SALLY BEAUTY HOLDINGS INC (SBH) Stock Fundamental Analysis
USA - New York Stock Exchange - NYSE:SBH - US79546E1047 - Common Stock
16.24 USD
+0.38 (+2.4%)
16.24 USD
0 (0%)
Overall SBH gets a fundamental rating of 6 out of 10. We evaluated SBH against 122 industry peers in the Specialty Retail industry. SBH has an excellent profitability rating, but there are some minor concerns on its financial health. SBH is valued quite cheap, while showing a decent growth score. This is a good combination! 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.
SBH had positive earnings in each of the past 5 years.
SBH had a positive operating cash flow in each of the past 5 years.
1.2 Ratios
SBH has a Return On Assets of 6.82%. This is in the better half of the industry: SBH outperforms 78.69% of its industry peers.
Looking at the Return On Equity, with a value of 24.66%, SBH belongs to the top of the industry, outperforming 85.25% of the companies in the same industry.
SBH has a better Return On Invested Capital (10.77%) than 77.87% of its industry peers.
Measured over the past 3 years, the Average Return On Invested Capital for SBH 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
The Profit Margin of SBH (5.29%) is better than 77.05% of its industry peers.
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.
SBH's Gross Margin of 51.62% is amongst the best of the industry. SBH outperforms 81.15% of its industry peers.
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.
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.
Compared to 1 year ago, SBH has an improved debt to assets ratio.
2.2 Solvency
An Altman-Z score of 2.86 indicates that SBH is not a great score, but indicates only limited risk for bankruptcy at the moment.
With a decent Altman-Z score value of 2.86, SBH is doing good in the industry, outperforming 68.85% of the companies in the same industry.
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.
SBH's Debt to FCF ratio of 5.01 is fine compared to the rest of the industry. SBH outperforms 67.21% 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.
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 | 2.86 |
ROIC/WACC1.17
WACC9.18%
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.
The Current ratio of SBH (2.26) is better 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's Quick ratio of 0.54 is in line compared to the rest of the industry. SBH outperforms 54.92% of its industry peers.
| 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.
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
The Earnings Per Share is expected to grow by 12.46% on average over the next years. This is quite good.
SBH is expected to show a small growth in Revenue. In the coming years, the Revenue will grow by 1.77% yearly.
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.
The Revenue growth rate is accelerating: in the next years the growth will be better than in the last years.
4. Valuation
4.1 Price/Earnings Ratio
The Price/Earnings ratio is 8.50, which indicates a very decent valuation of SBH.
SBH's Price/Earnings ratio is rather cheap when compared to the industry. SBH is cheaper than 90.16% of the companies in the same industry.
SBH is valuated cheaply when we compare the Price/Earnings ratio to 26.11, which is the current average of the S&P500 Index.
Based on the Price/Forward Earnings ratio of 7.98, the valuation of SBH can be described as very cheap.
SBH's Price/Forward Earnings ratio is rather cheap when compared to the industry. SBH is cheaper than 92.62% of the companies in the same industry.
SBH is valuated cheaply when we compare the Price/Forward Earnings ratio to 36.21, which is the current average of the S&P500 Index.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 8.5 | ||
| Fwd PE | 7.98 |
4.2 Price Multiples
SBH's Enterprise Value to EBITDA ratio is rather cheap when compared to the industry. SBH is cheaper than 86.89% of the companies in the same industry.
SBH's Price/Free Cash Flow ratio is rather cheap when compared to the industry. SBH is cheaper than 90.98% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 9.17 | ||
| EV/EBITDA | 5.24 |
4.3 Compensation for Growth
SBH's 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.
SBH's earnings are expected to grow with 12.46% in the coming years. This may justify a more expensive valuation.
PEG (NY)1.3
PEG (5Y)0.91
EPS Next 2Y7.49%
EPS Next 3Y12.46%
5. Dividend
5.1 Amount
SBH does not give a dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | N/A |
16.24
+0.38 (+2.4%)
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 Cap1.58B
Revenue(TTM)3.70B
Net Income(TTM)195.88M
Analysts71.11
Price Target16.58 (2.09%)
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)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 | 8.5 | ||
| Fwd PE | 7.98 | ||
| P/S | 0.43 | ||
| P/FCF | 9.17 | ||
| P/OCF | 5.76 | ||
| P/B | 1.99 | ||
| P/tB | 7.9 | ||
| EV/EBITDA | 5.24 |
EPS(TTM)1.91
EY11.76%
EPS(NY)2.04
Fwd EY12.53%
FCF(TTM)1.77
FCFY10.91%
OCF(TTM)2.82
OCFY17.36%
SpS37.96
BVpS8.15
TBVpS2.06
PEG (NY)1.3
PEG (5Y)0.91
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 | 2.86 |
F-Score8
WACC9.18%
ROIC/WACC1.17
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.