SALLY BEAUTY HOLDINGS INC (SBH) Stock Fundamental Analysis
USA - New York Stock Exchange - NYSE:SBH - US79546E1047 - Common Stock
15.07 USD
+0.17 (+1.14%)
15.07 USD
0 (0%)
SBH gets a fundamental rating of 6 out of 10. The analysis compared the fundamentals against 122 industry peers in the Specialty Retail industry. SBH scores excellent on profitability, but there are some minor concerns on its financial health. SBH may be a bit undervalued, certainly considering the very reasonable score on growth 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.
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 6.82%, SBH is in the better half of the industry, outperforming 77.87% of the companies in the same industry.
SBH's Return On Equity of 24.66% is amongst the best of the industry. SBH outperforms 83.61% of its industry peers.
With a decent Return On Invested Capital value of 10.77%, SBH is doing good in the industry, outperforming 77.87% of the companies in the same industry.
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 12.16%.
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 76.23% of the companies in the same industry.
In the last couple of years the Profit Margin of SBH has grown nicely.
With a decent Operating Margin value of 8.98%, SBH is doing good in the industry, outperforming 79.51% of the companies in the same industry.
SBH's Operating Margin has improved in the last couple of years.
Looking at the Gross Margin, with a value of 51.62%, SBH is in the better half of the industry, outperforming 79.51% of the companies in the same industry.
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 | 8.98% | ||
| 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
SBH has a Return on Invested Capital (ROIC), which is just above the Cost of Capital (WACC), which means it is creating some value.
The number of shares outstanding for SBH has been reduced compared to 1 year ago.
SBH has less shares outstanding than it did 5 years ago.
SBH has a better debt/assets ratio than last year.
2.2 Solvency
An Altman-Z score of 2.84 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 2.84, SBH is in the better half of the industry, outperforming 65.57% 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.
Looking at the Debt to FCF ratio, with a value of 5.01, SBH is in the better half of the industry, outperforming 66.39% of the companies in the same industry.
A Debt/Equity ratio of 1.09 is on the high side and indicates that SBH has dependencies on debt financing.
The Debt to Equity ratio of SBH (1.09) is comparable to the rest of the industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.09 | ||
| Debt/FCF | 5.01 | ||
| Altman-Z | 2.84 |
ROIC/WACC1.14
WACC9.46%
2.3 Liquidity
SBH has a Current Ratio of 2.26. This indicates that SBH is financially healthy and has no problem in meeting its short term obligations.
SBH's Current ratio of 2.26 is amongst the best of the industry. SBH outperforms 83.61% of its industry peers.
SBH has a Quick Ratio of 2.26. This is a bad value and indicates that SBH is not financially healthy enough and could expect problems in meeting its short term obligations.
Looking at the Quick ratio, with a value of 0.54, SBH is in line with its industry, outperforming 53.28% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 2.26 | ||
| Quick Ratio | 0.54 |
3. Growth
3.1 Past
The Earnings Per Share has grown by an nice 13.02% over the past year.
Measured over the past years, SBH shows a quite strong growth in Earnings Per Share. The EPS has been growing by 9.38% on average per year.
Looking at the last year, SBH shows a decrease in Revenue. The Revenue has decreased by -0.42% in the last year.
The Revenue has been growing slightly by 1.04% on average over the past years.
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
SBH is expected to show quite a strong growth in Earnings Per Share. In the coming years, the EPS will grow by 12.46% yearly.
Based on estimates for the next years, SBH will show a small growth in Revenue. The Revenue will grow by 1.77% on average per year.
EPS Next Y8.93%
EPS Next 2Y8.59%
EPS Next 3Y12.46%
EPS Next 5YN/A
Revenue Next Year1.5%
Revenue Next 2Y1.56%
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
SBH is valuated cheaply with a Price/Earnings ratio of 7.89.
Compared to the rest of the industry, the Price/Earnings ratio of SBH indicates a rather cheap valuation: SBH is cheaper than 92.62% 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 26.22.
SBH is valuated cheaply with a Price/Forward Earnings ratio of 7.24.
Compared to the rest of the industry, the Price/Forward Earnings ratio of SBH indicates a rather cheap valuation: SBH is cheaper than 95.90% of the companies listed in the same industry.
SBH is valuated cheaply when we compare the Price/Forward Earnings ratio to 23.58, which is the current average of the S&P500 Index.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 7.89 | ||
| Fwd PE | 7.24 |
4.2 Price Multiples
Compared to the rest of the industry, the Enterprise Value to EBITDA ratio of SBH indicates a rather cheap valuation: SBH is cheaper than 86.89% of the companies listed in the same industry.
SBH's Price/Free Cash Flow ratio is rather cheap when compared to the industry. SBH is cheaper than 89.34% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 8.51 | ||
| EV/EBITDA | 5.06 |
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 an outstanding profitability rating, which may justify a higher PE ratio.
SBH's earnings are expected to grow with 12.46% in the coming years. This may justify a more expensive valuation.
PEG (NY)0.88
PEG (5Y)0.84
EPS Next 2Y8.59%
EPS Next 3Y12.46%
5. Dividend
5.1 Amount
No dividends for SBH!.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0% |
15.07
+0.17 (+1.14%)
Chartmill FA Rating
GICS SectorConsumer Discretionary
GICS IndustryGroupConsumer Discretionary Distribution & Retail
GICS IndustrySpecialty Retail
Earnings (Last)
Earnings (Next)
Inst Owners123.05%
Inst Owner Change0.04%
Ins Owners1.22%
Ins Owner Change12.47%
Market Cap1.47B
Revenue(TTM)3.70B
Net Income(TTM)195.88M
Analysts71.11
Price Target16.58 (10.02%)
Short Float %19.84%
Short Ratio9.7
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0% |
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)7.44%
PT rev (3m)20.82%
EPS NQ rev (1m)-7.2%
EPS NQ rev (3m)-15.21%
EPS NY rev (1m)2.23%
EPS NY rev (3m)3.67%
Revenue NQ rev (1m)-0.56%
Revenue NQ rev (3m)-0.61%
Revenue NY rev (1m)0.4%
Revenue NY rev (3m)0.21%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 7.89 | ||
| Fwd PE | 7.24 | ||
| P/S | 0.4 | ||
| P/FCF | 8.51 | ||
| P/OCF | 5.35 | ||
| P/B | 1.85 | ||
| P/tB | 7.33 | ||
| EV/EBITDA | 5.06 |
EPS(TTM)1.91
EY12.67%
EPS(NY)2.08
Fwd EY13.81%
FCF(TTM)1.77
FCFY11.75%
OCF(TTM)2.82
OCFY18.7%
SpS37.96
BVpS8.15
TBVpS2.06
PEG (NY)0.88
PEG (5Y)0.84
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 | 2.84 |
F-Score8
WACC9.46%
ROIC/WACC1.14
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 Y8.93%
EPS Next 2Y8.59%
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 Year1.5%
Revenue Next 2Y1.56%
Revenue Next 3Y1.77%
Revenue Next 5YN/A
EBIT growth 1Y17.57%
EBIT growth 3Y-3.1%
EBIT growth 5Y3.88%
EBIT Next Year40.86%
EBIT Next 3Y12.26%
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.