SALLY BEAUTY HOLDINGS INC (SBH) Stock Fundamental Analysis
USA - New York Stock Exchange - NYSE:SBH - US79546E1047 - Common Stock
15.61 USD
+0.68 (+4.55%)
15.5273 USD
-0.08 (-0.53%)
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. These ratings would make SBH suitable 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.
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
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 83.61% of the companies in the same industry.
SBH has a better Return On Invested Capital (10.77%) than 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 11.80%.
The 3 year average ROIC (10.66%) for SBH is below the current ROIC(10.77%), indicating increased profibility in the last year.
| 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 has a better Profit Margin (5.29%) than 77.05% of its industry peers.
In the last couple of years the Profit Margin of SBH has grown nicely.
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.
SBH has a Gross Margin of 51.62%. This is amongst the best in 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.
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
SBH has an Altman-Z score of 2.86. 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 (2.86) is better than 68.03% 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.
SBH has a Debt to FCF ratio of 5.01. This is in the better half of the industry: SBH outperforms 66.39% 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 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
WACC9.23%
2.3 Liquidity
A Current Ratio of 2.26 indicates that SBH has no problem at all paying its short term obligations.
SBH's Current ratio of 2.26 is amongst the best of the industry. SBH outperforms 84.43% of its industry peers.
A Quick Ratio of 0.54 indicates that SBH may have some problems paying 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.
The Earnings Per Share has been growing by 9.38% on average over the past years. This is quite good.
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
The Earnings Per Share is expected to grow by 7.49% on average over the next years.
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
The Price/Earnings ratio is 8.17, which indicates a very decent valuation of SBH.
Based on the Price/Earnings ratio, SBH is valued cheaply inside the industry as 89.34% of the companies are valued more expensively.
When comparing the Price/Earnings ratio of SBH to the average of the S&P500 Index (25.65), we can say SBH is valued rather cheaply.
A Price/Forward Earnings ratio of 7.67 indicates a rather cheap valuation of SBH.
Based on the Price/Forward Earnings ratio, SBH is valued cheaply inside the industry as 91.80% of the companies are valued more expensively.
When comparing the Price/Forward Earnings ratio of SBH to the average of the S&P500 Index (34.45), we can say SBH is valued rather cheaply.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 8.17 | ||
| Fwd PE | 7.67 |
4.2 Price Multiples
Based on the Enterprise Value to EBITDA ratio, SBH is valued cheaper than 84.43% of the companies in the same industry.
Based on the Price/Free Cash Flow ratio, SBH is valued cheaper than 89.34% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 8.94 | ||
| EV/EBITDA | 5.23 |
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)1.25
PEG (5Y)0.87
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 |
15.61
+0.68 (+4.55%)
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 Cap1.54B
Revenue(TTM)3.70B
Net Income(TTM)195.88M
Analysts71.11
Price Target16.58 (6.21%)
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)-0.67%
Revenue NQ rev (3m)-0.61%
Revenue NY rev (1m)-0.21%
Revenue NY rev (3m)-0.16%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 8.17 | ||
| Fwd PE | 7.67 | ||
| P/S | 0.42 | ||
| P/FCF | 8.94 | ||
| P/OCF | 5.62 | ||
| P/B | 1.94 | ||
| P/tB | 7.7 | ||
| EV/EBITDA | 5.23 |
EPS(TTM)1.91
EY12.24%
EPS(NY)2.04
Fwd EY13.04%
FCF(TTM)1.75
FCFY11.18%
OCF(TTM)2.78
OCFY17.79%
SpS37.41
BVpS8.03
TBVpS2.03
PEG (NY)1.25
PEG (5Y)0.87
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 | 2.86 |
F-Score8
WACC9.23%
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 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 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 8 / 10.
Can you provide the financial health for SBH stock?
The financial health rating of SALLY BEAUTY HOLDINGS INC (SBH) is 6 / 10.