ULTA BEAUTY INC (ULTA) Stock Fundamental Analysis
NASDAQ:ULTA - Nasdaq - US90384S3031 - Common Stock - Currency: USD
ULTA gets a fundamental rating of 7 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 has a correct valuation and a medium 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.
Each year in the past 5 years ULTA has been profitable.
Each year in the past 5 years ULTA had a positive operating cash flow.
1.2 Ratios
ULTA has a better Return On Assets (20.17%) than 97.46% of its industry peers.
Looking at the Return On Equity, with a value of 51.61%, ULTA belongs to the top of the industry, outperforming 94.07% of the companies in the same industry.
The Return On Invested Capital of ULTA (27.36%) is better than 94.92% of its industry peers.
The Average Return On Invested Capital over the past 3 years for ULTA is significantly above the industry average of 14.04%.
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
The Profit Margin of ULTA (10.58%) is better than 93.22% of its industry peers.
ULTA's Profit Margin has improved in the last couple of years.
ULTA has a better Operating Margin (13.78%) than 92.37% of its industry peers.
ULTA's Operating Margin has improved in the last couple of years.
ULTA's Gross Margin of 38.68% is in line compared to the rest of the industry. ULTA outperforms 57.63% of its industry peers.
In the last couple of years the Gross Margin of ULTA has grown nicely.
| 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
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
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 6.13. This indicates that ULTA is financially healthy and has little risk of bankruptcy at the moment.
With an excellent Altman-Z score value of 6.13, ULTA belongs to the best of the industry, outperforming 93.22% of the companies in the same industry.
ULTA has a debt to FCF ratio of 0.20. This is a very positive value and a sign of high solvency as it would only need 0.20 years to pay back of all of its debts.
ULTA has a better Debt to FCF ratio (0.20) than 83.90% of its industry peers.
ULTA has a Debt/Equity ratio of 0.09. This is a healthy value indicating a solid balance between debt and equity.
With a decent Debt to Equity ratio value of 0.09, ULTA is doing good in the industry, outperforming 72.03% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.09 | ||
| Debt/FCF | 0.2 | ||
| Altman-Z | 6.13 |
ROIC/WACC2.74
WACC9.99%
2.3 Liquidity
A Current Ratio of 1.63 indicates that ULTA should not have too much problems paying its short term obligations.
With a decent Current ratio value of 1.63, ULTA is doing good in the industry, outperforming 70.34% 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.
ULTA has a Quick ratio of 0.32. This is in the lower half of the industry: ULTA underperforms 69.49% of its industry peers.
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 | 1.63 | ||
| Quick Ratio | 0.32 |
3. Growth
3.1 Past
ULTA shows a small growth in Earnings Per Share. In the last year, the EPS has grown by 1.38%.
The Earnings Per Share has been growing by 18.93% on average over the past years. This is quite good.
Looking at the last year, ULTA shows a small growth in Revenue. The Revenue has grown by 4.43% in the last 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)1.38%
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
The Earnings Per Share is expected to grow by 5.08% on average over the next years.
ULTA is expected to show a small growth in Revenue. In the coming years, the Revenue will grow by 3.88% yearly.
EPS Next Y-5.88%
EPS Next 2Y-3.91%
EPS Next 3Y1.09%
EPS Next 5Y5.08%
Revenue Next Year0.74%
Revenue Next 2Y2.2%
Revenue Next 3Y3.17%
Revenue Next 5Y3.88%
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.
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
ULTA is valuated correctly with a Price/Earnings ratio of 13.96.
Based on the Price/Earnings ratio, ULTA is valued a bit cheaper than the industry average as 76.27% of the companies are valued more expensively.
ULTA is valuated cheaply when we compare the Price/Earnings ratio to 29.75, which is the current average of the S&P500 Index.
A Price/Forward Earnings ratio of 14.50 indicates a correct valuation of ULTA.
Based on the Price/Forward Earnings ratio, ULTA is valued a bit cheaper than the industry average as 69.49% of the companies are valued more expensively.
When comparing the Price/Forward Earnings ratio of ULTA to the average of the S&P500 Index (22.44), we can say ULTA is valued slightly cheaper.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 13.96 | ||
| Fwd PE | 14.5 |
4.2 Price Multiples
Compared to the rest of the industry, the Enterprise Value to EBITDA ratio of ULTA indicates a somewhat cheap valuation: ULTA is cheaper than 61.02% of the companies listed in the same industry.
