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Analysis of Bed Bath & Beyond Inc (#BBBY)

Analysis of Bed Bath & Beyond Inc (#BBBY)

9 June 2021

Bed Bath & Beyond Inc is an American chain of retail stores. The company operates many stores in the United States, Canada, and Mexico. The company manages many stores in the United States, Canada, and Mexico. It operates in Canada through Bed Bath & Beyond Canada, a chain of more than 5o stores across Canada. In Mexico, there are less than 10 stores of the company.

The company’s main competitors at the moment are Home Depot, Lowe’s Companies Inc and Williams-Sonoma Inc.

Revenue for 2020: $9.2 B (-17% y-o-y)

Operating loss for 2020: $190M

Net loss for 2020: $614M

The crisis has significantly affected the company’s low margins

Historically, the company’s net profit margin has remained low. The main reason for this is the segment in which #BBBY operates. The marginality of the net profit of retail companies is usually no more than 2-3%. Therefore, the company’s profit is very sensitive to external economic events.

Thus, # BBBY is a company that sells and produces household goods that were not in high demand during the crisis. Moreover, it is quite difficult to launch online sales of this type of product. However, according to analysts, the company has a future. But, at current prices, the company’s shares are highly overvalued.

After a long decline since March 2015, the company has begun its growth. It is difficult to say whether it is a short squeeze, a buyout by shareholders, or simply the closure of longs, but judging by the schedule, the growth will continue for some time. However, you should not run and buy headlong, presumably the next decline to the trend line may have a good entry.

9 June 2021
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