Thesis
Bed Bath & Beyond's (NASDAQ:BBBY) earnings are sliding, but the cash flow picture is improving. Based on these huge cash flows Bed Bath & Beyond looks very inexpensive and is able to reward shareholders massively.
The headline numbers of BBBY's results (which were reported on Thursday evening) look relatively weak, but when we get into the details we see some things that are not bad at all.
Despite revenues being flat year over year and earnings dropping significantly, BBBY has been able to grow where it counts regarding the company's ability to grow its dividends and to continue its stock buybacks -- free cash flows per share.
