SALLY BEAUTY HOLDINGS INC (SBH) Stock Fundamental Analysis
USA - NYSE:SBH - US79546E1047 - Common Stock
14.685 USD
+0.12 (+0.79%)
Taking everything into account, SBH scores 6 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, 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.
In the past year SBH had a positive cash flow from operations.
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.
1.2 Ratios
SBH's Return On Assets of 7.07% is fine compared to the rest of the industry. SBH outperforms 78.69% of its industry peers.
With an excellent Return On Equity value of 25.43%, 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 11.02%. This is in the better half of the industry: SBH outperforms 76.23% 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 11.80%.
| 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 77.05% of its industry peers.
SBH's Profit Margin has declined in the last couple of years.
SBH has a better Operating Margin (8.99%) than 79.51% of its industry peers.
SBH's Operating Margin has declined in the last couple of years.
SBH has a better Gross Margin (51.39%) than 79.51% 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 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
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 2.94 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 2.94, SBH is doing good in the industry, outperforming 65.57% of the companies in the same industry.
The Debt to FCF ratio of SBH is 5.28, which is a neutral value as it means it would take SBH, 5.28 years of fcf income to pay off all of its debts.
With a decent Debt to FCF ratio value of 5.28, SBH is doing good in the industry, outperforming 64.75% of the companies in the same industry.
A Debt/Equity ratio of 1.16 is on the high side and indicates that SBH has dependencies on debt financing.
With a Debt to Equity ratio value of 1.16, SBH perfoms like the industry average, outperforming 40.98% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.16 | ||
| Debt/FCF | 5.28 | ||
| Altman-Z | 2.94 |
ROIC/WACC1.15
WACC9.59%
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.
The Current ratio of SBH (2.41) is better than 86.07% of its industry peers.
SBH has a Quick Ratio of 2.41. This is a bad value and indicates that SBH is not financially healthy enough and could expect problems in meeting its short term obligations.
The Quick ratio of SBH (0.49) is comparable to the rest of the industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 2.41 | ||
| Quick Ratio | 0.49 |
3. Growth
3.1 Past
SBH shows a strong growth in Earnings Per Share. In the last year, the EPS has been growing by 14.81%, which is quite good.
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.
The Revenue has decreased by -0.38% in the past year.
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.
SBH is expected to show a small growth in Revenue. In the coming years, the Revenue will grow by 0.52% yearly.
EPS Next Y9.07%
EPS Next 2Y9.74%
EPS Next 3Y9.3%
EPS Next 5YN/A
Revenue Next Year-0.85%
Revenue Next 2Y0.12%
Revenue Next 3Y0.52%
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
A Price/Earnings ratio of 7.90 indicates a rather cheap valuation of SBH.
Based on the Price/Earnings ratio, SBH is valued cheaper than 90.98% of the companies in the same industry.
SBH is valuated cheaply when we compare the Price/Earnings ratio to 26.35, which is the current average of the S&P500 Index.
SBH is valuated cheaply with a Price/Forward Earnings ratio of 7.22.
SBH's Price/Forward Earnings ratio is rather cheap when compared to the industry. SBH is cheaper than 92.62% of the companies in the same industry.
The average S&P500 Price/Forward Earnings ratio is at 33.72. SBH is valued rather cheaply when compared to this.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 7.9 | ||
| Fwd PE | 7.22 |
4.2 Price Multiples
Based on the Enterprise Value to EBITDA ratio, SBH is valued cheaper than 88.52% of the companies in the same industry.
90.16% of the companies in the same industry are more expensive than SBH, based on the Price/Free Cash Flow ratio.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 8.65 | ||
| EV/EBITDA | 5.11 |
4.3 Compensation for Growth
SBH's low PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates a rather cheap valuation of the company.
The decent profitability rating of SBH may justify a higher PE ratio.
PEG (NY)0.87
PEG (5Y)N/A
EPS Next 2Y9.74%
EPS Next 3Y9.3%
5. Dividend
5.1 Amount
SBH does not give a dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | N/A |
NYSE:SBH (11/12/2025, 2:55:41 PM)
14.685
+0.12 (+0.79%)
Chartmill FA Rating
GICS SectorConsumer Discretionary
GICS IndustryGroupConsumer Discretionary Distribution & Retail
GICS IndustrySpecialty Retail
Earnings (Last)
Earnings (Next)
Inst Owners120.1%
Inst Owner Change-2.33%
Ins Owners0.89%
Ins Owner Change0.49%
Market Cap1.45B
Revenue(TTM)3.69B
Net Income(TTM)194.00M
Analysts71.11
Price Target15.43 (5.07%)
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)-0.52%
EPS NQ rev (3m)9.45%
EPS NY rev (1m)-0.14%
EPS NY rev (3m)5.01%
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 | 7.9 | ||
| Fwd PE | 7.22 | ||
| P/S | 0.39 | ||
| P/FCF | 8.65 | ||
| P/OCF | 5.49 | ||
| P/B | 1.9 | ||
| P/tB | 8.77 | ||
| EV/EBITDA | 5.11 |
EPS(TTM)1.86
EY12.67%
EPS(NY)2.04
Fwd EY13.86%
FCF(TTM)1.7
FCFY11.56%
OCF(TTM)2.67
OCFY18.21%
SpS37.29
BVpS7.71
TBVpS1.68
PEG (NY)0.87
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 | 2.94 |
F-Score8
WACC9.59%
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 Y9.07%
EPS Next 2Y9.74%
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 2Y0.12%
Revenue Next 3Y0.52%
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.