SALLY BEAUTY HOLDINGS INC (SBH) Stock Fundamental Analysis
USA - NYSE:SBH - US79546E1047 - Common Stock
14.18 USD
-0.27 (-1.87%)
14.16 USD
-0.02 (-0.14%)
Taking everything into account, SBH scores 5 out of 10 in our fundamental rating. SBH was compared to 122 industry peers in the Specialty Retail industry. SBH has only an average score on both its financial health and profitability. SBH is valued quite cheap, but it does not seem to be growing. With these ratings, SBH could be worth investigating further for value investing!.
1. Profitability
1.1 Basic Checks
In the past year SBH was profitable.
SBH had a positive operating cash flow in the past year.
SBH had positive earnings in 4 of the past 5 years.
Of the past 5 years SBH 4 years had a positive operating cash flow.
1.2 Ratios
SBH has a better Return On Assets (7.07%) than 78.69% of its industry peers.
SBH has a Return On Equity of 25.43%. This is amongst the best in the industry. SBH outperforms 82.79% of its industry peers.
With a decent Return On Invested Capital value of 11.02%, SBH is doing good in the industry, outperforming 76.23% of the companies in the same industry.
The Average Return On Invested Capital over the past 3 years for SBH is in line with the industry average of 11.81%.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 7.07% | ||
| ROE | 25.43% | ||
| ROIC | 11.02% |
ROA(3y)6.46%
ROA(5y)6.35%
ROE(3y)41.08%
ROE(5y)188.75%
ROIC(3y)11.72%
ROIC(5y)11.63%
1.3 Margins
SBH has a Profit Margin of 5.26%. This is in the better half of the industry: SBH outperforms 77.05% of its industry peers.
SBH's Profit Margin has declined in the last couple of years.
SBH's Operating Margin of 8.99% is fine compared to the rest of the industry. SBH outperforms 79.51% of its industry peers.
SBH's Operating Margin has declined in the last couple of years.
Looking at the Gross Margin, with a value of 51.39%, SBH is in the better half of the industry, outperforming 79.51% of the companies in the same industry.
In the last couple of years the Gross Margin of SBH has remained more or less at the same level.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 8.99% | ||
| PM (TTM) | 5.26% | ||
| GM | 51.39% |
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%
2. Health
2.1 Basic Checks
The Return on Invested Capital (ROIC) is just above the Cost of Capital (WACC), so SBH is still creating some value.
There is no outstanding debt for SBH. This means it has a Debt/Equity and Debt/FCF ratio of 0 and it is amongst the best of the sector and industry.
2.2 Solvency
SBH has an Altman-Z score of 2.93. This is not the best score and indicates that SBH is in the grey zone with still only limited risk for bankruptcy at the moment.
SBH has a better Altman-Z score (2.93) than 66.39% of its industry peers.
SBH has a debt to FCF ratio of 5.28. This is a neutral value as SBH would need 5.28 years to pay back of all of its debts.
SBH has a Debt to FCF ratio of 5.28. This is in the better half of the industry: SBH outperforms 64.75% of its industry peers.
A Debt/Equity ratio of 1.16 is on the high side and indicates that SBH has dependencies on debt financing.
SBH has a Debt to Equity ratio of 1.16. This is comparable to the rest of the industry: SBH outperforms 40.98% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.16 | ||
| Debt/FCF | 5.28 | ||
| Altman-Z | 2.93 |
ROIC/WACC1.15
WACC9.58%
2.3 Liquidity
A Current Ratio of 2.41 indicates that SBH has no problem at all paying its short term obligations.
With an excellent Current ratio value of 2.41, SBH belongs to the best of the industry, outperforming 86.07% of the companies in the same industry.
A Quick Ratio of 0.49 indicates that SBH may have some problems paying its short term obligations.
