SALLY BEAUTY HOLDINGS INC (SBH) Stock Fundamental Analysis
USA - New York Stock Exchange - NYSE:SBH - US79546E1047 - Common Stock
15.63 USD
+0.09 (+0.58%)
15.63 USD
0 (0%)
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. While SBH belongs to the best of the industry regarding profitability, there are some minor concerns on its financial health. SBH scores decently on growth, while it is valued quite cheap. This could make an interesting combination. This makes SBH very considerable 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.
In the past 5 years SBH has always been profitable.
Each year in the past 5 years SBH had a positive operating cash flow.
1.2 Ratios
SBH's Return On Assets of 6.82% is fine compared to the rest of the industry. SBH outperforms 78.69% of its industry peers.
SBH has a Return On Equity of 24.66%. This is amongst the best in the industry. SBH outperforms 85.25% of its industry peers.
SBH's Return On Invested Capital of 10.77% is fine compared to the rest of the industry. SBH outperforms 77.87% of its industry peers.
SBH had an Average Return On Invested Capital over the past 3 years of 10.66%. This is in line with the industry average of 11.71%.
The last Return On Invested Capital (10.77%) for SBH is above the 3 year average (10.66%), which is a sign of increasing profitability.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 6.82% | ||
| ROE | 24.66% | ||
| ROIC | 10.77% |
ROA(3y)6.36%
ROA(5y)6.93%
ROE(3y)28.45%
ROE(5y)46.67%
ROIC(3y)10.66%
ROIC(5y)12.12%
1.3 Margins
Looking at the Profit Margin, with a value of 5.29%, SBH is in the better half of the industry, outperforming 77.05% of the companies in the same industry.
In the last couple of years the Profit Margin of SBH has grown nicely.
SBH's Operating Margin of 8.98% is fine compared to the rest of the industry. SBH outperforms 79.51% of its industry peers.
In the last couple of years the Operating Margin of SBH has grown nicely.
Looking at the Gross Margin, with a value of 51.62%, SBH belongs to the top of the industry, outperforming 81.15% 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 | 8.98% | ||
| PM (TTM) | 5.29% | ||
| GM | 51.62% |
OM growth 3Y-2.11%
OM growth 5Y2.81%
PM growth 3Y3.22%
PM growth 5Y10.44%
GM growth 3Y0.87%
GM growth 5Y1.12%
2. Health
2.1 Basic Checks
The Return on Invested Capital (ROIC) is just above the Cost of Capital (WACC), so SBH is still creating some value.
Compared to 1 year ago, SBH has less shares outstanding
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 2.85 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 2.85, SBH is in the better half of the industry, outperforming 68.03% of the companies in the same industry.
The Debt to FCF ratio of SBH is 5.01, which is a neutral value as it means it would take SBH, 5.01 years of fcf income to pay off all of its debts.
SBH has a Debt to FCF ratio of 5.01. This is in the better half of the industry: SBH outperforms 67.21% of its industry peers.
A Debt/Equity ratio of 1.09 is on the high side and indicates that SBH has dependencies on debt financing.
SBH has a Debt to Equity ratio (1.09) which is in line with its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.09 | ||
| Debt/FCF | 5.01 | ||
| Altman-Z | 2.85 |
ROIC/WACC1.16
WACC9.25%
2.3 Liquidity
A Current Ratio of 2.26 indicates that SBH has no problem at all paying its short term obligations.
SBH has a better Current ratio (2.26) than 84.43% of its industry peers.
A Quick Ratio of 0.54 indicates that SBH may have some problems paying its short term obligations.
The Quick ratio of SBH (0.54) is comparable to the rest of the industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 2.26 | ||
| Quick Ratio | 0.54 |
3. Growth
3.1 Past
SBH shows a strong growth in Earnings Per Share. In the last year, the EPS has been growing by 13.02%, which is quite good.
The Earnings Per Share has been growing by 9.38% on average over the past years. This is quite good.
Looking at the last year, SBH shows a decrease in Revenue. The Revenue has decreased by -0.42% in the last year.
