SALLY BEAUTY HOLDINGS INC (SBH) Stock Fundamental Analysis
USA - NYSE:SBH - US79546E1047 - Common Stock
14.54 USD
+0.39 (+2.76%)
We assign a fundamental rating of 6 out of 10 to SBH. SBH was compared to 121 industry peers in the Specialty Retail industry. Both the profitability and the financial health of SBH get a neutral evaluation. Nothing too spectacular is happening here. A decent growth rate in combination with a cheap valuation! Better keep an eye on SBH. With these ratings, SBH could be worth investigating further for value investing!.
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.
In the past 5 years SBH has always been profitable.
SBH had a positive operating cash flow in each of the past 5 years.
1.2 Ratios
Looking at the Return On Assets, with a value of 7.07%, SBH is in the better half of the industry, outperforming 79.34% of the companies in the same industry.
With an excellent Return On Equity value of 25.43%, SBH belongs to the best of the industry, outperforming 82.64% of the companies in the same industry.
SBH has a Return On Invested Capital of 11.02%. This is in the better half of the industry: SBH outperforms 76.03% of its industry peers.
SBH had an Average Return On Invested Capital over the past 3 years of 11.72%. This is in line with the industry average of 11.82%.
| 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
The Profit Margin of SBH (5.26%) is better than 76.86% of its industry peers.
In the last couple of years the Profit Margin of SBH has declined.
SBH has a better Operating Margin (8.99%) than 79.34% of its industry peers.
In the last couple of years the Operating Margin of SBH has declined.
SBH has a better Gross Margin (51.39%) than 80.17% of its industry peers.
SBH's Gross Margin has been stable in the last couple of years.
| 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
With a Return on Invested Capital (ROIC) just above the Cost of Capital (WACC), SBH is creating some value.
SBH has less shares outstanding than it did 1 year ago.
Compared to 5 years ago, SBH has less shares outstanding
Compared to 1 year ago, SBH has an improved debt to assets ratio.
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.
Looking at the Altman-Z score, with a value of 2.93, SBH is in the better half of the industry, outperforming 66.94% of the companies in the same industry.
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 63.64% 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's Debt to Equity ratio of 1.16 is in line compared to the rest of the industry. SBH outperforms 41.32% 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
SBH has a Current Ratio of 2.41. This indicates that SBH is financially healthy and has no problem in meeting its short term obligations.
Looking at the Current ratio, with a value of 2.41, SBH belongs to the top of the industry, outperforming 85.95% 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.
With a Quick ratio value of 0.49, SBH perfoms like the industry average, outperforming 47.11% 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 14.81% over the past year.
SBH shows a decrease in Earnings Per Share. Measured over the last years, the EPS has been decreasing by -5.65% yearly.
SBH shows a decrease in Revenue. In the last year, the revenue decreased by -0.38%.
The Revenue has been decreasing by -0.84% on average over the past years.
EPS 1Y (TTM)14.81%
EPS 3Y-10.79%
EPS 5Y-5.65%
EPS Q2Q%13.33%
Revenue 1Y (TTM)-0.38%
Revenue growth 3Y-1.38%
Revenue growth 5Y-0.84%
Sales Q2Q%-0.96%
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 9.30% on average per year.
The Revenue is expected to grow by 0.72% on average over the next years.
EPS Next Y9.22%
EPS Next 2Y9.6%
EPS Next 3Y9.3%
EPS Next 5YN/A
Revenue Next Year-0.85%
Revenue Next 2Y0.23%
Revenue Next 3Y0.72%
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.
4. Valuation
4.1 Price/Earnings Ratio
SBH is valuated cheaply with a Price/Earnings ratio of 7.82.
Based on the Price/Earnings ratio, SBH is valued cheaply inside the industry as 92.56% of the companies are valued more expensively.
Compared to an average S&P500 Price/Earnings ratio of 26.03, SBH is valued rather cheaply.
The Price/Forward Earnings ratio is 7.16, which indicates a rather cheap valuation of SBH.
SBH's Price/Forward Earnings ratio is rather cheap when compared to the industry. SBH is cheaper than 92.56% of the companies in the same industry.
When comparing the Price/Forward Earnings ratio of SBH to the average of the S&P500 Index (22.27), we can say SBH is valued rather cheaply.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 7.82 | ||
| Fwd PE | 7.16 |
4.2 Price Multiples
Based on the Enterprise Value to EBITDA ratio, SBH is valued cheaper than 85.95% of the companies in the same industry.
SBH's Price/Free Cash Flow ratio is rather cheap when compared to the industry. SBH is cheaper than 90.91% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 8.56 | ||
| EV/EBITDA | 5.02 |
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)0.85
PEG (5Y)N/A
EPS Next 2Y9.6%
EPS Next 3Y9.3%
5. Dividend
5.1 Amount
No dividends for SBH!.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | N/A |
NYSE:SBH (11/5/2025, 3:39:08 PM)
14.54
+0.39 (+2.76%)
Chartmill FA Rating
GICS SectorConsumer Discretionary
GICS IndustryGroupConsumer Discretionary Distribution & Retail
GICS IndustrySpecialty Retail
Earnings (Last)
Earnings (Next)
Inst Owners120.1%
Inst Owner Change-0.91%
Ins Owners0.89%
Ins Owner Change0.49%
Market Cap1.44B
Revenue(TTM)3.69B
Net Income(TTM)194.00M
Analysts71.11
Price Target15.43 (6.12%)
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)12.45%
PT rev (3m)26.04%
EPS NQ rev (1m)-0.52%
EPS NQ rev (3m)9.45%
EPS NY rev (1m)0%
EPS NY rev (3m)5.15%
Revenue NQ rev (1m)0.03%
Revenue NQ rev (3m)0.8%
Revenue NY rev (1m)0%
Revenue NY rev (3m)0.13%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 7.82 | ||
| Fwd PE | 7.16 | ||
| P/S | 0.39 | ||
| P/FCF | 8.56 | ||
| P/OCF | 5.44 | ||
| P/B | 1.89 | ||
| P/tB | 8.68 | ||
| EV/EBITDA | 5.02 |
EPS(TTM)1.86
EY12.79%
EPS(NY)2.03
Fwd EY13.96%
FCF(TTM)1.7
FCFY11.68%
OCF(TTM)2.67
OCFY18.39%
SpS37.29
BVpS7.71
TBVpS1.68
PEG (NY)0.85
PEG (5Y)N/A
Graham Number17.96
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)14.81%
EPS 3Y-10.79%
EPS 5Y-5.65%
EPS Q2Q%13.33%
EPS Next Y9.22%
EPS Next 2Y9.6%
EPS Next 3Y9.3%
EPS Next 5YN/A
Revenue 1Y (TTM)-0.38%
Revenue growth 3Y-1.38%
Revenue growth 5Y-0.84%
Sales Q2Q%-0.96%
Revenue Next Year-0.85%
Revenue Next 2Y0.23%
Revenue Next 3Y0.72%
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 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 6 / 10.
Can you provide the financial health for SBH stock?
The financial health rating of SALLY BEAUTY HOLDINGS INC (SBH) is 6 / 10.