SALLY BEAUTY HOLDINGS INC (SBH) Stock Fundamental Analysis
USA - New York Stock Exchange - NYSE:SBH - US79546E1047 - Common Stock
15.82 USD
-0.42 (-2.59%)
15.8787 USD
+0.06 (+0.37%)
Taking everything into account, SBH scores 6 out of 10 in our fundamental rating. SBH was compared to 122 industry peers in the Specialty Retail industry. SBH scores excellent on profitability, but there are some minor concerns on its financial health. A decent growth rate in combination with a cheap valuation! Better keep an eye on SBH. With these ratings, SBH could be worth investigating further for value investing!.
1. Profitability
1.1 Basic Checks
In the past year SBH was profitable.
In the past year SBH had a positive cash flow from operations.
Each year in the past 5 years SBH has been profitable.
Each year in the past 5 years SBH had a positive operating cash flow.
1.2 Ratios
SBH has a Return On Assets of 6.82%. This is in the better half of the industry: SBH outperforms 78.69% of its industry peers.
Looking at the Return On Equity, with a value of 24.66%, SBH belongs to the top of the industry, outperforming 85.25% of the companies in the same industry.
With a decent Return On Invested Capital value of 10.77%, SBH is doing good in the industry, outperforming 77.87% of the companies in the same industry.
The Average Return On Invested Capital over the past 3 years for SBH is in line with the industry average of 11.71%.
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 77.05% of its industry peers.
SBH's Profit Margin has improved in the last couple of years.
SBH's Operating Margin of 8.98% is fine compared to the rest of the industry. SBH outperforms 79.51% of its industry peers.
In the last couple of years the Operating Margin of SBH has grown nicely.
Looking at the Gross Margin, with a value of 51.62%, SBH belongs to the top of the industry, outperforming 81.15% 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 | 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
The Return on Invested Capital (ROIC) is just above the Cost of Capital (WACC), so SBH is still 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 2.86 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 2.86, SBH is doing good in the industry, outperforming 68.85% 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.
Looking at the Debt to FCF ratio, with a value of 5.01, SBH is in the better half of the industry, outperforming 67.21% of the companies in the same industry.
SBH has a Debt/Equity ratio of 1.09. This is a high value indicating a heavy dependency on external financing.
SBH has a Debt to Equity ratio of 1.09. This is comparable to the rest of the industry: SBH outperforms 42.62% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.09 | ||
| Debt/FCF | 5.01 | ||
| Altman-Z | 2.86 |
ROIC/WACC1.17
WACC9.23%
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 84.43% of its industry peers.
A Quick Ratio of 0.54 indicates that SBH may have some problems paying its short term obligations.
SBH has a Quick ratio (0.54) which is in line with 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.
Measured over the past years, SBH shows a quite strong growth in Earnings Per Share. The EPS has been growing by 9.38% on average per year.
The Revenue has decreased by -0.42% in the past year.
SBH shows a small growth in Revenue. Measured over the last years, the Revenue has been growing by 1.04% yearly.
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
The Earnings Per Share is expected to grow by 12.46% on average over the next years. This is quite good.
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 Y6.55%
EPS Next 2Y7.49%
EPS Next 3Y12.46%
EPS Next 5YN/A
Revenue Next Year1.1%
Revenue Next 2Y1.21%
Revenue Next 3Y1.77%
Revenue Next 5YN/A
3.3 Evolution
The EPS growth rate is accelerating: in the next years the growth will be better than in the last years.
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
The Price/Earnings ratio is 8.28, which indicates a very decent valuation of SBH.
Based on the Price/Earnings ratio, SBH is valued cheaply inside the industry as 91.80% of the companies are valued more expensively.
Compared to an average S&P500 Price/Earnings ratio of 26.15, SBH is valued rather cheaply.
SBH is valuated cheaply with a Price/Forward Earnings ratio of 7.77.
92.62% of the companies in the same industry are more expensive than SBH, based on the Price/Forward Earnings ratio.
The average S&P500 Price/Forward Earnings ratio is at 36.22. SBH is valued rather cheaply when compared to this.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 8.28 | ||
| Fwd PE | 7.77 |
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 86.07% of the companies listed in the same industry.
89.34% of the companies in the same industry are more expensive than SBH, based on the Price/Free Cash Flow ratio.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 8.93 | ||
| EV/EBITDA | 5.23 |
4.3 Compensation for Growth
The PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates a correct valuation of the company.
SBH has an outstanding profitability rating, which may justify a higher PE ratio.
SBH's earnings are expected to grow with 12.46% in the coming years. This may justify a more expensive valuation.
PEG (NY)1.26
PEG (5Y)0.88
EPS Next 2Y7.49%
EPS Next 3Y12.46%
5. Dividend
5.1 Amount
No dividends for SBH!.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | N/A |
15.82
-0.42 (-2.59%)
Chartmill FA Rating
GICS SectorConsumer Discretionary
GICS IndustryGroupConsumer Discretionary Distribution & Retail
GICS IndustrySpecialty Retail
Earnings (Last)
Earnings (Next)
Inst Owners120.1%
Inst Owner Change0.04%
Ins Owners0.89%
Ins Owner Change13.08%
Market Cap1.54B
Revenue(TTM)3.70B
Net Income(TTM)195.88M
Analysts71.11
Price Target16.58 (4.8%)
Short Float %19.35%
Short Ratio9.03
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)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)12.46%
PT rev (3m)27.95%
EPS NQ rev (1m)-7.2%
EPS NQ rev (3m)-15.21%
EPS NY rev (1m)0.25%
EPS NY rev (3m)1.41%
Revenue NQ rev (1m)-0.56%
Revenue NQ rev (3m)-0.61%
Revenue NY rev (1m)-0.21%
Revenue NY rev (3m)-0.16%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 8.28 | ||
| Fwd PE | 7.77 | ||
| P/S | 0.42 | ||
| P/FCF | 8.93 | ||
| P/OCF | 5.61 | ||
| P/B | 1.94 | ||
| P/tB | 7.69 | ||
| EV/EBITDA | 5.23 |
EPS(TTM)1.91
EY12.07%
EPS(NY)2.04
Fwd EY12.86%
FCF(TTM)1.77
FCFY11.2%
OCF(TTM)2.82
OCFY17.82%
SpS37.96
BVpS8.15
TBVpS2.06
PEG (NY)1.26
PEG (5Y)0.88
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 | 2.86 |
F-Score8
WACC9.23%
ROIC/WACC1.17
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 Y6.55%
EPS Next 2Y7.49%
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 Year1.1%
Revenue Next 2Y1.21%
Revenue Next 3Y1.77%
Revenue Next 5YN/A
EBIT growth 1Y17.57%
EBIT growth 3Y-3.1%
EBIT growth 5Y3.88%
EBIT Next Year40.26%
EBIT Next 3YN/A
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.