SALLY BEAUTY HOLDINGS INC (SBH) Stock Fundamental Analysis
USA - NYSE:SBH - US79546E1047 - Common Stock
16.35 USD
+0.37 (+2.32%)
16.35 USD
0 (0%)
Overall SBH gets a fundamental rating of 5 out of 10. We evaluated SBH against 122 industry peers in the Specialty Retail industry. SBH has an average financial health and profitability rating. SBH scores decently on growth, while it is valued quite cheap. This could make an interesting combination. These ratings could make SBH a good candidate for value investing.
1. Profitability
1.1 Basic Checks
SBH had positive earnings in the past year.
In the past year SBH had a positive cash flow from operations.
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
SBH has a better Return On Assets (7.07%) than 79.51% of its industry peers.
SBH's Return On Equity of 25.43% is amongst the best of the industry. SBH outperforms 82.79% of its industry peers.
SBH's Return On Invested Capital of 11.08% is fine compared to the rest of the industry. SBH outperforms 76.23% 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 11.93%.
| 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 has a better Profit Margin (5.26%) than 77.05% of its industry peers.
SBH's Profit Margin has declined in the last couple of years.
With an excellent Operating Margin value of 9.03%, SBH belongs to the best of the industry, outperforming 80.33% of the companies in the same industry.
SBH's Operating Margin has declined in the last couple of years.
Looking at the Gross Margin, with a value of 51.39%, SBH is in the better half of the industry, outperforming 79.51% 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.
Compared to 1 year ago, SBH has less shares outstanding
SBH has less shares outstanding than it did 5 years ago.
The debt/assets ratio for SBH has been reduced compared to a year ago.
2.2 Solvency
An Altman-Z score of 3.00 indicates that SBH is not in any danger for bankruptcy at the moment.
With a decent Altman-Z score value of 3.00, SBH is doing good in the industry, outperforming 67.21% of the companies in the same industry.
SBH has a debt to FCF ratio of 5.28. This is a neutral value as SBH would need 5.28 years to pay back of all of its debts.
SBH's Debt to FCF ratio of 5.28 is fine compared to the rest of the industry. SBH outperforms 63.11% of its industry peers.
A Debt/Equity ratio of 1.16 is on the high side and indicates that SBH has dependencies on debt financing.
With a Debt to Equity ratio value of 1.16, SBH is not doing good in the industry: 61.48% of the companies in the same industry are doing better.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.16 | ||
| Debt/FCF | 5.28 | ||
| Altman-Z | 3 |
ROIC/WACC1.12
WACC9.91%
2.3 Liquidity
A Current Ratio of 2.41 indicates that SBH has no problem at all paying its short term obligations.
SBH has a better Current ratio (2.41) than 86.89% of its industry peers.
A Quick Ratio of 0.49 indicates that SBH may have some problems paying its short term obligations.
SBH has a Quick ratio (0.49) which is comparable to the rest of the 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.
Measured over the past years, SBH shows a decrease in Earnings Per Share. The EPS has been decreasing by -5.65% on average per year.
The Revenue has decreased by -0.38% in the past year.
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)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
Based on estimates for the next years, SBH will show a quite strong growth in Earnings Per Share. The EPS will grow by 9.03% on average per year.
SBH is expected to show a small growth in Revenue. In the coming years, the Revenue will grow by 0.71% yearly.
EPS Next Y9.22%
EPS Next 2Y9.57%
EPS Next 3Y9.03%
EPS Next 5YN/A
Revenue Next Year-0.88%
Revenue Next 2Y0.21%
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
SBH is valuated reasonably with a Price/Earnings ratio of 8.79.
Based on the Price/Earnings ratio, SBH is valued cheaper than 91.80% of the companies in the same industry.
The average S&P500 Price/Earnings ratio is at 27.67. SBH is valued rather cheaply when compared to this.
A Price/Forward Earnings ratio of 8.06 indicates a reasonable valuation of SBH.
Based on the Price/Forward Earnings ratio, SBH is valued cheaply inside the industry as 92.62% of the companies are valued more expensively.
The average S&P500 Price/Forward Earnings ratio is at 23.13. SBH is valued rather cheaply when compared to this.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 8.79 | ||
| Fwd PE | 8.06 |
4.2 Price Multiples
Based on the Enterprise Value to EBITDA ratio, SBH is valued cheaper than 88.52% of the companies in the same industry.
Based on the Price/Free Cash Flow ratio, SBH is valued cheaply inside the industry as 86.89% of the companies are valued more expensively.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 9.63 | ||
| EV/EBITDA | 5.5 |
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.
SBH has a very decent profitability rating, which may justify a higher PE ratio.
PEG (NY)0.95
PEG (5Y)N/A
EPS Next 2Y9.57%
EPS Next 3Y9.03%
5. Dividend
5.1 Amount
SBH does not give a dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | N/A |
16.35
+0.37 (+2.32%)
Chartmill FA Rating
GICS SectorConsumer Discretionary
GICS IndustryGroupConsumer Discretionary Distribution & Retail
GICS IndustrySpecialty Retail
Earnings (Last)
Earnings (Next)
Inst Owners120.1%
Inst Owner Change-5.59%
Ins Owners0.89%
Ins Owner Change0.49%
Market Cap1.62B
Analysts71.11
Price Target13.72 (-16.09%)
Short Float %20.19%
Short Ratio8.67
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)5.91%
PT rev (3m)12.08%
EPS NQ rev (1m)0%
EPS NQ rev (3m)2.29%
EPS NY rev (1m)0%
EPS NY rev (3m)5.15%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)0.89%
Revenue NY rev (1m)0%
Revenue NY rev (3m)0.13%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 8.79 | ||
| Fwd PE | 8.06 | ||
| P/S | 0.44 | ||
| P/FCF | 9.63 | ||
| P/OCF | 6.11 | ||
| P/B | 2.12 | ||
| P/tB | 9.76 | ||
| EV/EBITDA | 5.5 |
EPS(TTM)1.86
EY11.38%
EPS(NY)2.03
Fwd EY12.41%
FCF(TTM)1.7
FCFY10.39%
OCF(TTM)2.67
OCFY16.36%
SpS37.29
BVpS7.71
TBVpS1.68
PEG (NY)0.95
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 | 3 |
F-Score8
WACC9.91%
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)14.81%
EPS 3Y-10.79%
EPS 5Y-5.65%
EPS Q2Q%13.33%
EPS Next Y9.22%
EPS Next 2Y9.57%
EPS Next 3Y9.03%
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 2Y0.21%
Revenue Next 3Y0.71%
Revenue Next 5YN/A
EBIT growth 1Y20.4%
EBIT growth 3Y-12.57%
EBIT growth 5Y-9.19%
EBIT Next Year40.08%
EBIT Next 3Y14.46%
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%