Bread Financial HoldingsLTS:0HCR -9.76%64 Return-on-Tangible-Equity is 27.70% as of Mar. 2026, which is 16% below its 10-year median of 33.15. GuruFocus rates LTS:0HCR with a GF Score™ of 64/100 and a GF Value™ of $57.69 (Significantly Overvalued). The stock has 5 warning signs investors should review. Among 524 Credit Services companies, Bread Financial Holdings ranks better than 86.83% on this metric.
Return-on-Tangible-Equity is calculated as Net Income divided by its average total shareholder tangible equity. Total shareholder tangible equity equals to Total Stockholders Equity minus Intangible Assets. Bread Financial Holdings's annualized net income for the quarter that ended in Mar. 2026 was $724 Mil. Bread Financial Holdings's average shareholder tangible equity for the quarter that ended in Mar. 2026 was $2,614 Mil. Therefore, Bread Financial Holdings's annualized Return-on-Tangible-Equity for the quarter that ended in Mar. 2026 was 27.70%.
The historical rank and industry rank for Bread Financial Holdings's Return-on-Tangible-Equity or its related term are showing as below:
LTS:0HCR'
s Return-on-Tangible-Equity Range Over the Past 10 Years
Min: 12.42 Med: 33.15 Max: 72.49
Current: 22.32
During the past 13 years, Bread Financial Holdings's highest Return-on-Tangible-Equity was 72.49%. The lowest was 12.42%. And the median was 33.15%.
LTS:0HCR's Return-on-Tangible-Equity is ranked better than 86.83% of 524
companies
in the Credit Services industry
Industry Median: 7.055
vs LTS:0HCR: 22.32
Return-on-Tangible-Equity measures the rate of return on the ownership interest (shareholder's tangible equity) of the common stock owners. It measures a firm's efficiency at generating profits from every unit of shareholders' tangible equity (shareholders equity minus intangibles). Return-on-Tangible-Equity shows how well a company uses investment funds to generate earnings growth. Return-on-Tangible-Equitys between 15% and 20% are considered desirable.
Be Aware
Net Income is used.
Because a company can increase its Return-on-Tangible-Equity by having more financial leverage, it is important to watch the leverage ratio when investing in high Return-on-Tangible-Equity companies. Like Return-on-Tangible-Asset, Return-on-Tangible-Equity is calculated with only 12 months data. Fluctuations in company's earnings or business cycles can affect the ratio drastically. It is important to look at the ratio from a long term perspective.
Asset light businesses require very few assets to generate very high earnings. Their Return-on-Tangible-Equitys can be extremely high.
Bread Financial Holdings Return-on-Tangible-Equity Related Terms
Bread Financial Holdings Return-on-Tangible-Equity Historical Data
* Premium members only.
The historical data trend for Bread Financial Holdings's Return-on-Tangible-Equity can be seen below:
* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD. * For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.
LTS:0HCR vs SLM, NNI, UPST: Return-on-Tangible-Equity Comparison
For the Credit Services subindustry, Bread Financial Holdings's Return-on-Tangible-Equity, along with its competitors' market caps and Return-on-Tangible-Equity 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 Return-on-Tangible-Equity vs Credit Services Industry
For the Credit Services industry and Financial Services sector, Bread Financial Holdings's Return-on-Tangible-Equity distribution charts can be found below:
* The bar in red indicates where Bread Financial Holdings's Return-on-Tangible-Equity falls into.
* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD. * For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.
In the calculation of annual Return-on-Tangible-Equity, the net income of the last fiscal year and the average total shareholder tangible equity over the fiscal year are used. In calculating the quarterly data,
the net income data used here is four times the quarterly (Mar. 2026) net income data.
Return-on-Tangible-Equity is displayed in the 10-year financial page.
What does a Return-on-Tangible-Equity of 27.70% mean?
