Bath & Body Works trades near lows with strong cash flow and insider buying, rated Buy under $20.

Bath & Body Works is currently valued attractively, trading near industry lows with a trailing EV/EBITDA of 5.5x and a free cash flow yield of 22.3%. Despite carrying $4 billion in debt and leases, the company’s near-term debt maturities are manageable, supported by recent free cash flow which has enabled debt reduction and share buybacks. Insider buying increased significantly after a price drop in November, indicating confidence from the board and establishing a support level around $14. The stock is rated a Buy under $20, with a Strong Buy recommendation near $15, based on high cash returns and potential for a significant rerating if debt levels decrease.