ULTA BEAUTY INC (NASDAQ:ULTA) can be considered a quality stock. Here's why.

In this article we will dive into ULTA BEAUTY INC (NASDAQ:ULTA) as a possible candidate for quality investing. Investors should always do their own research, but we noticed ULTA BEAUTY INC showing up in our Caviar Cruise quality screen, which makes it worth to investigate a bit more.

A Deep Dive into ULTA BEAUTY INC's Quality Metrics.

• The 5-year revenue growth of ULTA BEAUTY INC has been remarkable, with 10.78% increase. This showcases the company's strong performance in driving revenue growth and indicates its competitiveness within the market.
• ULTA BEAUTY INC demonstrates impressive performance in terms of ROIC excluding cash and goodwill, with a 32.1% ratio. This highlights the company's efficient utilization of capital and its focus on maximizing returns for investors.
• ULTA BEAUTY INC demonstrates a well-balanced Debt/Free Cash Flow Ratio of 0.0, indicating effective debt management and strong cash flow generation. This ratio suggests the company has a sustainable financial position and the capacity to allocate capital efficiently.
• With a robust Profit Quality (5-year) ratio of 151.0%, ULTA BEAUTY INC highlights its ability to consistently generate high-quality profits. This metric reflects the company's effective management and operational excellence in delivering reliable earnings over the long term.
• ULTA BEAUTY INC has consistently achieved strong EBIT growth over the past 5 years, with a 14.46% increase. This underscores the company's effective management of its operating income and suggests a positive outlook for future profitability.
• The EBIT 5-year growth of ULTA BEAUTY INC has outpaced its Revenue 5-year growth, reflecting the company's focus on optimizing its profitability and generating sustainable earnings. This trend underscores its strong financial management.

What else is there to say on the fundamentals of NASDAQ:ULTA?

Every day ChartMill assigns a Fundamental Rating to every stock. The score ranges from 0 to 10 and is determined by evaluating multiple fundamental indicators and properties.

We assign a fundamental rating of 7 out of 10 to ULTA. ULTA was compared to 121 industry peers in the Specialty Retail industry. ULTA has outstanding health and profitabily ratings, belonging to the best of the industry. This is a solid base for any company. ULTA is not valued too expensively and it also shows a decent growth rate.

Our latest full fundamental report of ULTA contains the most current fundamental analsysis.

More ideas for quality investing can be found on ChartMill in our Caviar Cruise screen.

Keep in mind

This article should in no way be interpreted as advice. The article is based on the observed metrics at the time of writing, but you should always make your own analysis and trade or invest at your own responsibility.