ULTA BEAUTY INC (ULTA) Stock Fundamental Analysis
USA - NASDAQ:ULTA - US90384S3031 - Common Stock
529.34 USD
-4.53 (-0.85%)
529.34 USD
0 (0%)
ULTA gets a fundamental rating of 6 out of 10. The analysis compared the fundamentals against 122 industry peers in the Specialty Retail industry. ULTA scores excellent points on both the profitability and health parts. This is a solid base for a good stock. ULTA has a correct valuation and a medium growth rate.
1. Profitability
1.1 Basic Checks
In the past year ULTA was profitable.
ULTA had a positive operating cash flow in the past year.
In the past 5 years ULTA has always been profitable.
In the past 5 years ULTA always reported a positive cash flow from operatings.
1.2 Ratios
With an excellent Return On Assets value of 18.12%, ULTA belongs to the best of the industry, outperforming 95.08% of the companies in the same industry.
Looking at the Return On Equity, with a value of 46.14%, ULTA belongs to the top of the industry, outperforming 95.08% of the companies in the same industry.
With an excellent Return On Invested Capital value of 25.50%, ULTA belongs to the best of the industry, outperforming 94.26% of the companies in the same industry.
The Average Return On Invested Capital over the past 3 years for ULTA is significantly above the industry average of 11.80%.
The last Return On Invested Capital (25.50%) for ULTA is well below the 3 year average (31.18%), which needs to be investigated, but indicates that ULTA had better years and this may not be a problem.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 18.12% | ||
| ROE | 46.14% | ||
| ROIC | 25.5% |
ROA(3y)21.92%
ROA(5y)17.98%
ROE(3y)56.09%
ROE(5y)48.26%
ROIC(3y)31.18%
ROIC(5y)26.29%
1.3 Margins
Looking at the Profit Margin, with a value of 10.31%, ULTA belongs to the top of the industry, outperforming 90.98% of the companies in the same industry.
In the last couple of years the Profit Margin of ULTA has grown nicely.
The Operating Margin of ULTA (13.57%) is better than 89.34% of its industry peers.
ULTA's Operating Margin has improved in the last couple of years.
With a Gross Margin value of 39.00%, ULTA perfoms like the industry average, outperforming 59.84% of the companies in the same industry.
In the last couple of years the Gross Margin of ULTA has remained more or less at the same level.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 13.57% | ||
| PM (TTM) | 10.31% | ||
| GM | 39% |
OM growth 3Y-2.67%
OM growth 5Y2.61%
PM growth 3Y-2.36%
PM growth 5Y2.19%
GM growth 3Y-0.17%
GM growth 5Y1.4%
2. Health
2.1 Basic Checks
ULTA has a Return on Invested Capital (ROIC), which is well above the Cost of Capital (WACC), which means it is creating value.
ULTA has less shares outstanding than it did 1 year ago.
The number of shares outstanding for ULTA has been reduced compared to 5 years ago.
There is no outstanding debt for ULTA. This means it has a Debt/Equity and Debt/FCF ratio of 0 and it is amongst the best of the sector and industry.
2.2 Solvency
ULTA has an Altman-Z score of 6.60. This indicates that ULTA is financially healthy and has little risk of bankruptcy at the moment.
Looking at the Altman-Z score, with a value of 6.60, ULTA belongs to the top of the industry, outperforming 93.44% of the companies in the same industry.
ULTA has a debt to FCF ratio of 0.30. This is a very positive value and a sign of high solvency as it would only need 0.30 years to pay back of all of its debts.
With an excellent Debt to FCF ratio value of 0.30, ULTA belongs to the best of the industry, outperforming 84.43% of the companies in the same industry.
ULTA has a Debt/Equity ratio of 0.11. This is a healthy value indicating a solid balance between debt and equity.
ULTA's Debt to Equity ratio of 0.11 is fine compared to the rest of the industry. ULTA outperforms 70.49% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.11 | ||
| Debt/FCF | 0.3 | ||
| Altman-Z | 6.6 |
ROIC/WACC2.75
WACC9.27%
2.3 Liquidity
A Current Ratio of 1.39 indicates that ULTA should not have too much problems paying its short term obligations.
ULTA has a Current ratio of 1.39. This is comparable to the rest of the industry: ULTA outperforms 54.92% of its industry peers.
A Quick Ratio of 0.30 indicates that ULTA may have some problems paying its short term obligations.
Looking at the Quick ratio, with a value of 0.30, ULTA is doing worse than 77.05% of the companies in the same industry.
