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RISK CONCERN
Investment Strategy, Risk Analysis, and Insights by Chartered Professionals
Bed Bath & Beyond Inc. (XNAS:BBBY) In-Depth Stock/Fundamental/Options Analysis Today
Primary Facts
BBBY
Name:
BED BATH & BEYOND INC. (XNAS:BBBY)
Sector:
- 102262.00K
Industry:
Specialty Retail
CEO:
Mr. Mark Tritton
Total Employees:
32,000
Our Technological Advancement Rating
Our Rating:
D
Technological advancement compared to industry is -477.07% lower
ANALYSIS OF ALL CRITICAL FACTORS & RISKS RELATED TO THE STOCK & FUNDAMENTAL/LONG-TERM ANALYSIS OF BED BATH & BEYOND INC.(BBBY) AS PER DATA ANALYSIS OF LAST 3 YEARS AND COMPARISON WITH COMPETITORS/PEERS, AND SPECIALTY RETAIL INDUSTRY. DATE: 07/09/2022
Primary Targets/Price Insights
Previous Close ($) :
8.63
One Month Price Target:
$8.71
Six Month Price Target :
$9.09
Likely Price in One Year's Time:
Ticker:
$9.55
Likely Trading Range Today Under (Normal Volatility)
$8.53
Price Upper limit ($) :
$8.76
Price Lower limit ($) :
Crash Risk Prep/Key Price Levels (High Volatility/Risk)
Price, as per data analysis, isn't likely to fall below:
Today:
$7.27
This week:
$5.58
This month :
$2.53
Other Primary facts
Market Cap:
562.90M
Market Cap Classification:
Small Cap
Number of Shares
IPO Date:
79.96M
Best/Worst Daily Performance (Last 3+ Years)
Highest Daily Appreciation:
62.11%
-40.54%
Worst Daily Decline:
Our Options Trading Entry Points
Iron Condor entry points for options expiring in 1 week's time
Low risk (<2%) entry points
Buy Call:
Sell Call:
Buy Put:
Sell Put:
$14.96
$12.04
$2.30
$5.22
Medium risk (<10%) entry points
Buy Call
Sell Call
$11.09
Buy Put:
Sell Put:
$10.47
$6.16
$6.79
These entry points can be used for other strategies, such as butterflies, straddles, etc.
Risk-Adjusted returns (Sharpe Ratio) of
BBBY
Sharpe Ratio:
2.58%
Comparison:
BBBY, is amongst the top 40% stocks with highest risk-adjusted returns
Sharpe ratio is -9.80% lower than the industry
& ratio is 13.19% higher than the market/S&P 500 average
Average Returns/Yield of
BBBY
Daily returns:
0.21%
Weekly returns:
1.05%
Monthly returns:
4.20%
Yearly returns:
34.92%
Comparison of returns:
Average annual returns/yield (last 3 years) is 44.42% above industry average
Classification:
BBBY, is amongst the top 20% highest yielding stocks in terms of daily returns
Results of T-Test of Returns:
0.49
Statistical test of Returns:
BBBY has yielded returns statistically similar to the market
Volatility (measured by Standard Deviation)
Daily Volatility:
7.80%
Weekly Volatility:
17.45%
Monthly Volatility:
34.89%
Yearly Volatility:
120.87%
Volitlilty of last five days (Measured by Standard Deviation)
Average Volatility of this Week:
8.42%
Volatility in last five trading days has been 7.93% above long-term volatility
Value at Risk Analysis (VaR)
Daily VaR:
-15.81%
Weekly VaR:
-35.36%
Monthly VaR:
-70.72%
How Much Can the price of
BBBY
Decline in a Recession?
Likely price decline in a recession:
Base case (decline):
-60%
Worst case (decline):
>85%
This translates to price declining to:
$3.44
This translates to price declining to:
$1.29
Severe Crash Probability
Risk of crash in next 6/12 months: Very high (>70%)
What is Value at Risk (VaR)?
