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Bed Bath & Beyond Inc. pages available for free this week:
- Statement of Comprehensive Income
- Common-Size Balance Sheet: Assets
- Common-Size Balance Sheet: Liabilities and Stockholders’ Equity
- Analysis of Long-term (Investment) Activity Ratios
- DuPont Analysis: Disaggregation of ROE, ROA, and Net Profit Margin
- Enterprise Value to EBITDA (EV/EBITDA)
- Total Asset Turnover since 2005
- Price to Earnings (P/E) since 2005
- Analysis of Revenues
- Analysis of Debt
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Free Cash Flow to The Firm (FCFF)
Based on: 10-K (reporting date: 2022-02-26), 10-K (reporting date: 2021-02-27), 10-K (reporting date: 2020-02-29), 10-K (reporting date: 2019-03-02), 10-K (reporting date: 2018-03-03), 10-K (reporting date: 2017-02-25).
The financial data indicates a noticeable downward trend in key cash flow metrics over the six-year period.
- Net Cash Provided by Operating Activities
- Starting from a high of approximately 1.04 billion US dollars in the fiscal year ending in February 2017, net cash from operating activities consistently declined each year. By the fiscal year ending in February 2022, this figure had sharply decreased to approximately 17.9 million US dollars, representing a significant erosion in cash generation ability from core operations.
- Free Cash Flow to the Firm (FCFF)
- The FCFF metric follows a similar downward trajectory, beginning at roughly 750 million US dollars in 2017 and declining steadily through the years. By 2021, FCFF had reduced to approximately 119 million US dollars, followed by a reversal to a negative cash flow of about 323 million US dollars in 2022, indicating negative free cash flow generation in the most recent period.
The concurrent decline of both net operating cash and free cash flow suggests increasing operational challenges and/or rising capital expenditures relative to cash inflows. The shift to negative free cash flow in 2022 could highlight potential liquidity pressures or aggressive investment strategies that may not yet be contributing positively to cash flow.
Overall, the data reveals a material weakening in cash flow performance over the evaluated timeframe, warranting additional scrutiny into underlying factors influencing this trend and consideration of its impact on financial stability and strategic positioning.
Interest Paid, Net of Tax
Based on: 10-K (reporting date: 2022-02-26), 10-K (reporting date: 2021-02-27), 10-K (reporting date: 2020-02-29), 10-K (reporting date: 2019-03-02), 10-K (reporting date: 2018-03-03), 10-K (reporting date: 2017-02-25).
2 2022 Calculation
Interest payments, tax = Interest payments × EITR
= × =
- Effective Income Tax Rate (EITR)
- The effective income tax rate exhibits significant volatility over the periods observed. Starting at 38.93% in the year ending March 3, 2018, it decreases sharply to 12.38% by March 2, 2019. This decline is followed by an increase to 19.75% in the following year, then peaks substantially at 55.17% by February 27, 2021. Subsequently, the rate decreases again to 21% in the year ending February 26, 2022. These fluctuations suggest variability in the company's taxable income, tax planning strategies, or changes in tax legislation impacting the effective tax burden.
- Interest Payments, Net of Tax
- Interest payments net of tax demonstrate a generally declining trend from the year ending February 25, 2017, onwards. The payments start at $81,400 thousand and decrease to $49,650 thousand by March 3, 2018. A slight rebound to $71,323 thousand occurs by March 2, 2019, followed by a gradual decline to $65,163 thousand in February 29, 2020, and a sharp decrease to $33,847 thousand by February 27, 2021. In the most recent period ending February 26, 2022, there is a modest increase to $52,140 thousand. This pattern may reflect changes in the company's debt levels, refinancing activities, or fluctuations in interest rates affecting interest expenses.
