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 120 industry peers in the Specialty Retail industry. SBH has an average financial health and profitability rating. SBH is valued quite cheap, but it does not seem to be growing. With these ratings, SBH could be worth investigating further 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.
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
The Return On Assets of SBH (6.49%) is better than 74.36% of its industry peers.
The Return On Equity of SBH (26.81%) is better than 82.05% of its industry peers.
SBH has a better Return On Invested Capital (10.71%) than 74.36% 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 12.30%.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 6.49% | ||
| ROE | 26.81% | ||
| ROIC | 10.71% |
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 has a better Profit Margin (4.73%) than 76.92% of its industry peers.
SBH's Profit Margin has declined in the last couple of years.
The Operating Margin of SBH (8.43%) is better than 81.20% 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 51.03%, SBH is in the better half of the industry, outperforming 78.63% 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 | 8.43% | ||
| PM (TTM) | 4.73% | ||
| GM | 51.03% |
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.
The number of shares outstanding for SBH has been reduced compared to 1 year ago.
The number of shares outstanding for SBH has been reduced compared to 5 years ago.
Compared to 1 year ago, SBH has an improved debt to assets ratio.
2.2 Solvency
An Altman-Z score of 2.75 indicates that SBH is not a great score, but indicates only limited risk for bankruptcy at the moment.
SBH's Altman-Z score of 2.75 is fine compared to the rest of the industry. SBH outperforms 61.54% of its industry peers.
The Debt to FCF ratio of SBH is 6.81, which is on the high side as it means it would take SBH, 6.81 years of fcf income to pay off all of its debts.
Looking at the Debt to FCF ratio, with a value of 6.81, SBH is in line with its industry, outperforming 57.27% of the companies in the same industry.
A Debt/Equity ratio of 1.43 is on the high side and indicates that SBH has dependencies on debt financing.
With a Debt to Equity ratio value of 1.43, SBH is not doing good in the industry: 65.81% of the companies in the same industry are doing better.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.43 | ||
| Debt/FCF | 6.81 | ||
| Altman-Z | 2.75 |
ROIC/WACC1.03
WACC10.42%
2.3 Liquidity
SBH has a Current Ratio of 2.27. This indicates that SBH is financially healthy and has no problem in meeting its short term obligations.
SBH's Current ratio of 2.27 is amongst the best of the industry. SBH outperforms 85.47% of its industry peers.
SBH has a Quick Ratio of 2.27. 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 0.44. This is comparable to the rest of the industry: SBH outperforms 42.73% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 2.27 | ||
| Quick Ratio | 0.44 |
3. Growth
3.1 Past
SBH shows a small growth in Earnings Per Share. In the last year, the EPS has grown by 0.58%.
SBH shows a decrease in Earnings Per Share. Measured over the last years, the EPS has been decreasing by -5.65% yearly.
The Revenue has been growing slightly by 0.57% in the past year.
The Revenue has been decreasing by -0.84% on average over the past years.
EPS 1Y (TTM)0.58%
EPS 3Y-10.79%
EPS 5Y-5.65%
EPS Q2Q%10.26%
Revenue 1Y (TTM)0.57%
Revenue growth 3Y-1.38%
Revenue growth 5Y-0.84%
Sales Q2Q%0.71%
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 6.95% on average per year.
The Revenue is expected to grow by 0.95% on average over the next years.
EPS Next Y7.9%
EPS Next 2Y8.47%
EPS Next 3Y6.95%
EPS Next 5YN/A
Revenue Next Year-0.03%
Revenue Next 2Y0.85%
Revenue Next 3Y0.95%
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.
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
A Price/Earnings ratio of 5.17 indicates a rather cheap valuation of SBH.
Based on the Price/Earnings ratio, SBH is valued cheaper than 98.29% of the companies in the same industry.
When comparing the Price/Earnings ratio of SBH to the average of the S&P500 Index (29.63), we can say SBH is valued rather cheaply.
SBH is valuated cheaply with a Price/Forward Earnings ratio of 4.50.
Based on the Price/Forward Earnings ratio, SBH is valued cheaply inside the industry as 98.29% of the companies are valued more expensively.
The average S&P500 Price/Forward Earnings ratio is at 22.68. SBH is valued rather cheaply when compared to this.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 5.17 | ||
| Fwd PE | 4.5 |
4.2 Price Multiples
Based on the Enterprise Value to EBITDA ratio, SBH is valued cheaply inside the industry as 93.16% of the companies are valued more expensively.
