ULTA BEAUTY INC (ULTA) Fundamental Analysis & Valuation

NASDAQ:ULTA • US90384S3031

Current stock price

531.95 USD
-5.53 (-1.03%)
At close:
531.95 USD
0 (0%)
After Hours:

This ULTA fundamental analysis includes valuation metrics, fair value assessment, financial health analysis, profitability trends, growth metrics and dividend sustainability analysis.

9

1. ULTA Profitability Analysis

1.1 Basic Checks

  • ULTA had positive earnings in the past year.
  • In the past year ULTA had a positive cash flow from operations.
  • In the past 5 years ULTA has always been profitable.
  • ULTA had a positive operating cash flow in each of the past 5 years.
ULTA Yearly Net Income VS EBIT VS OCF VS FCFULTA Yearly Net Income VS EBIT VS OCF VS FCFYearly Net Income VS EBIT VS OCF VS FCF 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 2026 500M 1B 1.5B

1.2 Ratios

  • ULTA's Return On Assets of 16.48% is amongst the best of the industry. ULTA outperforms 96.75% of its industry peers.
  • The Return On Equity of ULTA (41.14%) is better than 91.06% of its industry peers.
  • ULTA's Return On Invested Capital of 24.02% is amongst the best of the industry. ULTA outperforms 91.87% of its industry peers.
  • Measured over the past 3 years, the Average Return On Invested Capital for ULTA is significantly above the industry average of 13.24%.
Industry RankSector Rank
ROA 16.48%
ROE 41.14%
ROIC 24.02%
ROA(3y)19.7%
ROA(5y)20.59%
ROE(3y)48.68%
ROE(5y)54.73%
ROIC(3y)27.84%
ROIC(5y)29.58%
ULTA Yearly ROA, ROE, ROICULTA Yearly ROA, ROE, ROICYearly ROA, ROE, ROIC 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 2026 20 40 60

1.3 Margins

  • Looking at the Profit Margin, with a value of 9.31%, ULTA belongs to the top of the industry, outperforming 90.24% of the companies in the same industry.
  • ULTA's Profit Margin has improved in the last couple of years.
  • With an excellent Operating Margin value of 12.37%, ULTA belongs to the best of the industry, outperforming 88.62% of the companies in the same industry.
  • In the last couple of years the Operating Margin of ULTA has grown nicely.
  • ULTA has a Gross Margin of 39.10%. This is comparable to the rest of the industry: ULTA outperforms 57.72% of its industry peers.
  • In the last couple of years the Gross Margin of ULTA has grown nicely.
Industry RankSector Rank
OM 12.37%
PM (TTM) 9.31%
GM 39.1%
OM growth 3Y-8.32%
OM growth 5Y16.74%
PM growth 3Y-8.54%
PM growth 5Y26.61%
GM growth 3Y-0.44%
GM growth 5Y4.3%
ULTA Yearly Profit, Operating, Gross MarginsULTA Yearly Profit, Operating, Gross MarginsYearly Profit, Operating, Gross Margins 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 2026 10 20 30

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8

2. ULTA Health Analysis

2.1 Basic Checks

  • With a Return on Invested Capital (ROIC) well above the Cost of Capital (WACC), ULTA is creating value.
  • Compared to 1 year ago, ULTA has less shares outstanding
  • ULTA has less shares outstanding than it did 5 years ago.
  • ULTA has a worse debt/assets ratio than last year.
ULTA Yearly Shares OutstandingULTA Yearly Shares OutstandingYearly Shares Outstanding 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 2026 20M 40M 60M
ULTA Yearly Total Debt VS Total AssetsULTA Yearly Total Debt VS Total AssetsYearly Total Debt VS Total Assets 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 2026 2B 4B 6B

2.2 Solvency

  • An Altman-Z score of 6.33 indicates that ULTA is not in any danger for bankruptcy at the moment.
  • The Altman-Z score of ULTA (6.33) is better than 92.68% of its industry peers.
  • ULTA has a debt to FCF ratio of 0.06. This is a very positive value and a sign of high solvency as it would only need 0.06 years to pay back of all of its debts.
  • ULTA has a better Debt to FCF ratio (0.06) than 83.74% of its industry peers.
  • ULTA has a Debt/Equity ratio of 0.02. This is a healthy value indicating a solid balance between debt and equity.
  • With a decent Debt to Equity ratio value of 0.02, ULTA is doing good in the industry, outperforming 73.17% of the companies in the same industry.
Industry RankSector Rank
Debt/Equity 0.02
Debt/FCF 0.06
Altman-Z 6.33
ROIC/WACC2.65
WACC9.05%
ULTA Yearly LT Debt VS Equity VS FCFULTA Yearly LT Debt VS Equity VS FCFYearly LT Debt VS Equity VS FCF 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 2026 500M 1B 1.5B 2B 2.5B

