SALLY BEAUTY HOLDINGS INC (SBH) Stock Fundamental Analysis
USA - NYSE:SBH - US79546E1047 - Common Stock
14.15 USD
+0.14 (+1%)
14.24 USD
+0.09 (+0.64%)
SBH gets a fundamental rating of 6 out of 10. The analysis compared the fundamentals against 122 industry peers in the Specialty Retail industry. SBH has an excellent profitability rating, but there are some minor concerns on its financial health. SBH may be a bit undervalued, certainly considering the very reasonable score on growth These ratings would make SBH suitable for value investing!
1. Profitability
1.1 Basic Checks
SBH had positive earnings in the past year.
In the past year SBH had a positive cash flow from operations.
Each year in the past 5 years SBH has been profitable.
SBH had a positive operating cash flow in each of the past 5 years.
1.2 Ratios
With a decent Return On Assets value of 6.82%, SBH is doing good in the industry, outperforming 77.87% of the companies in the same industry.
With an excellent Return On Equity value of 24.66%, SBH belongs to the best of the industry, outperforming 82.79% of the companies in the same industry.
SBH has a Return On Invested Capital of 10.77%. This is in the better half of the industry: SBH outperforms 76.23% 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 11.78%.
The 3 year average ROIC (10.66%) for SBH is below the current ROIC(10.77%), indicating increased profibility in the last year.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 6.82% | ||
| ROE | 24.66% | ||
| ROIC | 10.77% |
ROA(3y)6.36%
ROA(5y)6.93%
ROE(3y)28.45%
ROE(5y)46.67%
ROIC(3y)10.66%
ROIC(5y)12.12%
1.3 Margins
SBH has a better Profit Margin (5.29%) than 77.05% of its industry peers.
In the last couple of years the Profit Margin of SBH has grown nicely.
The Operating Margin of SBH (8.98%) is better than 79.51% of its industry peers.
In the last couple of years the Operating Margin of SBH has grown nicely.
Looking at the Gross Margin, with a value of 51.62%, SBH belongs to the top of the industry, outperforming 80.33% 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 | 8.98% | ||
| PM (TTM) | 5.29% | ||
| GM | 51.62% |
OM growth 3Y-2.11%
OM growth 5Y2.81%
PM growth 3Y3.22%
PM growth 5Y10.44%
GM growth 3Y0.87%
GM growth 5Y1.12%
2. Health
2.1 Basic Checks
SBH has a Return on Invested Capital (ROIC), which is just above the Cost of Capital (WACC), which means it is creating some value.
SBH has less shares outstanding than it did 1 year ago.
The number of shares outstanding for SBH has been reduced compared to 5 years ago.
SBH has a better debt/assets ratio than last year.
2.2 Solvency
An Altman-Z score of 2.82 indicates that SBH is not a great score, but indicates only limited risk for bankruptcy at the moment.
The Altman-Z score of SBH (2.82) is better than 66.39% of its industry peers.
The Debt to FCF ratio of SBH is 5.01, which is a neutral value as it means it would take SBH, 5.01 years of fcf income to pay off all of its debts.
With a decent Debt to FCF ratio value of 5.01, SBH is doing good in the industry, outperforming 65.57% of the companies in the same industry.
SBH has a Debt/Equity ratio of 1.09. This is a high value indicating a heavy dependency on external financing.
Looking at the Debt to Equity ratio, with a value of 1.09, SBH is in line with its industry, outperforming 41.80% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.09 | ||
| Debt/FCF | 5.01 | ||
| Altman-Z | 2.82 |
ROIC/WACC1.18
WACC9.13%
2.3 Liquidity
A Current Ratio of 2.26 indicates that SBH has no problem at all paying its short term obligations.
The Current ratio of SBH (2.26) is better than 84.43% of its industry peers.
SBH has a Quick Ratio of 2.26. This is a bad value and indicates that SBH is not financially healthy enough and could expect problems in meeting its short term obligations.
SBH has a Quick ratio of 0.54. This is comparable to the rest of the industry: SBH outperforms 51.64% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 2.26 | ||
| Quick Ratio | 0.54 |
3. Growth
3.1 Past
SBH shows a strong growth in Earnings Per Share. In the last year, the EPS has been growing by 13.02%, which is quite good.
The Earnings Per Share has been growing by 9.38% on average over the past years. This is quite good.
The Revenue has decreased by -0.42% in the past year.
The Revenue has been growing slightly by 1.04% on average over the past years.
EPS 1Y (TTM)13.02%
EPS 3Y-3.87%
EPS 5Y9.38%
EPS Q2Q%10%
Revenue 1Y (TTM)-0.42%
Revenue growth 3Y-1.01%
Revenue growth 5Y1.04%
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.
Based on estimates for the next years, SBH will show a small growth in Revenue. The Revenue will grow by 1.21% on average per year.
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
The EPS growth rate is decreasing: in the next years the growth will be less than in the last years.
The Revenue growth rate is stable: in the next years the growth will be about the same than in the last years.
4. Valuation
4.1 Price/Earnings Ratio
Based on the Price/Earnings ratio of 7.41, the valuation of SBH can be described as very cheap.
90.98% of the companies in the same industry are more expensive than SBH, based on the Price/Earnings ratio.
SBH's Price/Earnings ratio indicates a rather cheap valuation when compared to the S&P500 average which is at 25.07.
The Price/Forward Earnings ratio is 6.95, which indicates a rather cheap valuation of SBH.
Compared to the rest of the industry, the Price/Forward Earnings ratio of SBH indicates a rather cheap valuation: SBH is cheaper than 91.80% of the companies listed in the same industry.
