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.

Is ULTA BEAUTY INC (NASDAQ:ULTA) the type of stock Peter Lynch would love?

• With a solid Return on Equity (ROE) of 48.27%, ULTA exemplifies its ability to generate favorable returns on shareholder investments. This metric demonstrates the company's commitment to maximizing shareholder value.
• With a current Debt-to-Equity ratio at 0.0, ULTA showcases its disciplined capital structure. The company's prudent management of debt obligations contributes to its financial stability and long-term sustainability.
• ULTA has achieved 15.85 growth in EPS over the past 5 years, reflecting a sustained improvement in earnings performance.
• Considering its PEG ratio of 0.93, ULTA may be an undervalued growth opportunity.
• With a Current Ratio of 1.7, ULTA demonstrates solid short-term financial stability.

Zooming in on the fundamentals.

As part of its analysis, ChartMill provides a comprehensive Fundamental Rating for each stock. This rating, ranging from 0 to 10, is updated on a daily basis and is based on the evaluation of various fundamental indicators and properties.

ULTA gets a fundamental rating of 5 out of 10. The analysis compared the fundamentals against 122 industry peers in the Specialty Retail industry. While ULTA has a great profitability rating, there are some minor concerns on its financial health. ULTA has a decent growth rate and is not valued too expensively.

Check the latest full fundamental report of ULTA for a complete fundamental analysis.

More Affordable Growth stocks can be found in our Peter Lynch screener.

Keep in mind

This is not investing advice! The article highlights some of the observations at the time of writing, but you should always make your own analysis and invest based on your own insights.