Bed Bath & Beyond's rating reflects the lack of economic moat coupled with modest leverage. - Morningstar Credit Research

Bed Bath & Beyond's rating reflects the lack of economic moat coupled with modest leverage.

Bed Bath & Beyond's rating reflects the lack of economic moat coupled with modest leverage. - Morningstar Credit Research
Bed Bath & Beyond's rating reflects the lack of economic moat coupled with modest leverage.
Published Dec 27, 2016
11 pages — Published Dec 27, 2016
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...Bed Bath & Beyond s rating reflects its position in a competitive, commodified retail category, coupled with strong free cash flow and a conservative capital structure. Bed Bath & Beyond holds an 11% share of the $100 billion U.S. retail home furnishing industry, operating over 1,500 stores with five brands, which provides economies of scale. Over the past couple of years, the company has increased investments to develop its e-commerce platform and integrate it with its store base and within a broader omnichannel distribution. Despite its large scale, we do not believe Bed Bath & Beyond commands pricing power in the industry, which is reflected in the lack of an economic moat as assigned by Morningstar, Inc. Bed Bath & Beyond competes in a very competitive, commodified retail category that is increasingly penetrated by online rivals that maintain pricing pressure. While the company s store base and square footage have grown only modestly over the past few years, resulting in higher sales...

  
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MLA:
Morningstar Credit Research. "Bed Bath & Beyond's rating reflects the lack of economic moat coupled with modest leverage." Dec 27, 2016. Alacra Store. Sep 20, 2019. <http://www.alacrastore.com/storecontent/Morningstar-Credit-Research/Bed-Bath-Beyond-s-rating-reflects-the-lack-of-economic-moat-coupled-with-modest-leverage-2137-33792>
  
APA:
Morningstar Credit Research. (2016). Bed Bath & Beyond's rating reflects the lack of economic moat coupled with modest leverage. Dec 27, 2016. New York, NY: Alacra Store. Retrieved Sep 20, 2019 from <http://www.alacrastore.com/storecontent/Morningstar-Credit-Research/Bed-Bath-Beyond-s-rating-reflects-the-lack-of-economic-moat-coupled-with-modest-leverage-2137-33792>
  
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