SBH shows a small growth in Revenue. Measured over the last years, the Revenue has been growing by 1.04% yearly.
EPS 1Y (TTM)13.02%
EPS 3Y-3.87%
EPS 5Y9.38%
EPS Q2Q%10%
Revenue 1Y (TTM)-0.42%
Revenue growth 3Y-1.01%
Revenue growth 5Y1.04%
Sales Q2Q%1.29%
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 12.46% on average per year.
The Revenue is expected to grow by 1.77% on average over the next years.
EPS Next Y6.55%
EPS Next 2Y7.49%
EPS Next 3Y12.46%
EPS Next 5YN/A
Revenue Next Year1.1%
Revenue Next 2Y1.21%
Revenue Next 3Y1.77%
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
A Price/Earnings ratio of 8.18 indicates a reasonable 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 93.44% of the companies listed in the same industry.
SBH is valuated cheaply when we compare the Price/Earnings ratio to 26.46, which is the current average of the S&P500 Index.
A Price/Forward Earnings ratio of 7.68 indicates a rather cheap valuation of SBH.
Based on the Price/Forward Earnings ratio, SBH is valued cheaper than 93.44% of the companies in the same industry.
SBH is valuated cheaply when we compare the Price/Forward Earnings ratio to 36.10, which is the current average of the S&P500 Index.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 8.18 | ||
| Fwd PE | 7.68 |
4.2 Price Multiples
Based on the Enterprise Value to EBITDA ratio, SBH is valued cheaply inside the industry as 85.25% of the companies are valued more expensively.
SBH's Price/Free Cash Flow ratio is rather cheap when compared to the industry. SBH is cheaper than 90.16% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 8.82 | ||
| EV/EBITDA | 5.16 |
4.3 Compensation for Growth
The PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates a correct valuation of the company.
SBH has an outstanding profitability rating, which may justify a higher PE ratio.
A more expensive valuation may be justified as SBH's earnings are expected to grow with 12.46% in the coming years.
PEG (NY)1.25
PEG (5Y)0.87
EPS Next 2Y7.49%
EPS Next 3Y12.46%
5. Dividend
5.1 Amount
No dividends for SBH!.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | N/A |
15.63
+0.09 (+0.58%)
Chartmill FA Rating
GICS SectorConsumer Discretionary
GICS IndustryGroupConsumer Discretionary Distribution & Retail
GICS IndustrySpecialty Retail
Earnings (Last)
Earnings (Next)
Inst Owners120.1%
Inst Owner Change0.04%
Ins Owners0.89%
Ins Owner Change13.08%
Market Cap1.52B
Revenue(TTM)3.70B
Net Income(TTM)195.88M
Analysts71.11
Price Target16.58 (6.08%)
Short Float %19.35%
Short Ratio9.03
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)16.99%
Min EPS beat(2)14.88%
Max EPS beat(2)19.09%
EPS beat(4)3
Avg EPS beat(4)9.71%
Min EPS beat(4)-1.32%
Max EPS beat(4)19.09%
EPS beat(8)6
Avg EPS beat(8)5.81%
EPS beat(12)8
Avg EPS beat(12)4.37%
EPS beat(16)10
