SALLY BEAUTY HOLDINGS INC (SBH) Stock Fundamental Analysis
USA - NYSE:SBH - US79546E1047 - Common Stock
15.3 USD
+0.24 (+1.59%)
15.3 USD
0 (0%)
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 has a great profitability rating, 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 could make SBH a good candidate 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.
Each year in the past 5 years SBH had a positive operating cash flow.
1.2 Ratios
With a decent Return On Assets value of 7.07%, SBH is doing good in the industry, outperforming 79.34% of the companies in the same industry.
SBH's Return On Equity of 25.43% is amongst the best of the industry. SBH outperforms 82.64% of its industry peers.
SBH has a Return On Invested Capital of 11.08%. This is in the better half of the industry: SBH outperforms 76.03% of its industry peers.
The Average Return On Invested Capital over the past 3 years for SBH is in line with the industry average of 12.16%.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 7.07% | ||
| ROE | 25.43% | ||
| ROIC | 11.08% |
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's Profit Margin of 5.26% is fine compared to the rest of the industry. SBH outperforms 76.86% of its industry peers.
SBH's Profit Margin has declined in the last couple of years.
SBH has a better Operating Margin (9.03%) than 80.99% of its industry peers.
In the last couple of years the Operating Margin of SBH has declined.
SBH has a Gross Margin of 51.39%. This is amongst the best in the industry. SBH outperforms 80.17% 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 | 9.03% | ||
| 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
The debt/assets ratio for SBH has been reduced compared to a year ago.
2.2 Solvency
An Altman-Z score of 2.97 indicates that SBH is not a great score, but indicates only limited risk for bankruptcy at the moment.
Looking at the Altman-Z score, with a value of 2.97, SBH is in the better half of the industry, outperforming 65.29% 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.
Looking at the Debt to FCF ratio, with a value of 5.28, SBH is in the better half of the industry, outperforming 63.64% 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 is not doing good in the industry: 61.16% of the companies in the same industry are doing better.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.16 | ||
| Debt/FCF | 5.28 | ||
| Altman-Z | 2.97 |
ROIC/WACC1.12
WACC9.9%
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.
With an excellent Current ratio value of 2.41, SBH belongs to the best of the industry, outperforming 87.60% 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.
SBH has a Quick ratio (0.49) which is in line with its industry peers.
| 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.
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.
SBH shows a decrease in Revenue. Measured over the last years, the Revenue has been decreasing by -0.84% yearly.
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
The Earnings Per Share is expected to grow by 8.70% on average over the next years. This is quite good.
SBH is expected to show a small growth in Revenue. In the coming years, the Revenue will grow by 0.71% yearly.
EPS Next Y9.22%
EPS Next 2Y8.97%
EPS Next 3Y8.7%
EPS Next 5YN/A
Revenue Next Year-0.88%
Revenue Next 2Y0.21%
Revenue Next 3Y0.71%
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.
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
The Price/Earnings ratio is 8.23, which indicates a very decent 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 93.39% of the companies listed in the same industry.
SBH's Price/Earnings ratio indicates a rather cheap valuation when compared to the S&P500 average which is at 27.20.
SBH is valuated cheaply with a Price/Forward Earnings ratio of 7.62.
Based on the Price/Forward Earnings ratio, SBH is valued cheaper than 91.74% of the companies in the same industry.
SBH is valuated cheaply when we compare the Price/Forward Earnings ratio to 22.70, which is the current average of the S&P500 Index.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 8.23 | ||
| Fwd PE | 7.62 |
4.2 Price Multiples
Based on the Enterprise Value to EBITDA ratio, SBH is valued cheaper than 89.26% of the companies in the same industry.
89.26% 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 | 9.01 | ||
| EV/EBITDA | 5.26 |
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.
The decent profitability rating of SBH may justify a higher PE ratio.
PEG (NY)0.89
PEG (5Y)N/A
EPS Next 2Y8.97%
EPS Next 3Y8.7%
5. Dividend
5.1 Amount
No dividends for SBH!.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | N/A |
15.3
+0.24 (+1.59%)
Chartmill FA Rating
GICS SectorConsumer Discretionary
GICS IndustryGroupConsumer Discretionary Distribution & Retail
GICS IndustrySpecialty Retail
Earnings (Last)
Earnings (Next)
Inst Owners121.87%
Inst Owner Change-5.67%
Ins Owners0.86%
Ins Owner Change0.49%
Market Cap1.51B
Analysts71.11
Price Target13.72 (-10.33%)
Short Float %19.11%
Short Ratio8.94
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)12.08%
PT rev (3m)12.08%
EPS NQ rev (1m)1.36%
EPS NQ rev (3m)2.29%
EPS NY rev (1m)5.15%
EPS NY rev (3m)5.64%
Revenue NQ rev (1m)0.38%
Revenue NQ rev (3m)0.89%
Revenue NY rev (1m)0.11%
Revenue NY rev (3m)0.13%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 8.23 | ||
| Fwd PE | 7.62 | ||
| P/S | 0.41 | ||
| P/FCF | 9.01 | ||
| P/OCF | 5.72 | ||
| P/B | 1.98 | ||
| P/tB | 9.13 | ||
| EV/EBITDA | 5.26 |
EPS(TTM)1.86
EY12.16%
EPS(NY)2.01
Fwd EY13.12%
FCF(TTM)1.7
FCFY11.1%
OCF(TTM)2.67
OCFY17.48%
SpS37.29
BVpS7.71
TBVpS1.68
PEG (NY)0.89
PEG (5Y)N/A
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 7.07% | ||
| ROE | 25.43% | ||
| ROCE | 15.01% | ||
| ROIC | 11.08% | ||
| ROICexc | 11.67% | ||
| ROICexgc | 16.28% | ||
| OM | 9.03% | ||
| 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%
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-Score8
Asset Turnover1.34
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.16 | ||
| Debt/FCF | 5.28 | ||
| Debt/EBITDA | 2.03 | ||
| Cap/Depr | 94.92% | ||
| Cap/Sales | 2.62% | ||
| Interest Coverage | 4.83 | ||
| Cash Conversion | 60.82% | ||
| Profit Quality | 86.6% | ||
| Current Ratio | 2.41 | ||
| Quick Ratio | 0.49 | ||
| Altman-Z | 2.97 |
F-Score8
WACC9.9%
ROIC/WACC1.12
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 2Y8.97%
EPS Next 3Y8.7%
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-0.88%
Revenue Next 2Y0.21%
Revenue Next 3Y0.71%
Revenue Next 5YN/A
EBIT growth 1Y20.4%
EBIT growth 3Y-12.57%
EBIT growth 5Y-9.19%
EBIT Next Year36.4%
EBIT Next 3Y12.8%
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%