ULTA BEAUTY INC (ULTA) Stock Fundamental Analysis
NASDAQ:ULTA - Nasdaq - US90384S3031 - Common Stock - Currency: USD
Taking everything into account, ULTA scores 7 out of 10 in our fundamental rating. ULTA was compared to 119 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 has a correct valuation and a medium growth rate.
1. Profitability
1.1 Basic Checks
ULTA had positive earnings in the past year.
ULTA had a positive operating cash flow in the past year.
ULTA had positive earnings in each of the past 5 years.
ULTA 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 20.17%, ULTA belongs to the top of the industry, outperforming 97.41% of the companies in the same industry.
Looking at the Return On Equity, with a value of 51.61%, ULTA belongs to the top of the industry, outperforming 93.97% of the companies in the same industry.
ULTA has a better Return On Invested Capital (27.36%) than 94.83% 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 12.39%.
The last Return On Invested Capital (27.36%) for ULTA is well below the 3 year average (31.95%), which needs to be investigated, but indicates that ULTA had better years and this may not be a problem.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 20.17% | ||
| ROE | 51.61% | ||
| ROIC | 27.36% |
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
ULTA has a better Profit Margin (10.58%) than 93.10% of its industry peers.
In the last couple of years the Profit Margin of ULTA has grown nicely.
ULTA's Operating Margin of 13.78% is amongst the best of the industry. ULTA outperforms 92.24% of its industry peers.
In the last couple of years the Operating Margin of ULTA has grown nicely.
ULTA has a Gross Margin of 38.68%. This is comparable to the rest of the industry: ULTA outperforms 57.76% of its industry peers.
ULTA's Gross Margin has improved in the last couple of years.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 13.78% | ||
| PM (TTM) | 10.58% | ||
| GM | 38.68% |
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
ULTA has a Return on Invested Capital (ROIC), which is well above the Cost of Capital (WACC), which means it is creating value.
ULTA has less shares outstanding than it did 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 6.53. This indicates that ULTA is financially healthy and has little risk of bankruptcy at the moment.
ULTA has a better Altman-Z score (6.53) than 91.38% of its industry peers.
The Debt to FCF ratio of ULTA is 0.20, which is an excellent value as it means it would take ULTA, only 0.20 years of fcf income to pay off all of its debts.
Looking at the Debt to FCF ratio, with a value of 0.20, ULTA belongs to the top of the industry, outperforming 85.34% of the companies in the same industry.
A Debt/Equity ratio of 0.09 indicates that ULTA is not too dependend on debt financing.
ULTA's Debt to Equity ratio of 0.09 is fine compared to the rest of the industry. ULTA outperforms 72.41% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.09 | ||
| Debt/FCF | 0.2 | ||
| Altman-Z | 6.53 |
ROIC/WACC2.7
WACC10.14%
2.3 Liquidity
A Current Ratio of 1.63 indicates that ULTA should not have too much problems paying its short term obligations.
Looking at the Current ratio, with a value of 1.63, ULTA is in the better half of the industry, outperforming 70.69% of the companies in the same industry.
A Quick Ratio of 0.32 indicates that ULTA may have some problems paying its short term obligations.
With a Quick ratio value of 0.32, ULTA is not doing good in the industry: 68.97% of the companies in the same industry are doing better.
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 | 1.63 | ||
| Quick Ratio | 0.32 |
3. Growth
3.1 Past
The Earnings Per Share has grown by an nice 8.45% over the past year.
ULTA shows quite a strong growth in Earnings Per Share. Measured over the last years, the EPS has been growing by 18.93% yearly.
The Revenue has been growing slightly by 4.43% 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)8.45%
EPS 3Y76.6%
EPS 5Y18.93%
EPS Q2Q%1.38%
Revenue 1Y (TTM)4.43%
Revenue growth 3Y22.13%
Revenue growth 5Y10.78%
Sales Q2Q%1.65%
3.2 Future
ULTA is expected to show a small growth in Earnings Per Share. In the coming years, the EPS will grow by 4.78% yearly.
The Revenue is expected to grow by 3.73% on average over the next years.
EPS Next Y-7.44%
EPS Next 2Y-4.62%
EPS Next 3Y0.86%
EPS Next 5Y4.78%
Revenue Next Year0.73%
Revenue Next 2Y2.19%
Revenue Next 3Y3.13%
Revenue Next 5Y3.73%
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
The Price/Earnings ratio is 15.82, which indicates a correct valuation of ULTA.
Compared to the rest of the industry, the Price/Earnings ratio of ULTA indicates a somewhat cheap valuation: ULTA is cheaper than 74.14% of the companies listed in the same industry.
Compared to an average S&P500 Price/Earnings ratio of 28.46, ULTA is valued a bit cheaper.
Based on the Price/Forward Earnings ratio of 17.39, the valuation of ULTA can be described as rather expensive.
Based on the Price/Forward Earnings ratio, ULTA is valued a bit cheaper than 69.83% of the companies in the same industry.
The average S&P500 Price/Forward Earnings ratio is at 92.56. ULTA is valued rather cheaply when compared to this.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 15.82 | ||
| Fwd PE | 17.39 |
4.2 Price Multiples
Compared to the rest of the industry, the Enterprise Value to EBITDA ratio of ULTA is on the same level as its industry peers.