Compared to the rest of the industry, the Price/Free Cash Flow ratio of SBH indicates a rather cheap valuation: SBH is cheaper than 93.16% of the companies listed in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 6.63 | ||
| EV/EBITDA | 4.25 |
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)0.65
PEG (5Y)N/A
EPS Next 2Y8.47%
EPS Next 3Y6.95%
5. Dividend
5.1 Amount
No dividends for SBH!.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | N/A |
8.94
-0.38 (-4.08%)
Chartmill FA Rating
GICS SectorConsumer Discretionary
GICS IndustryGroupConsumer Discretionary Distribution & Retail
GICS IndustrySpecialty Retail
Earnings (Last)
Earnings (Next)
Inst Owners115.64%
Inst Owner Change1.73%
Ins Owners0.85%
Ins Owner Change15.15%
Market Cap916.08M
Analysts70.91
Price Target13.01 (45.53%)
Short Float %12.55%
Short Ratio5.79
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | N/A |
Yearly Dividend0
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)1.54%
Min EPS beat(2)-1.32%
Max EPS beat(2)4.4%
EPS beat(4)2
Avg EPS beat(4)0.32%
Min EPS beat(4)-12.45%
Max EPS beat(4)10.65%
EPS beat(8)4
Avg EPS beat(8)0.76%
EPS beat(12)6
Avg EPS beat(12)-0.06%
EPS beat(16)10
Avg EPS beat(16)19.83%
Revenue beat(2)0
Avg Revenue beat(2)-1.34%
Min Revenue beat(2)-1.61%
Max Revenue beat(2)-1.07%
Revenue beat(4)1
Avg Revenue beat(4)-0.95%
Min Revenue beat(4)-1.61%
Max Revenue beat(4)0.14%
Revenue beat(8)2
Avg Revenue beat(8)-0.84%
Revenue beat(12)5
Avg Revenue beat(12)-0.67%
Revenue beat(16)8
Avg Revenue beat(16)0.26%
PT rev (1m)-2.97%
PT rev (3m)26.49%
EPS NQ rev (1m)0.33%
EPS NQ rev (3m)-0.88%
EPS NY rev (1m)-0.41%
EPS NY rev (3m)5.21%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)0.32%
Revenue NY rev (1m)0.03%
Revenue NY rev (3m)0.08%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 5.17 | ||
| Fwd PE | 4.5 | ||
| P/S | 0.25 | ||
| P/FCF | 6.63 | ||
| P/OCF | 4 | ||
| P/B | 1.4 | ||
| P/tB | 13.61 | ||
| EV/EBITDA | 4.25 |
EPS(TTM)1.73
EY19.35%
EPS(NY)1.99
Fwd EY22.24%
FCF(TTM)1.35
FCFY15.09%
OCF(TTM)2.23
OCFY24.99%
SpS36.34
BVpS6.41
TBVpS0.66
PEG (NY)0.65
PEG (5Y)N/A
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 6.49% | ||
| ROE | 26.81% | ||
| ROCE | 14.52% | ||
| ROIC | 10.71% | ||
| ROICexc | 11.26% | ||
| ROICexgc | 15.79% | ||
| OM | 8.43% | ||
| PM (TTM) | 4.73% | ||
| GM | 51.03% | ||
| FCFM | 3.71% |
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 | 1.43 | ||
| Debt/FCF | 6.81 | ||
| Debt/EBITDA | 2.23 | ||
| Cap/Depr | 84.57% | ||
| Cap/Sales | 2.44% | ||
| Interest Coverage | 4.68 | ||
| Cash Conversion | 54.36% | ||
| Profit Quality | 78.55% | ||
| Current Ratio | 2.27 | ||
| Quick Ratio | 0.44 | ||
| Altman-Z | 2.75 |
F-Score9
WACC10.42%
ROIC/WACC1.03
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)0.58%
EPS 3Y-10.79%
EPS 5Y-5.65%
EPS Q2Q%10.26%
EPS Next Y7.9%
EPS Next 2Y8.47%
EPS Next 3Y6.95%
EPS Next 5YN/A
Revenue 1Y (TTM)0.57%
Revenue growth 3Y-1.38%
Revenue growth 5Y-0.84%
Sales Q2Q%0.71%
Revenue Next Year-0.03%
Revenue Next 2Y0.85%
Revenue Next 3Y0.95%
Revenue Next 5YN/A
EBIT growth 1Y0.9%
EBIT growth 3Y-12.57%
EBIT growth 5Y-9.19%
EBIT Next Year45.66%
EBIT Next 3Y14.67%
EBIT Next 5YN/A
FCF growth 1Y15.9%
FCF growth 3Y-22.14%
FCF growth 5Y-7.32%
OCF growth 1Y5.42%
OCF growth 3Y-13.58%
OCF growth 5Y-5.11%