Avg EPS beat(16)2.72%
Revenue beat(2)1
Avg Revenue beat(2)0%
Min Revenue beat(2)-0.51%
Max Revenue beat(2)0.52%
Revenue beat(4)1
Avg Revenue beat(4)-1.15%
Min Revenue beat(4)-3%
Max Revenue beat(4)0.52%
Revenue beat(8)2
Avg Revenue beat(8)-0.95%
Revenue beat(12)4
Avg Revenue beat(12)-0.56%
Revenue beat(16)6
Avg Revenue beat(16)-0.83%
PT rev (1m)12.46%
PT rev (3m)27.95%
EPS NQ rev (1m)-7.2%
EPS NQ rev (3m)-15.21%
EPS NY rev (1m)0.25%
EPS NY rev (3m)1.41%
Revenue NQ rev (1m)-0.56%
Revenue NQ rev (3m)-0.61%
Revenue NY rev (1m)-0.21%
Revenue NY rev (3m)-0.16%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 8.18 | ||
| Fwd PE | 7.68 | ||
| P/S | 0.41 | ||
| P/FCF | 8.82 | ||
| P/OCF | 5.54 | ||
| P/B | 1.92 | ||
| P/tB | 7.6 | ||
| EV/EBITDA | 5.16 |
EPS(TTM)1.91
EY12.22%
EPS(NY)2.04
Fwd EY13.02%
FCF(TTM)1.77
FCFY11.33%
OCF(TTM)2.82
OCFY18.03%
SpS37.96
BVpS8.15
TBVpS2.06
PEG (NY)1.25
PEG (5Y)0.87
Graham Number18.71
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 6.82% | ||
| ROE | 24.66% | ||
| ROCE | 14.48% | ||
| ROIC | 10.77% | ||
| ROICexc | 11.51% | ||
| ROICexgc | 15.92% | ||
| OM | 8.98% | ||
| PM (TTM) | 5.29% | ||
| GM | 51.62% | ||
| FCFM | 4.67% |
ROA(3y)6.36%
ROA(5y)6.93%
ROE(3y)28.45%
ROE(5y)46.67%
ROIC(3y)10.66%
ROIC(5y)12.12%
ROICexc(3y)11.31%
ROICexc(5y)13.27%
ROICexgc(3y)15.81%
ROICexgc(5y)19.1%
ROCE(3y)14.33%
ROCE(5y)16.3%
ROICexgc growth 3Y-9.56%
ROICexgc growth 5Y-1.02%
ROICexc growth 3Y-7.97%
ROICexc growth 5Y0.49%
OM growth 3Y-2.11%
OM growth 5Y2.81%
PM growth 3Y3.22%
PM growth 5Y10.44%
GM growth 3Y0.87%
GM growth 5Y1.12%
F-Score8
Asset Turnover1.29
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.09 | ||
| Debt/FCF | 5.01 | ||
| Debt/EBITDA | 1.99 | ||
| Cap/Depr | 102.23% | ||
| Cap/Sales | 2.76% | ||
| Interest Coverage | 5.18 | ||
| Cash Conversion | 63.58% | ||
| Profit Quality | 88.16% | ||
| Current Ratio | 2.26 | ||
| Quick Ratio | 0.54 | ||
| Altman-Z | 2.85 |
F-Score8
WACC9.25%
ROIC/WACC1.16
Cap/Depr(3y)94.33%
Cap/Depr(5y)90.94%
Cap/Sales(3y)2.64%
Cap/Sales(5y)2.48%
Profit Quality(3y)89.61%
Profit Quality(5y)85.67%
High Growth Momentum
Growth
EPS 1Y (TTM)13.02%
EPS 3Y-3.87%
EPS 5Y9.38%
EPS Q2Q%10%
EPS Next Y6.55%
EPS Next 2Y7.49%
EPS Next 3Y12.46%
EPS Next 5YN/A
Revenue 1Y (TTM)-0.42%
Revenue growth 3Y-1.01%
Revenue growth 5Y1.04%
Sales Q2Q%1.29%
Revenue Next Year1.1%
Revenue Next 2Y1.21%
Revenue Next 3Y1.77%
Revenue Next 5YN/A
EBIT growth 1Y17.57%
EBIT growth 3Y-3.1%
EBIT growth 5Y3.88%
EBIT Next Year40.26%
EBIT Next 3YN/A
EBIT Next 5YN/A
FCF growth 1Y18.8%
FCF growth 3Y44.53%
FCF growth 5Y-11.38%
OCF growth 1Y11.48%
OCF growth 3Y20.65%
OCF growth 5Y-8.43%
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 8 / 10.
Can you provide the financial health for SBH stock?
The financial health rating of SALLY BEAUTY HOLDINGS INC (SBH) is 6 / 10.