ULTA BEAUTY INC (ULTA)
US90384S3031 - Common Stock
Taking everything into account, ULTA scores 7 out of 10 in our fundamental rating. ULTA was compared to 121 industry peers in the Specialty Retail industry. ULTA scores excellent points on both the profitability and health parts. This is a solid base for a good stock. ULTA is not valued too expensively and it also shows a decent growth rate.
1. Profitability
1.1 Basic Checks
ULTA had positive earnings in the past year.
In the past year ULTA had a positive cash flow from operations.
ULTA had positive earnings in each of the past 5 years.
Each year in the past 5 years ULTA had a positive operating cash flow.
1.2 Ratios
ULTA has a better Return On Assets (21.08%) than 98.33% of its industry peers.
ULTA has a Return On Equity of 51.51%. This is amongst the best in the industry. ULTA outperforms 94.17% of its industry peers.
ULTA has a Return On Invested Capital of 28.81%. This is amongst the best in the industry. ULTA outperforms 95.00% of its industry peers.
Measured over the past 3 years, the Average Return On Invested Capital for ULTA is significantly above the industry average of 12.29%.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 21.08% | ||
| ROE | 51.51% | ||
| ROIC | 28.81% |
ROA(3y)22.15%
ROA(5y)16.88%
ROE(3y)61.41%
ROE(5y)46.03%
ROIC(3y)31.95%
ROIC(5y)24.26%
1.3 Margins
Looking at the Profit Margin, with a value of 10.68%, ULTA belongs to the top of the industry, outperforming 93.33% of the companies in the same industry.
In the last couple of years the Profit Margin of ULTA has grown nicely.
ULTA has a better Operating Margin (13.91%) than 92.50% of its industry peers.
In the last couple of years the Operating Margin of ULTA has grown nicely.
Looking at the Gross Margin, with a value of 38.69%, ULTA is in line with its industry, outperforming 57.50% of the companies in the same industry.
ULTA's Gross Margin has improved in the last couple of years.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 13.91% | ||
| PM (TTM) | 10.68% | ||
| GM | 38.69% |
OM growth 3Y37.93%
OM growth 5Y3.32%
PM growth 3Y59.09%
PM growth 5Y3.26%
GM growth 3Y7.26%
GM growth 5Y1.74%
2. Health
2.1 Basic Checks
With a Return on Invested Capital (ROIC) well above the Cost of Capital (WACC), ULTA is creating value.
Compared to 1 year ago, ULTA has less shares outstanding
The number of shares outstanding for ULTA has been reduced compared to 5 years ago.
There is no outstanding debt for ULTA. This means it has a Debt/Equity and Debt/FCF ratio of 0 and it is amongst the best of the sector and industry.
2.2 Solvency
ULTA has an Altman-Z score of 7.04. This indicates that ULTA is financially healthy and has little risk of bankruptcy at the moment.
ULTA has a better Altman-Z score (7.04) than 94.17% of its industry peers.
ULTA has no outstanding debt. Therefor its Debt/Equity and Debt/FCF ratios are 0 and belong to the best of the industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0 | ||
| Debt/FCF | 0 | ||
| Altman-Z | 7.04 |
ROIC/WACC2.82
WACC10.22%
2.3 Liquidity
A Current Ratio of 1.76 indicates that ULTA should not have too much problems paying its short term obligations.
ULTA has a better Current ratio (1.76) than 75.00% of its industry peers.
ULTA has a Quick Ratio of 1.76. This is a bad value and indicates that ULTA is not financially healthy enough and could expect problems in meeting its short term obligations.
ULTA has a Quick ratio of 0.50. This is comparable to the rest of the industry: ULTA outperforms 50.83% of its industry peers.
The current and quick ratio evaluation for ULTA is rather negative, while it does have excellent solvency and profitability. These ratios do not necessarly indicate liquidity issues and need to be evaluated against the specifics of the business.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.76 | ||
| Quick Ratio | 0.5 |
3. Growth
3.1 Past
The Earnings Per Share has been growing slightly by 0.00% over the past year.
Measured over the past years, ULTA shows a quite strong growth in Earnings Per Share. The EPS has been growing by 18.93% on average per year.
