pay. It is not a wide-moat business; lending is competitive and credit cycles dominate. Still, at the 2026-10-13 close of $102.31, FairStock’s P/E is 7.93 and P/B is 1.18. Its Graham Number is $158.86, leaving a 35.60% margin of safety. FairStock’s ROE is 17.42%, but ROCE is only 2.57%, a reminder that leverage and credit costs matter. The Lynch category is Stalwart, with profits growing 19.3% annually over five years, yet the filed record is uneven: in fiscal year 2023 net income was $718.0M and diluted EPS $14.34; in fiscal year 2024 it was $277.0M and $5.49; in fiscal year 2025 it was $518.0M and $10.89. In fiscal Q2 2026, the quarter ended 2026-06-30, net income was $146.0M and diluted EPS $3.55, up from $139.0M and $2.94 in fiscal Q2 2025, the quarter ended 2025-06-30. Fiscal Q1 2026, ended 2026-03-31, was stronger at $181.0M and $4.15. FairStock’s Piotroski F-Score is 5/9, middling, and its Altman Z-Score is 0.28, a caution even if that tool fits lenders poorly. The TTM free cash flow of $2.2B and 55.8% FCF yield look extraordinary, but for a credit lender I want to know how much is durable cash earnings versus collection timing. Debt-to-equity is N/A. Price looks cheap if credit holds, but cheapness alone is not safety in consumer credit. I would watch credit losses and provisions.

In plain English: Bread Financial provides credit cards and other consumer loans, often through partner brands. It earns good profits and sells at a low price compared with its profits and net assets. However, it is a lender, so results can weaken if borrowers have trouble paying.

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 2026-06-30) · fiscal Q1 2026 10-Q (period ended 2026-03-31) · fiscal Q3 2025 10-Q (period ended 2025-09-30) · fiscal Q2 2025 10-Q (period ended 2025-06-30) · FY2025 10-K (period ended 2025-12-31) · FY2024 10-K (period ended 2024-12-31) · FY2023 10-K (period ended 2023-12-31)

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