Stock fact sheet · data as of
Bread Financial Holdings, Inc. (BFH): fair value, margin of safety and Wheel Score
Ticker symbol BFH · Financial Services · Financial - Credit Services · United States · Value
Is BFH undervalued?
BFH has a margin of safety of 76%: the stock closed at 104.83 on 5 Nov 2026 against a GLS average fair value of 428.64. 7 of the 9 valuation models that produced a number sit above the price. Our scans treat a discount this large as a strong starting point for a cash-secured put, not as a verdict - the fair value is a model output, and a wide gap can mean the models are missing something the market knows.
The 9 models disagree widely: DDM gives 13.54 while 10 Cap gives 1,226.63. A spread that wide means the average is sensitive to which methods you trust; the model table below shows where each one lands, and the Quote page lets you switch any of them off.
Ranked against every other company we cover, BFH is clearly cheaper than it is fast-growing, so the nightly engine files it under Value (value score 81, growth score 40, out of 100).
Nine valuation models for BFH
Each model turns the latest filed numbers into a value per share; the GLS fair value is the simple average of the ones that produce a positive number. The last two rows are shown for reference and never enter the average. The Quote page lets you switch any model off and add your own margin of safety.
| Model | Value | vs price | What it measures |
|---|---|---|---|
| DCF | 87.94 | -16% | Present value of the projected free cash flows, discounted at the cost of capital |
| Graham Number | 168.10 | +60% | The most a defensive investor pays for the earnings and book value per share |
| Graham Growth | 404.65 | +286% | Graham's growth formula: EPS × (8.5 + 2 × growth), adjusted for bond yields |
| Lynch | 147.45 | +41% | EPS × the earnings growth rate (PEG of 1), growth capped at 25% |
| GLS Growth | 494.00 | +371% | EPS compounded ten years at the blended growth rate, discounted back at 15% a year |
| 10 Cap | 1,226.63 | +1070% | Owner's earnings (operating cash flow less maintenance capex) capitalised at 10% |
| Payback Time | 1,159.95 | +1007% | Eight years of compounded free cash flow: the price at which the business pays for itself |
| DDM | 13.54 | -87% | Dividend discount model: next year's dividend ÷ (10% − 3% growth); needs a dividend |
| EPV | 155.50 | +48% | Earnings power value: current EPS capitalised at 9% with no growth |
| Zombie (liquidation) | -405.39 | -487% | Current assets less all liabilities, per share: the balance-sheet floor. Not in the average |
| Wall St target | 116.58 | +11% | Analysts' average 12-month price target. Not in the average |
Quality and financial health
On financial health BFH scores 8/9 (Piotroski): most of the nine tests - positive earnings and cash flow, falling debt, rising margins and turnover - are passed, which is the kind of balance sheet a wheel trader is happy to be assigned. The GLS Moat score is 7.1 out of 10: a record that is solid on some of the four parts the score weighs (returns on capital, pricing power, lasting growth, balance sheet) and weaker on others.
Returns on capital are moderate - ROIC 6.7%, ROE 15.6%, ROA 2.3% - with debt at 1.32 times equity and a free-cash-flow yield of 55.0%.
The dividend yield is 0.88% with a payout ratio of 9% - a small yield that leaves most of the earnings in the business. Revenue comes mainly from Short Term Loyalty Programs 58%, Coalition Loyalty Program 41%, Other 1% (quarter Q3 FY2021).
Institutional ownership scores 10/10, insider activity 1/10 and Congressional trading 5/10 on the GLS smart-money scales; the last recorded insider buy was on 28 Oct 2026.
| Piotroski F-score | 8 / 9 | ROIC | 6.7% |
|---|---|---|---|
| GLS Moat | 7.1 / 10 | ROE | 15.6% |
| Debt / equity | 1.32 | ROA | 2.3% |
| Free-cash-flow yield | 55.0% | Payout ratio | 9% |
| Institutions | 10 / 10 | Insiders · Congress | 1 · 5 / 10 |
Wheel Score 85: Prime
BFH scores 85 out of 100 on the Wheel Score, in the Prime band (85 and above): it passes all 9 Wheel Trade Filters and ranks strongly on value strong, premium strong, moat good, health strong, red flags strong, option trading weak, stability fair. Prime stocks stand out among those that pass - the Sunday Scan is the top 10 by Wheel Score.
Implied volatility is 42% on the near-the-money contracts 20-60 days out - inside the 35-60% sweet spot the Wheel Score rewards most: enough premium to be worth selling, not so much that the risk is unpaid. Chain open interest is 4,146 contracts across all expiries - enough for the wheel at normal size.
Volume runs at 1.1M shares a day on a market cap of $4.0B, with a beta of 1.25 - a high beta, so the stock tends to move more than the market and a strike can be gapped through; the Stability part of the Wheel Score rates that fair.
