ULTA BEAUTY INC (ULTA)
US90384S3031 - Common Stock
We assign a fundamental rating of 7 out of 10 to ULTA. ULTA was compared to 123 industry peers in the Specialty Retail industry. ULTA gets an excellent profitability rating and is at the same time showing great financial health properties. ULTA is not valued too expensively and it also shows a decent growth rate.
1. Profitability
1.1 Basic Checks
In the past year ULTA was profitable.
ULTA had a positive operating cash flow in the past year.
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
The Return On Assets of ULTA (21.08%) is better than 98.35% of its industry peers.
ULTA has a Return On Equity of 51.51%. This is amongst the best in the industry. ULTA outperforms 95.04% of its industry peers.
With an excellent Return On Invested Capital value of 28.81%, ULTA belongs to the best of the industry, outperforming 95.87% of the companies in the same industry.
The Average Return On Invested Capital over the past 3 years for ULTA is significantly above the industry average of 12.26%.
| 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 94.21% of the companies in the same industry.
ULTA's Profit Margin has improved in the last couple of years.
The Operating Margin of ULTA (13.91%) is better than 92.56% of its industry peers.
ULTA's Operating Margin has improved in the last couple of years.
ULTA has a Gross Margin (38.69%) which is in line with its industry peers.
In the last couple of years the Gross Margin of ULTA has grown nicely.
| 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
The Return on Invested Capital (ROIC) is well above the Cost of Capital (WACC), so ULTA is creating value.
ULTA has less shares outstanding than it did 1 year ago.
ULTA has less shares outstanding than it did 5 years ago.
ULTA 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
ULTA has an Altman-Z score of 6.32. This indicates that ULTA is financially healthy and has little risk of bankruptcy at the moment.
ULTA has a Altman-Z score of 6.32. This is amongst the best in the industry. ULTA outperforms 92.56% of its industry peers.
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.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0 | ||
| Debt/FCF | 0 | ||
| Altman-Z | 6.32 |
ROIC/WACC3.03
WACC9.52%
2.3 Liquidity
ULTA has a Current Ratio of 1.76. This is a normal value and indicates that ULTA is financially healthy and should not expect problems in meeting its short term obligations.
The Current ratio of ULTA (1.76) is better than 71.90% 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 (0.50) which is comparable to the rest of the industry.
ULTA does not score too well on the current and quick ratio evaluation. However, as it has 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.
The Earnings Per Share has been growing by 18.93% on average over the past years. This is quite good.
The Revenue has been growing slightly by 5.51% in the past year.
The Revenue has been growing by 10.78% on average over the past years. This is quite good.
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
ULTA is expected to show quite a strong growth in Earnings Per Share. In the coming years, the EPS will grow by 9.81% yearly.
The Revenue is expected to grow by 5.57% on average over the next years.
EPS Next Y-9.37%
EPS Next 2Y-5.37%
EPS Next 3Y0.21%
EPS Next 5Y9.81%
Revenue Next Year-0.11%
Revenue Next 2Y1.8%
Revenue Next 3Y2.8%
Revenue Next 5Y5.57%
3.3 Evolution
The EPS growth rate is decreasing: in the next years the growth will be less than in the last years.
The Revenue growth rate is decreasing: in the next years the growth will be less than in the last years.
4. Valuation
4.1 Price/Earnings Ratio
A Price/Earnings ratio of 13.77 indicates a correct valuation of ULTA.
76.03% of the companies in the same industry are more expensive than ULTA, based on the Price/Earnings ratio.
Compared to an average S&P500 Price/Earnings ratio of 28.65, ULTA is valued rather cheaply.
A Price/Forward Earnings ratio of 14.71 indicates a correct valuation of ULTA.
66.94% of the companies in the same industry are more expensive than ULTA, based on the Price/Forward Earnings ratio.
ULTA's Price/Forward Earnings ratio indicates a valuation a bit cheaper than the S&P500 average which is at 23.56.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 13.77 | ||
| Fwd PE | 14.71 |
4.2 Price Multiples
Based on the Enterprise Value to EBITDA ratio, ULTA is valued a bit cheaper than 63.64% of the companies in the same industry.