Risk Fundamentals
BBBY is a 399.15% riskier investment compared to the market/S&P 500 & is 327.62% riskier than Nasdaq (IXIC)
Risk (measured by volatility) is 87.84% above industry average
Overall, it is amongst the top 50% most risky stocks
Beta Examination of
BBBY
Beta in relation to market/S&P 500--1.59
Expected beta in 1 year's time:
1.46
Expected beta in 3 year's time:
2.065
Unlevered (debt free) Beta:
0.411
Beta in relation to Nasdaq (XNAS):
1.221
Beta in relation to all global stocks::
0.984
Beta Comparison & Analysis
Beta of competitors/peers::
1.727
Beta is -7.86% lower than peers
Average Industry Beta:
1.43
Beta is 11.30% above industry average
Sustainable Growth Rate Analysis
Sustainable growth rate for this stock/firm:
-
-
Alpha provided | Alpha Analysis
Alpha provided:
0.364
Alpha is 65.54% above industry average alpha yield
Alpha is 2316% higher than market/& is unsustainably high
Analysis of Cost of Capital of
BBBY
Equity cost of capital:
0.141
Equity cost of capital is 8.55% above industry mean WACC
Unlevered (without debt) cost of capital:
3.63%
Before-tax cost of debt:
2.13%
After-tax cost of debt:
1.68%
Overall debt rating:
Highest AAA investment grade
Weighted average cost of capital (WACC):
1.68%
WACC is 8.17% above industry mean WACC
Key Per-Share Metrics & Analysis
Revenue per share:
$92.27
Revenue growth rate per share of (3Y):
0.62
Annual revenue growth rate is -148.38% below industry average
EPS:
-$9.78
Expected Annual growth rate of EPS (3Y):
56.24%
Expected future EPS growth rate is 59.68% higher than the Specialty Retail industry
Free cash flow (FCF) per share:
-
Balance sheet equity growth per share: -67.24%
Equity growth rate per share is -231.11% lower than the industry
Debt per share
$33.91
EBITDA per share
-$4.73
Valuation Analysis Today of
BBBY
P/E Ratio:
36.14
P/E Ratio of Competitors/Peers:
10.78
P/E ratio is 235.27% higher than main peers & is 68.01% higher than the industry
-
BBBY is -104.10% undervalued if valued using industry average P/E ratio
Share value as per dividend discount (DDM) model: $10.32
Present value of the expected future dividends only: $2.42
P/S (Price to Sales ratio):
0.09
Price to sales ratio is -97.70% below the industry mean
P/B (Price to book value ratio):
0.62
-
-
Net income growth rate (3Y):
-140.69%
Net income growth rate is -70.28% lower than the industry average net income growth rate
Dividend Analysis
Dividend payout rate: -0.06%
Dividend yeild: 3.94%
Previous Dividend: $0.17
Previous adjusted dividend: $0.17
Previous Dividend: $0.34
-
-
Average dividend payment (long-term): $0.17
Average dividend increase/decrease (growth rate) % per period: 0.00%
-
-
-
Previous dividend payment date: 14/04/2020
Previous dividend record date: 13/03/2020
Previous dividend declaration date: 01/08/2020
Dividend History:
2020-03-12--$0.17
--$0.00
--$0.00
2019-12-12--$0.17
--$0.00
--$0.00
-
In-depth Debt & Leverage Analysis
Debt to equity ratio:
245.01%
Net debt to equity ratio:
177.25%
Debt to assets ratio:
44.80%
Net debt to assets ratio:
32.41%
Debt-to-asset ratio is -38.08% below industry average
Ability to repay debt:
Interest coverage ratio:
-5.81
Interest coverage ratio is -123.46% less than industry average
Looking forward:
Debt growth rate:
56.82%
Annual debt growth is -19% lower than industry average debt growth rate
Debt repayment rate in last quarter: 0.30%
Analysis of Key Statistics
Correlation of price movement with the market:
0.289
Statistical significance of correlation:
BBBY has a statistically significant correlation with the market
Average Correlation of the industry with the market:
0.475
Stock price is -39.27% less correlated with the market compared to the industry average correlation
R Squared (percentage of price movement explained by movement of the market):
0.475
Correlation of price movement with Nasdaq (^IXIC):
0.001
Covariance of price movement with the market:
0.006
Kurtosis
11.139
Returns have a significant fat-tails (leptokurtic), i.e., returns considerably higher or lower than the mean returns are more probable, compared to assets with normally distributed returns
Skewness of returns:
1.163
Returns are right (positive) skewed; mean returns are greater than median and mode returns
Fundamental Analysis & Dupont Analysis of
BBBY
Gross Profit Margin Ratio:
118%
Operating Profit Margin Ratio:
-8.46%
Operating profit margin is -230.08% lower than the industry
Net Profit Margin Ratio:
118%
Effective Tax Rate:
-17.06%
