Bread Financial Holdings (LTS:0HCR) Moat Score: 4/10 (As of Jul. 04, 2026)


LTS:0HCR Bread Financial Holdings Inc LTS:0HCR
64 GF Score
Price $101.95
GF Value $57.12
Valuation Significantly Overvalued
! 5 Warning Signs
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What is Bread Financial Holdings Moat Score?

Bread Financial Holdings LTS:0HCR 64 Moat Score is 4 as of Jul. 04, 2026. GuruFocus rates LTS:0HCR with a GF Score™ of 64/100 and a GF Value™ of $57.12 (Significantly Overvalued). The stock has 5 warning signs investors should review. Among 566 Credit Services companies, Bread Financial Holdings ranks better than 95.05% on this metric.

Bread Financial Holdings has the Moat Score of 4, which implies that the company might have Narrow Moat - Discernible but modest moat.

Bread Financial Holdings has Narrow Moat: Bread Financial has a discernible but modest moat due to its established market presence and customer base in financial services. However, it lacks significant network effects, strong brand loyalty, or unique intellectual property that would elevate its moat to a higher level.

Moat Score is a ranking system developed by GuruFocus to assess a company's ability to sustain a competitive advantage, rated on a scale from 0 to 10. It takes into account key factors such as market leadership, cost advantages, network effects, customer switching costs, and more.

The company's Moat Score is based on these criteria:

1. Market leadership and sustainable market share
2. Network effects and significant customer switching costs
3. Valuable intellectual property and patents
4. Strong brand strength and deep customer loyalty
5. Durable cost advantages (e.g., economies of scale, proprietary technology)
6. Significant regulatory barriers and exclusive licenses
7. Superior distribution network
8. Strong and sustainable pricing power
9. Consistent and impactful innovation and R&D capabilities

Based on the research, GuruFocus believes Bread Financial Holdings might have Narrow Moat - Discernible but modest moat.

Bread Financial Holdings  (LTS:0HCR) Moat Score Explanation

The Moat Score ranges from 0 to 10, with 10 as the highest. GuruFocus divided Moat Score into following 8 categories:

Moat Score Moat Level
10Wide Moat - Exceptionally dominant and durable wide moat
8 - 9Wide Moat - Clear and robust wide moat
7Wide Moat - Entry-level wide moat, clearly possessing durable advantages
6Narrow Moat - Strong narrow moat, clearly distinguishable but not wide
5Narrow Moat - Solid narrow moat
4Narrow Moat - Discernible but modest moat
1 - 3No Moat - Very weak/transient advantages
0No Moat - No discernible moat

Bread Financial Holdings Moat Score Related Terms

LTS:0HCR vs SLM, NNI, UPST: Moat Score Comparison

For the Credit Services subindustry, Bread Financial Holdings's Moat Score, along with its competitors' market caps and Moat Score data, can be viewed below:

* Competitive companies are chosen from companies within the same industry, with headquarter located in same country, with closest market capitalization; x-axis shows the market cap, and y-axis shows the term value; the bigger the dot, the larger the market cap. Note that "N/A" values will not show up in the chart.

Bread Financial Holdings Moat Score vs Credit Services Industry

For the Credit Services industry and Financial Services sector, Bread Financial Holdings's Moat Score distribution charts can be found below:

* The bar in red indicates where Bread Financial Holdings's Moat Score falls into.


LTS:0HCR
64GF Score
Bread Financial Holdings Inc LTS:0HCR
Moat Score is just one metric. See GF Score™, valuation, warning signs, and more.
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Frequently Asked Questions Learn more about Moat Score →
What does a Moat Score of 4 mean?
Bread Financial Holdings (LTS:0HCR) has a Moat Score of 4 as of Jul. 04, 2026. Moat Score is a ranking system developed by GuruFocus to assess a company's ability to sustain a competitive advantage, rated on a scale from 0 to 10. It takes into account key factors such as market leadership, cost advantages, network effects, customer switching costs, and more. According to the industry distribution chart, Bread Financial Holdings ranks #28 out of 566 companies in the Credit Services industry, placing it in the top 4.9%.
Is Bread Financial Holdings' Moat Score too high?
Bread Financial Holdings' current Moat Score is 4. Based on the distribution chart, Bread Financial Holdings ranks #28 out of 566 companies in the Credit Services industry, which is in the top quartile — a strong position relative to peers. Overall, Bread Financial Holdings has a GF Score™ of 64/100 and is considered Significantly Overvalued, reflecting its overall financial health beyond just this single metric.
How does Bread Financial Holdings' Moat Score compare to SLM and NNI?
According to the Credit Services industry distribution chart, Bread Financial Holdings ranks #28 out of 566 companies for Moat Score. This places Bread Financial Holdings in the top 5% of its industry — outperforming the majority of peers. See the competitive comparison table and distribution chart on this page for a detailed peer-by-peer breakdown.
What is a good Moat Score for a Credit Services company?
A good Moat Score depends on the Credit Services industry context. However, Moat Score should not be evaluated in isolation — investors should consider it alongside profitability, growth, and financial strength metrics. Use the industry distribution chart on this page to see where any company falls relative to its peers.
What does a high Moat Score mean?
A high Moat Score can signal that a stock is expensive relative to its fundamentals. Moat Score is a ranking system developed by GuruFocus to assess a company's ability to sustain a competitive advantage, rated on a scale from 0 to 10. It takes into account key factors such as market leadership, cost advantages, network effects, customer switching costs, and more. Bread Financial Holdings's current Moat Score is 4. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Bread Financial Holdings stock overvalued right now?
Based on GuruFocus' analysis, Bread Financial Holdings (LTS:0HCR) is currently considered Significantly Overvalued. The stock's GF Value™ is $57.12, compared to a current price of $101.95 — trading 78.5% above its estimated fair value. The current Moat Score is 4. Bread Financial Holdings' overall GF Score™ is 64/100 with 5 warning signs to review. Investors should evaluate multiple metrics — including profitability, growth, and financial strength — before making a decision.
How is Moat Score calculated?
Moat Score is calculated from a company's financial statements. For Bread Financial Holdings (LTS:0HCR), the current Moat Score is 4 as of Jul. 04, 2026. GuruFocus calculates this using data sourced from SEC filings and annual reports. See the calculation section and 30-year financial data on this page for the full breakdown.

Is Bread Financial Holdings (LTS:0HCR) Overvalued in 2026?

Based on GuruFocus' analysis, Bread Financial Holdings stock appears to be overvalued. The current stock price of $101.95 is trading 78.5% above its estimated GF Value™ of $57.12. GuruFocus considers Bread Financial Holdings to be Significantly Overvalued.

Key valuation signals for LTS:0HCR:

  • Moat Score: 4
  • GF Value™: $57.12 vs. price of $101.95 (78.5% above fair value)
  • GF Score™: 64/100 with 5 warning signs

No single metric tells the full story. See the LTS:0HCR stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.

Bread Financial Holdings Business Description

Address 3095 Loyalty Circle, Columbus, OH, USA, 43219
Formed by a combination of JCPenney's credit card processing unit and The Limited's credit card bank business, Bread Financial is a provider of private-label and co-branded credit cards, loyalty programs, and marketing services. The company's most financially significant unit is its credit card business that partners with retailers to jointly market Bread's credit cards to their customers. The company also retains a minority interest in spun-off LoyaltyOne, which operates the largest airline miles loyalty program in Canada and offers marketing services to grocery chains in Europe and Asia.
64GF Score

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Moat Score is just one metric. See GF Value™, 30-year financials, guru trades, warning signs, and more.

$101.95
Price
$57.12
GF Value