Compared to the rest of the industry, the Price/Free Cash Flow ratio of ULTA indicates a somewhat cheap valuation: ULTA is cheaper than 72.73% of the companies listed in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 16.34 | ||
| EV/EBITDA | 8.62 |
4.3 Compensation for Growth
The excellent profitability rating of ULTA may justify a higher PE ratio.
PEG (NY)N/A
PEG (5Y)0.73
EPS Next 2Y-5.37%
EPS Next 3Y0.21%
5. Dividend
5.1 Amount
No dividends for ULTA!.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | N/A |
ULTA BEAUTY INC
NASDAQ:ULTA (11/20/2024, 8:00:02 PM)
Premarket: 339.5 -3.76 (-1.1%)343.26
+1.09 (+0.32%)
Chartmill FA Rating
GICS SectorConsumer Discretionary
GICS IndustryGroupConsumer Discretionary Distribution & Retail
GICS IndustrySpecialty Retail
Earnings (Last)
Earnings (Next)
Inst Owners
Inst Owner Change
Ins Owners
Ins Owner Change
Market Cap16.17B
Analysts
Price Target
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | N/A |
Dividend Growth(5Y)
DP
Div Incr Years
Div Non Decr Years
Ex-Date
Surprises & Revisions
EPS beat(2)
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Min EPS beat(2)
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EPS beat(16)
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PT rev (1m)
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EPS NQ rev (3m)
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Revenue NQ rev (1m)
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Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 13.77 | ||
| Fwd PE | 14.71 | ||
| P/S | |||
| P/FCF | |||
| P/OCF | |||
| P/B | |||
| P/tB | |||
| EV/EBITDA |
EPS(TTM)
EY
EPS(NY)
Fwd EY
FCF(TTM)
FCFY
OCF(TTM)
OCFY
SpS
BVpS
TBVpS
PEG (NY)N/A
PEG (5Y)0.73
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 21.08% | ||
| ROE | 51.51% | ||
| ROCE | |||
| ROIC | |||
| ROICexc | |||
| ROICexgc | |||
| OM | 13.91% | ||
| PM (TTM) | 10.68% | ||
| GM | 38.69% | ||
| FCFM |
ROA(3y)
ROA(5y)
ROE(3y)
ROE(5y)
ROIC(3y)
ROIC(5y)
ROICexc(3y)
ROICexc(5y)
ROICexgc(3y)
ROICexgc(5y)
ROCE(3y)
ROCE(5y)
ROICexcg growth 3Y
ROICexcg growth 5Y
ROICexc growth 3Y
ROICexc growth 5Y
OM growth 3Y
OM growth 5Y
PM growth 3Y
PM growth 5Y
GM growth 3Y
GM growth 5Y
F-Score
Asset Turnover1.97
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0 | ||
| Debt/FCF | |||
| Debt/EBITDA | |||
| Cap/Depr | |||
| Cap/Sales | |||
| Interest Coverage | |||
| Cash Conversion | |||
| Profit Quality | |||
| Current Ratio | 1.76 | ||
| Quick Ratio | 0.5 | ||
| Altman-Z |
F-Score
WACC
ROIC/WACC
Cap/Depr(3y)
Cap/Depr(5y)
Cap/Sales(3y)
Cap/Sales(5y)
Profit Quality(3y)
Profit Quality(5y)
High Growth Momentum
Growth
EPS 1Y (TTM)0%
EPS 3Y76.6%
EPS 5Y
EPS Q2Q%
EPS Next Y-9.37%
EPS Next 2Y
EPS Next 3Y
EPS Next 5Y
Revenue 1Y (TTM)5.51%
Revenue growth 3Y22.13%
Revenue growth 5Y
Sales Q2Q%
Revenue Next Year
Revenue Next 2Y
Revenue Next 3Y
Revenue Next 5Y
EBIT growth 1Y
EBIT growth 3Y
EBIT growth 5Y
EBIT Next Year
EBIT Next 3Y
EBIT Next 5Y
FCF growth 1Y
FCF growth 3Y
FCF growth 5Y
OCF growth 1Y
OCF growth 3Y
OCF growth 5Y