ULTA BEAUTY INC (ULTA)
US90384S3031 - Common Stock
We assign a fundamental rating of 6 out of 10 to ULTA. ULTA was compared to 126 industry peers in the Specialty Retail industry. ULTA has an excellent profitability rating, but there are some minor concerns on its financial health. ULTA is not valued too expensively and it also shows a decent growth rate.
1. Profitability
1.1 Basic Checks
In the past year ULTA was profitable.
In the past year ULTA had a positive cash flow from operations.
Each year in the past 5 years ULTA has been profitable.
Each year in the past 5 years ULTA had a positive operating cash flow.
1.2 Ratios
With an excellent Return On Assets value of 22.62%, ULTA belongs to the best of the industry, outperforming 97.62% of the companies in the same industry.
ULTA has a better Return On Equity (56.64%) than 94.44% of its industry peers.
Looking at the Return On Invested Capital, with a value of 31.44%, ULTA belongs to the top of the industry, outperforming 96.03% 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 13.85%.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 22.62% | ||
| ROE | 56.64% | ||
| ROIC | 31.44% |
ROA(3y)22.15%
ROA(5y)16.88%
ROE(3y)61.41%
ROE(5y)46.03%
ROIC(3y)31.95%
ROIC(5y)24.26%
1.3 Margins
ULTA has a better Profit Margin (11.52%) than 94.44% of its industry peers.
ULTA's Profit Margin has improved in the last couple of years.
ULTA has a Operating Margin of 14.97%. This is amongst the best in the industry. ULTA outperforms 93.65% of its industry peers.
ULTA's Operating Margin has improved in the last couple of years.
ULTA has a Gross Margin of 39.09%. This is comparable to the rest of the industry: ULTA outperforms 57.94% of its industry peers.
In the last couple of years the Gross Margin of ULTA has grown nicely.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 14.97% | ||
| PM (TTM) | 11.52% | ||
| GM | 39.09% |
OM growth 3Y37.93%
OM growth 5Y3.32%
PM growth 3Y59.09%
PM growth 5Y3.26%
GM growth 3Y7.26%
GM growth 5Y1.74%
2. Health
2.1 Basic Checks
The Return on Invested Capital (ROIC) is well above the Cost of Capital (WACC), so ULTA is creating value.
ULTA has less shares outstanding than it did 1 year ago.
Compared to 5 years ago, ULTA has less shares outstanding
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 no outstanding debt. Therefor its Debt/Equity and Debt/FCF ratios are 0 and belong to the best of the industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0 | ||
| Debt/FCF | 0 | ||
| Altman-Z | N/A |
ROIC/WACC3.38
WACC9.29%
2.3 Liquidity
A Current Ratio of 1.71 indicates that ULTA should not have too much problems paying its short term obligations.
With a decent Current ratio value of 1.71, ULTA is doing good in the industry, outperforming 64.29% of the companies in the same industry.
A Quick Ratio of 0.66 indicates that ULTA may have some problems paying its short term obligations.
ULTA's Quick ratio of 0.66 is in line compared to the rest of the industry. ULTA outperforms 52.38% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.71 | ||
| Quick Ratio | 0.66 |
3. Growth
3.1 Past
The Earnings Per Share has grown by an nice 8.45% over the past year.
ULTA shows quite a strong growth in Earnings Per Share. Measured over the last years, the EPS has been growing by 18.93% yearly.
ULTA shows quite a strong growth in Revenue. In the last year, the Revenue has grown by 9.78%.
Measured over the past years, ULTA shows a quite strong growth in Revenue. The Revenue has been growing by 10.78% on average per year.
EPS 1Y (TTM)8.45%
EPS 3Y76.6%
EPS 5Y18.93%
EPS growth Q2Q20.96%
Revenue 1Y (TTM)9.78%
Revenue growth 3Y22.13%
Revenue growth 5Y10.78%
Revenue growth Q2Q10.15%
3.2 Future
Based on estimates for the next years, ULTA will show a quite strong growth in Earnings Per Share. The EPS will grow by 10.71% on average per year.
Based on estimates for the next years, ULTA will show a small growth in Revenue. The Revenue will grow by 5.83% on average per year.
EPS Next Y4.58%
EPS Next 2Y7.53%
EPS Next 3Y8.4%
EPS Next 5Y10.71%
Revenue Next Year5.39%
Revenue Next 2Y5.83%
Revenue Next 3Y5.82%
Revenue Next 5Y5.83%
3.3 Evolution
Although the future EPS growth is still strong, it is not able to hold up the even more excellent growth rate of the past 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 decreasing.
