SALLY BEAUTY HOLDINGS INC (SBH) Stock Fundamental Analysis
USA - NYSE:SBH - US79546E1047 - Common Stock
14.15 USD
+0.14 (+1%)
14.2 USD
+0.05 (+0.35%)
SBH gets a fundamental rating of 6 out of 10. The analysis compared the fundamentals against 122 industry peers in the Specialty Retail industry. While SBH has a great profitability rating, 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. 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.
In the past year SBH had a positive cash flow from operations.
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 has a better Return On Assets (6.82%) than 77.87% of its industry peers.
SBH's Return On Equity of 24.66% is amongst the best of the industry. SBH outperforms 82.79% of its industry peers.
SBH has a Return On Invested Capital of 10.77%. This is in the better half of the industry: SBH outperforms 76.23% 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 11.78%.
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
With a decent Profit Margin value of 5.29%, SBH is doing good in the industry, outperforming 77.05% of the companies in the same industry.
SBH's Profit Margin has improved in the last couple of years.
Looking at the Operating Margin, with a value of 8.98%, 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 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 80.33% 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.
SBH has less shares outstanding than it did 1 year ago.
The number of shares outstanding for SBH has been reduced compared to 5 years ago.
The debt/assets ratio for SBH has been reduced compared to a year ago.
2.2 Solvency
SBH has an Altman-Z score of 2.81. This is not the best score and indicates that SBH is in the grey zone with still only limited risk for bankruptcy at the moment.
The Altman-Z score of SBH (2.81) is better than 65.57% of its industry peers.
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 better Debt to FCF ratio (5.01) than 64.75% of its industry peers.
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 (1.09) which is in line with its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.09 | ||
| Debt/FCF | 5.01 | ||
| Altman-Z | 2.81 |
ROIC/WACC1.18
WACC9.13%
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.
Looking at the Current ratio, with a value of 2.26, SBH belongs to the top of the industry, outperforming 84.43% of the companies in the same industry.
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 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.
SBH shows quite a strong growth in Earnings Per Share. Measured over the last years, the EPS has been growing by 9.38% yearly.
The Revenue has decreased by -0.42% in the past 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 small growth in Earnings Per Share. The EPS will grow by 7.49% on average per year.
SBH is expected to show a small growth in Revenue. In the coming years, the Revenue will grow by 1.21% yearly.
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
When comparing the EPS growth rate of the last years to the growth rate of the upcoming years, we see that the growth is decreasing.
When comparing the Revenue growth rate of the last years to the growth rate of the upcoming years, we see that the growth is stable.
4. Valuation
4.1 Price/Earnings Ratio
SBH is valuated cheaply with a Price/Earnings ratio of 7.41.
Based on the Price/Earnings ratio, SBH is valued cheaply inside the industry as 92.62% of the companies are valued more expensively.
Compared to an average S&P500 Price/Earnings ratio of 25.07, SBH is valued rather cheaply.
With a Price/Forward Earnings ratio of 6.95, the valuation of SBH can be described as very cheap.
Based on the Price/Forward Earnings ratio, SBH is valued 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 (34.08), we can say SBH is valued rather cheaply.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 7.41 | ||
| Fwd PE | 6.95 |
4.2 Price Multiples
Based on the Enterprise Value to EBITDA ratio, SBH is valued cheaply inside the industry as 86.89% of the companies are valued more expensively.
90.16% 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 | 8.11 | ||
| EV/EBITDA | 4.87 |
4.3 Compensation for Growth
SBH's 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.
PEG (NY)1.13
PEG (5Y)0.79
EPS Next 2Y7.49%
EPS Next 3YN/A
5. Dividend
5.1 Amount
No dividends for SBH!.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | N/A |
14.15
+0.14 (+1%)
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 Cap1.40B
Revenue(TTM)3.70B
Net Income(TTM)195.88M
Analysts71.11
Price Target16.58 (17.17%)
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 | 7.41 | ||
| Fwd PE | 6.95 | ||
| P/S | 0.38 | ||
| P/FCF | 8.11 | ||
| P/OCF | 5.09 | ||
| P/B | 1.76 | ||
| P/tB | 6.98 | ||
| EV/EBITDA | 4.87 |
EPS(TTM)1.91
EY13.5%
EPS(NY)2.04
Fwd EY14.38%
FCF(TTM)1.75
FCFY12.33%
OCF(TTM)2.78
OCFY19.63%
SpS37.41
BVpS8.03
TBVpS2.03
PEG (NY)1.13
PEG (5Y)0.79
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 | 2.81 |
F-Score8
WACC9.13%
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.