SALLY BEAUTY HOLDINGS INC (SBH) Stock Fundamental Analysis
USA - New York Stock Exchange - NYSE:SBH - US79546E1047 - Common Stock
15.82 USD
-0.42 (-2.59%)
15.7601 USD
-0.06 (-0.38%)
We assign a fundamental rating of 6 out of 10 to SBH. SBH was compared to 122 industry peers in the Specialty Retail industry. SBH has an excellent profitability rating, but there are some minor concerns on its financial health. SBH may be a bit undervalued, certainly considering the very reasonable score on growth With these ratings, SBH could be worth investigating further 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.
Each year in the past 5 years SBH had a positive operating cash flow.
1.2 Ratios
Looking at the Return On Assets, with a value of 6.82%, SBH is in the better half of the industry, outperforming 78.69% of the companies in the same industry.
The Return On Equity of SBH (24.66%) is better than 85.25% of its industry peers.
Looking at the Return On Invested Capital, with a value of 10.77%, SBH is in the better half of the industry, outperforming 77.87% 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 11.71%.
The last Return On Invested Capital (10.77%) for SBH is above the 3 year average (10.66%), which is a sign of increasing profitability.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 6.82% | ||
| ROE | 24.66% | ||
| ROIC | 10.77% |
ROA(3y)6.36%
ROA(5y)6.93%
ROE(3y)28.45%
ROE(5y)46.67%
ROIC(3y)10.66%
ROIC(5y)12.12%
1.3 Margins
SBH has a better Profit Margin (5.29%) than 77.05% of its industry peers.
In the last couple of years the Profit Margin of SBH has grown nicely.
The Operating Margin of SBH (8.98%) is better than 79.51% of its industry peers.
In the last couple of years the Operating Margin of SBH has grown nicely.
With an excellent Gross Margin value of 51.62%, SBH belongs to the best of the industry, outperforming 81.15% of the companies in the same industry.
In the last couple of years the Gross Margin of SBH has remained more or less at the same level.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 8.98% | ||
| PM (TTM) | 5.29% | ||
| GM | 51.62% |
OM growth 3Y-2.11%
OM growth 5Y2.81%
PM growth 3Y3.22%
PM growth 5Y10.44%
GM growth 3Y0.87%
GM growth 5Y1.12%
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.
The number of shares outstanding for SBH has been reduced compared to 1 year ago.
Compared to 5 years ago, SBH has less shares outstanding
SBH has a better debt/assets ratio than last year.
2.2 Solvency
SBH has an Altman-Z score of 2.87. 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.
With a decent Altman-Z score value of 2.87, SBH is doing good in the industry, outperforming 68.85% of the companies in the same industry.
The Debt to FCF ratio of SBH is 5.01, which is a neutral value as it means it would take SBH, 5.01 years of fcf income to pay off all of its debts.
SBH has a Debt to FCF ratio of 5.01. This is in the better half of the industry: SBH outperforms 67.21% of its industry peers.
A Debt/Equity ratio of 1.09 is on the high side and indicates that SBH has dependencies on debt financing.
SBH has a Debt to Equity ratio of 1.09. This is comparable to the rest of the industry: SBH outperforms 42.62% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.09 | ||
| Debt/FCF | 5.01 | ||
| Altman-Z | 2.87 |
ROIC/WACC1.17
WACC9.22%
2.3 Liquidity
SBH has a Current Ratio of 2.26. This indicates that SBH is financially healthy and has no problem in meeting its short term obligations.
SBH has a better Current ratio (2.26) than 84.43% of its industry peers.
SBH has a Quick Ratio of 2.26. 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 (0.54) which is in line with its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 2.26 | ||
| Quick Ratio | 0.54 |
3. Growth
3.1 Past
SBH shows a strong growth in Earnings Per Share. In the last year, the EPS has been growing by 13.02%, which is quite good.
Measured over the past years, SBH shows a quite strong growth in Earnings Per Share. The EPS has been growing by 9.38% on average per year.
Looking at the last year, SBH shows a decrease in Revenue. The Revenue has decreased by -0.42% in the last year.
Measured over the past years, SBH shows a small growth in Revenue. The Revenue has been growing by 1.04% on average per year.
