Would Peter Lynch consider ULTA BEAUTY INC (NASDAQ:ULTA) a winning stock?

Known for his philosophy of investing in what you know, Peter Lynch looked for companies with consistent earnings growth, low debt, and a competitive edge. Does ULTA BEAUTY INC (NASDAQ:ULTA) meet these key criteria? Let’s find out.

Following Peter Lynch’s approach: Does ULTA BEAUTY INC (NASDAQ:ULTA) fit the bill?

• With a favorable Return on Equity (ROE) of 48.27%, ULTA demonstrates its ability to deliver attractive returns for shareholders. This metric highlights the company's effective management of assets and its profitability.
• With a current Debt-to-Equity ratio at 0.0, ULTA showcases its disciplined capital structure. The company's prudent management of debt obligations contributes to its financial stability and long-term sustainability.
• The EPS of ULTA has shown consistent growth over a 5-year period, indicating the company's ability to generate increasing earnings over time.
• A PEG ratio of 0.95 suggests that ULTA offers an attractive balance between growth and valuation.
• ULTA’s Current Ratio of 1.7 highlights its ability to sustain day-to-day operations without liquidity concerns.

Zooming in on the fundamentals.

At ChartMill, a crucial aspect of their analysis is the assignment of a Fundamental Rating to each stock. This rating, ranging from 0 to 10, is calculated daily by considering numerous fundamental indicators and properties.

Taking everything into account, ULTA scores 6 out of 10 in our fundamental rating. 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 has a decent growth rate and is not valued too expensively.

Check the latest full fundamental report of ULTA for a complete fundamental analysis.

More Affordable Growth stocks can be found in our Peter Lynch screener.

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.