SALLY BEAUTY HOLDINGS INC (SBH) Stock Fundamental Analysis
NYSE:SBH - New York Stock Exchange, Inc. - US79546E1047 - Common Stock - Currency: USD
Overall SBH gets a fundamental rating of 5 out of 10. We evaluated SBH against 120 industry peers in the Specialty Retail industry. SBH has an average financial health and profitability rating. SBH is valued quite cheap, while showing a decent growth score. This is a good combination! These ratings would make SBH suitable for value investing!
1. Profitability
1.1 Basic Checks
In the past year SBH was profitable.
SBH had a positive operating cash flow in the past year.
In the past 5 years SBH has always been profitable.
In the past 5 years SBH always reported a positive cash flow from operatings.
1.2 Ratios
SBH's Return On Assets of 6.87% is fine compared to the rest of the industry. SBH outperforms 75.00% of its industry peers.
SBH has a better Return On Equity (26.58%) than 84.17% of its industry peers.
Looking at the Return On Invested Capital, with a value of 10.99%, SBH is in the better half of the industry, outperforming 76.67% of the companies in the same industry.
Measured over the past 3 years, the Average Return On Invested Capital for SBH is in line with the industry average of 13.17%.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 6.87% | ||
| ROE | 26.58% | ||
| ROIC | 10.99% |
ROA(3y)6.46%
ROA(5y)6.35%
ROE(3y)41.08%
ROE(5y)188.75%
ROIC(3y)11.72%
ROIC(5y)11.63%
1.3 Margins
SBH has a Profit Margin of 5.03%. This is in the better half of the industry: SBH outperforms 77.50% of its industry peers.
SBH's Profit Margin has declined in the last couple of years.
SBH has a Operating Margin of 8.75%. This is amongst the best in the industry. SBH outperforms 80.83% of its industry peers.
SBH's Operating Margin has declined in the last couple of years.
With a decent Gross Margin value of 51.26%, SBH is doing good in the industry, outperforming 80.00% of the companies in the same industry.
SBH's Gross Margin has been stable in the last couple of years.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 8.75% | ||
| PM (TTM) | 5.03% | ||
| GM | 51.26% |
OM growth 3Y-11.35%
OM growth 5Y-8.43%
PM growth 3Y-12.64%
PM growth 5Y-10.04%
GM growth 3Y0.3%
GM growth 5Y0.63%
2. Health
2.1 Basic Checks
SBH has a Return on Invested Capital (ROIC), which is just above the Cost of Capital (WACC), which means it is creating some value.
Compared to 1 year ago, SBH has less shares outstanding
The number of shares outstanding for SBH has been reduced compared to 5 years ago.
SBH has a better debt/assets ratio than last year.
2.2 Solvency
An Altman-Z score of 2.77 indicates that SBH is not a great score, but indicates only limited risk for bankruptcy at the moment.
The Altman-Z score of SBH (2.77) is better than 66.67% of its industry peers.
The Debt to FCF ratio of SBH is 6.14, which is on the high side as it means it would take SBH, 6.14 years of fcf income to pay off all of its debts.
SBH's Debt to FCF ratio of 6.14 is in line compared to the rest of the industry. SBH outperforms 57.50% of its industry peers.
A Debt/Equity ratio of 1.29 is on the high side and indicates that SBH has dependencies on debt financing.
Looking at the Debt to Equity ratio, with a value of 1.29, SBH is doing worse than 62.50% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.29 | ||
| Debt/FCF | 6.14 | ||
| Altman-Z | 2.77 |
ROIC/WACC1.1
WACC9.99%
2.3 Liquidity
A Current Ratio of 2.32 indicates that SBH has no problem at all paying its short term obligations.
SBH has a Current ratio of 2.32. This is amongst the best in the industry. SBH outperforms 86.67% of its industry peers.
SBH has a Quick Ratio of 2.32. This is a bad value and indicates that SBH is not financially healthy enough and could expect problems in meeting its short term obligations.
SBH has a Quick ratio of 0.44. This is comparable to the rest of the industry: SBH outperforms 41.67% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 2.32 | ||
| Quick Ratio | 0.44 |
3. Growth
3.1 Past
SBH shows a strong growth in Earnings Per Share. In the last year, the EPS has been growing by 8.43%, which is quite good.