| Filter | Wheel Trade Filter | Result | Detail |
|---|---|---|---|
| 1 | Options that actually trade | Passes | Listed options with 1,000+ contracts of open interest and 100+ traded a day |
| 2 | A real business, not a gamble | Passes | Profitable over the last twelve months - not a speculative stock, fund or note |
| 3 | Below fair value | Passes | Trading below the nine-model average fair value (margin of safety above 0) |
| 4 | Financially healthy | Passes | Piotroski F-score 6 or more out of 9 (a company with no score on file passes) |
| 5 | Can repay its debt | Passes | Long-term debt repaid from 3 years of operating cash flow or less (6 for real estate and utilities; banks and insurers are not judged on it) |
| 6 | No serious red flags | Passes | Red Flags score 60 or more out of 100 (earnings, margins, debt, analysts, filings and price checked the same way for every stock) |
| 7 | A premium worth selling | Passes | Implied volatility 25-80% (enough premium, not a lottery ticket) |
| 8 | Big enough | Passes | Market cap $1 billion or more |
| 9 | Not a penny stock | Passes | Share price $5 or more |
| How it ranks | Rating | From | |
|---|---|---|---|
| Value | Strong | 76% below fair value | |
| Premium | Strong | implied volatility 42% | |
| Moat | Good | moat 7.1/10 | |
| Health | Strong | Piotroski 8/9 | |
| Red Flags | Strong | Red Flags score 92/100 | |
| Option trading | Weak | 1,032 contracts a day, 4,146 open interest | |
| Stability | Fair | beta 1.25, $4.0B company |
The Wheel Score ranks ~7,400 US stocks for selling cash-secured puts and covered calls: a stock must pass all 9 Wheel Trade Filters to score 70, and the score then ranks the ones that pass; the Sunday Scan is the top 10. It is updated nightly and is not a recommendation. How the Wheel Score works · the walkthrough lesson shows how it fits into a trade, start to finish.
Upcoming events
The next earnings report is due on 28 Jan 2027, 84 days away - outside the window of a 30-45-day put sold today. The shares go ex-dividend on 30 Nov 2026 (0.2500 per share), so a covered call sold before then carries a small early-assignment risk around that date.
No analyst upgrades or downgrades were recorded in the last 30 days.
Earnings, dividend, IPO, split and economic calendars for the whole market, filterable to your watchlists.
Similar stocks in Financial - Credit Services
The 12 companies below are the closest to Bread Financial Holdings, Inc. by market cap within the Financial - Credit Services industry, each with its own fact sheet; the Compare page puts up to eight of them side by side.
| Stock | Close | Fair value | MoS | Wheel | Mkt cap |
|---|---|---|---|---|---|
| JSM Navient Corporation SR NT 6% 121543 | 15.59 | 45.78 | +66% | 29No options | $4.3B |
| ENVA Enova International, Inc. | 181.18 | 713.58 | +75% | 79Good | $4.4B |
| SLM SLM Corporation | 18.68 | 83.62 | +78% | 80Good | $3.5B |
| NNI Nelnet, Inc. | 127.58 | 171.16 | +25% | 42Weak | $4.6B |
| SEZL Sezzle Inc. | 136.69 | 219.84 | +38% | 41Weak | $4.6B |
| CACC Credit Acceptance Corporation | 498.68 | 965.03 | +48% | 50Fair | $5.1B |
| KLAR Klarna Group plc | 13.89 | 8.37 | -66% | 31Weak | $5.2B |
| SLMBP SLM Corporation | 70.99 | 236.36 | +70% | 38No options | $6.4B |
| OMF OneMain Holdings, Inc. | 57.97 | 207.52 | +72% | 82Good | $6.6B |
| UPST Upstart Holdings, Inc. | 23.38 | 22.86 | -2% | 29Weak | $2.3B |
| LU Lufax Holding Ltd | 8.51 | 43.72 | +81% | 39Weak | $7.4B |
| ECPG Encore Capital Group, Inc. | 99.93 | 169.79 | +41% | 50Fair | $2.1B |
⚖ Compare BFH with 7 of them All Financial Services stocks →
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A free GLS Equity account gets you nightly fair value and the Wheel Score on ~7,400 US stocks, a watchlist, the scanner preview and the Sunday Scan - the top 10 stocks that pass all 9 Wheel Trade Filters, emailed every week. Pro adds the full put and call scanners, unlimited watchlists with alerts and the trade journal.
Start free See the Sunday ScanQuestions about BFH
Is BFH undervalued right now?
By the GLS models, yes: at 104.83 the stock is 76% below the average fair value of 428.64 (data as of 5 Nov 2026). Whether the discount is deserved is the question to research next.
What is the Wheel Score of BFH and what does it mean?
BFH scores 85 out of 100 (Prime). The Wheel Score ranks stocks for the wheel strategy - selling cash-secured puts, then covered calls if assigned - in two parts: the 9 pass/fail Wheel Trade Filters (busy options, a real business, below fair value, Piotroski 6 or more, debt it can repay, a Red Flags score of 60 or more, implied volatility of 25-80%, a $1 billion company, $5 a share) and a ranking of how strongly a stock passes on value, premium, moat, health, red flags, option trading and stability. A stock that fails any filter stays under 70; 70-84 is Good, 85 and above is Prime. The Sunday Scan is the top 10 that pass, sorted by Wheel Score.
What is the GLS fair value for BFH?
428.64 per share as of 5 Nov 2026 - the simple average of the 9 valuation models (out of nine: DCF, Graham Number, Graham Growth, Lynch, GLS Growth, 10 Cap, Payback Time, DDM and EPV) that produced a positive value. The models run every night on the latest filings; the Quote page lets you switch any of them off and add a margin of safety of your own.
When does Bread Financial Holdings, Inc. report earnings next?
The next earnings report is due on 28 Jan 2027, 84 days from the data date of 5 Nov 2026. The Calendars page lists every upcoming report with its time of day.
Does BFH have listed options, and how liquid are they?
Yes. The nightly snapshot found 92 listed contracts with 4,146 open interest across all expiries and implied volatility of 42% on the near-the-money contracts. The Options scanner lists the cash-secured put and covered call set-ups with premium and annualised yield worked out.