Analysts rate Bed Bath & Beyond Inc. (BBBY:NSD) with an Under-perform rating and a $8 target

STA Research
by: STA Research
Bed Bath & Beyond Inc.

Based on the Bed Bath & Beyond stock forecast from 17 analysts, the average analyst BBBY stock price target is USD 8.33 over the next 12 months. Bed Bath & Beyond Inc’s average analyst rating is Under-perform. Stock Target Advisor’s own stock analysis of Bed Bath & Beyond stock forecast is Very Bearish, which is based on 1 positive signal and 12 negative signals. At the last closing, Bed Bath & Beyond stock price was USD 13.35Bed Bath & Beyond stock price has changed by +4.11% over the past week, +8.32% over the past month and -53.06% over the last year.

About Bed Bath & Beyond Inc. (BBBY:NSD):

Bed Bath & Beyond Inc., together with its subsidiaries, operates a chain of retail stores. It sells a range of domestic merchandise, including bed linens and related items, bath items, and kitchen textiles; and home furnishings, such as kitchen and tabletop items, fine tabletop, basic housewares, general home furnishings, consumables, and various juvenile products. It also offers products through various Websites and applications comprising bedbathandbeyond.com, bedbathandbeyond.ca, harmondiscount.com, facevalues.com, buybuybaby.com, buybuybaby.ca, and decorist.com. In addition, the company operates Decorist, an online interior design platform that provides personalized home design services. Bed Bath & Beyond Inc. was incorporated in 1971 and is headquartered in Union, New Jersey.

 

What we like:

Positive cash flow

The company had positive total cash flow in the most recent four quarters.

 

What we don’t like:

Low market capitalization:

This is among the smaller entities in its sectors with below median market capitalization. That may make it less stable in the long run unless it has a unique technology or market which can help it grow or get acquired in future.

Poor risk adjusted returns:

This company is delivering below median risk adjusted returns in its peers. Even if it is outperforming on returns, the returns are unpredictable. Proceed with caution.

High volatility:

The total returns for this company are volatile and above median for its sector over the past 5 years. Make sure you have the risk tolerance for investing in such stock.

Below median dividend returns:

The company’s average income yield over the past 5 years has been low compared to its peers. However, it is not a problem if you are not looking for income.

Overpriced compared to earnings:

BBBY stock price is trading high compared to its peers on a price to earning basis and is above the sector median.

Overpriced compared to book value:

BBBY stock price is trading high compared to its peers median on a price to book value basis.

Overpriced on cashflow basis:

Bed Bath and Beyond stock price is trading high compared to its peers on a price to cash flow basis. It is priced above the median for its sectors. Proceed with caution if you are considering to buy.

Highly leveraged:

The company is in the bottom half compared to its sector peers on debt to equity and is highly leveraged. However, do check the BBBY stock forecast and look at its sector and management statements. Sometimes this is high because the company is trying to grow aggressively.

Negative free cash flow:

The company had negative total free cash flow in the most recent four quarters.

Low Earnings Growth:

Bed Bath and Beyond stock forecast has shown below median earnings growth in the previous 5 years compared to its sector

Low Revenue Growth:

Bed Bath and Beyond stock forecast has shown below median revenue growth in the previous 5 years compared to its sector

Low Dividend Growth:

Bed Bath and Beyond stock forecast has shown below median dividend growth in the previous 5 years compared to its sector.

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