Enterprise Value to FCFF Ratio, Current
Selected Financial Data (US$ in thousands) | |
Enterprise value (EV) | |
Free cash flow to the firm (FCFF) | |
Valuation Ratio | |
EV/FCFF | |
Benchmarks | |
EV/FCFF, Competitors1 | |
Amazon.com Inc. | |
Home Depot Inc. | |
Lowe’s Cos. Inc. | |
TJX Cos. Inc. | |
EV/FCFF, Sector | |
Consumer Discretionary Distribution & Retail | |
EV/FCFF, Industry | |
Consumer Discretionary |
Based on: 10-K (reporting date: 2022-02-26).
1 Click competitor name to see calculations.
If the company EV/FCFF is lower then the EV/FCFF of benchmark then company is relatively undervalued.
Otherwise, if the company EV/FCFF is higher then the EV/FCFF of benchmark then company is relatively overvalued.
Enterprise Value to FCFF Ratio, Historical
Feb 26, 2022 | Feb 27, 2021 | Feb 29, 2020 | Mar 2, 2019 | Mar 3, 2018 | Feb 25, 2017 | ||
---|---|---|---|---|---|---|---|
Selected Financial Data (US$ in thousands) | |||||||
Enterprise value (EV)1 | |||||||
Free cash flow to the firm (FCFF)2 | |||||||
Valuation Ratio | |||||||
EV/FCFF3 | |||||||
Benchmarks | |||||||
EV/FCFF, Competitors4 | |||||||
Amazon.com Inc. | |||||||
Home Depot Inc. | |||||||
Lowe’s Cos. Inc. | |||||||
TJX Cos. Inc. | |||||||
EV/FCFF, Sector | |||||||
Consumer Discretionary Distribution & Retail | |||||||
EV/FCFF, Industry | |||||||
Consumer Discretionary |
Based on: 10-K (reporting date: 2022-02-26), 10-K (reporting date: 2021-02-27), 10-K (reporting date: 2020-02-29), 10-K (reporting date: 2019-03-02), 10-K (reporting date: 2018-03-03), 10-K (reporting date: 2017-02-25).
3 2022 Calculation
EV/FCFF = EV ÷ FCFF
= ÷ =
4 Click competitor name to see calculations.
- Enterprise Value (EV)
- The enterprise value experienced a significant decline from 6,721,625 thousand US dollars in early 2017 to 1,040,356 thousand US dollars in early 2020. This represents a sharp reduction over the four-year period. Subsequently, the value partially rebounded to 2,720,393 thousand US dollars in early 2021 but decreased again to 2,082,901 thousand US dollars in early 2022, indicating fluctuating investor valuation or market capitalization during these years.
- Free Cash Flow to the Firm (FCFF)
- The free cash flow to the firm showed variability and a downward trend over the years. Starting at 749,614 thousand US dollars in 2017, FCFF declined to 533,546 thousand US dollars in 2018, followed by an increase to 664,235 thousand US dollars in 2019. However, a steady decline ensued with 378,703 thousand US dollars in 2020, sharply dropping to 118,878 thousand US dollars in 2021, and ultimately turning negative, reaching -323,165 thousand US dollars in early 2022. This movement reflects deteriorating operational cash generation capability and possibly increasing cash outflows or investment requirements.
- EV/FCFF Ratio
- The ratio of enterprise value to free cash flow to the firm decreased notably from 8.97 in 2017 to 2.75 in 2020, suggesting improving valuation in relation to cash flow during that period. However, there was a sudden and substantial increase to 22.88 in 2021, implying that the enterprise value was high relative to the diminished cash flow, potentially reflecting market optimism despite weakening fundamentals or distortion due to very low FCFF. The ratio for 2022 is not provided, but given the negative FCFF and the declining EV, it would be challenging to calculate or interpret.
- Overall Assessment
- Overall, the data reveals a company facing significant challenges in maintaining cash flow generation, culminating in negative free cash flow in 2022. The fluctuating enterprise value coupled with the volatile EV/FCFF ratio indicates changing market perceptions and possibly external factors influencing valuation. The decline in both EV and FCFF over time suggests operational or financial difficulties, while the exceptional increase in the EV/FCFF ratio in 2021 warrants closer scrutiny as it signals potential overvaluation or exceptional market conditions during that year.