2.3 Liquidity

  • ULTA has a Current Ratio of 1.41. This is a normal value and indicates that ULTA is financially healthy and should not expect problems in meeting its short term obligations.
  • With a Current ratio value of 1.41, ULTA perfoms like the industry average, outperforming 56.10% of the companies in the same industry.
  • A Quick Ratio of 0.43 indicates that ULTA may have some problems paying its short term obligations.
  • ULTA's Quick ratio of 0.43 is on the low side compared to the rest of the industry. ULTA is outperformed by 65.04% of its industry peers.
  • The current and quick ratio evaluation for ULTA is rather negative, while it does have excellent solvency and profitability. These ratios do not necessarly indicate liquidity issues and need to be evaluated against the specifics of the business.
Industry RankSector Rank
Current Ratio 1.41
Quick Ratio 0.43
ULTA Yearly Current Assets VS Current LiabilitesULTA Yearly Current Assets VS Current LiabilitesYearly Current Assets VS Current Liabilites 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 2026 1B 2B 3B

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WACCDebt/EquityHow to determine the health of a companyAltman-Z scoreShow peers with great health

5

3. ULTA Growth Analysis

3.1 Past

  • The Earnings Per Share has been growing slightly by 1.14% over the past year.
  • ULTA shows a strong growth in Earnings Per Share. Measured over the last years, the EPS has been growing by 40.24% yearly.
  • Looking at the last year, ULTA shows a quite strong growth in Revenue. The Revenue has grown by 9.71% in the last year.
  • The Revenue has been growing by 15.04% on average over the past years. This is quite good.
EPS 1Y (TTM)1.14%
EPS 3Y2.23%
EPS 5Y40.24%
EPS Q2Q%-5.32%
Revenue 1Y (TTM)9.71%
Revenue growth 3Y6.67%
Revenue growth 5Y15.04%
Sales Q2Q%11.78%

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 11.45% on average per year.
  • Based on estimates for the next years, ULTA will show a small growth in Revenue. The Revenue will grow by 5.88% on average per year.
EPS Next Y13.75%
EPS Next 2Y11.72%
EPS Next 3Y11.03%
EPS Next 5Y11.45%
Revenue Next Year7.36%
Revenue Next 2Y6.23%
Revenue Next 3Y5.9%
Revenue Next 5Y5.88%

3.3 Evolution

  • The estimated forward EPS growth is still strong, although it is decreasing when compared to the stronger growth in the past years.
  • The Revenue growth rate is decreasing: in the next years the growth will be less than in the last years.
ULTA Yearly Revenue VS EstimatesULTA Yearly Revenue VS EstimatesYearly Revenue VS Estimates 2015 2017 2019 2021 2023 2025 2027 2029 2031 2033 5B 10B 15B
ULTA Yearly EPS VS EstimatesULTA Yearly EPS VS EstimatesYearly EPS VS Estimates 2015 2017 2019 2021 2023 2025 2027 2029 2031 2033 10 20 30 40 50

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4

4. ULTA Valuation Analysis

4.1 Price/Earnings Ratio

  • A Price/Earnings ratio of 20.73 indicates a rather expensive valuation of ULTA.
  • Compared to the rest of the industry, the Price/Earnings ratio of ULTA indicates a somewhat cheap valuation: ULTA is cheaper than 65.85% of the companies listed in the same industry.
  • When comparing the Price/Earnings ratio of ULTA to the average of the S&P500 Index (26.64), we can say ULTA is valued slightly cheaper.
  • With a Price/Forward Earnings ratio of 18.22, ULTA is valued on the expensive side.
  • ULTA's Price/Forward Earnings ratio is a bit cheaper when compared to the industry. ULTA is cheaper than 64.23% of the companies in the same industry.
  • When comparing the Price/Forward Earnings ratio of ULTA to the average of the S&P500 Index (21.36), we can say ULTA is valued inline with the index average.
Industry RankSector Rank
PE 20.73
Fwd PE 18.22
ULTA Price Earnings VS Forward Price EarningsULTA Price Earnings VS Forward Price Earnings ChartPrice Earnings - Forward Price Earnings PE FPE 10 20 30 40 50

4.2 Price Multiples

  • ULTA's Enterprise Value to EBITDA is on the same level as the industry average.
  • Compared to the rest of the industry, the Price/Free Cash Flow ratio of ULTA indicates a somewhat cheap valuation: ULTA is cheaper than 60.16% of the companies listed in the same industry.
Industry RankSector Rank
P/FCF 21.79
EV/EBITDA 12.38
ULTA Per share dataULTA EPS, Sales, OCF, FCF, BookValue per sharePer Share Data Per Share 50 100 150 200 250

