Trading around **$18.37** (Market Cap: **$3.70B**), Bath & Body Works stock has shed over 70% from its post-spin/pandemic highs. The market is pricing BBWI as a distressed or secularly decaying retail asset, yet operations continue to produce roughly $600M–$650M in annual free cash flow (**FCF yield** of >25%), supporting an attractive, well-covered **4.35% dividend yield.** Its profitable with Operating margins are good at > 15%. Revenue and income per share continues to grow at low single digits % but PE ratio is \~5. Bath & Body Works (BBWI) maintains a substantial e-commerce operation, generating roughly **20% to 23% of total net sales** through digital channels (with brick-and-mortar stores accounting for the remaining \~77%).
Not sure why Bath & Body Works (BBWI) is so ignored by Value Investors? What the heck is going on?