SALLY BEAUTY HOLDINGS INC (SBH) Stock Fundamental Analysis
NYSE:SBH - New York Stock Exchange, Inc. - US79546E1047 - Common Stock - Currency: USD
We assign a fundamental rating of 5 out of 10 to SBH. SBH was compared to 122 industry peers in the Specialty Retail industry. SBH has only an average score on both its financial health and profitability. 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.
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
Looking at the Return On Assets, with a value of 6.87%, SBH is in the better half of the industry, outperforming 77.05% of the companies in the same industry.
SBH has a Return On Equity of 26.58%. This is amongst the best in the industry. SBH outperforms 84.43% of its industry peers.
SBH's Return On Invested Capital of 10.99% is fine compared to the rest of the industry. SBH outperforms 77.05% 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 12.95%.
| 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 better Profit Margin (5.03%) than 77.87% of its industry peers.
SBH's Profit Margin has declined in the last couple of years.
SBH has a better Operating Margin (8.75%) than 81.97% of its industry peers.
SBH's Operating Margin has declined in the last couple of years.
SBH's Gross Margin of 51.26% is fine compared to the rest of the industry. SBH outperforms 79.51% of its industry peers.
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 | 8.75% | ||
| 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
With a Return on Invested Capital (ROIC) just above the Cost of Capital (WACC), SBH is creating some value.
SBH has less shares outstanding than it did 1 year ago.
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
SBH has an Altman-Z score of 2.77. 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 (2.77) is better than 64.75% 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 has a better Debt to FCF ratio (6.14) than 61.48% 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.
SBH has a Debt to Equity ratio of 1.29. This is in the lower half of the industry: SBH underperforms 62.30% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.29 | ||
| Debt/FCF | 6.14 | ||
| Altman-Z | 2.77 |
ROIC/WACC1.12
WACC9.83%
2.3 Liquidity
SBH has a Current Ratio of 2.32. This indicates that SBH is financially healthy and has no problem in meeting its short term obligations.
SBH has a better Current ratio (2.32) than 86.07% 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 42.62% 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 8.43% over the past year.
The Earnings Per Share has been decreasing by -5.65% on average over the past years.
SBH shows a small growth in Revenue. In the last year, the Revenue has grown by 0.17%.
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
Based on estimates for the next years, SBH will show a quite strong growth in Earnings Per Share. The EPS will grow by 9.05% on average per year.
SBH is expected to show a small growth in Revenue. In the coming years, the Revenue will grow by 0.85% yearly.
EPS Next Y3.87%
EPS Next 2Y7.12%
EPS Next 3Y9.05%
EPS Next 5YN/A
Revenue Next Year-1.01%
Revenue Next 2Y0.19%
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
SBH is valuated cheaply with a Price/Earnings ratio of 4.97.
Based on the Price/Earnings ratio, SBH is valued cheaply inside the industry as 95.90% of the companies are valued more expensively.
The average S&P500 Price/Earnings ratio is at 26.65. SBH is valued rather cheaply when compared to this.
With a Price/Forward Earnings ratio of 4.61, the valuation of SBH can be described as very cheap.
93.44% of the companies in the same industry are more expensive than SBH, based on the Price/Forward Earnings ratio.
When comparing the Price/Forward Earnings ratio of SBH to the average of the S&P500 Index (21.27), we can say SBH is valued rather cheaply.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 4.97 | ||
| Fwd PE | 4.61 |
4.2 Price Multiples
88.52% of the companies in the same industry are more expensive than SBH, based on the Enterprise Value to EBITDA ratio.
Compared to the rest of the industry, the Price/Free Cash Flow ratio of SBH indicates a rather cheap valuation: SBH is cheaper than 91.80% of the companies listed in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 6.11 | ||
| EV/EBITDA | 4 |
4.3 Compensation for Growth
SBH's PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates a correct valuation of the company.
The decent profitability rating of SBH may justify a higher PE ratio.
PEG (NY)1.28
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 |
8.94
+0.24 (+2.76%)
Chartmill FA Rating
GICS SectorConsumer Discretionary
GICS IndustryGroupConsumer Discretionary Distribution & Retail
GICS IndustrySpecialty Retail
Earnings (Last)
Earnings (Next)
Inst Owners121.38%
Inst Owner Change3.16%
Ins Owners0.86%
Ins Owner Change2.88%
Market Cap901.96M
Analysts71.11
Price Target12.24 (36.91%)
Short Float %14.95%
Short Ratio7.64
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)-9.09%
PT rev (3m)-5.88%
EPS NQ rev (1m)0.63%
EPS NQ rev (3m)-8.27%
EPS NY rev (1m)0.46%
EPS NY rev (3m)-3.73%
Revenue NQ rev (1m)-0.01%
Revenue NQ rev (3m)-1.33%
Revenue NY rev (1m)-0.46%
Revenue NY rev (3m)-0.99%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 4.97 | ||
| Fwd PE | 4.61 | ||
| P/S | 0.24 | ||
| P/FCF | 6.11 | ||
| P/OCF | 3.71 | ||
| P/B | 1.29 | ||
| P/tB | 8.21 | ||
| EV/EBITDA | 4 |
EPS(TTM)1.8
EY20.13%
EPS(NY)1.94
Fwd EY21.69%
FCF(TTM)1.46
FCFY16.37%
OCF(TTM)2.41
OCFY26.95%
SpS36.66
BVpS6.94
TBVpS1.09
PEG (NY)1.28
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
WACC9.83%
ROIC/WACC1.12
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 Y3.87%
EPS Next 2Y7.12%
EPS Next 3Y9.05%
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-1.01%
Revenue Next 2Y0.19%
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%