SALLY BEAUTY HOLDINGS INC (SBH) Stock Fundamental Analysis
NYSE:SBH - New York Stock Exchange, Inc. - US79546E1047 - Common Stock - Currency: USD
Overall SBH gets a fundamental rating of 5 out of 10. We evaluated SBH against 121 industry peers in the Specialty Retail industry. While SBH belongs to the best of the industry regarding profitability, there are some minor concerns on its financial health. SBH is valued quite cheap, while showing a decent growth score. This is a good combination! These ratings would make SBH suitable 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.
Each year in the past 5 years SBH has been profitable.
In the past 5 years SBH always reported a positive cash flow from operatings.
1.2 Ratios
With a decent Return On Assets value of 6.87%, SBH is doing good in the industry, outperforming 76.86% of the companies in the same industry.
Looking at the Return On Equity, with a value of 26.58%, SBH belongs to the top of the industry, outperforming 84.30% of the companies in the same industry.
Looking at the Return On Invested Capital, with a value of 10.99%, SBH is in the better half of the industry, outperforming 76.86% 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 13.07%.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 6.87% | ||
| ROE | 26.58% | ||
| ROIC | 10.99% |
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
Looking at the Profit Margin, with a value of 5.03%, SBH is in the better half of the industry, outperforming 77.69% of the companies in the same industry.
SBH's Profit Margin has declined in the last couple of years.
The Operating Margin of SBH (8.75%) is better than 81.82% of its industry peers.
In the last couple of years the Operating Margin of SBH has declined.
Looking at the Gross Margin, with a value of 51.26%, SBH belongs to the top of the industry, outperforming 80.17% of the companies in the same industry.
SBH's Gross Margin has been stable in the last couple of years.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 8.75% | ||
| PM (TTM) | 5.03% | ||
| GM | 51.26% |
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
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.
SBH has less shares outstanding than it did 5 years ago.
SBH has a better debt/assets ratio than last year.
2.2 Solvency
An Altman-Z score of 2.80 indicates that SBH is not a great score, but indicates only limited risk for bankruptcy at the moment.
With a decent Altman-Z score value of 2.80, SBH is doing good in the industry, outperforming 64.46% of the companies in the same industry.
SBH has a debt to FCF ratio of 6.14. This is a slightly negative value and a sign of low solvency as SBH would need 6.14 years to pay back of all of its debts.
The Debt to FCF ratio of SBH (6.14) is better than 61.98% of its industry peers.
SBH has a Debt/Equity ratio of 1.29. This is a high value indicating a heavy dependency on external financing.
Looking at the Debt to Equity ratio, with a value of 1.29, SBH is doing worse than 61.98% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.29 | ||
| Debt/FCF | 6.14 | ||
| Altman-Z | 2.8 |
ROIC/WACC1.13
WACC9.75%
2.3 Liquidity
A Current Ratio of 2.32 indicates that SBH has no problem at all paying its short term obligations.
The Current ratio of SBH (2.32) is better than 85.95% of its industry peers.
SBH has a Quick Ratio of 2.32. This is a bad value and indicates that SBH is not financially healthy enough and could expect problems in meeting its short term obligations.
With a Quick ratio value of 0.44, SBH perfoms like the industry average, outperforming 42.98% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 2.32 | ||
| Quick Ratio | 0.44 |
3. Growth
3.1 Past
The Earnings Per Share has grown by an nice 8.43% over the past 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 small growth in Revenue. In the last year, the Revenue has grown by 0.17%.
SBH shows a decrease in Revenue. Measured over the last years, the Revenue has been decreasing by -0.84% yearly.
EPS 1Y (TTM)8.43%
EPS 3Y-10.79%
EPS 5Y-5.65%
EPS Q2Q%20%
Revenue 1Y (TTM)0.17%
Revenue growth 3Y-1.38%
Revenue growth 5Y-0.84%
Sales Q2Q%-2.78%
3.2 Future
Based on estimates for the next years, SBH will show a quite strong growth in Earnings Per Share. The EPS will grow by 9.05% on average per year.
SBH is expected to show a small growth in Revenue. In the coming years, the Revenue will grow by 0.85% yearly.
EPS Next Y3.87%
EPS Next 2Y7.12%
EPS Next 3Y9.05%
EPS Next 5YN/A
Revenue Next Year-1.01%
Revenue Next 2Y0.19%
Revenue Next 3Y0.85%
Revenue Next 5YN/A
3.3 Evolution
The EPS growth rate is accelerating: in the next years the growth will be better than in the last years.
When comparing the Revenue growth rate of the last years to the growth rate of the upcoming years, we see that the growth is accelerating.
4. Valuation
4.1 Price/Earnings Ratio
With a Price/Earnings ratio of 5.46, the valuation of SBH can be described as very cheap.
SBH's Price/Earnings ratio is rather cheap when compared to the industry. SBH is cheaper than 96.69% of the companies in the same industry.
SBH is valuated cheaply when we compare the Price/Earnings ratio to 27.30, which is the current average of the S&P500 Index.
Based on the Price/Forward Earnings ratio of 5.06, the valuation of SBH can be described as very cheap.
