| Factor | Score | Distribution | Value | Avg | Rank |
|---|---|---|---|---|---|
Valuation | 95 | 8.3x | 17.8x | Top tier | |
Growth | 33 | 1.2% | 7.1% | Bottom tier | |
Quality | 89 | — | — | Top tier | |
Safety | 22 | — | — | Bottom tier | |
Capital Return | 66 | 0.85% | 2.12% | Around median | |
Momentum | 96 | 73.7% | 2.9% | Top tier | |
Sentiment | 66 | 11 | 3 | Top tier |
Estimates — analyst targets and a simplified DCF, not investment advice.
Ten ratios that matter, each compared against its sector median and average — so you can see whether a number is rich or cheap relative to peers in the same sector.
Bread Financial Holdings, Inc. (BFH) provides credit and payment solutions to brands and partners across sectors including travel, entertainment, sporting goods, and furniture. Revenue generation relies on its credit card and loan portfolio, interchange and merchant discount fees, and the Bread Pay platform, with a portion of revenue and profits shared with retail partners through RSA arrangements. In fiscal Q2 2026, average loans reached $18.2 billion, while the ending balance reached $18.5 billion, and direct-to-consumer deposits represented 50% of the funding mix.
In fiscal Q2 2026, the company reported revenue of $1.2 billion, net income of $146 million, and diluted earnings per share of $3.55. Revenue increased 7% year over year, and net income rose 5%, while adjusted PPNR grew 11% and reported PPNR grew 14%; results benefited from loan growth, prior pricing changes, lower interest expense, and higher interchange and merchant discount fees. Net interest margin was 18.5%, while the provided data did not include a comparable gross profit margin.
The growth mix was broad in fiscal Q2 2026; credit sales increased 11% year over year, supported by co-brand programs in travel, entertainment, and sporting goods, partnerships with Raymour & Flanigan, Furniture First, and Ethan Allen, Bread Pay with Vivint, and the launch of the Ford program. Ending loan balances increased 5%, while direct-to-consumer deposits grew 16% to $9.4 billion, reducing relative reliance on other funding sources and supporting a lower cost of funds.
Automated analysis for informational purposes only — not investment advice.
The analyst consensus rating on BFH is “Neutral,” with an average price target of $116.7 and a relatively wide range of $104 to $132, reflecting differing assessments of the sustainability of loan growth and credit improvement. The average target is slightly above the 52-week range high of $114.53, while the stock’s full range extends from $53.83 to $114.53; the provided data does not include a usable earnings multiple, so the valuation assessment remains more dependent on execution of the fiscal 2026 outlook and macroeconomic risks than on a reported earnings multiple.
Figures in the text are as of 2026-08-31; the live price is shown at the top of the page.
Bread Financial generated approximately $1.2 billion in revenue, $146 million in net income, and $3.55 in diluted earnings per share in fiscal Q2 2026. Revenue increased 7%, driven by average loan growth, prior pricing changes, lower interest expense, and higher interchange and merchant discount fees. Adjusted PPNR also grew 11%, while credit sales increased 11% and ending loans grew 5%.
The delinquency rate declined to 5.25% in fiscal Q2 2026, improving by 48 basis points year over year, while the net loss rate fell to 6.98%, an improvement of 90 basis points. The reserve rate was 11.23%, down 66 basis points, with 65% of cardholders above a prime credit score of 650. The company raised its fiscal 2026 credit outlook by lowering the expected net loss range to 7.0%–7.1% from 7.2%–7.4% previously.
Fiscal Q2 2026 growth came from existing co-brand programs, particularly in travel, entertainment, and sporting goods, and from the company’s expansion in the furniture sector. Management named Raymour & Flanigan, Furniture First, and Ethan Allen as clear contributors, alongside the launch of the Ford program. Bread Pay also achieved solid growth, particularly through its partnership with Vivint, and this mix helped increase credit sales by 11%.
Direct-to-consumer deposits increased 16% year over year to $9.4 billion in fiscal Q2 2026. They represented 50% of the funding mix, compared with 45% a year earlier, while total deposits accounted for 80% of funding at period-end. Liquid assets and undrawn facilities reached $6.7 billion, or approximately 30% of total assets, providing liquidity to fund loan growth and withstand volatility in the economic environment.
Management expects average credit card and other loans to grow in the low- to mid-single-digit range compared with fiscal 2025, after the prior outlook called for a low-single-digit range. It expects similar revenue growth, a stable to slightly higher net interest margin, and positive operating leverage after excluding the pre-tax impact of the debt repurchase. It also targets a net loss rate between 7.0% and 7.1% and a normalized effective tax rate between 25% and 27%.
The company repurchased 2.8 million common shares for $241 million in fiscal Q2 2026, equivalent to 7% of outstanding shares, with $449 million remaining under the authorization. It also issued $135 million of preferred shares at an 8.875% yield to improve its capital structure. However, management said the pace of repurchases will slow in fiscal Q3 2026 because seasonal loan growth will consume a larger share of capital, and it outlined a plan to repurchase $25 million during July 2026.
