SALLY BEAUTY HOLDINGS INC (SBH) Stock Fundamental Analysis
USA - NYSE:SBH - US79546E1047 - Common Stock
15.11 USD
+0.62 (+4.28%)
14.0756 USD
-1.03 (-6.85%)
SBH gets a fundamental rating of 5 out of 10. The analysis compared the fundamentals against 121 industry peers in the Specialty Retail industry. Both the profitability and the financial health of SBH get a neutral evaluation. Nothing too spectacular is happening here. A decent growth rate in combination with a cheap valuation! Better keep an eye on SBH. These ratings would make SBH suitable for value investing!
1. Profitability
1.1 Basic Checks
In the past year SBH was profitable.
SBH had a positive operating cash flow in the past year.
SBH had positive earnings in each of the past 5 years.
In the past 5 years SBH always reported a positive cash flow from operatings.
1.2 Ratios
SBH's Return On Assets of 7.07% is fine compared to the rest of the industry. SBH outperforms 79.34% of its industry peers.
Looking at the Return On Equity, with a value of 25.43%, SBH belongs to the top of the industry, outperforming 82.64% of the companies in the same industry.
SBH has a Return On Invested Capital of 11.02%. This is in the better half of the industry: SBH outperforms 76.03% 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 11.81%.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 7.07% | ||
| ROE | 25.43% | ||
| ROIC | 11.02% |
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 Profit Margin of 5.26%. This is in the better half of the industry: SBH outperforms 76.86% of its industry peers.
In the last couple of years the Profit Margin of SBH has declined.
The Operating Margin of SBH (8.99%) is better than 79.34% of its industry peers.
SBH's Operating Margin has declined in the last couple of years.
The Gross Margin of SBH (51.39%) is better than 80.17% of its industry peers.
SBH's Gross Margin has been stable in the last couple of years.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 8.99% | ||
| 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.
SBH has less shares outstanding than it did 1 year ago.
Compared to 5 years ago, SBH has less shares outstanding
Compared to 1 year ago, SBH has an improved debt to assets ratio.
2.2 Solvency
An Altman-Z score of 2.94 indicates that SBH is not a great score, but indicates only limited risk for bankruptcy at the moment.
SBH's Altman-Z score of 2.94 is fine compared to the rest of the industry. SBH outperforms 66.12% of its industry peers.
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.
With a decent Debt to FCF ratio value of 5.28, SBH is doing good in the industry, outperforming 62.81% of the companies in the same industry.
A Debt/Equity ratio of 1.16 is on the high side and indicates that SBH has dependencies on debt financing.
SBH has a Debt to Equity ratio of 1.16. This is in the lower half of the industry: SBH underperforms 60.33% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.16 | ||
| Debt/FCF | 5.28 | ||
| Altman-Z | 2.94 |
ROIC/WACC1.14
WACC9.64%
2.3 Liquidity
SBH has a Current Ratio of 2.41. This indicates that SBH is financially healthy and has no problem in meeting its short term obligations.
SBH has a better Current ratio (2.41) than 85.12% 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.
SBH shows a decrease in Earnings Per Share. Measured over the last years, the EPS has been decreasing by -5.65% yearly.
Looking at the last year, SBH shows a decrease in Revenue. The Revenue has decreased by -0.38% in the last 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
SBH is expected to show quite a strong growth in Earnings Per Share. In the coming years, the EPS will grow by 9.30% yearly.
SBH is expected to show a small growth in Revenue. In the coming years, the Revenue will grow by 0.72% yearly.
EPS Next Y9.22%
EPS Next 2Y9.6%
EPS Next 3Y9.3%
EPS Next 5YN/A
Revenue Next Year-0.85%
Revenue Next 2Y0.23%
Revenue Next 3Y0.72%
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.
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
Based on the Price/Earnings ratio of 8.12, the valuation of SBH can be described as reasonable.
Based on the Price/Earnings ratio, SBH is valued cheaper than 93.39% of the companies in the same industry.