Looking at the Quick ratio, with a value of 0.49, SBH is in line with its industry, outperforming 47.54% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 2.41 | ||
| Quick Ratio | 0.49 |
3. Growth
3.1 Past
The Earnings Per Share has grown by an nice 13.02% over the past year.
Measured over the past years, SBH shows a quite strong growth in Earnings Per Share. The EPS has been growing by 9.38% on average per year.
EPS 1Y (TTM)13.02%
EPS 3Y-3.87%
EPS 5Y9.38%
EPS Q2Q%10%
Revenue 1Y (TTM)N/A
Revenue growth 3YN/A
Revenue growth 5YN/A
Sales Q2Q%1.29%
3.2 Future
Based on estimates for the next years, SBH will show a small growth in Earnings Per Share. The EPS will grow by 7.49% on average per year.
The Revenue is expected to grow by 1.21% on average over the next years.
EPS Next Y6.55%
EPS Next 2Y7.49%
EPS Next 3YN/A
EPS Next 5YN/A
Revenue Next Year1.1%
Revenue Next 2Y1.21%
Revenue Next 3YN/A
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 decreasing.
4. Valuation
4.1 Price/Earnings Ratio
The Price/Earnings ratio is 7.42, which indicates a rather cheap valuation of SBH.
Compared to the rest of the industry, the Price/Earnings ratio of SBH indicates a rather cheap valuation: SBH is cheaper than 93.44% of the companies listed in the same industry.
SBH is valuated cheaply when we compare the Price/Earnings ratio to 25.89, which is the current average of the S&P500 Index.
Based on the Price/Forward Earnings ratio of 6.97, the valuation of SBH can be described as very cheap.
Based on the Price/Forward Earnings ratio, SBH is valued cheaper than 92.62% of the companies in the same industry.
SBH's Price/Forward Earnings ratio indicates a rather cheap valuation when compared to the S&P500 average which is at 34.59.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 7.42 | ||
| Fwd PE | 6.97 |
4.2 Price Multiples
88.52% 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 cheaply inside the industry as 90.16% of the companies are valued more expensively.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 8.35 | ||
| EV/EBITDA | 5.02 |
4.3 Compensation for Growth
The PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates a correct valuation of the company.
The decent profitability rating of SBH may justify a higher PE ratio.
PEG (NY)1.13
PEG (5Y)0.79
EPS Next 2Y7.49%
EPS Next 3YN/A
5. Dividend
5.1 Amount
No dividends for SBH!.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | N/A |
14.18
-0.27 (-1.87%)
Chartmill FA Rating
GICS SectorConsumer Discretionary
GICS IndustryGroupConsumer Discretionary Distribution & Retail
GICS IndustrySpecialty Retail
Earnings (Last)
Earnings (Next)
Inst Owners120.1%
Inst Owner Change0.01%
Ins Owners0.89%
Ins Owner Change0.59%
Market Cap1.40B
Revenue(TTM)N/A
Net Income(TTM)194.00M
Analysts71.11
Price Target15.43 (8.82%)
Short Float %19.51%
Short Ratio8.44
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | N/A |
Yearly DividendN/A
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)12.63%
Min EPS beat(2)6.17%
Max EPS beat(2)19.09%
