SALLY BEAUTY HOLDINGS INC (SBH) Stock Fundamental Analysis
USA • New York Stock Exchange • NYSE:SBH • US79546E1047
15.6 USD
-1.4 (-8.24%)
At close: Feb 10, 2026
15.8182 USD
+0.22 (+1.4%)
After Hours: 2/10/2026, 8:04:00 PM
Overall SBH gets a fundamental rating of 6 out of 10. We evaluated SBH against 120 industry peers in the Specialty Retail industry. SBH has an excellent profitability rating, 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. These ratings could make SBH a good candidate 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.
- 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
- SBH's Return On Assets of 6.82% is fine compared to the rest of the industry. SBH outperforms 78.33% 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 83.33% of the companies in the same industry.
- Looking at the Return On Invested Capital, with a value of 10.77%, SBH is in the better half of the industry, outperforming 77.50% 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 12.16%.
- The last Return On Invested Capital (10.77%) for SBH is above the 3 year average (10.66%), which is a sign of increasing profitability.
| 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
- SBH has a better Profit Margin (5.29%) than 77.50% 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 79.17% of its industry peers.
- In the last couple of years the Operating Margin of SBH has grown nicely.
- SBH has a Gross Margin of 51.62%. This is in the better half of the industry: SBH outperforms 79.17% 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.
- 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 2.86 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 64.17% of the companies in the same industry.
- SBH has a debt to FCF ratio of 5.01. This is a neutral value as SBH would need 5.01 years to pay back of all of its debts.
- SBH has a Debt to FCF ratio of 5.01. This is in the better half of the industry: SBH outperforms 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.
- SBH has a Debt to Equity ratio (1.09) which is in line with its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.09 | ||
| Debt/FCF | 5.01 | ||
| Altman-Z | 2.86 |
ROIC/WACC1.13
WACC9.56%
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.
- The Current ratio of SBH (2.26) is better than 83.33% 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
- SBH shows a strong growth in Earnings Per Share. In the last year, the EPS has been growing by 13.29%, which is quite good.
- SBH shows quite a strong growth in Earnings Per Share. Measured over the last years, the EPS has been growing by 9.38% yearly.
- 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)13.29%
EPS 3Y-3.87%
EPS 5Y9.38%
EPS Q2Q%11.63%
Revenue 1Y (TTM)-0.42%
Revenue growth 3Y-1.01%
Revenue growth 5Y1.04%
Sales Q2Q%0.56%
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 12.32% on average per year.
- Based on estimates for the next years, SBH will show a small growth in Revenue. The Revenue will grow by 1.66% on average per year.
EPS Next Y9.35%
EPS Next 2Y8.88%
EPS Next 3Y12.32%
EPS Next 5YN/A
Revenue Next Year1.45%
Revenue Next 2Y1.56%
Revenue Next 3Y1.66%
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
- With a Price/Earnings ratio of 7.96, the valuation of SBH can be described as very cheap.
- Based on the Price/Earnings ratio, SBH is valued cheaper than 94.17% of the companies in the same industry.
- When comparing the Price/Earnings ratio of SBH to the average of the S&P500 Index (28.03), we can say SBH is valued rather cheaply.
- SBH is valuated cheaply with a Price/Forward Earnings ratio of 6.89.
- Compared to the rest of the industry, the Price/Forward Earnings ratio of SBH indicates a rather cheap valuation: SBH is cheaper than 97.50% of the companies listed in the same industry.
- Compared to an average S&P500 Price/Forward Earnings ratio of 27.97, SBH is valued rather cheaply.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 7.96 | ||
| Fwd PE | 6.89 |
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 90.00% of the companies listed in the same industry.
- 85.83% 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 | 8.88 | ||
| EV/EBITDA | 5.21 |
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.
- SBH's earnings are expected to grow with 12.32% in the coming years. This may justify a more expensive valuation.
PEG (NY)0.85
PEG (5Y)0.85
EPS Next 2Y8.88%
EPS Next 3Y12.32%
5. Dividend
5.1 Amount
- No dividends for SBH!.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0% |
15.6
-1.4 (-8.24%)
Chartmill FA Rating
GICS SectorConsumer Discretionary
GICS IndustryGroupConsumer Discretionary Distribution & Retail
GICS IndustrySpecialty Retail
Earnings (Last)02-09 2026-02-09/bmo
Earnings (Next)05-11 2026-05-11/bmo
Inst Owners122.69%
Inst Owner Change-2.63%
Ins Owners1.21%
Ins Owner Change13.91%
Market Cap1.53B
Revenue(TTM)3.70B
Net Income(TTM)195.88M
Analysts73.33
Price Target17.54 (12.44%)
Short Float %18.32%
Short Ratio10.78
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)5.85%
PT rev (3m)13.72%
EPS NQ rev (1m)0.43%
EPS NQ rev (3m)-7.6%
EPS NY rev (1m)0.39%
EPS NY rev (3m)2.63%
Revenue NQ rev (1m)0.02%
Revenue NQ rev (3m)-0.7%
Revenue NY rev (1m)0%
Revenue NY rev (3m)0.35%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 7.96 | ||
| Fwd PE | 6.89 | ||
| P/S | 0.41 | ||
| P/FCF | 8.88 | ||
| P/OCF | 5.58 | ||
| P/B | 1.93 | ||
| P/tB | 7.65 | ||
| EV/EBITDA | 5.21 |
EPS(TTM)1.96
EY12.56%
EPS(NY)2.26
Fwd EY14.52%
FCF(TTM)1.76
FCFY11.26%
OCF(TTM)2.8
OCFY17.93%
SpS37.67
BVpS8.08
TBVpS2.04
PEG (NY)0.85
PEG (5Y)0.85
Graham Number18.88
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
WACC9.56%
ROIC/WACC1.13
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)13.29%
EPS 3Y-3.87%
EPS 5Y9.38%
EPS Q2Q%11.63%
EPS Next Y9.35%
EPS Next 2Y8.88%
EPS Next 3Y12.32%
EPS Next 5YN/A
Revenue 1Y (TTM)-0.42%
Revenue growth 3Y-1.01%
Revenue growth 5Y1.04%
Sales Q2Q%0.56%
Revenue Next Year1.45%
Revenue Next 2Y1.56%
Revenue Next 3Y1.66%
Revenue Next 5YN/A
EBIT growth 1Y17.57%
EBIT growth 3Y-3.1%
EBIT growth 5Y3.88%
EBIT Next Year41.12%
EBIT Next 3Y12.15%
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.
What is the valuation status for SBH stock?
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.
What is the expected EPS growth for SALLY BEAUTY HOLDINGS INC (SBH) stock?
The Earnings per Share (EPS) of SALLY BEAUTY HOLDINGS INC (SBH) is expected to grow by 9.35% in the next year.