SBH is valuated cheaply when we compare the Price/Earnings ratio to 26.10, which is the current average of the S&P500 Index.
Based on the Price/Forward Earnings ratio of 7.44, the valuation of SBH can be described as very cheap.
Based on the Price/Forward Earnings ratio, SBH is valued cheaply inside the industry as 92.56% of the companies are valued more expensively.
SBH's Price/Forward Earnings ratio indicates a rather cheap valuation when compared to the S&P500 average which is at 22.52.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 8.12 | ||
| Fwd PE | 7.44 |
4.2 Price Multiples
86.78% 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 90.08% of the companies listed in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 8.9 | ||
| EV/EBITDA | 5.09 |
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)0.88
PEG (5Y)N/A
EPS Next 2Y9.6%
EPS Next 3Y9.3%
5. Dividend
5.1 Amount
SBH does not give a dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | N/A |
15.11
+0.62 (+4.28%)
Chartmill FA Rating
GICS SectorConsumer Discretionary
GICS IndustryGroupConsumer Discretionary Distribution & Retail
GICS IndustrySpecialty Retail
Earnings (Last)
Earnings (Next)
Inst Owners120.1%
Inst Owner Change-0.14%
Ins Owners0.89%
Ins Owner Change0.49%
Market Cap1.49B
Revenue(TTM)3.69B
Net Income(TTM)194.00M
Analysts71.11
Price Target14.74 (-2.45%)
Short Float %19.51%
Short Ratio8.44
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)7.43%
PT rev (3m)20.42%
EPS NQ rev (1m)7.06%
EPS NQ rev (3m)9.52%
EPS NY rev (1m)0%
EPS NY rev (3m)5.15%
Revenue NQ rev (1m)0.02%
Revenue NQ rev (3m)0.91%
Revenue NY rev (1m)0.03%
Revenue NY rev (3m)0.16%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 8.12 | ||
| Fwd PE | 7.44 | ||
| P/S | 0.41 | ||
| P/FCF | 8.9 | ||
| P/OCF | 5.65 | ||
| P/B | 1.96 | ||
| P/tB | 9.02 | ||
| EV/EBITDA | 5.09 |
EPS(TTM)1.86
EY12.31%
EPS(NY)2.03
Fwd EY13.44%
FCF(TTM)1.7
FCFY11.24%
OCF(TTM)2.67
OCFY17.7%
SpS37.29
BVpS7.71
TBVpS1.68
PEG (NY)0.88
PEG (5Y)N/A
Graham Number17.96
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 7.07% | ||
| ROE | 25.43% | ||
| ROCE | 14.93% | ||
| ROIC | 11.02% | ||
| ROICexc | 11.61% | ||
| ROICexgc | 16.2% | ||
| OM | 8.99% | ||
| 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%
ROICexgc growth 3Y-19.08%
ROICexgc 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 | 2.04 | ||
| Cap/Depr | 94.92% | ||
| Cap/Sales | 2.62% | ||
| Interest Coverage | 4.81 | ||
| Cash Conversion | 61.07% | ||
| Profit Quality | 86.6% | ||
| Current Ratio | 2.41 | ||
| Quick Ratio | 0.49 | ||
| Altman-Z | 2.94 |
F-Score8
WACC9.64%
ROIC/WACC1.14
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 2Y9.6%
EPS Next 3Y9.3%
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-0.85%
Revenue Next 2Y0.23%
Revenue Next 3Y0.72%
Revenue Next 5YN/A
EBIT growth 1Y19.75%
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%
SALLY BEAUTY HOLDINGS INC / SBH FAQ
What is the fundamental rating for SBH stock?
ChartMill assigns a fundamental rating of 5 / 10 to SBH.
Can you provide the valuation status for SALLY BEAUTY HOLDINGS INC?
ChartMill assigns a valuation rating of 8 / 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 6 / 10.
Can you provide the financial health for SBH stock?
The financial health rating of SALLY BEAUTY HOLDINGS INC (SBH) is 5 / 10.