EPS beat(4)3
Avg EPS beat(4)7.09%
Min EPS beat(4)-1.32%
Max EPS beat(4)19.09%
EPS beat(8)5
Avg EPS beat(8)3.09%
EPS beat(12)8
Avg EPS beat(12)3.36%
EPS beat(16)10
Avg EPS beat(16)3.2%
Revenue beat(2)0
Avg Revenue beat(2)-1.75%
Min Revenue beat(2)-3%
Max Revenue beat(2)-0.51%
Revenue beat(4)0
Avg Revenue beat(4)-1.55%
Min Revenue beat(4)-3%
Max Revenue beat(4)-0.51%
Revenue beat(8)1
Avg Revenue beat(8)-1.26%
Revenue beat(12)4
Avg Revenue beat(12)-0.55%
Revenue beat(16)6
Avg Revenue beat(16)-0.84%
PT rev (1m)4.67%
PT rev (3m)26.04%
EPS NQ rev (1m)1.5%
EPS NQ rev (3m)7.95%
EPS NY rev (1m)-0.14%
EPS NY rev (3m)5.01%
Revenue NQ rev (1m)0.03%
Revenue NQ rev (3m)0.43%
Revenue NY rev (1m)0%
Revenue NY rev (3m)0.13%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 7.42 | ||
| Fwd PE | 6.97 | ||
| P/S | 0.38 | ||
| P/FCF | 8.35 | ||
| P/OCF | 5.3 | ||
| P/B | 1.84 | ||
| P/tB | 8.46 | ||
| EV/EBITDA | 5.02 |
EPS(TTM)1.91
EY13.47%
EPS(NY)2.04
Fwd EY14.35%
FCF(TTM)1.7
FCFY11.97%
OCF(TTM)2.67
OCFY18.86%
SpS37.29
BVpS7.71
TBVpS1.68
PEG (NY)1.13
PEG (5Y)0.79
Graham Number18.2
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 7.07% | ||
| ROE | 25.43% | ||
| ROCE | 14.93% | ||
| ROIC | 11.02% | ||
| ROICexc | 11.61% | ||
| ROICexgc | 16.2% | ||
| OM | 8.99% | ||
| PM (TTM) | 5.26% | ||
| GM | 51.39% | ||
| FCFM | 4.55% |
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%
ROICexgc growth 3Y-19.08%
ROICexgc 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-Score8
Asset Turnover1.34
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.16 | ||
| Debt/FCF | 5.28 | ||
| Debt/EBITDA | 2.04 | ||
| Cap/Depr | 94.92% | ||
| Cap/Sales | 2.62% | ||
| Interest Coverage | 4.81 | ||
| Cash Conversion | 61.07% | ||
| Profit Quality | 86.6% | ||
| Current Ratio | 2.41 | ||
| Quick Ratio | 0.49 | ||
| Altman-Z | 2.93 |
F-Score8
WACC9.58%
ROIC/WACC1.15
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)13.02%
EPS 3Y-3.87%
EPS 5Y9.38%
EPS Q2Q%10%
EPS Next Y6.55%
EPS Next 2Y7.49%
EPS Next 3YN/A
EPS Next 5YN/A
Revenue 1Y (TTM)N/A
Revenue growth 3YN/A
Revenue growth 5YN/A
Sales Q2Q%1.29%
Revenue Next Year1.1%
Revenue Next 2Y1.21%
Revenue Next 3YN/A
Revenue Next 5YN/A
EBIT growth 1Y19.75%
EBIT growth 3Y-12.57%
EBIT growth 5Y-9.19%
EBIT Next Year40.08%
EBIT Next 3Y14.46%
EBIT Next 5YN/A
FCF growth 1Y16.5%
FCF growth 3Y-22.14%
FCF growth 5Y-7.32%
OCF growth 1Y10.21%
OCF growth 3Y-13.58%
OCF growth 5Y-5.11%
SALLY BEAUTY HOLDINGS INC / SBH FAQ
What is the fundamental rating for SBH stock?
ChartMill assigns a fundamental rating of 5 / 10 to SBH.
Can you provide the valuation status for SALLY BEAUTY HOLDINGS INC?
ChartMill assigns a valuation rating of 8 / 10 to SALLY BEAUTY HOLDINGS INC (SBH). This can be considered as Undervalued.
How profitable is SALLY BEAUTY HOLDINGS INC (SBH) stock?
SALLY BEAUTY HOLDINGS INC (SBH) has a profitability rating of 6 / 10.
Can you provide the financial health for SBH stock?
The financial health rating of SALLY BEAUTY HOLDINGS INC (SBH) is 5 / 10.