ULTA does not score too well on the current and quick ratio evaluation. However, as it has excellent solvency and profitability, these ratios do not necessarly indicate liquidity issues and need to be evaluated against the specifics of the business.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.39 | ||
| Quick Ratio | 0.3 |
3. Growth
3.1 Past
ULTA shows a small growth in Earnings Per Share. In the last year, the EPS has grown by 4.78%.
The Earnings Per Share has been growing by 15.85% on average over the past years. This is quite good.
Looking at the last year, ULTA shows a small growth in Revenue. The Revenue has grown by 2.95% in the last year.
The Revenue has been growing by 8.83% on average over the past years. This is quite good.
EPS 1Y (TTM)4.78%
EPS 3Y12.16%
EPS 5Y15.85%
EPS Q2Q%9.25%
Revenue 1Y (TTM)2.95%
Revenue growth 3Y9.38%
Revenue growth 5Y8.83%
Sales Q2Q%9.26%
3.2 Future
ULTA is expected to show quite a strong growth in Earnings Per Share. In the coming years, the EPS will grow by 8.69% yearly.
Based on estimates for the next years, ULTA will show a small growth in Revenue. The Revenue will grow by 6.02% on average per year.
EPS Next Y-1.05%
EPS Next 2Y4.33%
EPS Next 3Y6.34%
EPS Next 5Y8.69%
Revenue Next Year7.68%
Revenue Next 2Y6.2%
Revenue Next 3Y5.87%
Revenue Next 5Y6.02%
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 decreasing.
When comparing the Revenue growth rate of the last years to the growth rate of the upcoming years, we see that the growth is decreasing.
4. Valuation
4.1 Price/Earnings Ratio
ULTA is valuated rather expensively with a Price/Earnings ratio of 20.27.
69.67% of the companies in the same industry are more expensive than ULTA, based on the Price/Earnings ratio.
ULTA is valuated rather cheaply when we compare the Price/Earnings ratio to 25.89, which is the current average of the S&P500 Index.
With a Price/Forward Earnings ratio of 19.17, ULTA is valued on the expensive side.
ULTA's Price/Forward Earnings ratio is in line with the industry average.
Compared to an average S&P500 Price/Forward Earnings ratio of 34.59, ULTA is valued a bit cheaper.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 20.27 | ||
| Fwd PE | 19.17 |
4.2 Price Multiples
The rest of the industry has a similar Enterprise Value to EBITDA ratio as ULTA.
Based on the Price/Free Cash Flow ratio, ULTA is valued a bit cheaper than 65.57% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 24.93 | ||
| EV/EBITDA | 12.73 |
4.3 Compensation for Growth
The excellent profitability rating of ULTA may justify a higher PE ratio.
PEG (NY)N/A
PEG (5Y)1.28
EPS Next 2Y4.33%
EPS Next 3Y6.34%
5. Dividend
5.1 Amount
ULTA does not give a dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | N/A |
529.34
-4.53 (-0.85%)
Chartmill FA Rating
GICS SectorConsumer Discretionary
GICS IndustryGroupConsumer Discretionary Distribution & Retail
GICS IndustrySpecialty Retail
Earnings (Last)
Earnings (Next)
Inst Owners100.95%
Inst Owner Change0.12%
Ins Owners0.13%
Ins Owner Change0.43%
Market Cap23.74B
Revenue(TTM)11.65B
Net Income(TTM)1.20B
Analysts75.88
Price Target590.65 (11.58%)
Short Float %4.2%
Short Ratio2.68
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | N/A |
Yearly DividendN/A
Dividend Growth(5Y)N/A
DP0%
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)11.78%
Max EPS beat(2)13.47%
EPS beat(4)4
Avg EPS beat(4)13.16%
Min EPS beat(4)10.88%
Max EPS beat(4)16.52%
