SALLY BEAUTY HOLDINGS INC (SBH) Stock Fundamental Analysis
NYSE:SBH - US79546E1047 - Common Stock
14.555 USD
+0.04 (+0.31%)
We assign a fundamental rating of 5 out of 10 to SBH. SBH was compared to 123 industry peers in the Specialty Retail industry. SBH has an average financial health and profitability rating. SBH may be a bit undervalued, certainly considering the very reasonable score on growth These ratings could make SBH a good candidate 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.
SBH had a positive operating cash flow in each of the past 5 years.
1.2 Ratios
With a decent Return On Assets value of 7.07%, SBH is doing good in the industry, outperforming 78.05% of the companies in the same industry.
With an excellent Return On Equity value of 25.43%, SBH belongs to the best of the industry, outperforming 82.11% of the companies in the same industry.
SBH has a Return On Invested Capital of 11.08%. This is in the better half of the industry: SBH outperforms 77.24% of its industry peers.
SBH had an Average Return On Invested Capital over the past 3 years of 11.72%. This is in line with the industry average of 11.99%.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 7.07% | ||
| ROE | 25.43% | ||
| ROIC | 11.08% |
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's Profit Margin of 5.26% is fine compared to the rest of the industry. SBH outperforms 77.24% of its industry peers.
SBH's Profit Margin has declined in the last couple of years.
Looking at the Operating Margin, with a value of 9.03%, SBH belongs to the top of the industry, outperforming 81.30% of the companies in the same industry.
SBH's Operating Margin has declined in the last couple of years.
With a decent Gross Margin value of 51.39%, SBH is doing good in the industry, outperforming 79.67% 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 | 9.03% | ||
| PM (TTM) | 5.26% | ||
| GM | 51.39% |
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
With a Return on Invested Capital (ROIC) just above the Cost of Capital (WACC), SBH 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
Compared to 1 year ago, SBH has an improved debt to assets ratio.
2.2 Solvency
SBH has an Altman-Z score of 2.94. 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.
The Altman-Z score of SBH (2.94) is better than 63.41% of its industry peers.
The Debt to FCF ratio of SBH is 5.28, which is a neutral value as it means it would take SBH, 5.28 years of fcf income to pay off all of its debts.
Looking at the Debt to FCF ratio, with a value of 5.28, SBH is in the better half of the industry, outperforming 62.60% of the companies in the same industry.
A Debt/Equity ratio of 1.16 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 1.16, SBH is doing worse than 61.79% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.16 | ||
| Debt/FCF | 5.28 | ||
| Altman-Z | 2.94 |
ROIC/WACC1.13
WACC9.81%
2.3 Liquidity
A Current Ratio of 2.41 indicates that SBH has no problem at all paying its short term obligations.
The Current ratio of SBH (2.41) is better than 87.80% of its industry peers.
SBH has a Quick Ratio of 2.41. This is a bad value and indicates that SBH is not financially healthy enough and could expect problems in meeting its short term obligations.
Looking at the Quick ratio, with a value of 0.49, SBH is in line with its industry, outperforming 46.34% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 2.41 | ||
| Quick Ratio | 0.49 |
3. Growth
3.1 Past
The Earnings Per Share has grown by an nice 14.81% over the past year.
The Earnings Per Share has been decreasing by -5.65% on average over the past years.
The Revenue has decreased by -0.38% in the past year.
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)-0.38%
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 8.70% on average over the next years. This is quite good.
The Revenue is expected to grow by 0.71% on average over the next years.
EPS Next Y9.22%
EPS Next 2Y8.97%
EPS Next 3Y8.7%
EPS Next 5YN/A
Revenue Next Year-0.88%
Revenue Next 2Y0.2%
Revenue Next 3Y0.71%
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
With a Price/Earnings ratio of 7.83, the valuation of SBH can be described as very cheap.
Compared to the rest of the industry, the Price/Earnings ratio of SBH indicates a rather cheap valuation: SBH is cheaper than 94.31% of the companies listed in the same industry.
The average S&P500 Price/Earnings ratio is at 27.02. SBH is valued rather cheaply when compared to this.
With a Price/Forward Earnings ratio of 7.25, the valuation of SBH can be described as very cheap.
Compared to the rest of the industry, the Price/Forward Earnings ratio of SBH indicates a rather cheap valuation: SBH is cheaper than 94.31% of the companies listed in the same industry.
Compared to an average S&P500 Price/Forward Earnings ratio of 22.66, SBH is valued rather cheaply.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 7.83 | ||
| Fwd PE | 7.25 |
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 89.43% of the companies listed in the same industry.
Based on the Price/Free Cash Flow ratio, SBH is valued cheaper than 90.24% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 8.57 | ||
| EV/EBITDA | 5.09 |
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.
