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 122 industry peers in the Specialty Retail industry. Both the profitability and the financial health of SBH get a neutral evaluation. Nothing too spectacular is happening here. SBH scores decently on growth, while it is valued quite cheap. This could make an interesting combination. These ratings would make SBH suitable for value investing!
1. Profitability
1.1 Basic Checks
SBH had positive earnings in the past year.
In the past year SBH had a positive cash flow from operations.
Each year in the past 5 years SBH has been profitable.
SBH had a positive operating cash flow in each of the past 5 years.
1.2 Ratios
SBH has a better Return On Assets (6.49%) than 74.59% of its industry peers.
SBH has a better Return On Equity (26.81%) than 84.43% of its industry peers.
SBH has a better Return On Invested Capital (10.71%) than 75.41% of its industry peers.
Measured over the past 3 years, the Average Return On Invested Capital for SBH is in line with the industry average of 13.02%.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 6.49% | ||
| ROE | 26.81% | ||
| ROIC | 10.71% |
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
Looking at the Profit Margin, with a value of 4.73%, SBH is in the better half of the industry, outperforming 76.23% of the companies in the same industry.
In the last couple of years the Profit Margin of SBH has declined.
SBH's Operating Margin of 8.43% is amongst the best of the industry. SBH outperforms 81.15% of its industry peers.
SBH's Operating Margin has declined in the last couple of years.
SBH's Gross Margin of 51.03% is fine compared to the rest of the industry. SBH outperforms 77.87% of its industry peers.
SBH's Gross Margin has been stable in the last couple of years.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 8.43% | ||
| PM (TTM) | 4.73% | ||
| GM | 51.03% |
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
SBH has less shares outstanding than it did 5 years ago.
Compared to 1 year ago, SBH has an improved debt to assets ratio.
2.2 Solvency
An Altman-Z score of 2.72 indicates that SBH is not a great score, but indicates only limited risk for bankruptcy at the moment.
Looking at the Altman-Z score, with a value of 2.72, SBH is in the better half of the industry, outperforming 60.66% of the companies in the same industry.
The Debt to FCF ratio of SBH is 6.81, which is on the high side as it means it would take SBH, 6.81 years of fcf income to pay off all of its debts.
The Debt to FCF ratio of SBH (6.81) is comparable to the rest of the industry.
SBH has a Debt/Equity ratio of 1.43. This is a high value indicating a heavy dependency on external financing.
Looking at the Debt to Equity ratio, with a value of 1.43, SBH is doing worse than 64.75% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.43 | ||
| Debt/FCF | 6.81 | ||
| Altman-Z | 2.72 |
ROIC/WACC1.11
WACC9.65%
2.3 Liquidity
SBH has a Current Ratio of 2.27. This indicates that SBH is financially healthy and has no problem in meeting its short term obligations.
Looking at the Current ratio, with a value of 2.27, SBH belongs to the top of the industry, outperforming 86.89% of the companies in the same industry.
SBH has a Quick Ratio of 2.27. This is a bad value and indicates that SBH is not financially healthy enough and could expect problems in meeting its short term obligations.
With a Quick ratio value of 0.44, SBH perfoms like the industry average, outperforming 41.80% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 2.27 | ||
| Quick Ratio | 0.44 |
3. Growth
3.1 Past
The Earnings Per Share has been growing slightly by 0.58% 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 small growth in Revenue. In the last year, the Revenue has grown by 0.57%.
SBH shows a decrease in Revenue. Measured over the last years, the Revenue has been decreasing by -0.84% yearly.
EPS 1Y (TTM)0.58%
EPS 3Y-10.79%
EPS 5Y-5.65%
EPS Q2Q%10.26%
Revenue 1Y (TTM)0.57%
Revenue growth 3Y-1.38%
Revenue growth 5Y-0.84%
Sales Q2Q%0.71%
3.2 Future
SBH is expected to show quite a strong growth in Earnings Per Share. In the coming years, the EPS will grow by 9.55% yearly.
Based on estimates for the next years, SBH will show a small growth in Revenue. The Revenue will grow by 1.29% on average per year.
EPS Next Y8.67%
EPS Next 2Y9.56%
EPS Next 3Y9.55%
EPS Next 5YN/A
Revenue Next Year0.05%
Revenue Next 2Y0.91%
Revenue Next 3Y1.29%
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
A Price/Earnings ratio of 4.72 indicates a rather cheap valuation of SBH.
SBH's Price/Earnings ratio is rather cheap when compared to the industry. SBH is cheaper than 98.36% of the companies in the same industry.
SBH's Price/Earnings ratio indicates a rather cheap valuation when compared to the S&P500 average which is at 24.21.
SBH is valuated cheaply with a Price/Forward Earnings ratio of 4.03.
Based on the Price/Forward Earnings ratio, SBH is valued cheaper than 100.00% of the companies in the same industry.