EPS beat(8)7
Avg EPS beat(8)6.89%
EPS beat(12)10
Avg EPS beat(12)7.96%
EPS beat(16)14
Avg EPS beat(16)13.64%
Revenue beat(2)1
Avg Revenue beat(2)1.06%
Min Revenue beat(2)-0.06%
Max Revenue beat(2)2.18%
Revenue beat(4)1
Avg Revenue beat(4)0.07%
Min Revenue beat(4)-1.26%
Max Revenue beat(4)2.18%
Revenue beat(8)1
Avg Revenue beat(8)-1.02%
Revenue beat(12)3
Avg Revenue beat(12)-0.22%
Revenue beat(16)6
Avg Revenue beat(16)0.7%
PT rev (1m)0.23%
PT rev (3m)16%
EPS NQ rev (1m)1.64%
EPS NQ rev (3m)3.69%
EPS NY rev (1m)0.8%
EPS NY rev (3m)4.25%
Revenue NQ rev (1m)0.36%
Revenue NQ rev (3m)3.71%
Revenue NY rev (1m)0.22%
Revenue NY rev (3m)3.62%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 20.27 | ||
| Fwd PE | 19.17 | ||
| P/S | 2.04 | ||
| P/FCF | 24.93 | ||
| P/OCF | 18.31 | ||
| P/B | 9.12 | ||
| P/tB | 10.76 | ||
| EV/EBITDA | 12.73 |
EPS(TTM)26.11
EY4.93%
EPS(NY)27.61
Fwd EY5.22%
FCF(TTM)21.23
FCFY4.01%
OCF(TTM)28.91
OCFY5.46%
SpS259.91
BVpS58.07
TBVpS49.19
PEG (NY)N/A
PEG (5Y)1.28
Graham Number184.7
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 18.12% | ||
| ROE | 46.14% | ||
| ROCE | 35.7% | ||
| ROIC | 25.5% | ||
| ROICexc | 26.88% | ||
| ROICexgc | 29.5% | ||
| OM | 13.57% | ||
| PM (TTM) | 10.31% | ||
| GM | 39% | ||
| FCFM | 8.17% |
ROA(3y)21.92%
ROA(5y)17.98%
ROE(3y)56.09%
ROE(5y)48.26%
ROIC(3y)31.18%
ROIC(5y)26.29%
ROICexc(3y)36.11%
ROICexc(5y)30.76%
ROICexgc(3y)36.24%
ROICexgc(5y)30.87%
ROCE(3y)40.98%
ROCE(5y)34.55%
ROICexgc growth 3Y-1.69%
ROICexgc growth 5Y9.71%
ROICexc growth 3Y-1.64%
ROICexc growth 5Y9.74%
OM growth 3Y-2.67%
OM growth 5Y2.61%
PM growth 3Y-2.36%
PM growth 5Y2.19%
GM growth 3Y-0.17%
GM growth 5Y1.4%
F-Score6
Asset Turnover1.76
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.11 | ||
| Debt/FCF | 0.3 | ||
| Debt/EBITDA | 0.16 | ||
| Cap/Depr | 122.83% | ||
| Cap/Sales | 2.95% | ||
| Interest Coverage | 250 | ||
| Cash Conversion | 69.63% | ||
| Profit Quality | 79.25% | ||
| Current Ratio | 1.39 | ||
| Quick Ratio | 0.3 | ||
| Altman-Z | 6.6 |
F-Score6
WACC9.27%
ROIC/WACC2.75
Cap/Depr(3y)149.34%
Cap/Depr(5y)112.63%
Cap/Sales(3y)3.42%
Cap/Sales(5y)2.94%
Profit Quality(3y)85.03%
Profit Quality(5y)143.84%
High Growth Momentum
Growth
EPS 1Y (TTM)4.78%
EPS 3Y12.16%
EPS 5Y15.85%
EPS Q2Q%9.25%
EPS Next Y-1.05%
EPS Next 2Y4.33%
EPS Next 3Y6.34%
EPS Next 5Y8.69%
Revenue 1Y (TTM)2.95%
Revenue growth 3Y9.38%
Revenue growth 5Y8.83%
Sales Q2Q%9.26%
Revenue Next Year7.68%
Revenue Next 2Y6.2%
Revenue Next 3Y5.87%
Revenue Next 5Y6.02%
EBIT growth 1Y0.45%
EBIT growth 3Y6.46%
EBIT growth 5Y11.68%
EBIT Next Year18.28%
EBIT Next 3Y10.4%
EBIT Next 5Y8.83%
FCF growth 1Y-2.22%
FCF growth 3Y2.82%
FCF growth 5Y3.73%
OCF growth 1Y-5.38%
OCF growth 3Y8.11%
OCF growth 5Y3.98%
ULTA BEAUTY INC / ULTA FAQ
Can you provide the ChartMill fundamental rating for ULTA BEAUTY INC?
ChartMill assigns a fundamental rating of 6 / 10 to ULTA.
What is the valuation status for ULTA stock?
ChartMill assigns a valuation rating of 4 / 10 to ULTA BEAUTY INC (ULTA). This can be considered as Fairly Valued.
Can you provide the profitability details for ULTA BEAUTY INC?
ULTA BEAUTY INC (ULTA) has a profitability rating of 9 / 10.
How financially healthy is ULTA BEAUTY INC?
The financial health rating of ULTA BEAUTY INC (ULTA) is 8 / 10.
Can you provide the expected EPS growth for ULTA stock?
The Earnings per Share (EPS) of ULTA BEAUTY INC (ULTA) is expected to decline by -1.05% in the next year.