Effective tax rate is -175.66% lower than the industry
Dupont Method
Net Profit Margin
Return on Equity Ratio (ROE):
×
ROA
=
×
-78.28%
Return on equity (ROE) is -5602.94% lower than the industry
Financial Leverage
Asset Turnover Ratio (ROA):
-14.31%
Return on assets (ROA) is -253.84% lower than the industry
Financial Leverage:
1.8x
Current Ratio:
1.56
Current ratio is -17.27% below industry average
Cash Conversion Cycle (days):
-27.9
Cash conversion cycle is -143.18% below industry average
The remaining useful life of property plant & equipment is: 11.0 years
Stock based compensation to net income ratio:
-0.91%
In-depth Efficiency Analysis
Revenue generated per employee:
230.5K
Each employee generates -69% less revenue than industry average revenue per employee
EBITDA generated per employee:
- 11.8K
Each employee generates -105% less EBITDA than industry average revenue per employee
Profit generated per employee:
- 27.1K
Each employee generates -118% less net income/profit than industry average revenue per employee
Free cash flow (FCF) generated per employee:
- 3.2K
Each employee generates -108% less free cash flow than industry average revenue per employee
Assets/Capital per employee
89.0K
Each employee generates -108% less free cash flow than industry average revenue per employee
Research & Development (R&D) Analysis
-
-
Competitors/Peer firms of
BBBY
MALIBU BOATS, INC. (XNAS:MBUU)
Golden Entertainment, Inc. (XNAS:GDEN)
MONARCH CASINO & RESORT, INC. (XNAS:MCRI)
Vroom, Inc. (XNAS:VRM)
G-III APPAREL GROUP, LTD. (XNAS:GIII)
GREEN BRICK PARTNERS, INC. (XNYS:GRBK)
Playa Hotels & Resorts NV (XNAS:PLYA)
FAT BRANDS INC. (XNAS:FATBP)
Niu Technologies (XNAS:NIU)
Current Analyst Ratings
Strong buy�4%
Buy�0%
Hold�63%
Sell�17%
Strong sell�13%
Overall analyst sentiment is: Hold
Income Statement
Period:
TTM
Date:
5/28/22
Revenue:
7.38B
Cost of Revenue:
Gross Profit:
R&D Expense
General & Admin Expenses:
Selling, General & Admin Expenses
Sales and Marketing Expenses
Other Expenses :
Operating Expenses :
Cost & Expenses :
Interest Income:
Interest Expenses:
Depreciation & Amortization:
EBITDA:
Operating Income:
Other Income Expenses:
Income Before Tax:
Income Tax Expense:
Net Income:
Balance Sheet
Date:
Calendar Year:
Period:
Cash & Cash Equivalents:
Short Term Investments:
Cash & Short Term Investments:
Net Receivables:
Inventory:
Other Current Assets:
Total Current Assets:
PP&E:
Goodwill:
Intangible Assets:
Long Term Investments:
Tax Assets:
Other Non-Current Assets:
Total Non-Current Assets:
Other Assets:
Total Assets:
Accounts Payable:
Short Term Debt:
Tax Payables:
Deferred Revenue:
Other Current Liabilities:
Total Current Liabilities:
Long Term Debt:
Other Non-Current Liabilities:
Total Non Current Liabilities:
Other Liabilities:
Total Liabilities:
Common Stock:
Retained Earnings:
Accumulated Other Comprehensive Loss:
Other Total Stockholders' Equity:
Total Stockholders' Equity:
Total Liabilities and Stockholders' Equity:
Total Investments:
Total Debt:
Net Debt:
5.18B
2.20B
-
-
2.67B
-
-
2.67B
-
65.15M
296.45M
- 378524.00K
- 623902.00K
- 866415.00K
- 740125.00K
126.29M
- 866415.00K
Statement of Cash Flow
Date:
Period:
68.28M
Differed Income Tax :
- 22135.00K
Stock Based Compensation :
7.92M
Change in Working Capital :
- 43114.00K
Accounts Receivables:
-
Other Working Capital:
- 296.00K
Other Non-Cash Items:
11.19M
Net Cash Provided by Operating Activities:
- 28741.00K
Investments in PP&E:
-
Net Acquisitions:
-
Purchases of Investments:
- 29997.00K
Sales/Maturities of Investments:
Other Investing Activities:
Net Cash Used for Investing Activities:
Debt Repayment:
Common Stock Issued:
Common Stock Repurchased:
Dividend Paid:
Other Financing Activities:
Net Cash Used Provided by Financing Activities:
Effect of FOREX on Changes in Cash:
Net Changes in Cash:
Cash at End of Period:
Cash at Beginning of Period:
Operating Cash Flow:
Capital Expenditure:
Free Cash Flow (FCF):
5/29/21
2022
Q1
1.10B
30.00M
1.13B
-
1.56B
515.99M
3.21B
2.51B
-
-
19.46M
-
313.49M
2.85B
-
6.05B
889.88M
347.37M
-
309.58M
506.67M
2.05B
2.71B
181.26M
2.89B
-
4.95B
3.44M
10.17B
- 44820.0K
- 9026477.00K
May 29, 2021 at 6:00:00 AM
7.85B
1.11B
6.05B
49.46M
3.06B
2.0B
-
- 73521.00K
- 103518.00K
- 8173.00K
-
- 138695.00K
- 560.00K
-
- 147428.00K
6.12M
- 273570.00K
1.13B
1.41B
- 28741.00K
- 73521.00K
- 102262.00K
Our Proprietary Portfolio Rating
Our Rating:
D
Price Forecast/Expected Price in Next 5 Years of
BBBY
2023
2024
2025
2026
2027
$9.58
$10.60
$11.74
$12.99
$14.38