Fact based stock research
Bath & Body Works (NYSE:LB)

US0708301041

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For every stock, we judge its performance against its peers and rank it on a scale of 1 to 100. The higher the rank, the better the stock performs than its peers. And, we do this for six investment strategies:
Value - shows how good of a value the stock is. Green is "inexpensive"; red is "expensive".

Growth - shows a company's growth potential. Green is "high growth" expected; red is "tough times ahead".

Safety - relates to the amount of debt a company has. Green is low debt level; red is high debt level.

Combined Financial - this isn't an average of the first three ranks but rather a consolidated view across several financial indicators. Green = good; red = tread carefully.

(NEW) Sentiment - quantifies professional analyst ratings and holdings as well as market pulse. Green = positive sentiment; red = skepticism (Only available to Premium Subscribers).

(NEW) 360° View - the ultimate rating with all financial and non-financial indicators.

Bath & Body Works stock research in summary

bbwinc.com

ANALYSIS: With an Obermatt Combined Rank of 65 (better than 65% compared with investment alternatives), Bath & Body Works (Specialty Stores, USA) shares have above-average financial characteristics compared with similar stocks. Shares of Bath & Body Works are a good value (attractively priced) with a consolidated Value Rank of 97 (better than 97% of alternatives), show above-average growth (Growth Rank of 62) but are riskily financed (Safety Rank of 16), which means above-average debt burdens. ...read more

RECOMMENDATION: A Combined Rank of 65, is a buy recommendation based on Bath & Body Works's financial characteristics. As the company Bath & Body Works's key financial metrics exhibit excellent performance in two areas, such as good value (Obermatt Value Rank of 97) and above-average growth (Obermatt Growth Rank of 62), it could be argued that the risk-taking in financing (Obermatt Safety Rank of only 16) indicates that the company is optimistic about the future and sees debt as an opportunity to boost returns. More debt means more shareholder returns if everything goes well. However, higher debt burdens are risky when interest rates rise or the business deteriorates in a crisis. If you believe the company's future is market-typical or even better, this could be an argument for a share purchase. Obermatt Premium subscribers can further check the stock’s Sentiment Ranks, which also flow into the Obermatt 360° View for investors. ...read more

Latest Obermatt Ranks


360° View^new
Sentiment Rank^new
Value Rank	97
Growth Rank	62
Safety Rank	16
Combined Rank	65

Country	USA
Industry	Specialty Stores
Index	Dividends USA, S&P US Luxury, S&P 500
Size class	Large

This stock has achievements: Top 10 Stock.

31-Jul-2025. Stock data may be delayed. Log in or sign up to get the most recent research.

Further information

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Review the performance ranks of the individual metrics that form each investment strategy.

Research History: Bath & Body Works

RESEARCH HISTORY	2022	2023	2024	2025
VALUE
VALUE	63	88	87	97
GROWTH
GROWTH	43	25	35	62
SAFETY
SAFETY	23	16	20	16
SENTIMENT
SENTIMENT	93	80	75	^new
360° VIEW
360° VIEW	67	57	60	^new

Most recent update of the stock research: 31-Jul-2025. Financial reporting date used for calculating ranks: 1-Feb-2025. Stock research history is based on the Obermatt Method. The higher the rank, the better Bath & Body Works is in the corresponding investment strategy.
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Combined financial peformance in Detail

RESEARCH HISTORY	2022	2023	2024	2025
VALUE
VALUE	63	88	87	97
GROWTH
GROWTH	43	25	35	62
SAFETY
SAFETY	23	16	20	16
COMBINED
COMBINED	34	30	51	65

Last update of combined financial performance: 31-Jul-2025. Stock analysis on combined financial performance: The higher the rank of Bath & Body Works the better the performance.

Value Metrics in Detail

ANALYSIS: With an Obermatt Value Rank of 97 (better than 97% compared with alternatives) for 2025, Bath & Body Works shares are significantly less expensive than comparable stocks. The Value Rank is based on consolidating four value indicators, with three out of four indicators above average for Bath & Body Works. Price-to-Profit (also referred to as price to earnings, P/E ratio) is 90 which means that the stock price compared with what market professionals expect for future profits is lower than for 90% of comparable companies, indicating a good value concerning Bath & Body Works's profit levels. The same is valid for the expected Price-to-Book Capital ratio (also referred to as market-to-book ratio) with a Price-to-Capital Rank of 92, and for Dividend Yield with a Dividend Yield Rank of 86. But, compared with other companies in the same industry, the stock price is higher than average as regards expected revenues; only 64% of all competitors have an even higher stock price as regards to sales revenues (a Price-to-Sales Rank of 36). Profits, the level of invested capital, and dividend policy suggest that this stock is attractively priced. ...read more

RECOMMENDATION: The overall picture with a consolidated Value Rank of 97, is a buy recommendation based on Bath & Body Works's stock price compared with the company's operational size and dividend yields. Since it is on the expensive side for Price-to-Sales, it may mean that Bath & Body Works has pricing power in its distribution market because it can charge higher prices than its competitors. If this is the case, all four value indicators are positive signals for purchasing Bath & Body Works shares. 9. We recommend further analyzing the stock with Obermatt’s Value, Safety, and Sentiment Ranks, including the 360° View, before making an investment decision. ...read more

VALUE METRICS	2022	2023	2024	2025
PRICE VS. REVENUES (P/S)
PRICE VS. REVENUES (P/S)	14	21	36	36
PRICE VS. PROFITS (P/E)
PRICE VS. PROFITS (P/E)	36	63	67	90
PRICE VS. CAPITAL (Market-to-Book)
PRICE VS. CAPITAL (Market-to-Book)	92	91	89	92
DIVIDEND YIELD
DIVIDEND YIELD	76	76	82	86
CONSOLIDATED RANK: VALUE
CONSOLIDATED RANK: VALUE	63	88	87	97

Last update of Value Rank: 31-Jul-2025. Stock analysis on value ratios: The higher the rank, the lower the value ratio of Bath & Body Works; except for dividend yield where the rank is higher, the higher the yield.

