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SALLY BEAUTY HOLDINGS INC (SBH) Stock Fundamental Analysis

NYSE:SBH - New York Stock Exchange, Inc. - US79546E1047 - Common Stock

11.26  +0.11 (+0.99%)

After market: 11.26 0 (0%)

Fundamental Rating

5

SBH gets a fundamental rating of 5 out of 10. The analysis compared the fundamentals against 119 industry peers in the Specialty Retail industry. SBH has an average financial health and profitability rating. SBH has a bad growth rate and is valued cheaply. This makes SBH very considerable for value investing!


Dividend Valuation Growth Profitability Health

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6

1. Profitability

1.1 Basic Checks

SBH had positive earnings in the past year.
SBH had a positive operating cash flow in the past year.
SBH had positive earnings in each of the past 5 years.
SBH had a positive operating cash flow in each of the past 5 years.
SBH Yearly Net Income VS EBIT VS OCF VS FCFSBH Yearly Net Income VS EBIT VS OCF VS FCFYearly Net Income VS EBIT VS OCF VS FCF 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 100M 200M 300M 400M 500M

1.2 Ratios

The Return On Assets of SBH (5.49%) is better than 68.97% of its industry peers.
Looking at the Return On Equity, with a value of 24.41%, SBH is in the better half of the industry, outperforming 79.31% of the companies in the same industry.
SBH has a better Return On Invested Capital (9.48%) than 74.14% of its industry peers.
Measured over the past 3 years, the Average Return On Invested Capital for SBH is in line with the industry average of 12.38%.
Industry RankSector Rank
ROA 5.49%
ROE 24.41%
ROIC 9.48%
ROA(3y)6.46%
ROA(5y)6.35%
ROE(3y)41.08%
ROE(5y)188.75%
ROIC(3y)11.72%
ROIC(5y)11.63%
SBH Yearly ROA, ROE, ROICSBH Yearly ROA, ROE, ROICYearly ROA, ROE, ROIC 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 0 200 -200 400 -400 600

1.3 Margins

The Profit Margin of SBH (4.13%) is better than 74.14% of its industry peers.
In the last couple of years the Profit Margin of SBH has declined.
With a decent Operating Margin value of 7.60%, SBH is doing good in the industry, outperforming 76.72% of the companies in the same industry.
In the last couple of years the Operating Margin of SBH has declined.
SBH has a Gross Margin of 50.86%. This is in the better half of the industry: SBH outperforms 79.31% of its industry peers.
In the last couple of years the Gross Margin of SBH has remained more or less at the same level.
Industry RankSector Rank
OM 7.6%
PM (TTM) 4.13%
GM 50.86%
OM growth 3Y-11.35%
OM growth 5Y-8.43%
PM growth 3Y-12.64%
PM growth 5Y-10.04%
GM growth 3Y0.3%
GM growth 5Y0.63%
SBH Yearly Profit, Operating, Gross MarginsSBH Yearly Profit, Operating, Gross MarginsYearly Profit, Operating, Gross Margins 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 10 20 30 40 50

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5

2. Health

2.1 Basic Checks

With a Return on Invested Capital (ROIC) just above the Cost of Capital (WACC), SBH is creating some value.
The number of shares outstanding for SBH has been reduced compared to 1 year ago.
SBH has less shares outstanding than it did 5 years ago.
SBH has a better debt/assets ratio than last year.
SBH Yearly Shares OutstandingSBH Yearly Shares OutstandingYearly Shares Outstanding 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 50M 100M 150M
SBH Yearly Total Debt VS Total AssetsSBH Yearly Total Debt VS Total AssetsYearly Total Debt VS Total Assets 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 500M 1B 1.5B 2B 2.5B

2.2 Solvency

An Altman-Z score of 2.66 indicates that SBH is not a great score, but indicates only limited risk for bankruptcy at the moment.
Looking at the Altman-Z score, with a value of 2.66, SBH is in line with its industry, outperforming 57.76% of the companies in the same industry.
The Debt to FCF ratio of SBH is 6.76, which is on the high side as it means it would take SBH, 6.76 years of fcf income to pay off all of its debts.
With a Debt to FCF ratio value of 6.76, SBH perfoms like the industry average, outperforming 57.76% of the companies in the same industry.
SBH has a Debt/Equity ratio of 1.56. This is a high value indicating a heavy dependency on external financing.
SBH has a Debt to Equity ratio of 1.56. This is in the lower half of the industry: SBH underperforms 65.52% of its industry peers.
Industry RankSector Rank
Debt/Equity 1.56
Debt/FCF 6.76
Altman-Z 2.66
ROIC/WACC0.92
WACC10.3%
SBH Yearly LT Debt VS Equity VS FCFSBH Yearly LT Debt VS Equity VS FCFYearly LT Debt VS Equity VS FCF 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 0 500M 1B 1.5B

