SALLY BEAUTY HOLDINGS INC (SBH)
US79546E1047 - Common Stock
Overall SBH gets a fundamental rating of 5 out of 10. We evaluated SBH against 126 industry peers in the Specialty Retail industry. SBH has only an average score on both its financial health and profitability. SBH is cheap, but on the other hand it scores bad on growth.
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.
In the past 5 years SBH always reported a positive cash flow from operatings.
1.2 Ratios
The Return On Assets of SBH (6.32%) is better than 69.84% of its industry peers.
The Return On Equity of SBH (31.90%) is better than 85.71% of its industry peers.
SBH has a Return On Invested Capital of 10.70%. This is in the better half of the industry: SBH outperforms 76.19% of its industry peers.
The Average Return On Invested Capital over the past 3 years for SBH is in line with the industry average of 13.97%.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 6.32% | ||
| ROE | 31.9% | ||
| ROIC | 10.7% |
ROA(3y)7.44%
ROA(5y)7.84%
ROE(3y)61.43%
ROE(5y)N/A
ROIC(3y)13.41%
ROIC(5y)13.93%
1.3 Margins
SBH's Profit Margin of 4.66% is fine compared to the rest of the industry. SBH outperforms 73.81% of its industry peers.
In the last couple of years the Profit Margin of SBH has declined.
The Operating Margin of SBH (8.40%) is better than 80.16% of its industry peers.
In the last couple of years the Operating Margin of SBH has declined.
With a decent Gross Margin value of 50.61%, SBH is doing good in the industry, outperforming 79.37% 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 | 8.4% | ||
| PM (TTM) | 4.66% | ||
| GM | 50.61% |
OM growth 3Y4.9%
OM growth 5Y-5%
PM growth 3Y15.41%
PM growth 5Y-5.47%
GM growth 3Y1.31%
GM growth 5Y0.53%
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.
SBH has less shares outstanding than it did 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
An Altman-Z score of 2.67 indicates that SBH is not a great score, but indicates only limited risk for bankruptcy at the moment.
SBH has a Altman-Z score (2.67) which is in line with its industry peers.
The Debt to FCF ratio of SBH is 7.17, which is on the high side as it means it would take SBH, 7.17 years of fcf income to pay off all of its debts.
SBH has a Debt to FCF ratio of 7.17. This is comparable to the rest of the industry: SBH outperforms 55.56% of its industry peers.
A Debt/Equity ratio of 1.97 is on the high side and indicates that SBH has dependencies on debt financing.
The Debt to Equity ratio of SBH (1.97) is worse than 67.46% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.97 | ||
| Debt/FCF | 7.17 | ||
| Altman-Z | 2.67 |
ROIC/WACC1.25
WACC8.59%
2.3 Liquidity
SBH has a Current Ratio of 2.20. 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 2.20, SBH belongs to the top of the industry, outperforming 84.13% of the companies in the same industry.
SBH has a Quick Ratio of 2.20. 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 of 0.45. This is in the lower half of the industry: SBH underperforms 62.70% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 2.2 | ||
| Quick Ratio | 0.45 |
3. Growth
3.1 Past
The earnings per share for SBH have decreased strongly by -15.69% in the last year.
Measured over the past years, SBH shows a decrease in Earnings Per Share. The EPS has been decreasing by -3.05% on average per year.
Looking at the last year, SBH shows a decrease in Revenue. The Revenue has decreased by -2.38% in the last year.
SBH shows a decrease in Revenue. Measured over the last years, the Revenue has been decreasing by -1.06% yearly.
EPS 1Y (TTM)-15.69%
EPS 3Y14.89%
EPS 5Y-3.05%
EPS growth Q2Q-25%
Revenue 1Y (TTM)-2.38%
Revenue growth 3Y1.99%
Revenue growth 5Y-1.06%
Revenue growth Q2Q-2.7%
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 8.35% yearly.
SBH is expected to show a small growth in Revenue. In the coming years, the Revenue will grow by 1.32% yearly.
EPS Next Y1.96%
EPS Next 2Y4.24%
EPS Next 3Y8.35%
EPS Next 5YN/A
Revenue Next Year-0.5%
Revenue Next 2Y0.3%
Revenue Next 3Y1.32%
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 6.37, which indicates a rather cheap valuation of SBH.
98.41% of the companies in the same industry are more expensive than SBH, based on the Price/Earnings ratio.
When comparing the Price/Earnings ratio of SBH to the average of the S&P500 Index (28.06), we can say SBH is valued rather cheaply.
The Price/Forward Earnings ratio is 5.45, which indicates a rather cheap valuation of SBH.
Based on the Price/Forward Earnings ratio, SBH is valued cheaper than 98.41% of the companies in the same industry.
The average S&P500 Price/Forward Earnings ratio is at 20.72. SBH is valued rather cheaply when compared to this.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 6.37 | ||
| Fwd PE | 5.45 |
4.2 Price Multiples
84.13% of the companies in the same industry are more expensive than SBH, based on the Enterprise Value to EBITDA ratio.