SBH's Price/Forward Earnings ratio is rather cheap when compared to the industry. SBH is cheaper than 93.39% of the companies in the same industry.
The average S&P500 Price/Forward Earnings ratio is at 21.76. SBH is valued rather cheaply when compared to this.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 5.46 | ||
| Fwd PE | 5.06 |
4.2 Price Multiples
89.26% of the companies in the same industry are more expensive than SBH, based on the Enterprise Value to EBITDA ratio.
Compared to the rest of the industry, the Price/Free Cash Flow ratio of SBH indicates a rather cheap valuation: SBH is cheaper than 92.56% of the companies listed in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 6.71 | ||
| EV/EBITDA | 4.25 |
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)1.41
PEG (5Y)N/A
EPS Next 2Y7.12%
EPS Next 3Y9.05%
5. Dividend
5.1 Amount
No dividends for SBH!.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | N/A |
9.82
-0.18 (-1.8%)
Chartmill FA Rating
GICS SectorConsumer Discretionary
GICS IndustryGroupConsumer Discretionary Distribution & Retail
GICS IndustrySpecialty Retail
Earnings (Last)
Earnings (Next)
Inst Owners121.38%
Inst Owner Change0%
Ins Owners0.86%
Ins Owner Change2.88%
Market Cap990.74M
Analysts71.11
Price Target12.24 (24.64%)
Short Float %15.13%
Short Ratio8.24
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)1
Avg EPS beat(2)2.43%
Min EPS beat(2)-1.32%
Max EPS beat(2)6.17%
EPS beat(4)3
Avg EPS beat(4)4.98%
Min EPS beat(4)-1.32%
Max EPS beat(4)10.65%
EPS beat(8)4
Avg EPS beat(8)0.46%
EPS beat(12)7
Avg EPS beat(12)1.17%
EPS beat(16)10
Avg EPS beat(16)2.51%
Revenue beat(2)0
Avg Revenue beat(2)-2.31%
Min Revenue beat(2)-3%
Max Revenue beat(2)-1.61%
Revenue beat(4)1
Avg Revenue beat(4)-1.38%
Min Revenue beat(4)-3%
Max Revenue beat(4)0.14%
Revenue beat(8)1
Avg Revenue beat(8)-1.51%
Revenue beat(12)5
Avg Revenue beat(12)-0.5%
Revenue beat(16)7
Avg Revenue beat(16)-0.63%
PT rev (1m)-9.09%
PT rev (3m)-5.88%
EPS NQ rev (1m)0%
EPS NQ rev (3m)-8.27%
EPS NY rev (1m)0.46%
EPS NY rev (3m)-3.73%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)-1.33%
Revenue NY rev (1m)0%
Revenue NY rev (3m)-0.99%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 5.46 | ||
| Fwd PE | 5.06 | ||
| P/S | 0.27 | ||
| P/FCF | 6.71 | ||
| P/OCF | 4.08 | ||
| P/B | 1.42 | ||
| P/tB | 9.02 | ||
| EV/EBITDA | 4.25 |
EPS(TTM)1.8
EY18.33%
EPS(NY)1.94
Fwd EY19.75%
FCF(TTM)1.46
FCFY14.9%
OCF(TTM)2.41
OCFY24.54%
SpS36.66
BVpS6.94
TBVpS1.09
PEG (NY)1.41
PEG (5Y)N/A
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 6.87% | ||
| ROE | 26.58% | ||
| ROCE | 14.9% | ||
| ROIC | 10.99% | ||
| ROICexc | 11.48% | ||
| ROICexgc | 16.03% | ||
| OM | 8.75% | ||
| PM (TTM) | 5.03% | ||
| GM | 51.26% | ||
| FCFM | 3.99% |
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-Score9
Asset Turnover1.37
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.29 | ||
| Debt/FCF | 6.14 | ||
| Debt/EBITDA | 2.1 | ||
| Cap/Depr | 90.38% | ||
| Cap/Sales | 2.58% | ||
| Interest Coverage | 4.51 | ||
| Cash Conversion | 56.62% | ||
| Profit Quality | 79.36% | ||
| Current Ratio | 2.32 | ||
| Quick Ratio | 0.44 | ||
| Altman-Z | 2.8 |
F-Score9
WACC9.75%
ROIC/WACC1.13
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)8.43%
EPS 3Y-10.79%
EPS 5Y-5.65%
EPS Q2Q%20%
EPS Next Y3.87%
EPS Next 2Y7.12%
EPS Next 3Y9.05%
EPS Next 5YN/A
Revenue 1Y (TTM)0.17%
Revenue growth 3Y-1.38%
Revenue growth 5Y-0.84%
Sales Q2Q%-2.78%
Revenue Next Year-1.01%
Revenue Next 2Y0.19%
Revenue Next 3Y0.85%
Revenue Next 5YN/A
EBIT growth 1Y9.92%
EBIT growth 3Y-12.57%
EBIT growth 5Y-9.19%
EBIT Next Year36.81%
EBIT Next 3Y14.73%
EBIT Next 5YN/A
FCF growth 1Y4.32%
FCF growth 3Y-22.14%
FCF growth 5Y-7.32%
OCF growth 1Y1.75%
OCF growth 3Y-13.58%
OCF growth 5Y-5.11%