SALLY BEAUTY HOLDINGS INC (SBH) Stock Fundamental Analysis
USA - New York Stock Exchange - NYSE:SBH - US79546E1047 - Common Stock
14.99 USD
-0.17 (-1.12%)
14.99 USD
0 (0%)
SBH gets a fundamental rating of 6 out of 10. The analysis compared the fundamentals against 123 industry peers in the Specialty Retail industry. While SBH has a great profitability rating, there are some minor concerns on its financial health. SBH scores decently on growth, while it is valued quite cheap. This could make an interesting combination. With these ratings, SBH could be worth investigating further 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.
SBH had positive earnings in each of the past 5 years.
Each year in the past 5 years SBH had a positive operating cash flow.
1.2 Ratios
SBH's Return On Assets of 6.82% is fine compared to the rest of the industry. SBH outperforms 78.05% of its industry peers.
With an excellent Return On Equity value of 24.66%, SBH belongs to the best of the industry, outperforming 83.74% of the companies in the same industry.
SBH has a Return On Invested Capital of 10.77%. This is in the better half of the industry: SBH outperforms 78.05% 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 12.14%.
The 3 year average ROIC (10.66%) for SBH is below the current ROIC(10.77%), indicating increased profibility in the last year.
| 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
The Profit Margin of SBH (5.29%) is better than 77.24% of its industry peers.
In the last couple of years the Profit Margin of SBH has grown nicely.
Looking at the Operating Margin, with a value of 8.98%, SBH is in the better half of the industry, outperforming 79.67% of the companies in the same industry.
SBH's Operating Margin has improved in the last couple of years.
SBH's Gross Margin of 51.62% is fine compared to the rest of the industry. SBH outperforms 78.05% of its industry peers.
SBH's Gross Margin has been stable in the last couple of years.
| 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.
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
An Altman-Z score of 2.83 indicates that SBH is not a great score, but indicates only limited risk for bankruptcy at the moment.
With a decent Altman-Z score value of 2.83, SBH is doing good in the industry, outperforming 64.23% 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.
The Debt to FCF ratio of SBH (5.01) is better than 66.67% 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.
Looking at the Debt to Equity ratio, with a value of 1.09, SBH is in line with its industry, outperforming 40.65% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.09 | ||
| Debt/FCF | 5.01 | ||
| Altman-Z | 2.83 |
ROIC/WACC1.14
WACC9.42%
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 82.93% 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's Quick ratio of 0.54 is in line compared to the rest of the industry. SBH outperforms 52.03% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 2.26 | ||
| Quick Ratio | 0.54 |
3. Growth
3.1 Past
The Earnings Per Share has grown by an nice 13.02% over the past year.
The Earnings Per Share has been growing by 9.38% on average over the past years. This is quite good.
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
Based on estimates for the next years, SBH will show a quite strong growth in Earnings Per Share. The EPS will grow by 12.46% on average per year.
Based on estimates for the next years, SBH will show a small growth in Revenue. The Revenue will grow by 1.77% on average per year.
EPS Next Y8.93%
EPS Next 2Y8.59%
EPS Next 3Y12.46%
EPS Next 5YN/A
Revenue Next Year1.45%
Revenue Next 2Y1.53%
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
SBH is valuated cheaply with a Price/Earnings ratio of 7.85.
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.
Compared to an average S&P500 Price/Earnings ratio of 26.92, SBH is valued rather cheaply.
A Price/Forward Earnings ratio of 7.20 indicates a rather cheap valuation of SBH.
Compared to the rest of the industry, the Price/Forward Earnings ratio of SBH indicates a rather cheap valuation: SBH is cheaper than 95.94% of the companies listed in the same industry.
Compared to an average S&P500 Price/Forward Earnings ratio of 23.46, SBH is valued rather cheaply.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 7.85 | ||
| Fwd PE | 7.2 |
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 88.62% of the companies listed in the same industry.
Based on the Price/Free Cash Flow ratio, SBH is valued cheaper than 88.62% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 8.46 | ||
| EV/EBITDA | 5.04 |
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 excellent profitability rating of SBH may justify a higher PE ratio.
A more expensive valuation may be justified as SBH's earnings are expected to grow with 12.46% in the coming years.
PEG (NY)0.88
PEG (5Y)0.84
EPS Next 2Y8.59%
EPS Next 3Y12.46%
5. Dividend
5.1 Amount
No dividends for SBH!.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0% |
14.99
-0.17 (-1.12%)
Chartmill FA Rating
GICS SectorConsumer Discretionary
GICS IndustryGroupConsumer Discretionary Distribution & Retail
GICS IndustrySpecialty Retail
Earnings (Last)
Earnings (Next)
Inst Owners123.05%
Inst Owner Change0.04%
Ins Owners1.22%
Ins Owner Change12.47%
Market Cap1.46B
Revenue(TTM)3.70B
Net Income(TTM)195.88M
Analysts71.11
Price Target16.58 (10.61%)
Short Float %19.84%
Short Ratio9.7
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0% |
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)0%
PT rev (3m)20.82%
EPS NQ rev (1m)-0.86%
EPS NQ rev (3m)-15.94%
EPS NY rev (1m)2.23%
EPS NY rev (3m)2.54%
Revenue NQ rev (1m)-0.17%
Revenue NQ rev (3m)-0.78%
Revenue NY rev (1m)0.35%
Revenue NY rev (3m)0.16%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 7.85 | ||
| Fwd PE | 7.2 | ||
| P/S | 0.39 | ||
| P/FCF | 8.46 | ||
| P/OCF | 5.32 | ||
| P/B | 1.84 | ||
| P/tB | 7.29 | ||
| EV/EBITDA | 5.04 |
EPS(TTM)1.91
EY12.74%
EPS(NY)2.08
Fwd EY13.88%
FCF(TTM)1.77
FCFY11.82%
OCF(TTM)2.82
OCFY18.8%
SpS37.96
BVpS8.15
TBVpS2.06
PEG (NY)0.88
PEG (5Y)0.84
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 | 2.83 |
F-Score8
WACC9.42%
ROIC/WACC1.14
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 Y8.93%
EPS Next 2Y8.59%
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 Year1.45%
Revenue Next 2Y1.53%
Revenue Next 3Y1.77%
Revenue Next 5YN/A
EBIT growth 1Y17.57%
EBIT growth 3Y-3.1%
EBIT growth 5Y3.88%
EBIT Next Year40.86%
EBIT Next 3Y12.26%
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.