Why ULTA BEAUTY INC (NASDAQ:ULTA) qualifies as a quality stock.

In this article we will dive into ULTA BEAUTY INC (NASDAQ:ULTA) as a possible candidate for quality investing. Investors should always do their own research, but we noticed ULTA BEAUTY INC showing up in our Caviar Cruise quality screen, which makes it worth to investigate a bit more.

Exploring Why ULTA Holds Appeal for Quality Investors.

• The 5-year revenue growth of ULTA has been remarkable, with 8.83% increase. This showcases the company's strong performance in driving revenue growth and indicates its competitiveness within the market.
• ULTA exhibits a strong ROIC excluding cash and goodwill, indicating efficient capital utilization and profitable operations. The 33.94% reflects the company's ability to generate returns on invested capital and underscores its commitment to delivering value to shareholders.
• With a favorable Debt/Free Cash Flow Ratio of 0.0, ULTA showcases its sound financial discipline and cash flow management. This ratio indicates the company's ability to service its debt obligations while maintaining sufficient free cash flow for future investments or operational needs.
• The Profit Quality (5-year) of ULTA stands at 144.0%, highlighting its ability to consistently generate reliable profits. This metric underscores the company's strong business fundamentals and reinforces its position as a financially stable entity.
• ULTA has experienced impressive EBIT growth over the past 5 years, with 11.68% increase. This reflects the company's effective operational performance and highlights its potential for long-term financial success.
• With EBIT 5-year growth outpacing its Revenue 5-year growth, ULTA showcases its effective cost management and enhanced operational performance. This suggests the company's ability to generate higher earnings from its revenue streams.

A complete fundamental analysis of ULTA

ChartMill assigns a proprietary Fundamental Rating to each stock. The score is computed daily by evaluating various fundamental indicators and properties. The score ranges from 0 to 10.

We assign a fundamental rating of 6 out of 10 to ULTA. ULTA was compared to 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 has a correct valuation and a medium growth rate.

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

More quality stocks can be found in our Caviar Cruise screen.

Keep in mind

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.