EPS 1Y (TTM)13.02%
EPS 3Y-3.87%
EPS 5Y9.38%
EPS Q2Q%10%
Revenue 1Y (TTM)-0.42%
Revenue growth 3Y-1.01%
Revenue growth 5Y1.04%
Sales Q2Q%1.29%
3.2 Future
The Earnings Per Share is expected to grow by 12.46% on average over the next years. This is quite good.
SBH is expected to show a small growth in Revenue. In the coming years, the Revenue will grow by 1.77% yearly.
EPS Next Y6.55%
EPS Next 2Y7.49%
EPS Next 3Y12.46%
EPS Next 5YN/A
Revenue Next Year1.1%
Revenue Next 2Y1.21%
Revenue Next 3Y1.77%
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.
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
The Price/Earnings ratio is 8.28, which indicates a very decent valuation of SBH.
Compared to the rest of the industry, the Price/Earnings ratio of SBH indicates a rather cheap valuation: SBH is cheaper than 90.16% of the companies listed in the same industry.
SBH is valuated cheaply when we compare the Price/Earnings ratio to 26.11, which is the current average of the S&P500 Index.
SBH is valuated cheaply with a Price/Forward Earnings ratio of 7.77.
SBH's Price/Forward Earnings ratio is rather cheap when compared to the industry. SBH is cheaper than 92.62% of the companies 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 36.21.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 8.28 | ||
| Fwd PE | 7.77 |
4.2 Price Multiples
Based on the Enterprise Value to EBITDA ratio, SBH is valued cheaply inside the industry as 87.70% of the companies are valued more expensively.
Based on the Price/Free Cash Flow ratio, SBH is valued cheaply inside the industry as 89.34% of the companies are valued more expensively.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 8.93 | ||
| EV/EBITDA | 5.32 |
4.3 Compensation for Growth
The PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates a correct valuation of the company.
The excellent profitability rating of SBH may justify a higher PE ratio.
SBH's earnings are expected to grow with 12.46% in the coming years. This may justify a more expensive valuation.
PEG (NY)1.26
PEG (5Y)0.88
EPS Next 2Y7.49%
EPS Next 3Y12.46%
5. Dividend
5.1 Amount
No dividends for SBH!.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | N/A |
15.82
-0.42 (-2.59%)
Chartmill FA Rating
GICS SectorConsumer Discretionary
GICS IndustryGroupConsumer Discretionary Distribution & Retail
GICS IndustrySpecialty Retail
Earnings (Last)
Earnings (Next)
Inst Owners120.1%
Inst Owner Change0.04%
Ins Owners0.89%
Ins Owner Change13.08%
Market Cap1.54B
Revenue(TTM)3.70B
Net Income(TTM)195.88M
Analysts71.11
Price Target16.58 (4.8%)
Short Float %19.35%
Short Ratio9.03
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)2
Avg EPS beat(2)16.99%
Min EPS beat(2)14.88%
Max EPS beat(2)19.09%
EPS beat(4)3
Avg EPS beat(4)9.71%
Min EPS beat(4)-1.32%
Max EPS beat(4)19.09%
EPS beat(8)6
Avg EPS beat(8)5.81%
EPS beat(12)8
Avg EPS beat(12)4.37%
EPS beat(16)10
Avg EPS beat(16)2.72%
Revenue beat(2)1
Avg Revenue beat(2)0%
Min Revenue beat(2)-0.51%
Max Revenue beat(2)0.52%
Revenue beat(4)1
Avg Revenue beat(4)-1.15%
