Bread Financial Holdings, Inc. (BFH) AI Stock Analysis

Bread Financial Holdings, Inc. operates as a provider of payment and lending solutions tailored for customers and consumer-based industries across North America. Headquartered in Columbus, Ohio, and previously named Alliance Data Systems Corporation, the company manages credit card financing, loans, and risk management services. It supports roughly 130 private label and co-brand credit card programs and partners with about 500 small- and medium-sized businesses. Offerings include installment loans, split-pay options, point-of-sale financing, and digital APIs, supported by data and analytics.

Revenue increased from $3.27B in FY2021 to $4.70B in FY2025, representing a 5-year compound annual growth rate of 7.3%. Annual results fluctuated, falling 10.5% in FY2024 to $3.84B before rising 22.4% in FY2025. Net income stood at $518.0M in FY2025 with an operating margin of 13.1% and a net margin of 11.0%. Over the trailing twelve months ended June 30, 2026, revenue was $2.67B with an operating margin of 29.0% and diluted earnings per share of $12.90. In the latest quarter, quarterly revenue grew 3.8% year-over-year while quarterly earnings expanded 21.2%.

As of June 30, 2026, Bread Financial held $3.68B in cash and short-term investments compared to total debt of $3.29B, resulting in net cash of $398.0M and total assets of $22.45B. Debt-to-equity stood at 0.98 alongside shareholders' equity of $3.37B. In FY2025, operating cash flow reached $2.09B, while free cash flow was $2.09B after $24.0M in capital expenditures. Cash deployment that year included $313.0M for share buybacks and $42.0M in dividends paid, contributing to an 18.6% drop in share count over 5 years.

Bread Financial shares closed at $102.56 on October 16, 2026, trading at a trailing price-to-earnings ratio of 8.0x and a forward ratio of 7.6x. These compare to trailing and forward medians of 12.1x and 10.8x for its US-listed Financial Services peers. The company's enterprise value-to-EBITDA stands at 6.1x versus the peer median of 11.7x, while price-to-sales is 1.5x versus 3.2x. Over the past 1 year, the stock returned 80.0%, outperforming the S&P 500's 16.8% return, though its 5-year gain of 40.5% lagged the index's 83.0% return.

Bread Financial offers an annual forward dividend of $0.92, which equals a dividend yield of 0.90% at the last close. The company distributes payments quarterly and has paid dividends for 11 consecutive years. Its payout ratio sits at 6.7%, and its 5-year annualized dividend growth rate was -3.1%. The last ex-dividend date was August 31, 2026.

Wall Street coverage consists of 7 Strong Buy, 1 Buy, 8 Hold, and 1 Sell ratings. The mean price target of $114.69 implies an upside of 11.8% over the $102.56 closing price. For the fiscal year ending December 31, 2026, analysts estimate EPS of $12.34 and revenue of $4.02B. Bread Financial beat EPS consensus estimates in all of the last 4 quarters, with the next earnings announcement scheduled for October 22, 2026.

This page is an AI-written research summary of Bread Financial Holdings, Inc. (BFH). The text was generated on October 30, 2026 from Quotelinks data as of October 16, 2026 (company profile, annual results, latest balance sheet, valuation, price performance and analyst estimates). An automatic check rejects any draft that contains a figure not found in that data. It is not investment advice; verify figures on the linked tabs before making decisions.

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