Growth Metrics in Detail

ANALYSIS: With an Obermatt Growth Rank of 62 (better than 62% compared with alternatives), Bath & Body Works shows an above-average growth dynamic in its industry. Investors also speak of positive momentum. The Growth Rank is based on consolidating four value indicators, where half of the indicators are below and half above average for Bath & Body Works. Profit Growth, with a rank of 58 (better than 58% of its competitors), and Capital Growth, with a rank of 81, are both positive, which is a healthy sign for positive development. But Sales Growth has only a rank of 36, which means that, currently, professionals expect the company to grow less than 64% of its competitors, and Stock Returns are at a rank of 49. ...read more

RECOMMENDATION: The overall picture with a consolidated Growth Rank of 62, is a buy recommendation for growth and momentum investors. Stock returns that are a thing of the past can be less of a problem. Below-average revenue growth may be caused by divestments of underperforming businesses. If that is the case, then the positive developments of profit and capital growth are signs of a company with growth potential. If these are the reasons, overall growth is well on track to making this stock attractive for growth investors. While momentum is a popular investment factor, the value aspect might be the more important one, in the longer term. We recommend analyzing the stock with Obermatt’s Value, Safety, and Sentiment Ranks to arrive at a 360° View of the stock purchase case, especially since the growth performance is mixed here. ...read more

GROWTH METRICS	2022	2023	2024	2025
REVENUE GROWTH
REVENUE GROWTH	55	35	39	36
PROFIT GROWTH
PROFIT GROWTH	32	62	44	58
CAPITAL GROWTH
CAPITAL GROWTH	14	24	53	81
STOCK RETURNS
STOCK RETURNS	77	43	41	49
CONSOLIDATED RANK: GROWTH
CONSOLIDATED RANK: GROWTH	43	25	35	62

Last update of Growth Rank: 31-Jul-2025. Stock analysis on growth metrics: The higher the rank, the higher the growth and returns of Bath & Body Works.

Safety Metrics in Detail

ANALYSIS: With an Obermatt Safety Rank of 16 (better than 16% compared with alternatives), the company Bath & Body Works has much riskier financing practices than comparable other companies, which means that their overall debt burden is significantly above the industry average. This doesn't mean that the business of Bath & Body Works is also risky, it only means that the company is on the riskier side in respect to bankruptcy in case things turn sour, assuming that public reporting is correct. The Safety Rank is based on consolidating three financing indicators, with all three metrics below average for Bath & Body Works. Liquidity is at 46, meaning that the company generates less profit to service its debt than 54% of its competitors. This indicates that the company is on the riskier side when it comes to debt service. Even worse, Leverage is at a rank of 5, meaning the company has an above-average debt-to-equity ratio. It has more debt than 95% of its competitors. Finally, Refinancing is at a rank of 44 which means that the portion of the debt about to be refinanced is above average. It has more debt in the refinancing stage than 56% of its competitors. ...read more

RECOMMENDATION: With a consolidated Safety Rank of 16 (worse than 84% compared with alternatives), Bath & Body Works has a financing structure that is significantly riskier than that of its competitors. This combination is rather dangerous in most situations. Only very promising companies with bright future outlooks and stellar reputations can operate with such risky financing. Investors should look at Obermatt’s Value, Growth, and Sentiment Ranks to confirm a very positive outlook or be careful with investing in stocks of Bath & Body Works because it may suffer significantly in case of future difficulties. ...read more

SAFETY METRICS	2022	2023	2024	2025
LEVERAGE
LEVERAGE	4	3	7	5
REFINANCING
REFINANCING	48	38	20	44
LIQUIDITY
LIQUIDITY	34	37	55	46
CONSOLIDATED RANK: SAFETY
CONSOLIDATED RANK: SAFETY	23	16	20	16

Last update of Safety Rank: 31-Jul-2025. Stock analysis on safety metrics: The higher the rank, the lower the leverage of Bath & Body Works and the more cash is available to service its debt.

Sentiment Metrics in Detail

SENTIMENT	2022	2023	2024	2025
ANALYST OPINIONS
ANALYST OPINIONS	n/a	52	70	^new
OPINIONS CHANGE
OPINIONS CHANGE	75	50	50	^new
PRO HOLDINGS
PRO HOLDINGS	81	98	69	^new
MARKET PULSE
MARKET PULSE	60	79	76	^new
CONSOLIDATED RANK: SENTIMENT
CONSOLIDATED RANK: SENTIMENT	93	80	75	^new

Last update of Sentiment Rank: 31-Jul-2025. Stock analysis on sentiment metrics: The higher the rank, the more positive the sentiment for Bath & Body Works.
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