Min Revenue beat(4)-3%
Max Revenue beat(4)0.52%
Revenue beat(8)2
Avg Revenue beat(8)-0.95%
Revenue beat(12)4
Avg Revenue beat(12)-0.56%
Revenue beat(16)6
Avg Revenue beat(16)-0.83%
PT rev (1m)12.46%
PT rev (3m)27.95%
EPS NQ rev (1m)-7.2%
EPS NQ rev (3m)-15.21%
EPS NY rev (1m)0.25%
EPS NY rev (3m)1.41%
Revenue NQ rev (1m)-0.56%
Revenue NQ rev (3m)-0.61%
Revenue NY rev (1m)-0.21%
Revenue NY rev (3m)-0.16%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 8.28 | ||
| Fwd PE | 7.77 | ||
| P/S | 0.42 | ||
| P/FCF | 8.93 | ||
| P/OCF | 5.61 | ||
| P/B | 1.94 | ||
| P/tB | 7.69 | ||
| EV/EBITDA | 5.32 |
EPS(TTM)1.91
EY12.07%
EPS(NY)2.04
Fwd EY12.86%
FCF(TTM)1.77
FCFY11.2%
OCF(TTM)2.82
OCFY17.82%
SpS37.96
BVpS8.15
TBVpS2.06
PEG (NY)1.26
PEG (5Y)0.88
Graham Number18.71
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 6.82% | ||
| ROE | 24.66% | ||
| ROCE | 14.48% | ||
| ROIC | 10.77% | ||
| ROICexc | 11.51% | ||
| ROICexgc | 15.92% | ||
| OM | 8.98% | ||
| PM (TTM) | 5.29% | ||
| GM | 51.62% | ||
| FCFM | 4.67% |
ROA(3y)6.36%
ROA(5y)6.93%
ROE(3y)28.45%
ROE(5y)46.67%
ROIC(3y)10.66%
ROIC(5y)12.12%
ROICexc(3y)11.31%
ROICexc(5y)13.27%
ROICexgc(3y)15.81%
ROICexgc(5y)19.1%
ROCE(3y)14.33%
ROCE(5y)16.3%
ROICexgc growth 3Y-9.56%
ROICexgc growth 5Y-1.02%
ROICexc growth 3Y-7.97%
ROICexc growth 5Y0.49%
OM growth 3Y-2.11%
OM growth 5Y2.81%
PM growth 3Y3.22%
PM growth 5Y10.44%
GM growth 3Y0.87%
GM growth 5Y1.12%
F-Score8
Asset Turnover1.29
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.09 | ||
| Debt/FCF | 5.01 | ||
| Debt/EBITDA | 1.99 | ||
| Cap/Depr | 102.23% | ||
| Cap/Sales | 2.76% | ||
| Interest Coverage | 5.18 | ||
| Cash Conversion | 63.58% | ||
| Profit Quality | 88.16% | ||
| Current Ratio | 2.26 | ||
| Quick Ratio | 0.54 | ||
| Altman-Z | 2.87 |
F-Score8
WACC9.22%
ROIC/WACC1.17
Cap/Depr(3y)94.33%
Cap/Depr(5y)90.94%
Cap/Sales(3y)2.64%
Cap/Sales(5y)2.48%
Profit Quality(3y)89.61%
Profit Quality(5y)85.67%
High Growth Momentum
Growth
EPS 1Y (TTM)13.02%
EPS 3Y-3.87%
EPS 5Y9.38%
EPS Q2Q%10%
EPS Next Y6.55%
EPS Next 2Y7.49%
EPS Next 3Y12.46%
EPS Next 5YN/A
Revenue 1Y (TTM)-0.42%
Revenue growth 3Y-1.01%
Revenue growth 5Y1.04%
Sales Q2Q%1.29%
Revenue Next Year1.1%
Revenue Next 2Y1.21%
Revenue Next 3Y1.77%
Revenue Next 5YN/A
EBIT growth 1Y17.57%
EBIT growth 3Y-3.1%
EBIT growth 5Y3.88%
EBIT Next Year40.26%
EBIT Next 3YN/A
EBIT Next 5YN/A
FCF growth 1Y18.8%
FCF growth 3Y44.53%
FCF growth 5Y-11.38%
OCF growth 1Y11.48%
OCF growth 3Y20.65%
OCF growth 5Y-8.43%
SALLY BEAUTY HOLDINGS INC / SBH FAQ
What is the fundamental rating for SBH stock?
ChartMill assigns a fundamental rating of 6 / 10 to SBH.
Can you provide the valuation status for SALLY BEAUTY HOLDINGS INC?
ChartMill assigns a valuation rating of 9 / 10 to SALLY BEAUTY HOLDINGS INC (SBH). This can be considered as Undervalued.
How profitable is SALLY BEAUTY HOLDINGS INC (SBH) stock?
SALLY BEAUTY HOLDINGS INC (SBH) has a profitability rating of 8 / 10.
Can you provide the financial health for SBH stock?
The financial health rating of SALLY BEAUTY HOLDINGS INC (SBH) is 6 / 10.