Based on the Price/Free Cash Flow ratio, SBH is valued cheaper than 86.51% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 7.7 | ||
| EV/EBITDA | 4.94 |
4.3 Compensation for Growth
The high PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates an expensive valuation of the company.
The decent profitability rating of SBH may justify a higher PE ratio.
PEG (NY)3.24
PEG (5Y)N/A
EPS Next 2Y4.24%
EPS Next 3Y8.35%
5. Dividend
5.1 Amount
No dividends for SBH!.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | N/A |
SALLY BEAUTY HOLDINGS INC
NYSE:SBH (5/2/2024, 7:18:12 PM)
After market: 10.59 -0.36 (-3.29%)10.95
+0.37 (+3.5%)
Chartmill FA Rating
GICS SectorConsumer Discretionary
GICS IndustryGroupConsumer Discretionary Distribution & Retail
GICS IndustrySpecialty Retail
Earnings (Last)
Earnings (Next)
Inst Owners
Inst Owner Change
Ins Owners
Ins Owner Change
Market Cap1.15B
Analysts
Price Target
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | N/A |
Dividend Growth(5Y)
DP
Div Incr Years
Div Non Decr Years
Ex-Date
Surprises & Revisions
EPS beat(2)
Avg EPS beat(2)
Min EPS beat(2)
Max EPS beat(2)
EPS beat(4)
Avg EPS beat(4)
Min EPS beat(4)
Max EPS beat(4)
EPS beat(8)
Avg EPS beat(8)
EPS beat(12)
Avg EPS beat(12)
EPS beat(16)
Avg EPS beat(16)
Revenue beat(2)
Avg Revenue beat(2)
Min Revenue beat(2)
Max Revenue beat(2)
Revenue beat(4)
Avg Revenue beat(4)
Min Revenue beat(4)
Max Revenue beat(4)
Revenue beat(8)
Avg Revenue beat(8)
Revenue beat(12)
Avg Revenue beat(12)
Revenue beat(16)
Avg Revenue beat(16)
PT rev (1m)
PT rev (3m)
EPS NQ rev (1m)
EPS NQ rev (3m)
EPS NY rev (1m)
EPS NY rev (3m)
Revenue NQ rev (1m)
Revenue NQ rev (3m)
Revenue NY rev (1m)
Revenue NY rev (3m)
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 6.37 | ||
| Fwd PE | 5.45 | ||
| P/S | |||
| P/FCF | |||
| P/OCF | |||
| P/B | |||
| P/tB | |||
| EV/EBITDA |
EPS(TTM)
EY
EPS(NY)
Fwd EY
FCF(TTM)
FCFY
OCF(TTM)
OCFY
SpS
BVpS
TBVpS
PEG (NY)3.24
PEG (5Y)N/A
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 6.32% | ||
| ROE | 31.9% | ||
| ROCE | |||
| ROIC | |||
| ROICexc | |||
| ROICexgc | |||
| OM | 8.4% | ||
| PM (TTM) | 4.66% | ||
| GM | 50.61% | ||
| FCFM |
ROA(3y)
ROA(5y)
ROE(3y)
ROE(5y)
ROIC(3y)
ROIC(5y)
ROICexc(3y)
ROICexc(5y)
ROICexgc(3y)
ROICexgc(5y)
ROCE(3y)
ROCE(5y)
ROICexcg growth 3Y
ROICexcg growth 5Y
ROICexc growth 3Y
ROICexc growth 5Y
OM growth 3Y
OM growth 5Y
PM growth 3Y
PM growth 5Y
GM growth 3Y
GM growth 5Y
F-Score
Asset Turnover1.36
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.97 | ||
| Debt/FCF | |||
| Debt/EBITDA | |||
| Cap/Depr | |||
| Cap/Sales | |||
| Interest Coverage | |||
| Cash Conversion | |||
| Profit Quality | |||
| Current Ratio | 2.2 | ||
| Quick Ratio | 0.45 | ||
| Altman-Z |
F-Score
WACC
ROIC/WACC
Cap/Depr(3y)
Cap/Depr(5y)
Cap/Sales(3y)
Cap/Sales(5y)
Profit Quality(3y)
Profit Quality(5y)
Growth
EPS 1Y (TTM)-15.69%
EPS 3Y14.89%
EPS 5Y
EPS growth Q2Q
EPS Next Y1.96%
EPS Next 2Y
EPS Next 3Y
EPS Next 5Y
Revenue 1Y (TTM)-2.38%
Revenue growth 3Y1.99%
Revenue growth 5Y
Revenue growth Q2Q
Revenue Next Year
Revenue Next 2Y
Revenue Next 3Y
Revenue Next 5Y
EBIT growth 1Y
EBIT growth 3Y
EBIT growth 5Y
EBIT Next Year
EBIT Next 3Y
EBIT Next 5Y
FCF growth 1Y
FCF growth 3Y
FCF growth 5Y
OCF growth 1Y
OCF growth 3Y
OCF growth 5Y