72.41% of the companies in the same industry are more expensive than ULTA, based on the Price/Free Cash Flow ratio.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 19.21 | ||
| EV/EBITDA | 10.63 |
4.3 Compensation for Growth
ULTA has an outstanding profitability rating, which may justify a higher PE ratio.
PEG (NY)N/A
PEG (5Y)0.84
EPS Next 2Y-4.62%
EPS Next 3Y0.86%
5. Dividend
5.1 Amount
ULTA does not give a dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | N/A |
ULTA BEAUTY INC
NASDAQ:ULTA (1/31/2025, 8:00:01 PM)
After market: 412.15 0 (0%)412.15
-6.38 (-1.52%)
Chartmill FA Rating
GICS SectorConsumer Discretionary
GICS IndustryGroupConsumer Discretionary Distribution & Retail
GICS IndustrySpecialty Retail
Earnings (Last)
Earnings (Next)
Inst Owners95.95%
Inst Owner Change-3.18%
Ins Owners0.17%
Ins Owner Change0%
Market Cap19.11B
Analysts69.73
Price Target450.07 (9.2%)
Short Float %5.23%
Short Ratio2.49
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | N/A |
Yearly Dividend0
Dividend Growth(5Y)N/A
DP0%
Div Incr Years0
Div Non Decr Years0
Ex-DateN/A
Surprises & Revisions
EPS beat(2)N/A
Avg EPS beat(2)N/A
Min EPS beat(2)N/A
Max EPS beat(2)N/A
EPS beat(4)N/A
Avg EPS beat(4)N/A
Min EPS beat(4)N/A
Max EPS beat(4)N/A
EPS beat(8)N/A
Avg EPS beat(8)N/A
EPS beat(12)N/A
Avg EPS beat(12)N/A
EPS beat(16)N/A
Avg EPS beat(16)N/A
Revenue beat(2)0
Avg Revenue beat(2)-2.37%
Min Revenue beat(2)-4.24%
Max Revenue beat(2)-0.51%
Revenue beat(4)0
Avg Revenue beat(4)-1.95%
Min Revenue beat(4)-4.24%
Max Revenue beat(4)-0.51%
Revenue beat(8)1
Avg Revenue beat(8)-0.88%
Revenue beat(12)4
Avg Revenue beat(12)0.53%
Revenue beat(16)8
Avg Revenue beat(16)2.48%
PT rev (1m)10.23%
PT rev (3m)10.62%
EPS NQ rev (1m)0%
EPS NQ rev (3m)-16.59%
EPS NY rev (1m)0%
EPS NY rev (3m)0.99%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)-5.35%
Revenue NY rev (1m)0.55%
Revenue NY rev (3m)0.85%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 15.82 | ||
| Fwd PE | 17.39 | ||
| P/S | 1.68 | ||
| P/FCF | 19.21 | ||
| P/OCF | 13.46 | ||
| P/B | 8.21 | ||
| P/tB | 8.25 | ||
| EV/EBITDA | 10.63 |
EPS(TTM)26.05
EY6.32%
EPS(NY)23.7
Fwd EY5.75%
FCF(TTM)21.46
FCFY5.21%
OCF(TTM)30.62
OCFY7.43%
SpS245.03
BVpS50.23
TBVpS49.98
PEG (NY)N/A
PEG (5Y)0.84
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 20.17% | ||
| ROE | 51.61% | ||
| ROCE | 37.81% | ||
| ROIC | 27.36% | ||
| ROICexc | 27.36% | ||
| ROICexgc | 27.43% | ||
| OM | 13.78% | ||
| PM (TTM) | 10.58% | ||
| GM | 38.68% | ||
| FCFM | 8.76% |
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)36.58%
ROICexc(5y)28.16%
ROICexgc(3y)36.73%
ROICexgc(5y)28.28%
ROCE(3y)42.11%
ROCE(5y)31.97%
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 Turnover1.91
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.09 | ||
| Debt/FCF | 0.2 | ||
| Debt/EBITDA | 0.11 | ||
| Cap/Depr | 163.65% | ||
| Cap/Sales | 3.74% | ||
| Interest Coverage | 31.11 | ||
| Cash Conversion | 77.78% | ||
| Profit Quality | 82.78% | ||
| Current Ratio | 1.63 | ||
| Quick Ratio | 0.32 | ||
| Altman-Z | 6.53 |
F-Score6
WACC10.14%
ROIC/WACC2.7
Cap/Depr(3y)123.9%
Cap/Depr(5y)104.74%
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)8.45%
EPS 3Y76.6%
EPS 5Y18.93%
EPS Q2Q%1.38%
EPS Next Y-7.44%
EPS Next 2Y-4.62%
EPS Next 3Y0.86%
EPS Next 5Y4.78%
Revenue 1Y (TTM)4.43%
Revenue growth 3Y22.13%
Revenue growth 5Y10.78%
Sales Q2Q%1.65%
Revenue Next Year0.73%
Revenue Next 2Y2.19%
Revenue Next 3Y3.13%
Revenue Next 5Y3.73%
EBIT growth 1Y-2.64%
EBIT growth 3Y68.46%
EBIT growth 5Y14.46%
EBIT Next Year6.91%
EBIT Next 3Y2.91%
EBIT Next 5Y3.68%
FCF growth 1Y4.74%
FCF growth 3Y16.49%
FCF growth 5Y10.33%
OCF growth 1Y16.6%
OCF growth 3Y22.12%
OCF growth 5Y9.07%