SBH is valuated cheaply when we compare the Price/Forward Earnings ratio to 34.08, which is the current average of the S&P500 Index.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 7.41 | ||
| Fwd PE | 6.95 |
4.2 Price Multiples
Based on the Enterprise Value to EBITDA ratio, SBH is valued cheaper than 84.43% of the companies in the same industry.
Based on the Price/Free Cash Flow ratio, SBH is valued cheaper than 90.16% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 8.11 | ||
| EV/EBITDA | 4.9 |
4.3 Compensation for Growth
SBH's PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates a correct valuation of the company.
SBH has an outstanding profitability rating, which 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
SBH does not give a dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | N/A |
14.15
+0.14 (+1%)
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)3.70B
Net Income(TTM)195.88M
Analysts71.11
Price Target16.58 (17.17%)
Short Float %20.16%
Short Ratio8.7
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)16.99%
Min EPS beat(2)14.88%
Max EPS beat(2)19.09%
EPS beat(4)3
Avg EPS beat(4)9.71%
Min EPS beat(4)-1.32%
Max EPS beat(4)19.09%
EPS beat(8)6
Avg EPS beat(8)5.81%
EPS beat(12)8
Avg EPS beat(12)4.37%
EPS beat(16)10
Avg EPS beat(16)2.72%
Revenue beat(2)1
Avg Revenue beat(2)0%
Min Revenue beat(2)-0.51%
Max Revenue beat(2)0.52%
Revenue beat(4)1
Avg Revenue beat(4)-1.15%
Min Revenue beat(4)-3%
Max Revenue beat(4)0.52%
Revenue beat(8)2
Avg Revenue beat(8)-0.95%
Revenue beat(12)4
Avg Revenue beat(12)-0.56%
Revenue beat(16)6
Avg Revenue beat(16)-0.83%
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 | 7.41 | ||
| Fwd PE | 6.95 | ||
| P/S | 0.38 | ||
| P/FCF | 8.11 | ||
| P/OCF | 5.09 | ||
| P/B | 1.76 | ||
| P/tB | 6.98 | ||
| EV/EBITDA | 4.9 |
EPS(TTM)1.91
EY13.5%
EPS(NY)2.04
Fwd EY14.38%
FCF(TTM)1.75
FCFY12.33%
OCF(TTM)2.78
OCFY19.63%
SpS37.41
BVpS8.03
TBVpS2.03
PEG (NY)1.13
PEG (5Y)0.79
Graham Number18.57
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 6.82% | ||
| ROE | 24.66% | ||
| ROCE | 14.48% | ||
| ROIC | 10.77% | ||
| ROICexc | 11.51% | ||
| ROICexgc | 15.92% | ||
| OM | 8.98% | ||
| PM (TTM) | 5.29% | ||
| GM | 51.62% | ||
| FCFM | 4.67% |
ROA(3y)6.36%
ROA(5y)6.93%
ROE(3y)28.45%
ROE(5y)46.67%
ROIC(3y)10.66%
ROIC(5y)12.12%
ROICexc(3y)11.31%
ROICexc(5y)13.27%
ROICexgc(3y)15.81%
ROICexgc(5y)19.1%
ROCE(3y)14.33%
ROCE(5y)16.3%
ROICexgc growth 3Y-9.56%
ROICexgc growth 5Y-1.02%
ROICexc growth 3Y-7.97%
ROICexc growth 5Y0.49%
OM growth 3Y-2.11%
OM growth 5Y2.81%
PM growth 3Y3.22%
PM growth 5Y10.44%
GM growth 3Y0.87%
GM growth 5Y1.12%
F-Score8
Asset Turnover1.29
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.09 | ||
| Debt/FCF | 5.01 | ||
| Debt/EBITDA | 1.99 | ||
| Cap/Depr | 102.23% | ||
| Cap/Sales | 2.76% | ||
| Interest Coverage | 5.18 | ||
| Cash Conversion | 63.58% | ||
| Profit Quality | 88.16% | ||
| Current Ratio | 2.26 | ||
| Quick Ratio | 0.54 | ||
| Altman-Z | 2.82 |
F-Score8
WACC9.13%
ROIC/WACC1.18
Cap/Depr(3y)94.33%
Cap/Depr(5y)90.94%
Cap/Sales(3y)2.64%
Cap/Sales(5y)2.48%
Profit Quality(3y)89.61%
Profit Quality(5y)85.67%
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)-0.42%
Revenue growth 3Y-1.01%
Revenue growth 5Y1.04%
Sales Q2Q%1.29%
Revenue Next Year1.1%
Revenue Next 2Y1.21%
Revenue Next 3YN/A
Revenue Next 5YN/A
EBIT growth 1Y17.57%
EBIT growth 3Y-3.1%
EBIT growth 5Y3.88%
EBIT Next Year40.26%
EBIT Next 3YN/A
EBIT Next 5YN/A
FCF growth 1Y18.8%
FCF growth 3Y44.53%
FCF growth 5Y-11.38%
OCF growth 1Y11.48%
OCF growth 3Y20.65%
OCF growth 5Y-8.43%
SALLY BEAUTY HOLDINGS INC / SBH FAQ
What is the fundamental rating for SBH stock?
ChartMill assigns a fundamental rating of 6 / 10 to SBH.
Can you provide the valuation status for SALLY BEAUTY HOLDINGS INC?
ChartMill assigns a valuation rating of 9 / 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 8 / 10.
Can you provide the financial health for SBH stock?
The financial health rating of SALLY BEAUTY HOLDINGS INC (SBH) is 6 / 10.