Measured over the past years, SBH shows a decrease in Earnings Per Share. The EPS has been decreasing by -5.65% on average per year.
The Revenue has been growing slightly by 0.17% in the past year.
Measured over the past years, SBH shows a decrease in Revenue. The Revenue has been decreasing by -0.84% on average per year.
EPS 1Y (TTM)8.43%
EPS 3Y-10.79%
EPS 5Y-5.65%
EPS Q2Q%20%
Revenue 1Y (TTM)0.17%
Revenue growth 3Y-1.38%
Revenue growth 5Y-0.84%
Sales Q2Q%-2.78%
3.2 Future
The Earnings Per Share is expected to grow by 9.72% on average over the next years. This is quite good.
The Revenue is expected to grow by 0.85% on average over the next years.
EPS Next Y3.39%
EPS Next 2Y7.58%
EPS Next 3Y9.72%
EPS Next 5YN/A
Revenue Next Year-0.56%
Revenue Next 2Y0.31%
Revenue Next 3Y0.85%
Revenue Next 5YN/A
3.3 Evolution
The EPS growth rate is accelerating: in the next years the growth will be better 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 accelerating.
4. Valuation
4.1 Price/Earnings Ratio
Based on the Price/Earnings ratio of 5.04, the valuation of SBH can be described as very cheap.
Based on the Price/Earnings ratio, SBH is valued cheaply inside the industry as 95.83% of the companies are valued more expensively.
Compared to an average S&P500 Price/Earnings ratio of 26.29, SBH is valued rather cheaply.
SBH is valuated cheaply with a Price/Forward Earnings ratio of 4.64.
Compared to the rest of the industry, the Price/Forward Earnings ratio of SBH indicates a rather cheap valuation: SBH is cheaper than 95.00% of the companies listed in the same industry.
SBH's Price/Forward Earnings ratio indicates a rather cheap valuation when compared to the S&P500 average which is at 22.17.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 5.04 | ||
| Fwd PE | 4.64 |
4.2 Price Multiples
Based on the Enterprise Value to EBITDA ratio, SBH is valued cheaper than 88.33% of the companies in the same industry.
Based on the Price/Free Cash Flow ratio, SBH is valued cheaper than 90.83% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 6.2 | ||
| EV/EBITDA | 3.97 |
4.3 Compensation for Growth
The PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates a correct valuation of the company.
SBH has a very decent profitability rating, which may justify a higher PE ratio.
PEG (NY)1.49
PEG (5Y)N/A
EPS Next 2Y7.58%
EPS Next 3Y9.72%
5. Dividend
5.1 Amount
No dividends for SBH!.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | N/A |
9.07
+0.27 (+3.07%)
Chartmill FA Rating
GICS SectorConsumer Discretionary
GICS IndustryGroupConsumer Discretionary Distribution & Retail
GICS IndustrySpecialty Retail
Earnings (Last)
Earnings (Next)
Inst Owners115.64%
Inst Owner Change3.16%
Ins Owners0.85%
Ins Owner Change2.88%
Market Cap915.07M
Analysts72
Price Target13.46 (48.4%)
Short Float %14.73%
Short Ratio7.05
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | N/A |
Yearly DividendN/A
Dividend Growth(5Y)N/A
DPN/A
