SALLY BEAUTY HOLDINGS INC (SBH) Stock Fundamental Analysis
USA - NYSE:SBH - US79546E1047 - Common Stock
14.93 USD
+0.78 (+5.51%)
14.93 USD
0 (0%)
We assign a fundamental rating of 6 out of 10 to SBH. 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. A decent growth rate in combination with a cheap valuation! Better keep an eye on SBH. With these ratings, SBH could be worth investigating further for value investing!.
1. Profitability
1.1 Basic Checks
SBH had positive earnings in the past year.
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.
With an excellent Return On Equity value of 24.66%, SBH belongs to the best of the industry, outperforming 82.79% of the companies in the same industry.
With a decent Return On Invested Capital value of 10.77%, SBH is doing good in the industry, outperforming 76.23% of the companies in the same industry.
Measured over the past 3 years, the Average Return On Invested Capital for SBH is in line with the industry average of 11.69%.
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
SBH's Profit Margin of 5.29% is fine compared to the rest of the industry. SBH outperforms 77.05% of its industry peers.
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.
The Gross Margin of SBH (51.62%) is better than 80.33% 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 | 8.98% | ||
| 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.
SBH has less shares outstanding than it did 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 2.82 indicates that SBH is not a great score, but indicates only limited risk for bankruptcy at the moment.
SBH has a Altman-Z score of 2.82. This is in the better half of the industry: SBH outperforms 66.39% of its industry peers.
SBH has a debt to FCF ratio of 5.01. This is a neutral value as SBH would need 5.01 years to pay back of 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 65.57% of the companies in the same industry.
SBH has a Debt/Equity ratio of 1.09. This is a high value indicating a heavy dependency on external financing.
SBH has a Debt to Equity ratio of 1.09. This is comparable to the rest of the industry: SBH outperforms 41.80% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.09 | ||
| Debt/FCF | 5.01 | ||
| Altman-Z | 2.82 |
ROIC/WACC1.18
WACC9.1%
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 has a better Current ratio (2.26) than 84.43% 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.
SBH has a Quick ratio (0.54) which is in line with its industry peers.
| 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.
Measured over the past years, SBH shows a small growth in Revenue. The Revenue has been growing by 1.04% on average per year.
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
The Earnings Per Share is expected to grow by 7.49% on average over the next years.
The Revenue is expected to grow by 1.21% on average over the next years.
EPS Next Y6.55%
EPS Next 2Y7.49%
EPS Next 3YN/A
EPS Next 5YN/A
Revenue Next Year1.1%
Revenue Next 2Y1.21%
Revenue Next 3YN/A
Revenue Next 5YN/A
3.3 Evolution
The EPS growth rate is decreasing: in the next years the growth will be less than in the last years.
The Revenue growth rate is stable: in the next years the growth will be about the same than in the last years.
4. Valuation
4.1 Price/Earnings Ratio
The Price/Earnings ratio is 7.82, which indicates a rather cheap valuation of SBH.
Based on the Price/Earnings ratio, SBH is valued cheaply inside the industry as 90.98% of the companies are valued more expensively.
SBH's Price/Earnings ratio indicates a rather cheap valuation when compared to the S&P500 average which is at 25.45.
The Price/Forward Earnings ratio is 7.34, which indicates a rather cheap valuation of SBH.
SBH's Price/Forward Earnings ratio is rather cheap when compared to the industry. SBH is cheaper than 91.80% of the companies in the same industry.
When comparing the Price/Forward Earnings ratio of SBH to the average of the S&P500 Index (34.46), we can say SBH is valued rather cheaply.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 7.82 | ||
| Fwd PE | 7.34 |
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 84.43% of the companies listed in the same industry.
Based on the Price/Free Cash Flow ratio, SBH is valued cheaply inside the industry as 90.16% of the companies are valued more expensively.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 8.55 | ||
| EV/EBITDA | 4.9 |
4.3 Compensation for Growth
The PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates a correct valuation of the company.
The excellent profitability rating of SBH may justify a higher PE ratio.
PEG (NY)1.19
PEG (5Y)0.83
EPS Next 2Y7.49%
EPS Next 3YN/A
5. Dividend
5.1 Amount
SBH does not give a dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | N/A |
14.93
+0.78 (+5.51%)
Chartmill FA Rating
GICS SectorConsumer Discretionary
GICS IndustryGroupConsumer Discretionary Distribution & Retail
GICS IndustrySpecialty Retail
Earnings (Last)
Earnings (Next)
Inst Owners120.1%
Inst Owner Change0.01%
Ins Owners0.89%
Ins Owner Change0.59%
Market Cap1.48B
Revenue(TTM)3.70B
Net Income(TTM)195.88M
Analysts71.11
Price Target16.58 (11.05%)
Short Float %20.16%
Short Ratio8.7
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)4.67%
PT rev (3m)26.04%
EPS NQ rev (1m)1.5%
EPS NQ rev (3m)7.95%
EPS NY rev (1m)-0.14%
EPS NY rev (3m)5.01%
Revenue NQ rev (1m)0.03%
Revenue NQ rev (3m)0.43%
Revenue NY rev (1m)0%
Revenue NY rev (3m)0.13%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 7.82 | ||
| Fwd PE | 7.34 | ||
| P/S | 0.4 | ||
| P/FCF | 8.55 | ||
| P/OCF | 5.37 | ||
| P/B | 1.86 | ||
| P/tB | 7.37 | ||
| EV/EBITDA | 4.9 |
EPS(TTM)1.91
EY12.79%
EPS(NY)2.04
Fwd EY13.63%
FCF(TTM)1.75
FCFY11.69%
OCF(TTM)2.78
OCFY18.61%
SpS37.41
BVpS8.03
TBVpS2.03
PEG (NY)1.19
PEG (5Y)0.83
Graham Number18.57
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 | 2.82 |
F-Score8
WACC9.1%
ROIC/WACC1.18
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 3YN/A
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 3YN/A
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.