ULTA BEAUTY INC (ULTA) Stock Fundamental Analysis
NASDAQ:ULTA - Nasdaq - US90384S3031 - Common Stock - Currency: USD
ULTA gets a fundamental rating of 6 out of 10. The analysis compared the fundamentals against 121 industry peers in the Specialty Retail industry. ULTA has outstanding health and profitabily ratings, belonging to the best of the industry. This is a solid base for any company. 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.
In the past year ULTA had a positive cash flow from operations.
In the past 5 years ULTA has always been profitable.
Each year in the past 5 years ULTA had a positive operating cash flow.
1.2 Ratios
With an excellent Return On Assets value of 20.01%, ULTA belongs to the best of the industry, outperforming 96.69% of the companies in the same industry.
The Return On Equity of ULTA (48.27%) is better than 93.39% of its industry peers.
ULTA has a better Return On Invested Capital (28.20%) than 93.39% of its industry peers.
The Average Return On Invested Capital over the past 3 years for ULTA is significantly above the industry average of 14.45%.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 20.01% | ||
| ROE | 48.27% | ||
| ROIC | 28.2% |
ROA(3y)21.92%
ROA(5y)17.98%
ROE(3y)56.09%
ROE(5y)48.26%
ROIC(3y)31.18%
ROIC(5y)26.29%
1.3 Margins
Looking at the Profit Margin, with a value of 10.63%, ULTA belongs to the top of the industry, outperforming 91.74% of the companies in the same industry.
In the last couple of years the Profit Margin of ULTA has grown nicely.
With an excellent Operating Margin value of 13.85%, ULTA belongs to the best of the industry, outperforming 90.91% of the companies in the same industry.
In the last couple of years the Operating Margin of ULTA has grown nicely.
Looking at the Gross Margin, with a value of 38.84%, ULTA is in line with its industry, outperforming 58.68% of the companies in the same industry.
ULTA's Gross Margin has been stable in the last couple of years.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 13.85% | ||
| PM (TTM) | 10.63% | ||
| GM | 38.84% |
OM growth 3Y-2.67%
OM growth 5Y2.61%
PM growth 3Y-2.36%
PM growth 5Y2.19%
GM growth 3Y-0.17%
GM growth 5Y1.4%
2. Health
2.1 Basic Checks
With a Return on Invested Capital (ROIC) well above the Cost of Capital (WACC), ULTA is creating value.
The number of shares outstanding for ULTA has been reduced compared to 1 year ago.
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 6.10. This indicates that ULTA is financially healthy and has little risk of bankruptcy at the moment.
ULTA's Altman-Z score of 6.10 is amongst the best of the industry. ULTA outperforms 93.39% 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 | 6.1 |
ROIC/WACC3.11
WACC9.07%
2.3 Liquidity
A Current Ratio of 1.70 indicates that ULTA should not have too much problems paying its short term obligations.
Looking at the Current ratio, with a value of 1.70, ULTA is in the better half of the industry, outperforming 72.73% of the companies in the same industry.
ULTA has a Quick Ratio of 1.70. 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 0.60. This is comparable to the rest of the industry: ULTA outperforms 55.37% 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 | 1.7 | ||
| Quick Ratio | 0.6 |
3. Growth
3.1 Past
The earnings per share for ULTA have decreased by -2.61% in the last year.
The Earnings Per Share has been growing by 15.85% on average over the past years. This is quite good.
The Revenue has been growing slightly by 0.79% in the past year.
ULTA shows quite a strong growth in Revenue. Measured over the last years, the Revenue has been growing by 8.83% yearly.
EPS 1Y (TTM)-2.61%
EPS 3Y12.16%
EPS 5Y15.85%
EPS Q2Q%4.7%
Revenue 1Y (TTM)0.79%
Revenue growth 3Y9.38%
Revenue growth 5Y8.83%
Sales Q2Q%-1.88%
3.2 Future
The Earnings Per Share is expected to grow by 7.99% on average over the next years.
Based on estimates for the next years, ULTA will show a small growth in Revenue. The Revenue will grow by 4.64% on average per year.
EPS Next Y-7.83%
EPS Next 2Y1.43%
EPS Next 3Y4.97%
EPS Next 5Y7.99%
Revenue Next Year3.16%
Revenue Next 2Y3.88%
Revenue Next 3Y4.49%
Revenue Next 5Y4.64%
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
With a Price/Earnings ratio of 14.10, ULTA is valued correctly.
Based on the Price/Earnings ratio, ULTA is valued a bit cheaper than the industry average as 72.73% of the companies are valued more expensively.
ULTA's Price/Earnings ratio indicates a rather cheap valuation when compared to the S&P500 average which is at 28.29.
A Price/Forward Earnings ratio of 15.30 indicates a correct valuation of ULTA.
66.12% of the companies in the same industry are more expensive than ULTA, based on the Price/Forward Earnings ratio.
When comparing the Price/Forward Earnings ratio of ULTA to the average of the S&P500 Index (21.08), we can say ULTA is valued slightly cheaper.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 14.1 | ||
| Fwd PE | 15.3 |
4.2 Price Multiples
ULTA's Enterprise Value to EBITDA ratio is in line with the industry average.
Compared to the rest of the industry, the Price/Free Cash Flow ratio of ULTA indicates a somewhat cheap valuation: ULTA is cheaper than 68.59% of the companies listed in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 16.81 | ||
| EV/EBITDA | 8.46 |
4.3 Compensation for Growth
ULTA has an outstanding profitability rating, which may justify a higher PE ratio.