4. Valuation
4.1 Price/Earnings Ratio
With a Price/Earnings ratio of 15.66, ULTA is valued correctly.
Based on the Price/Earnings ratio, ULTA is valued a bit cheaper than the industry average as 71.43% of the companies are valued more expensively.
When comparing the Price/Earnings ratio of ULTA to the average of the S&P500 Index (25.20), we can say ULTA is valued slightly cheaper.
A Price/Forward Earnings ratio of 14.98 indicates a correct valuation of ULTA.
69.05% of the companies in the same industry are more expensive than ULTA, based on the Price/Forward Earnings ratio.
When comparing the Price/Forward Earnings ratio of ULTA to the average of the S&P500 Index (21.63), we can say ULTA is valued slightly cheaper.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 15.66 | ||
| Fwd PE | 14.98 |
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 63.49% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 18.92 | ||
| EV/EBITDA | 9.85 |
4.3 Compensation for Growth
The high PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates ULTA does not grow enough to justify the current Price/Earnings ratio.
The excellent profitability rating of ULTA may justify a higher PE ratio.
PEG (NY)3.42
PEG (5Y)0.83
EPS Next 2Y7.53%
EPS Next 3Y8.4%
5. Dividend
5.1 Amount
ULTA does not give a dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | N/A |
ULTA BEAUTY INC
NASDAQ:ULTA (4/25/2024, 7:22:40 PM)
After market: 408.01 0 (0%)408.01
-2.54 (-0.62%)
Chartmill FA Rating
GICS SectorConsumer Discretionary
GICS IndustryGroupConsumer Discretionary Distribution & Retail
GICS IndustrySpecialty Retail
Earnings (Last)
Earnings (Next)
Inst Owners
Inst Owner Change
Ins Owners
Ins Owner Change
Market Cap19.69B
Analysts
Price Target
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | N/A |
Dividend Growth(5Y)
DP
Div Incr Years
Div Non Decr Years
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Surprises & Revisions
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Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 15.66 | ||
| Fwd PE | 14.98 | ||
| P/S | |||
| P/FCF | |||
| P/OCF | |||
| P/B | |||
| P/tB | |||
| EV/EBITDA |
EPS(TTM)
EY
EPS(NY)
Fwd EY
FCF(TTM)
FCFY
OCF(TTM)
OCFY
SpS
BVpS
TBVpS
PEG (NY)3.42
PEG (5Y)0.83
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 22.62% | ||
| ROE | 56.64% | ||
| ROCE | |||
| ROIC | |||
| ROICexc | |||
| ROICexgc | |||
| OM | 14.97% | ||
| PM (TTM) | 11.52% | ||
| GM | 39.09% | ||
| FCFM |
ROA(3y)
ROA(5y)
ROE(3y)
ROE(5y)
ROIC(3y)
ROIC(5y)
ROICexc(3y)
ROICexc(5y)
ROICexgc(3y)
ROICexgc(5y)
ROCE(3y)
ROCE(5y)
ROICexcg growth 3Y
ROICexcg growth 5Y
ROICexc growth 3Y
ROICexc growth 5Y
OM growth 3Y
OM growth 5Y
PM growth 3Y
PM growth 5Y
GM growth 3Y
GM growth 5Y
F-Score
Asset Turnover1.96
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0 | ||
| Debt/FCF | |||
| Debt/EBITDA | |||
| Cap/Depr | |||
| Cap/Sales | |||
| Interest Coverage | |||
| Cash Conversion | |||
| Profit Quality | |||
| Current Ratio | 1.71 | ||
| Quick Ratio | 0.66 | ||
| Altman-Z |
F-Score
WACC
ROIC/WACC
Cap/Depr(3y)
Cap/Depr(5y)
Cap/Sales(3y)
Cap/Sales(5y)
Profit Quality(3y)
Profit Quality(5y)
Growth
EPS 1Y (TTM)8.45%
EPS 3Y76.6%
EPS 5Y
EPS growth Q2Q
EPS Next Y4.58%
EPS Next 2Y
EPS Next 3Y
EPS Next 5Y
Revenue 1Y (TTM)9.78%
Revenue growth 3Y22.13%
Revenue growth 5Y
Revenue growth Q2Q
Revenue Next Year
Revenue Next 2Y
Revenue Next 3Y
Revenue Next 5Y
EBIT growth 1Y
EBIT growth 3Y
EBIT growth 5Y
EBIT Next Year
EBIT Next 3Y
EBIT Next 5Y
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FCF growth 3Y
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