The decent profitability rating of SBH may justify a higher PE ratio.
PEG (NY)0.85
PEG (5Y)N/A
EPS Next 2Y8.97%
EPS Next 3Y8.7%
5. Dividend
5.1 Amount
No dividends for SBH!.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | N/A |
NYSE:SBH (9/8/2025, 12:21:03 PM)
14.555
+0.04 (+0.31%)
Chartmill FA Rating
GICS SectorConsumer Discretionary
GICS IndustryGroupConsumer Discretionary Distribution & Retail
GICS IndustrySpecialty Retail
Earnings (Last)
Earnings (Next)
Inst Owners121.87%
Inst Owner Change-5.67%
Ins Owners0.86%
Ins Owner Change0.36%
Market Cap1.44B
Analysts71.11
Price Target12.95 (-11.03%)
Short Float %17.01%
Short Ratio8.41
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)12.63%
Min EPS beat(2)6.17%
Max EPS beat(2)19.09%
EPS beat(4)3
Avg EPS beat(4)7.09%
Min EPS beat(4)-1.32%
Max EPS beat(4)19.09%
EPS beat(8)5
Avg EPS beat(8)3.09%
EPS beat(12)8
Avg EPS beat(12)3.36%
EPS beat(16)10
Avg EPS beat(16)3.2%
Revenue beat(2)0
Avg Revenue beat(2)-1.75%
Min Revenue beat(2)-3%
Max Revenue beat(2)-0.51%
Revenue beat(4)0
Avg Revenue beat(4)-1.55%
Min Revenue beat(4)-3%
Max Revenue beat(4)-0.51%
Revenue beat(8)1
Avg Revenue beat(8)-1.26%
Revenue beat(12)4
Avg Revenue beat(12)-0.55%
Revenue beat(16)6
Avg Revenue beat(16)-0.84%
PT rev (1m)5.83%
PT rev (3m)5.83%
EPS NQ rev (1m)2.76%
EPS NQ rev (3m)-10.75%
EPS NY rev (1m)5.15%
EPS NY rev (3m)5.64%
Revenue NQ rev (1m)0.75%
Revenue NQ rev (3m)-0.45%
Revenue NY rev (1m)0.11%
Revenue NY rev (3m)0.13%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 7.83 | ||
| Fwd PE | 7.25 | ||
| P/S | 0.39 | ||
| P/FCF | 8.57 | ||
| P/OCF | 5.44 | ||
| P/B | 1.89 | ||
| P/tB | 8.69 | ||
| EV/EBITDA | 5.09 |
EPS(TTM)1.86
EY12.78%
EPS(NY)2.01
Fwd EY13.79%
FCF(TTM)1.7
FCFY11.67%
OCF(TTM)2.67
OCFY18.38%
SpS37.29
BVpS7.71
TBVpS1.68
PEG (NY)0.85
PEG (5Y)N/A
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 7.07% | ||
| ROE | 25.43% | ||
| ROCE | 15.01% | ||
| ROIC | 11.08% | ||
| ROICexc | 11.67% | ||
| ROICexgc | 16.28% | ||
| OM | 9.03% | ||
| PM (TTM) | 5.26% | ||
| GM | 51.39% | ||
| FCFM | 4.55% |
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-Score8
Asset Turnover1.34
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.16 | ||
| Debt/FCF | 5.28 | ||
| Debt/EBITDA | 2.03 | ||
| Cap/Depr | 94.92% | ||
| Cap/Sales | 2.62% | ||
| Interest Coverage | 4.83 | ||
| Cash Conversion | 60.82% | ||
| Profit Quality | 86.6% | ||
| Current Ratio | 2.41 | ||
| Quick Ratio | 0.49 | ||
| Altman-Z | 2.94 |
F-Score8
WACC9.81%
ROIC/WACC1.13
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 Y9.22%
EPS Next 2Y8.97%
EPS Next 3Y8.7%
EPS Next 5YN/A
Revenue 1Y (TTM)-0.38%
Revenue growth 3Y-1.38%
Revenue growth 5Y-0.84%
Sales Q2Q%-0.96%
Revenue Next Year-0.88%
Revenue Next 2Y0.2%
Revenue Next 3Y0.71%
Revenue Next 5YN/A
EBIT growth 1Y20.4%
EBIT growth 3Y-12.57%
EBIT growth 5Y-9.19%
EBIT Next Year36.4%
EBIT Next 3Y12.8%
EBIT Next 5YN/A
FCF growth 1Y16.5%
FCF growth 3Y-22.14%
FCF growth 5Y-7.32%
OCF growth 1Y10.21%
OCF growth 3Y-13.58%
OCF growth 5Y-5.11%