Evaluating ULTA BEAUTY INC (NASDAQ:ULTA) using Peter Lynch’s legendary strategy

With a strategy that emphasized steady earnings growth and a strong market position, Peter Lynch sought out long-term winners. We put ULTA BEAUTY INC (NASDAQ:ULTA) to the test against his stock-picking rules.

Does ULTA BEAUTY INC (NASDAQ:ULTA) match Peter Lynch’s “Invest in What You Know” philosophy?

• ULTA has achieved an impressive Return on Equity (ROE) of 51.61%, showcasing its ability to generate favorable returns for shareholders.
• ULTA exhibits a favorable Debt-to-Equity ratio at 0.09. This highlights the company's ability to limit excessive debt levels and maintain a strong equity base, demonstrating its financial stability and risk management practices.
• ULTA has achieved 18.93 growth in EPS over the past 5 years, reflecting a sustained improvement in earnings performance.
• ULTA's PEG ratio of 0.75 suggests its current valuation aligns well with its earnings potential.
• With a Current Ratio of 1.63, ULTA appears well-positioned to meet its near-term financial obligations.

Fundamental analysis of NASDAQ:ULTA

Every day ChartMill assigns a Fundamental Rating to every stock. The score ranges from 0 to 10 and is determined by evaluating multiple fundamental indicators and properties.

Overall ULTA gets a fundamental rating of 7 out of 10. We evaluated ULTA against 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.

Our latest full fundamental report of ULTA contains the most current fundamental analsysis.

Every day, new Affordable Growth stocks can be found on ChartMill in our Peter Lynch screener.

Disclaimer

This article should in no way be interpreted as advice. The article is based on the observed metrics at the time of writing, but you should always make your own analysis and trade or invest at your own responsibility.