Compared to an average S&P500 Price/Forward Earnings ratio of 20.44, SBH is valued rather cheaply.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 4.72 | ||
| Fwd PE | 4.03 |
4.2 Price Multiples
Compared to the rest of the industry, the Enterprise Value to EBITDA ratio of SBH indicates a rather cheap valuation: SBH is cheaper than 88.52% of the companies listed in the same industry.
90.98% 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 | 6.02 | ||
| EV/EBITDA | 3.96 |
4.3 Compensation for Growth
The low PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates a rather cheap valuation of the company.
SBH has a very decent profitability rating, which may justify a higher PE ratio.
PEG (NY)0.54
PEG (5Y)N/A
EPS Next 2Y9.56%
EPS Next 3Y9.55%
5. Dividend
5.1 Amount
SBH does not give a dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | N/A |
8.17
-0.18 (-2.16%)
Chartmill FA Rating
GICS SectorConsumer Discretionary
GICS IndustryGroupConsumer Discretionary Distribution & Retail
GICS IndustrySpecialty Retail
Earnings (Last)
Earnings (Next)
Inst Owners115.64%
Inst Owner Change2.11%
Ins Owners0.85%
Ins Owner Change14.47%
Market Cap832.93M
Analysts72
Price Target13.46 (64.75%)
Short Float %15.5%
Short Ratio6.38
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)1.54%
Min EPS beat(2)-1.32%
Max EPS beat(2)4.4%
EPS beat(4)2
Avg EPS beat(4)0.32%
Min EPS beat(4)-12.45%
Max EPS beat(4)10.65%
EPS beat(8)4
Avg EPS beat(8)0.76%
EPS beat(12)6
Avg EPS beat(12)-0.06%
EPS beat(16)10
Avg EPS beat(16)19.83%
Revenue beat(2)0
Avg Revenue beat(2)-1.34%
Min Revenue beat(2)-1.61%
Max Revenue beat(2)-1.07%
Revenue beat(4)1
Avg Revenue beat(4)-0.95%
Min Revenue beat(4)-1.61%
Max Revenue beat(4)0.14%
Revenue beat(8)2
Avg Revenue beat(8)-0.84%
Revenue beat(12)5
Avg Revenue beat(12)-0.67%
Revenue beat(16)8
Avg Revenue beat(16)0.26%
PT rev (1m)3.53%
PT rev (3m)-6.82%
EPS NQ rev (1m)0.43%
EPS NQ rev (3m)1.55%
EPS NY rev (1m)0.71%
EPS NY rev (3m)-1.18%
Revenue NQ rev (1m)0.05%
Revenue NQ rev (3m)-2.25%
Revenue NY rev (1m)0.08%
Revenue NY rev (3m)-1%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 4.72 | ||
| Fwd PE | 4.03 | ||
| P/S | 0.22 | ||
| P/FCF | 6.02 | ||
| P/OCF | 3.64 | ||
| P/B | 1.27 | ||
| P/tB | 12.38 | ||
| EV/EBITDA | 3.96 |
EPS(TTM)1.73
EY21.18%
EPS(NY)2.03
Fwd EY24.83%
FCF(TTM)1.36
FCFY16.6%
OCF(TTM)2.25
OCFY27.49%
SpS36.52
BVpS6.44
TBVpS0.66
PEG (NY)0.54
PEG (5Y)N/A
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 6.49% | ||
| ROE | 26.81% | ||
| ROCE | 14.52% | ||
| ROIC | 10.71% | ||
| ROICexc | 11.26% | ||
| ROICexgc | 15.79% | ||
| OM | 8.43% | ||
| PM (TTM) | 4.73% | ||
| GM | 51.03% | ||
| FCFM | 3.71% |
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 | 1.43 | ||
| Debt/FCF | 6.81 | ||
| Debt/EBITDA | 2.23 | ||
| Cap/Depr | 84.57% | ||
| Cap/Sales | 2.44% | ||
| Interest Coverage | 4.68 | ||
| Cash Conversion | 54.36% | ||
| Profit Quality | 78.55% | ||
| Current Ratio | 2.27 | ||
| Quick Ratio | 0.44 | ||
| Altman-Z | 2.72 |
F-Score9
WACC9.65%
ROIC/WACC1.11
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)0.58%
EPS 3Y-10.79%
EPS 5Y-5.65%
EPS Q2Q%10.26%
EPS Next Y8.67%
EPS Next 2Y9.56%
EPS Next 3Y9.55%
EPS Next 5YN/A
Revenue 1Y (TTM)0.57%
Revenue growth 3Y-1.38%
Revenue growth 5Y-0.84%
Sales Q2Q%0.71%
Revenue Next Year0.05%
Revenue Next 2Y0.91%
Revenue Next 3Y1.29%
Revenue Next 5YN/A
EBIT growth 1Y0.9%
EBIT growth 3Y-12.57%
EBIT growth 5Y-9.19%
EBIT Next Year43.46%
EBIT Next 3Y14.62%
EBIT Next 5YN/A
FCF growth 1Y15.9%
FCF growth 3Y-22.14%
FCF growth 5Y-7.32%
OCF growth 1Y5.42%
OCF growth 3Y-13.58%
OCF growth 5Y-5.11%