Bread Financial Holdings (LTS:0HCR) has a Return-on-Tangible-Equity of 27.70% as of Mar. 2026. Return on tangible equity is the ratio of current-period net income to average two-period tangible equity. View historical data on Bread Financial Holdings and its competitors. This is 16% below median its historical median of 33.15. Over the past decade, Bread Financial Holdings' Return-on-Tangible-Equity has ranged from 12.42 to 72.49. According to the industry distribution chart, Bread Financial Holdings ranks #69 out of 524 companies in the Credit Services industry, placing it in the top 13.2%.
Is Bread Financial Holdings' Return-on-Tangible-Equity too high?
Bread Financial Holdings' current Return-on-Tangible-Equity of 27.70% is 16% below median its 10-year median of 33.15. Over the past 10 years, this metric has ranged from a low of 12.42 to a high of 72.49. The Credit Services industry median Return-on-Tangible-Equity is 7.06. Bread Financial Holdings' value of 27.70% is 292.6% above this industry median. Based on the distribution chart, Bread Financial Holdings ranks #69 out of 524 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' Return-on-Tangible-Equity compare to SLM and NNI?
According to the Credit Services industry distribution chart, Bread Financial Holdings ranks #69 out of 524 companies for Return-on-Tangible-Equity. This places Bread Financial Holdings in the top 13% of its industry — outperforming the majority of peers. The industry median Return-on-Tangible-Equity is 7.06. Bread Financial Holdings' value of 27.70% is 292.6% above this benchmark. Historically, Bread Financial Holdings' own Return-on-Tangible-Equity has ranged from 12.42 to 72.49 over the past decade. While the company's 10-year median is 33.15 vs. the industry median of 7.06, Bread Financial Holdings has consistently been above the industry average. See the competitive comparison table and distribution chart on this page for a detailed peer-by-peer breakdown.
What is a good Return-on-Tangible-Equity for a Credit Services company?
The median Return-on-Tangible-Equity among Credit Services companies is 7.06, based on 524 companies in the industry. Companies in the top quartile (top 25%) have a Return-on-Tangible-Equity significantly above this median, while those in the bottom quartile fall well below. However, Return-on-Tangible-Equity should not be evaluated in isolation — investors should consider it alongside profitability, growth, and financial strength metrics. Bread Financial Holdings's current Return-on-Tangible-Equity of 27.70% is 292.6% above the industry median. Use the industry distribution chart on this page to see where any company falls relative to its peers.
What does a high Return-on-Tangible-Equity mean?
A high Return-on-Tangible-Equity can signal that a stock is expensive relative to its fundamentals. Return on tangible equity is the ratio of current-period net income to average two-period tangible equity. View historical data on Bread Financial Holdings and its competitors. For the Credit Services industry, the median Return-on-Tangible-Equity is 7.06 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Bread Financial Holdings's current Return-on-Tangible-Equity is 27.70%, which is 16% below median its own 10-year median of 33.15. 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 $57.69, compared to a current price of $92.94 — trading 61.1% above its estimated fair value. The current Return-on-Tangible-Equity is 27.70%, which is 16% below median its 10-year median of 33.15 and 292.6% above the Credit Services industry median of 7.06. 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 Return-on-Tangible-Equity calculated?
Return-on-Tangible-Equity is calculated from a company's financial statements. For Bread Financial Holdings (LTS:0HCR), the current Return-on-Tangible-Equity is 27.70% as of Mar. 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 $92.94 is trading 61.1% above its estimated GF Value™ of $57.69.
GuruFocus considers Bread Financial Holdings to be Significantly Overvalued.
Key valuation signals for LTS:0HCR:
Return-on-Tangible-Equity: 27.70% (16% below median its 10-year median of 33.15)
GF Value™: $57.69 vs. price of $92.94 (61.1% above fair value)
Industry Position: 292.6% above the Credit Services median (#69 of 524)
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.
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
Get the complete analysis for LTS:0HCR
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