The Revenue has been growing slightly by 5.51% in the past year.
Measured over the past years, ULTA shows a quite strong growth in Revenue. The Revenue has been growing by 10.78% on average per year.
EPS 1Y (TTM)0%
EPS 3Y76.6%
EPS 5Y18.93%
EPS Q2Q%-11.96%
Revenue 1Y (TTM)5.51%
Revenue growth 3Y22.13%
Revenue growth 5Y10.78%
Sales Q2Q%0.88%
3.2 Future
Based on estimates for the next years, ULTA will show a small growth in Earnings Per Share. The EPS will grow by 5.01% on average per year.
The Revenue is expected to grow by 3.91% on average over the next years.
EPS Next Y-7.44%
EPS Next 2Y-4.62%
EPS Next 3Y0.86%
EPS Next 5Y5.01%
Revenue Next Year0.18%
Revenue Next 2Y1.9%
Revenue Next 3Y2.99%
Revenue Next 5Y3.91%
3.3 Evolution
The EPS growth rate is decreasing: in the next years the growth will be less than in the last years.
When comparing the Revenue 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
Based on the Price/Earnings ratio of 17.47, the valuation of ULTA can be described as rather expensive.
69.17% of the companies in the same industry are more expensive than ULTA, based on the Price/Earnings ratio.
ULTA is valuated rather cheaply when we compare the Price/Earnings ratio to 27.54, which is the current average of the S&P500 Index.
A Price/Forward Earnings ratio of 18.37 indicates a rather expensive valuation of ULTA.
Compared to the rest of the industry, the Price/Forward Earnings ratio of ULTA indicates a somewhat cheap valuation: ULTA is cheaper than 67.50% of the companies listed in the same industry.
Compared to an average S&P500 Price/Forward Earnings ratio of 23.99, ULTA is valued a bit cheaper.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 17.47 | ||
| Fwd PE | 18.37 |
4.2 Price Multiples
The rest of the industry has a similar Enterprise Value to EBITDA ratio as ULTA.
ULTA's Price/Free Cash Flow ratio is a bit cheaper when compared to the industry. ULTA is cheaper than 70.83% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 20.4 | ||
| EV/EBITDA | 10.81 |
4.3 Compensation for Growth
The excellent profitability rating of ULTA may justify a higher PE ratio.
PEG (NY)N/A
PEG (5Y)0.92
EPS Next 2Y-4.62%
EPS Next 3Y0.86%
5. Dividend
5.1 Amount
No dividends for ULTA!.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | N/A |
ULTA BEAUTY INC
NASDAQ:ULTA (12/24/2024, 7:43:09 PM)
Premarket: 435.16 -0.15 (-0.03%)435.31
+6.17 (+1.44%)
Chartmill FA Rating
GICS SectorConsumer Discretionary
GICS IndustryGroupConsumer Discretionary Distribution & Retail
GICS IndustrySpecialty Retail
Earnings (Last)
Earnings (Next)
Inst Owners95.95%
Inst Owner Change-2.4%
Ins Owners0.17%
Ins Owner Change-0.12%
Market Cap20.19B
Analysts71.35
Price Target408.29 (-6.21%)
Short Float %5.11%
Short Ratio2.19
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | N/A |
Dividend Growth(5Y)N/A
DP0%
Div Incr Years0
Div Non Decr Years0
Ex-DateN/A