Based on the Price/Free Cash Flow ratio, ULTA is valued a bit cheaper than 73.73% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 16.26 | ||
| EV/EBITDA | 9.3 |
4.3 Compensation for Growth
ULTA has an outstanding profitability rating, which may justify a higher PE ratio.
PEG (NY)N/A
PEG (5Y)0.74
EPS Next 2Y-3.91%
EPS Next 3Y1.09%
5. Dividend
5.1 Amount
ULTA does not give a dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | N/A |
348.86
-17.5 (-4.78%)
Chartmill FA Rating
GICS SectorConsumer Discretionary
GICS IndustryGroupConsumer Discretionary Distribution & Retail
GICS IndustrySpecialty Retail
Earnings (Last)
Earnings (Next)
Inst Owners93.36%
Inst Owner Change-2.55%
Ins Owners0.09%
Ins Owner Change0%
Market Cap16.18B
Analysts71.89
Price Target470.18 (34.78%)
Short Float %5.62%
Short Ratio2.79
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)1
Avg EPS beat(2)3.02%
Min EPS beat(2)-4.85%
Max EPS beat(2)10.88%
EPS beat(4)3
Avg EPS beat(4)3.24%
Min EPS beat(4)-4.85%
Max EPS beat(4)10.88%
EPS beat(8)6
Avg EPS beat(8)3.46%
EPS beat(12)10
Avg EPS beat(12)9.97%
EPS beat(16)14
Avg EPS beat(16)24.84%
Revenue beat(2)0
Avg Revenue beat(2)-2.41%
Min Revenue beat(2)-4.24%
Max Revenue beat(2)-0.59%
Revenue beat(4)0
Avg Revenue beat(4)-1.97%
Min Revenue beat(4)-4.24%
Max Revenue beat(4)-0.59%
Revenue beat(8)1
Avg Revenue beat(8)-0.89%
Revenue beat(12)4
Avg Revenue beat(12)0.52%
Revenue beat(16)8
Avg Revenue beat(16)2.48%
PT rev (1m)-0.09%
PT rev (3m)16.42%
EPS NQ rev (1m)-0.25%
EPS NQ rev (3m)3.64%
EPS NY rev (1m)-0.04%
EPS NY rev (3m)3.86%
Revenue NQ rev (1m)-0.06%
Revenue NQ rev (3m)1.76%
Revenue NY rev (1m)0.01%
Revenue NY rev (3m)0.84%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 13.96 | ||
| Fwd PE | 14.5 | ||
| P/S | 1.42 | ||
| P/FCF | 16.26 | ||
| P/OCF | 11.39 | ||
| P/B | 6.95 | ||
| P/tB | 6.98 | ||
| EV/EBITDA | 9.3 |
EPS(TTM)24.99
EY7.16%
EPS(NY)24.05
Fwd EY6.89%
FCF(TTM)21.46
FCFY6.15%
OCF(TTM)30.62
OCFY8.78%
SpS245.03
BVpS50.23
TBVpS49.98
PEG (NY)N/A
PEG (5Y)0.74
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 | 6.13 |
F-Score6
WACC9.99%
ROIC/WACC2.74
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)1.38%
EPS 3Y76.6%
EPS 5Y18.93%
EPS Q2Q%1.38%
EPS Next Y-5.88%
EPS Next 2Y-3.91%
EPS Next 3Y1.09%
EPS Next 5Y5.08%
Revenue 1Y (TTM)4.43%
Revenue growth 3Y22.13%
Revenue growth 5Y10.78%
Sales Q2Q%1.65%
Revenue Next Year0.74%
Revenue Next 2Y2.2%
Revenue Next 3Y3.17%
Revenue Next 5Y3.88%
EBIT growth 1Y-2.64%
EBIT growth 3Y68.46%
EBIT growth 5Y14.46%
EBIT Next Year6.44%
EBIT Next 3Y3.05%
EBIT Next 5Y3.83%
FCF growth 1Y4.74%
FCF growth 3Y16.49%
FCF growth 5Y10.33%
OCF growth 1Y16.6%
OCF growth 3Y22.12%
OCF growth 5Y9.07%