2.3 Liquidity

A Current Ratio of 2.20 indicates that SBH has no problem at all paying its short term obligations.
SBH's Current ratio of 2.20 is amongst the best of the industry. SBH outperforms 83.62% of its industry peers.
A Quick Ratio of 0.45 indicates that SBH may have some problems paying its short term obligations.
The Quick ratio of SBH (0.45) is comparable to the rest of the industry.
Industry RankSector Rank
Current Ratio 2.2
Quick Ratio 0.45
SBH Yearly Current Assets VS Current LiabilitesSBH Yearly Current Assets VS Current LiabilitesYearly Current Assets VS Current Liabilites 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 500M 1B

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3

3. Growth

3.1 Past

The earnings per share for SBH have decreased by -8.65% in the last year.
Measured over the past years, SBH shows a decrease in Earnings Per Share. The EPS has been decreasing by -5.65% on average per year.
SBH shows a decrease in Revenue. In the last year, the revenue decreased by -0.30%.
The Revenue has been decreasing by -0.84% on average over the past years.
EPS 1Y (TTM)-8.65%
EPS 3Y-10.79%
EPS 5Y-5.65%
EPS Q2Q%16.28%
Revenue 1Y (TTM)-0.3%
Revenue growth 3Y-1.38%
Revenue growth 5Y-0.84%
Sales Q2Q%1.48%

3.2 Future

SBH is expected to show a small growth in Earnings Per Share. In the coming years, the EPS will grow by 7.92% yearly.
Based on estimates for the next years, SBH will show a small growth in Revenue. The Revenue will grow by 1.18% on average per year.
EPS Next Y10.16%
EPS Next 2Y9.74%
EPS Next 3Y7.92%
EPS Next 5YN/A
Revenue Next Year1.04%
Revenue Next 2Y1.31%
Revenue Next 3Y1.18%
Revenue Next 5YN/A

3.3 Evolution

When comparing the EPS growth rate of the last years to the growth rate of the upcoming years, we see that the growth is accelerating.
The Revenue growth rate is accelerating: in the next years the growth will be better than in the last years.
SBH Yearly Revenue VS EstimatesSBH Yearly Revenue VS EstimatesYearly Revenue VS Estimates 2014 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 2026 2027 1B 2B 3B 4B
SBH Yearly EPS VS EstimatesSBH Yearly EPS VS EstimatesYearly EPS VS Estimates 2014 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 2026 2027 0.5 1 1.5 2

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9

4. Valuation

4.1 Price/Earnings Ratio

With a Price/Earnings ratio of 6.66, the valuation of SBH can be described as very cheap.
Based on the Price/Earnings ratio, SBH is valued cheaply inside the industry as 97.41% of the companies are valued more expensively.
Compared to an average S&P500 Price/Earnings ratio of 27.94, SBH is valued rather cheaply.
With a Price/Forward Earnings ratio of 6.05, the valuation of SBH can be described as very cheap.
Based on the Price/Forward Earnings ratio, SBH is valued cheaply inside the industry as 94.83% of the companies are valued more expensively.
SBH's Price/Forward Earnings ratio indicates a rather cheap valuation when compared to the S&P500 average which is at 24.11.
Industry RankSector Rank
PE 6.66
Fwd PE 6.05
SBH Price Earnings VS Forward Price EarningsSBH Price Earnings VS Forward Price Earnings ChartPrice Earnings - Forward Price Earnings PE FPE 100 200 300

4.2 Price Multiples

89.66% of the companies in the same industry are more expensive than SBH, based on the Enterprise Value to EBITDA ratio.
Based on the Price/Free Cash Flow ratio, SBH is valued cheaper than 92.24% of the companies in the same industry.
Industry RankSector Rank
P/FCF 7.94
EV/EBITDA 5.17
SBH Per share dataSBH EPS, Sales, OCF, FCF, BookValue per sharePer Share Data Per Share 10 20 30

4.3 Compensation for Growth

The low PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates a rather cheap valuation of the company.
SBH has a very decent profitability rating, which may justify a higher PE ratio.
PEG (NY)0.66
PEG (5Y)N/A
EPS Next 2Y9.74%
EPS Next 3Y7.92%

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0

5. Dividend

5.1 Amount

No dividends for SBH!.
Industry RankSector Rank
Dividend Yield N/A

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SALLY BEAUTY HOLDINGS INC

NYSE:SBH (1/17/2025, 8:26:08 PM)

After market: 11.26 0 (0%)

11.26

+0.11 (+0.99%)