Div Incr Years0
Div Non Decr Years0
Ex-DateN/A
Surprises & Revisions
EPS beat(2)1
Avg EPS beat(2)2.43%
Min EPS beat(2)-1.32%
Max EPS beat(2)6.17%
EPS beat(4)3
Avg EPS beat(4)4.98%
Min EPS beat(4)-1.32%
Max EPS beat(4)10.65%
EPS beat(8)4
Avg EPS beat(8)0.46%
EPS beat(12)7
Avg EPS beat(12)1.17%
EPS beat(16)10
Avg EPS beat(16)2.51%
Revenue beat(2)0
Avg Revenue beat(2)-2.31%
Min Revenue beat(2)-3%
Max Revenue beat(2)-1.61%
Revenue beat(4)1
Avg Revenue beat(4)-1.38%
Min Revenue beat(4)-3%
Max Revenue beat(4)0.14%
Revenue beat(8)1
Avg Revenue beat(8)-1.51%
Revenue beat(12)5
Avg Revenue beat(12)-0.5%
Revenue beat(16)7
Avg Revenue beat(16)-0.63%
PT rev (1m)0%
PT rev (3m)3.53%
EPS NQ rev (1m)-8.85%
EPS NQ rev (3m)-8.85%
EPS NY rev (1m)-4.86%
EPS NY rev (3m)-4.18%
Revenue NQ rev (1m)-1.32%
Revenue NQ rev (3m)-1.32%
Revenue NY rev (1m)-0.61%
Revenue NY rev (3m)-0.53%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 5.04 | ||
| Fwd PE | 4.64 | ||
| P/S | 0.25 | ||
| P/FCF | 6.2 | ||
| P/OCF | 3.76 | ||
| P/B | 1.31 | ||
| P/tB | 8.33 | ||
| EV/EBITDA | 3.97 |
EPS(TTM)1.8
EY19.85%
EPS(NY)1.96
Fwd EY21.57%
FCF(TTM)1.46
FCFY16.13%
OCF(TTM)2.41
OCFY26.57%
SpS36.66
BVpS6.94
TBVpS1.09
PEG (NY)1.49
PEG (5Y)N/A
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 6.87% | ||
| ROE | 26.58% | ||
| ROCE | 14.9% | ||
| ROIC | 10.99% | ||
| ROICexc | 11.48% | ||
| ROICexgc | 16.03% | ||
| OM | 8.75% | ||
| PM (TTM) | 5.03% | ||
| GM | 51.26% | ||
| FCFM | 3.99% |
ROA(3y)6.46%
ROA(5y)6.35%
ROE(3y)41.08%
ROE(5y)188.75%
ROIC(3y)11.72%
ROIC(5y)11.63%
ROICexc(3y)12.3%
ROICexc(5y)13.11%
ROICexgc(3y)17.54%
ROICexgc(5y)19.12%
ROCE(3y)15.88%
ROCE(5y)15.76%
ROICexcg growth 3Y-19.08%
ROICexcg growth 5Y-16.57%
ROICexc growth 3Y-17.14%
ROICexc growth 5Y-14.25%
OM growth 3Y-11.35%
OM growth 5Y-8.43%
PM growth 3Y-12.64%
PM growth 5Y-10.04%
GM growth 3Y0.3%
GM growth 5Y0.63%
F-Score9
Asset Turnover1.37
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.29 | ||
| Debt/FCF | 6.14 | ||
| Debt/EBITDA | 2.1 | ||
| Cap/Depr | 90.38% | ||
| Cap/Sales | 2.58% | ||
| Interest Coverage | 4.51 | ||
| Cash Conversion | 56.62% | ||
| Profit Quality | 79.36% | ||
| Current Ratio | 2.32 | ||
| Quick Ratio | 0.44 | ||
| Altman-Z | 2.77 |
F-Score9
WACC9.99%
ROIC/WACC1.1
Cap/Depr(3y)93.39%
Cap/Depr(5y)91.26%
Cap/Sales(3y)2.59%
Cap/Sales(5y)2.56%
Profit Quality(3y)70.61%
Profit Quality(5y)123.87%
High Growth Momentum
Growth
EPS 1Y (TTM)8.43%
EPS 3Y-10.79%
EPS 5Y-5.65%
EPS Q2Q%20%
EPS Next Y3.39%
EPS Next 2Y7.58%
EPS Next 3Y9.72%
EPS Next 5YN/A
Revenue 1Y (TTM)0.17%
Revenue growth 3Y-1.38%
Revenue growth 5Y-0.84%
Sales Q2Q%-2.78%
Revenue Next Year-0.56%
Revenue Next 2Y0.31%
Revenue Next 3Y0.85%
Revenue Next 5YN/A
EBIT growth 1Y9.92%
EBIT growth 3Y-12.57%
EBIT growth 5Y-9.19%
EBIT Next Year36.81%
EBIT Next 3Y14.73%
EBIT Next 5YN/A
FCF growth 1Y4.32%
FCF growth 3Y-22.14%
FCF growth 5Y-7.32%
OCF growth 1Y1.75%
OCF growth 3Y-13.58%
OCF growth 5Y-5.11%