SALLY BEAUTY HOLDINGS INC (SBH) Stock Fundamental Analysis
USA - NYSE:SBH - US79546E1047 - Common Stock
14.23 USD
+0.05 (+0.35%)
14.23 USD
0 (0%)
Taking everything into account, SBH scores 5 out of 10 in our fundamental rating. SBH was compared to 122 industry peers in the Specialty Retail industry. SBH has only an average score on both its financial health and profitability. 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
SBH had positive earnings in the past year.
SBH had a positive operating cash flow in the past year.
Of the past 5 years SBH 4 years were profitable.
Of the past 5 years SBH 4 years had a positive operating cash flow.
1.2 Ratios
SBH has a Return On Assets of 7.07%. This is in the better half of the industry: SBH outperforms 78.69% of its industry peers.
SBH has a Return On Equity of 25.43%. This is amongst the best in the industry. SBH outperforms 82.79% of its industry peers.
SBH's Return On Invested Capital of 11.02% is fine compared to the rest of the industry. SBH outperforms 76.23% of its industry peers.
The Average Return On Invested Capital over the past 3 years for SBH is in line with the industry average of 11.81%.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 7.07% | ||
| ROE | 25.43% | ||
| ROIC | 11.02% |
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
With a decent Profit Margin value of 5.26%, SBH is doing good in the industry, outperforming 77.05% of the companies in the same industry.
In the last couple of years the Profit Margin of SBH has declined.
SBH has a Operating Margin of 8.99%. This is in the better half of the industry: SBH outperforms 79.51% of its industry peers.
SBH's Operating Margin has declined in the last couple of years.
SBH has a better Gross Margin (51.39%) than 79.51% of its industry peers.
SBH's Gross Margin has been stable in the last couple of years.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 8.99% | ||
| PM (TTM) | 5.26% | ||
| GM | 51.39% |
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
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 no outstanding debt. Therefor its Debt/Equity and Debt/FCF ratios are 0 and belong to the best of the industry.
2.2 Solvency
An Altman-Z score of 2.93 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 2.93, SBH is in the better half of the industry, outperforming 66.39% of the companies in the same industry.
SBH has a debt to FCF ratio of 5.28. This is a neutral value as SBH would need 5.28 years to pay back of all of its debts.
The Debt to FCF ratio of SBH (5.28) is better than 64.75% of its industry peers.
A Debt/Equity ratio of 1.16 is on the high side and indicates that SBH has dependencies on debt financing.
SBH has a Debt to Equity ratio (1.16) which is in line with its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.16 | ||
| Debt/FCF | 5.28 | ||
| Altman-Z | 2.93 |
ROIC/WACC1.15
WACC9.58%
2.3 Liquidity
A Current Ratio of 2.41 indicates that SBH has no problem at all paying its short term obligations.
Looking at the Current ratio, with a value of 2.41, SBH belongs to the top of the industry, outperforming 86.07% of the companies in the same industry.
A Quick Ratio of 0.49 indicates that SBH may have some problems paying its short term obligations.
SBH has a Quick ratio (0.49) which is in line with its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 2.41 | ||
| Quick Ratio | 0.49 |
3. Growth
3.1 Past
The Earnings Per Share has grown by an nice 13.02% over the past year.
The Earnings Per Share has been growing by 9.38% on average over the past years. This is quite good.
EPS 1Y (TTM)13.02%
EPS 3Y-3.87%
EPS 5Y9.38%
EPS Q2Q%10%
Revenue 1Y (TTM)N/A
Revenue growth 3YN/A
Revenue growth 5YN/A
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
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.
4. Valuation
4.1 Price/Earnings Ratio
With a Price/Earnings ratio of 7.45, the valuation of SBH can be described as very cheap.
Based on the Price/Earnings ratio, SBH is valued cheaper than 93.44% of the companies in the same industry.
When comparing the Price/Earnings ratio of SBH to the average of the S&P500 Index (25.89), we can say SBH is valued rather cheaply.
SBH is valuated cheaply with a Price/Forward Earnings ratio of 6.99.
Based on the Price/Forward Earnings ratio, SBH is valued cheaper than 92.62% of the companies in the same industry.
Compared to an average S&P500 Price/Forward Earnings ratio of 34.59, SBH is valued rather cheaply.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 7.45 | ||
| Fwd PE | 6.99 |
4.2 Price Multiples
Based on the Enterprise Value to EBITDA ratio, SBH is valued cheaply inside the industry as 88.52% of the companies are valued more expensively.
