SALLY BEAUTY HOLDINGS INC (SBH) Stock Fundamental Analysis
NYSE:SBH - New York Stock Exchange, Inc. - US79546E1047 - Common Stock - Currency: USD
Taking everything into account, SBH scores 5 out of 10 in our fundamental rating. SBH was compared to 123 industry peers in the Specialty Retail industry. While SBH belongs to the best of the industry regarding profitability, there are some minor concerns on its financial health. A decent growth rate in combination with a cheap valuation! Better keep an eye on SBH. This makes SBH very considerable for value investing!
1. Profitability
1.1 Basic Checks
SBH had positive earnings in the past year.
SBH had a positive operating cash flow in the past year.
Each year in the past 5 years SBH has been profitable.
In the past 5 years SBH always reported a positive cash flow from operatings.
1.2 Ratios
Looking at the Return On Assets, with a value of 6.87%, SBH is in the better half of the industry, outperforming 77.24% of the companies in the same industry.
SBH has a better Return On Equity (26.58%) than 84.55% of its industry peers.
With a decent Return On Invested Capital value of 10.99%, SBH is doing good in the industry, outperforming 78.05% 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 12.08%.
| 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
With a decent Profit Margin value of 5.03%, SBH is doing good in the industry, outperforming 78.05% of the companies in the same industry.
In the last couple of years the Profit Margin of SBH has declined.
SBH has a better Operating Margin (8.75%) than 81.30% of its industry peers.
SBH's Operating Margin has declined in the last couple of years.
With an excellent Gross Margin value of 51.26%, SBH belongs to the best of the industry, outperforming 80.49% 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
The Return on Invested Capital (ROIC) is just above the Cost of Capital (WACC), so SBH is still 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.
The debt/assets ratio for SBH has been reduced compared to a year ago.
2.2 Solvency
SBH has an Altman-Z score of 2.86. This is not the best score and indicates that SBH is in the grey zone with still only limited risk for bankruptcy at the moment.
Looking at the Altman-Z score, with a value of 2.86, SBH is in the better half of the industry, outperforming 65.85% of the companies in the same industry.
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 has a better Debt to FCF ratio (6.14) than 62.60% 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 60.98% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.29 | ||
| Debt/FCF | 6.14 | ||
| Altman-Z | 2.86 |
ROIC/WACC1.14
WACC9.62%
2.3 Liquidity
A Current Ratio of 2.32 indicates that SBH has no problem at all paying its short term obligations.
The Current ratio of SBH (2.32) is better than 86.18% 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's Quick ratio of 0.44 is in line compared to the rest of the industry. SBH outperforms 43.90% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 2.32 | ||
| Quick Ratio | 0.44 |
3. Growth
3.1 Past
The Earnings Per Share has grown by an nice 14.81% over the past year.
SBH shows a decrease in Earnings Per Share. Measured over the last years, the EPS has been decreasing by -5.65% yearly.
SBH shows a decrease in Revenue. In the last year, the revenue decreased by -0.30%.
SBH shows a decrease in Revenue. Measured over the last years, the Revenue has been decreasing by -0.84% yearly.
EPS 1Y (TTM)14.81%
EPS 3Y-10.79%
EPS 5Y-5.65%
EPS Q2Q%13.33%
Revenue 1Y (TTM)-0.3%
Revenue growth 3Y-1.38%
Revenue growth 5Y-0.84%
Sales Q2Q%-0.96%
3.2 Future
The Earnings Per Share is expected to grow by 9.05% on average over the next years. This is quite good.
Based on estimates for the next years, SBH will show a small growth in Revenue. The Revenue will grow by 0.85% on average per year.
EPS Next Y3.87%
EPS Next 2Y7.12%
EPS Next 3Y9.05%
EPS Next 5YN/A
Revenue Next Year-0.99%
Revenue Next 2Y0.23%
Revenue Next 3Y0.85%
Revenue Next 5YN/A
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 accelerating.
The Revenue growth rate is accelerating: in the next years the growth will be better than in the last years.
4. Valuation
4.1 Price/Earnings Ratio
With a Price/Earnings ratio of 6.28, the valuation of SBH can be described as very cheap.
Based on the Price/Earnings ratio, SBH is valued cheaply inside the industry as 95.12% of the companies are valued more expensively.
When comparing the Price/Earnings ratio of SBH to the average of the S&P500 Index (26.48), we can say SBH is valued rather cheaply.
The Price/Forward Earnings ratio is 6.02, which indicates a rather cheap valuation of SBH.
Based on the Price/Forward Earnings ratio, SBH is valued cheaper than 95.12% of the companies in the same industry.
SBH is valuated cheaply when we compare the Price/Forward Earnings ratio to 34.04, which is the current average of the S&P500 Index.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 6.28 | ||
| Fwd PE | 6.02 |
4.2 Price Multiples
86.18% of the companies in the same industry are more expensive than SBH, based on the Enterprise Value to EBITDA ratio.
87.80% of the companies in the same industry are more expensive than SBH, based on the Price/Free Cash Flow ratio.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 7.98 | ||
| EV/EBITDA | 4.66 |
4.3 Compensation for Growth
SBH's 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)1.62
PEG (5Y)N/A
EPS Next 2Y7.12%
EPS Next 3Y9.05%
5. Dividend
5.1 Amount
SBH does not give a dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | N/A |
11.68
-0.06 (-0.51%)
Chartmill FA Rating
GICS SectorConsumer Discretionary
GICS IndustryGroupConsumer Discretionary Distribution & Retail
GICS IndustrySpecialty Retail
Earnings (Last)
Earnings (Next)
Inst Owners121.87%
Inst Owner Change-0.17%
Ins Owners0.86%
Ins Owner Change0%
Market Cap1.18B
Analysts71.11
Price Target12.24 (4.79%)
Short Float %15.15%
Short Ratio9.13
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)-9.09%
EPS NQ rev (1m)-0.47%
EPS NQ rev (3m)-8.71%
EPS NY rev (1m)0%
EPS NY rev (3m)-4.42%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)-1.33%
Revenue NY rev (1m)0.03%
Revenue NY rev (3m)-1.04%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 6.28 | ||
| Fwd PE | 6.02 | ||
| P/S | 0.32 | ||
| P/FCF | 7.98 | ||
| P/OCF | 4.85 | ||
| P/B | 1.68 | ||
| P/tB | 10.73 | ||
| EV/EBITDA | 4.66 |
EPS(TTM)1.86
EY15.92%
EPS(NY)1.94
Fwd EY16.6%
FCF(TTM)1.46
FCFY12.53%
OCF(TTM)2.41
OCFY20.63%
SpS36.66
BVpS6.94
TBVpS1.09
PEG (NY)1.62
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 | 2.86 |
F-Score9
WACC9.62%
ROIC/WACC1.14
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)14.81%
EPS 3Y-10.79%
EPS 5Y-5.65%
EPS Q2Q%13.33%
EPS Next Y3.87%
EPS Next 2Y7.12%
EPS Next 3Y9.05%
EPS Next 5YN/A
Revenue 1Y (TTM)-0.3%
Revenue growth 3Y-1.38%
Revenue growth 5Y-0.84%
Sales Q2Q%-0.96%
Revenue Next Year-0.99%
Revenue Next 2Y0.23%
Revenue Next 3Y0.85%
Revenue Next 5YN/A
EBIT growth 1Y9.92%
EBIT growth 3Y-12.57%
EBIT growth 5Y-9.19%
EBIT Next Year36.4%
EBIT Next 3Y12.8%
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%