Surprises & Revisions
EPS beat(2)1
Avg EPS beat(2)-1.56%
Min EPS beat(2)-4.85%
Max EPS beat(2)1.72%
EPS beat(4)3
Avg EPS beat(4)0.62%
Min EPS beat(4)-4.85%
Max EPS beat(4)5.21%
EPS beat(8)6
Avg EPS beat(8)5.36%
EPS beat(12)10
Avg EPS beat(12)13.79%
EPS beat(16)14
Avg EPS beat(16)24.65%
Revenue beat(2)0
Avg Revenue beat(2)-3%
Min Revenue beat(2)-4.24%
Max Revenue beat(2)-1.77%
Revenue beat(4)0
Avg Revenue beat(4)-2.11%
Min Revenue beat(4)-4.24%
Max Revenue beat(4)-1.15%
Revenue beat(8)2
Avg Revenue beat(8)-0.36%
Revenue beat(12)5
Avg Revenue beat(12)0.91%
Revenue beat(16)8
Avg Revenue beat(16)2.35%
PT rev (1m)0.35%
PT rev (3m)-12.9%
EPS NQ rev (1m)0.02%
EPS NQ rev (3m)-11.75%
EPS NY rev (1m)2.13%
EPS NY rev (3m)0.99%
Revenue NQ rev (1m)0.04%
Revenue NQ rev (3m)-1.43%
Revenue NY rev (1m)0.29%
Revenue NY rev (3m)0.09%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 17.47 | ||
| Fwd PE | 18.37 | ||
| P/S | 1.78 | ||
| P/FCF | 20.4 | ||
| P/OCF | 14.35 | ||
| P/B | 8.6 | ||
| P/tB | 8.64 | ||
| EV/EBITDA | 10.81 |
EPS(TTM)24.92
EY5.72%
EPS(NY)23.7
Fwd EY5.44%
FCF(TTM)21.34
FCFY4.9%
OCF(TTM)30.33
OCFY6.97%
SpS244.15
BVpS50.64
TBVpS50.4
PEG (NY)N/A
PEG (5Y)0.92
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 21.08% | ||
| ROE | 51.51% | ||
| ROCE | 37.97% | ||
| ROIC | 28.81% | ||
| ROICexc | 32.01% | ||
| ROICexgc | 32.1% | ||
| OM | 13.91% | ||
| PM (TTM) | 10.68% | ||
| GM | 38.69% | ||
| FCFM | 8.74% |
ROA(3y)22.15%
ROA(5y)16.88%
ROE(3y)61.41%
ROE(5y)46.03%
ROIC(3y)31.95%
ROIC(5y)24.26%
ROICexc(3y)36.59%
ROICexc(5y)28.17%
ROICexgc(3y)36.73%
ROICexgc(5y)28.28%
ROCE(3y)42.11%
ROCE(5y)31.98%
ROICexcg growth 3Y48.18%
ROICexcg growth 5Y-0.67%
ROICexc growth 3Y48.28%
ROICexc growth 5Y-0.57%
OM growth 3Y37.93%
OM growth 5Y3.32%
PM growth 3Y59.09%
PM growth 5Y3.26%
GM growth 3Y7.26%
GM growth 5Y1.74%
F-Score6
Asset Turnover1.97
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0 | ||
| Debt/FCF | 0 | ||
| Debt/EBITDA | 0 | ||
| Cap/Depr | 164.13% | ||
| Cap/Sales | 3.68% | ||
| Interest Coverage | 250 | ||
| Cash Conversion | 76.92% | ||
| Profit Quality | 81.81% | ||
| Current Ratio | 1.76 | ||
| Quick Ratio | 0.5 | ||
| Altman-Z | 7.04 |
F-Score6
WACC10.22%
ROIC/WACC2.82
Cap/Depr(3y)123.98%
Cap/Depr(5y)104.78%
Cap/Sales(3y)2.98%
Cap/Sales(5y)3.09%
Profit Quality(3y)88.26%
Profit Quality(5y)150.53%
High Growth Momentum
Growth
EPS 1Y (TTM)0%
EPS 3Y76.6%
EPS 5Y18.93%
EPS Q2Q%-11.96%
EPS Next Y-7.44%
EPS Next 2Y-4.62%
EPS Next 3Y0.86%
EPS Next 5Y5.01%
Revenue 1Y (TTM)5.51%
Revenue growth 3Y22.13%
Revenue growth 5Y10.78%
Sales Q2Q%0.88%
Revenue Next Year0.18%
Revenue Next 2Y1.9%
Revenue Next 3Y2.99%
Revenue Next 5Y3.91%
EBIT growth 1Y-4.18%
EBIT growth 3Y68.46%
EBIT growth 5Y14.46%
EBIT Next Year3.69%
EBIT Next 3Y2.82%
EBIT Next 5Y3.91%
FCF growth 1Y2.73%
FCF growth 3Y16.49%
FCF growth 5Y10.33%
OCF growth 1Y17.33%
OCF growth 3Y22.13%
OCF growth 5Y9.08%