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 | 8.38 | ||
| EV/EBITDA | 5.02 |
4.3 Compensation for Growth
The PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates a correct valuation of the company.
The decent profitability rating of SBH may justify a higher PE ratio.
PEG (NY)1.14
PEG (5Y)0.79
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 |
14.23
+0.05 (+0.35%)
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 Cap1.41B
Revenue(TTM)N/A
Net Income(TTM)194.00M
Analysts71.11
Price Target16.58 (16.51%)
Short Float %19.51%
Short Ratio8.44
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)12.63%
Min EPS beat(2)6.17%
Max EPS beat(2)19.09%
EPS beat(4)3
Avg EPS beat(4)7.09%
Min EPS beat(4)-1.32%
Max EPS beat(4)19.09%
EPS beat(8)5
Avg EPS beat(8)3.09%
EPS beat(12)8
Avg EPS beat(12)3.36%
EPS beat(16)10
Avg EPS beat(16)3.2%
Revenue beat(2)0
Avg Revenue beat(2)-1.75%
Min Revenue beat(2)-3%
Max Revenue beat(2)-0.51%
Revenue beat(4)0
Avg Revenue beat(4)-1.55%
Min Revenue beat(4)-3%
Max Revenue beat(4)-0.51%
Revenue beat(8)1
Avg Revenue beat(8)-1.26%
Revenue beat(12)4
Avg Revenue beat(12)-0.55%
Revenue beat(16)6
Avg Revenue beat(16)-0.84%
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 | 7.45 | ||
| Fwd PE | 6.99 | ||
| P/S | 0.38 | ||
| P/FCF | 8.38 | ||
| P/OCF | 5.32 | ||
| P/B | 1.85 | ||
| P/tB | 8.49 | ||
| EV/EBITDA | 5.02 |
EPS(TTM)1.91
EY13.42%
EPS(NY)2.04
Fwd EY14.3%
FCF(TTM)1.7
FCFY11.93%
OCF(TTM)2.67
OCFY18.8%
SpS37.29
BVpS7.71
TBVpS1.68
PEG (NY)1.14
PEG (5Y)0.79
Graham Number18.2
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 7.07% | ||
| ROE | 25.43% | ||
| ROCE | 14.93% | ||
| ROIC | 11.02% | ||
| ROICexc | 11.61% | ||
| ROICexgc | 16.2% | ||
| OM | 8.99% | ||
| PM (TTM) | 5.26% | ||
| GM | 51.39% | ||
| FCFM | 4.55% |
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%
ROICexgc growth 3Y-19.08%
ROICexgc 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-Score8
Asset Turnover1.34
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.16 | ||
| Debt/FCF | 5.28 | ||
| Debt/EBITDA | 2.04 | ||
| Cap/Depr | 94.92% | ||
| Cap/Sales | 2.62% | ||
| Interest Coverage | 4.81 | ||
| Cash Conversion | 61.07% | ||
| Profit Quality | 86.6% | ||
| Current Ratio | 2.41 | ||
| Quick Ratio | 0.49 | ||
| Altman-Z | 2.93 |
F-Score8
WACC9.58%
ROIC/WACC1.15
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)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)N/A
Revenue growth 3YN/A
Revenue growth 5YN/A
Sales Q2Q%1.29%
Revenue Next Year1.1%
Revenue Next 2Y1.21%
Revenue Next 3YN/A
Revenue Next 5YN/A
EBIT growth 1Y19.75%
EBIT growth 3Y-12.57%
EBIT growth 5Y-9.19%
EBIT Next Year40.08%
EBIT Next 3Y14.46%
EBIT Next 5YN/A
FCF growth 1Y16.5%
FCF growth 3Y-22.14%
FCF growth 5Y-7.32%
OCF growth 1Y10.21%
OCF growth 3Y-13.58%
OCF growth 5Y-5.11%
SALLY BEAUTY HOLDINGS INC / SBH FAQ
What is the fundamental rating for SBH stock?
ChartMill assigns a fundamental rating of 5 / 10 to SBH.
Can you provide the valuation status for SALLY BEAUTY HOLDINGS INC?
ChartMill assigns a valuation rating of 8 / 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 6 / 10.
Can you provide the financial health for SBH stock?
The financial health rating of SALLY BEAUTY HOLDINGS INC (SBH) is 5 / 10.