PEG (NY)N/A
PEG (5Y)0.89
EPS Next 2Y1.43%
EPS Next 3Y4.97%
5. Dividend
5.1 Amount
ULTA does not give a dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | N/A |
357.75
+8.16 (+2.33%)
Chartmill FA Rating
GICS SectorConsumer Discretionary
GICS IndustryGroupConsumer Discretionary Distribution & Retail
GICS IndustrySpecialty Retail
Earnings (Last)
Earnings (Next)
Inst Owners93.36%
Inst Owner Change0.01%
Ins Owners0.09%
Ins Owner Change4.07%
Market Cap16.21B
Analysts71.89
Price Target422.38 (18.07%)
Short Float %5.11%
Short Ratio2.37
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | N/A |
Yearly DividendN/A
Dividend Growth(5Y)N/A
DP0%
Div Incr Years0
Div Non Decr Years0
Ex-DateN/A
Surprises & Revisions
EPS beat(2)2
Avg EPS beat(2)13.7%
Min EPS beat(2)10.88%
Max EPS beat(2)16.52%
EPS beat(4)3
Avg EPS beat(4)6.07%
Min EPS beat(4)-4.85%
Max EPS beat(4)16.52%
EPS beat(8)6
Avg EPS beat(8)3.61%
EPS beat(12)10
Avg EPS beat(12)10.04%
EPS beat(16)14
Avg EPS beat(16)23.23%
Revenue beat(2)0
Avg Revenue beat(2)-0.92%
Min Revenue beat(2)-1.26%
Max Revenue beat(2)-0.59%
Revenue beat(4)0
Avg Revenue beat(4)-1.96%
Min Revenue beat(4)-4.24%
Max Revenue beat(4)-0.59%
Revenue beat(8)0
Avg Revenue beat(8)-1.6%
Revenue beat(12)4
Avg Revenue beat(12)0.48%
Revenue beat(16)7
Avg Revenue beat(16)2.18%
PT rev (1m)-10.17%
PT rev (3m)-6.15%
EPS NQ rev (1m)-6.68%
EPS NQ rev (3m)-5.89%
EPS NY rev (1m)-2.78%
EPS NY rev (3m)-1.34%
Revenue NQ rev (1m)-0.66%
Revenue NQ rev (3m)-0.28%
Revenue NY rev (1m)-0.68%
Revenue NY rev (3m)-0.16%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 14.1 | ||
| Fwd PE | 15.3 | ||
| P/S | 1.44 | ||
| P/FCF | 16.81 | ||
| P/OCF | 12.11 | ||
| P/B | 6.51 | ||
| P/tB | 6.54 | ||
| EV/EBITDA | 8.46 |
EPS(TTM)25.37
EY7.09%
EPS(NY)23.38
Fwd EY6.54%
FCF(TTM)21.28
FCFY5.95%
OCF(TTM)29.54
OCFY8.26%
SpS249.3
BVpS54.92
TBVpS54.67
PEG (NY)N/A
PEG (5Y)0.89
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 20.01% | ||
| ROE | 48.27% | ||
| ROCE | 37.07% | ||
| ROIC | 28.2% | ||
| ROICexc | 33.83% | ||
| ROICexgc | 33.94% | ||
| OM | 13.85% | ||
| PM (TTM) | 10.63% | ||
| GM | 38.84% | ||
| FCFM | 8.54% |
ROA(3y)21.92%
ROA(5y)17.98%
ROE(3y)56.09%
ROE(5y)48.26%
ROIC(3y)31.18%
ROIC(5y)26.29%
ROICexc(3y)36.11%
ROICexc(5y)30.76%
ROICexgc(3y)36.24%
ROICexgc(5y)30.87%
ROCE(3y)40.98%
ROCE(5y)34.55%
ROICexcg growth 3Y-1.69%
ROICexcg growth 5Y9.71%
ROICexc growth 3Y-1.64%
ROICexc growth 5Y9.74%
OM growth 3Y-2.67%
OM growth 5Y2.61%
PM growth 3Y-2.36%
PM growth 5Y2.19%
GM growth 3Y-0.17%
GM growth 5Y1.4%
F-Score5
Asset Turnover1.88
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0 | ||
| Debt/FCF | 0 | ||
| Debt/EBITDA | 0 | ||
| Cap/Depr | 140.22% | ||
| Cap/Sales | 3.32% | ||
| Interest Coverage | 376.29 | ||
| Cash Conversion | 73.07% | ||
| Profit Quality | 80.27% | ||
| Current Ratio | 1.7 | ||
| Quick Ratio | 0.6 | ||
| Altman-Z | 6.1 |
F-Score5
WACC9.07%
ROIC/WACC3.11
Cap/Depr(3y)149.34%
Cap/Depr(5y)112.63%
Cap/Sales(3y)3.42%
Cap/Sales(5y)2.94%
Profit Quality(3y)85.03%
Profit Quality(5y)143.84%
High Growth Momentum
Growth
EPS 1Y (TTM)-2.61%
EPS 3Y12.16%
EPS 5Y15.85%
EPS Q2Q%4.7%
EPS Next Y-7.83%
EPS Next 2Y1.43%
EPS Next 3Y4.97%
EPS Next 5Y7.99%
Revenue 1Y (TTM)0.79%
Revenue growth 3Y9.38%
Revenue growth 5Y8.83%
Sales Q2Q%-1.88%
Revenue Next Year3.16%
Revenue Next 2Y3.88%
Revenue Next 3Y4.49%
Revenue Next 5Y4.64%
EBIT growth 1Y-6.74%
EBIT growth 3Y6.46%
EBIT growth 5Y11.68%
EBIT Next Year12.12%
EBIT Next 3Y8.64%
EBIT Next 5Y7.21%
FCF growth 1Y-7.38%
FCF growth 3Y2.82%
FCF growth 5Y3.73%
OCF growth 1Y-9.32%
OCF growth 3Y8.11%
OCF growth 5Y3.98%