Chartmill FA Rating
GICS SectorConsumer Discretionary
GICS IndustryGroupConsumer Discretionary Distribution & Retail
GICS IndustrySpecialty Retail
Earnings (Last)11-14 2024-11-14/bmo
Earnings (Next)01-30 2025-01-30/amc
Inst Owners119%
Inst Owner Change-0.01%
Ins Owners0.56%
Ins Owner Change12.64%
Market Cap1.15B
Analysts70
Price Target14.89 (32.24%)
Short Float %12.14%
Short Ratio6.26
Dividend
Industry RankSector Rank
Dividend Yield N/A
Yearly Dividend0
Dividend Growth(5Y)N/A
DPN/A
Div Incr Years0
Div Non Decr Years0
Ex-DateN/A
Surprises & Revisions
EPS beat(2)2
Avg EPS beat(2)7.53%
Min EPS beat(2)4.4%
Max EPS beat(2)10.65%
EPS beat(4)3
Avg EPS beat(4)1.91%
Min EPS beat(4)-12.45%
Max EPS beat(4)10.65%
EPS beat(8)5
Avg EPS beat(8)1.7%
EPS beat(12)7
Avg EPS beat(12)0.38%
EPS beat(16)11
Avg EPS beat(16)20.26%
Revenue beat(2)1
Avg Revenue beat(2)-0.46%
Min Revenue beat(2)-1.07%
Max Revenue beat(2)0.14%
Revenue beat(4)1
Avg Revenue beat(4)-0.75%
Min Revenue beat(4)-1.25%
Max Revenue beat(4)0.14%
Revenue beat(8)3
Avg Revenue beat(8)-0.27%
Revenue beat(12)5
Avg Revenue beat(12)-0.73%
Revenue beat(16)8
Avg Revenue beat(16)0.1%
PT rev (1m)0%
PT rev (3m)30.36%
EPS NQ rev (1m)0%
EPS NQ rev (3m)-1.21%
EPS NY rev (1m)0%
EPS NY rev (3m)3.57%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)0.32%
Revenue NY rev (1m)0%
Revenue NY rev (3m)-0.03%
Valuation
Industry RankSector Rank
PE 6.66
Fwd PE 6.05
P/S 0.31
P/FCF 7.94
P/OCF 4.68
P/B 1.84
P/tB 38.07
EV/EBITDA 5.17
EPS(TTM)1.69
EY15.01%
EPS(NY)1.86
Fwd EY16.53%
FCF(TTM)1.42
FCFY12.6%
OCF(TTM)2.41
OCFY21.37%
SpS36.27
BVpS6.13
TBVpS0.3
PEG (NY)0.66
PEG (5Y)N/A
Profitability
Industry RankSector Rank
ROA 5.49%
ROE 24.41%
ROCE 12.85%
ROIC 9.48%
ROICexc 9.97%
ROICexgc 13.96%
OM 7.6%
PM (TTM) 4.13%
GM 50.86%
FCFM 3.91%
ROA(3y)6.46%
ROA(5y)6.35%
ROE(3y)41.08%
ROE(5y)188.75%
ROIC(3y)11.72%
ROIC(5y)11.63%
ROICexc(3y)12.3%
ROICexc(5y)13.11%
ROICexgc(3y)17.54%
ROICexgc(5y)19.12%
ROCE(3y)15.88%
ROCE(5y)15.76%
ROICexcg growth 3Y-19.08%
ROICexcg growth 5Y-16.57%
ROICexc growth 3Y-17.14%
ROICexc growth 5Y-14.25%
OM growth 3Y-11.35%
OM growth 5Y-8.43%
PM growth 3Y-12.64%
PM growth 5Y-10.04%
GM growth 3Y0.3%
GM growth 5Y0.63%
F-Score7
Asset Turnover1.33
Health
Industry RankSector Rank
Debt/Equity 1.56
Debt/FCF 6.76
Debt/EBITDA 2.49
Cap/Depr 92.19%
Cap/Sales 2.72%
Interest Coverage 3.26
Cash Conversion 62.83%
Profit Quality 94.75%
Current Ratio 2.2
Quick Ratio 0.45
Altman-Z 2.66
F-Score7
WACC10.3%
ROIC/WACC0.92
Cap/Depr(3y)93.39%
Cap/Depr(5y)91.26%
Cap/Sales(3y)2.59%
Cap/Sales(5y)2.56%
Profit Quality(3y)70.61%
Profit Quality(5y)123.87%
High Growth Momentum
Growth
EPS 1Y (TTM)-8.65%
EPS 3Y-10.79%
EPS 5Y-5.65%
EPS Q2Q%16.28%
EPS Next Y10.16%
EPS Next 2Y9.74%
EPS Next 3Y7.92%
EPS Next 5YN/A
Revenue 1Y (TTM)-0.3%
Revenue growth 3Y-1.38%
Revenue growth 5Y-0.84%
Sales Q2Q%1.48%
Revenue Next Year1.04%
Revenue Next 2Y1.31%
Revenue Next 3Y1.18%
Revenue Next 5YN/A
EBIT growth 1Y-15.98%
EBIT growth 3Y-12.57%
EBIT growth 5Y-9.19%
EBIT Next Year45.04%
EBIT Next 3Y14.72%
EBIT Next 5YN/A
FCF growth 1Y-8.35%
FCF growth 3Y-22.14%
FCF growth 5Y-7.32%
OCF growth 1Y-1.11%
OCF growth 3Y-13.58%
OCF growth 5Y-5.11%