4.3 Compensation for Growth

  • The PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates a correct valuation of the company.
  • The excellent profitability rating of ULTA may justify a higher PE ratio.
PEG (NY)1.51
PEG (5Y)0.52
EPS Next 2Y11.72%
EPS Next 3Y11.03%

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Price/EarningsPrice/FCFFCF per shareEV/EBITDAPEG RATIOShow best valued peers

0

5. ULTA Dividend Analysis

5.1 Amount

  • ULTA does not give a dividend.
Industry RankSector Rank
Dividend Yield 0%

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ULTA Fundamentals: All Metrics, Ratios and Statistics

ULTA BEAUTY INC

NASDAQ:ULTA (5/1/2026, 8:00:47 PM)

After market: 531.95 0 (0%)

531.95

-5.53 (-1.03%)

Chartmill FA Rating
GICS IndustryGroupConsumer Discretionary Distribution & Retail
GICS IndustrySpecialty Retail
Industry Strength32.3
Industry Growth57.14
Earnings (Last)03-12
Earnings (Next)06-02
Inst Owners102.21%
Inst Owner Change3.1%
Ins Owners0.19%
Ins Owner Change3.83%
Market Cap23.27B
Revenue(TTM)12.39B
Net Income(TTM)1.15B
Analysts77.06
Price Target685.54 (28.87%)
Short Float %4.7%
Short Ratio2.79
Dividend
Industry RankSector Rank
Dividend Yield 0%
Yearly DividendN/A
Dividend Growth(5Y)N/A
DP0%
Div Incr Years0
Div Non Decr Years0
Ex-DateN/A
Surprises & Revisions
EPS beat(2)1
Avg EPS beat(2)3.28%
Min EPS beat(2)-2.09%
Max EPS beat(2)8.65%
EPS beat(4)3
Avg EPS beat(4)7.95%
Min EPS beat(4)-2.09%
Max EPS beat(4)13.47%
EPS beat(8)6
Avg EPS beat(8)7.01%
EPS beat(12)9
Avg EPS beat(12)5.06%
EPS beat(16)13
Avg EPS beat(16)9.52%
Revenue beat(2)2
Avg Revenue beat(2)1.99%
Min Revenue beat(2)0.47%
Max Revenue beat(2)3.5%
Revenue beat(4)3
Avg Revenue beat(4)1.52%
Min Revenue beat(4)-0.06%
Max Revenue beat(4)3.5%
Revenue beat(8)3
Avg Revenue beat(8)-0.22%
Revenue beat(12)3
Avg Revenue beat(12)-0.56%
Revenue beat(16)7
Avg Revenue beat(16)0.74%
PT rev (1m)0.43%
PT rev (3m)5.36%
EPS NQ rev (1m)-2.02%
EPS NQ rev (3m)-6.1%
EPS NY rev (1m)0.37%
EPS NY rev (3m)1.2%
Revenue NQ rev (1m)-0.25%
Revenue NQ rev (3m)0.32%
Revenue NY rev (1m)-0.14%
Revenue NY rev (3m)1.88%
Valuation
Industry RankSector Rank
PE 20.73
Fwd PE 18.22
P/S 1.88
P/FCF 21.79
P/OCF 15.48
P/B 8.3
P/tB 9.8
EV/EBITDA 12.38
EPS(TTM)25.66
EY4.82%
EPS(NY)29.19
Fwd EY5.49%
FCF(TTM)24.42
FCFY4.59%
OCF(TTM)34.36
OCFY6.46%
SpS283.33
BVpS64.09
TBVpS54.27
PEG (NY)1.51
PEG (5Y)0.52
Graham Number192.365 (-63.84%)
Profitability
Industry RankSector Rank
ROA 16.48%
ROE 41.14%
ROCE 32.1%
ROIC 24.02%
ROICexc 26.76%
ROICexgc 29.69%
OM 12.37%
PM (TTM) 9.31%
GM 39.1%
FCFM 8.62%
ROA(3y)19.7%
ROA(5y)20.59%
ROE(3y)48.68%
ROE(5y)54.73%
ROIC(3y)27.84%
ROIC(5y)29.58%
ROICexc(3y)30.67%
ROICexc(5y)33.91%
ROICexgc(3y)31.67%
ROICexgc(5y)34.57%
ROCE(3y)36.87%
ROCE(5y)39.1%
ROICexgc growth 3Y-11.84%
ROICexgc growth 5Y23.95%
ROICexc growth 3Y-14.66%
ROICexc growth 5Y21.57%
OM growth 3Y-8.32%
OM growth 5Y16.74%
PM growth 3Y-8.54%
PM growth 5Y26.61%
GM growth 3Y-0.44%
GM growth 5Y4.3%
F-Score6
Asset Turnover1.77
Health
Industry RankSector Rank
Debt/Equity 0.02
Debt/FCF 0.06
Debt/EBITDA 0.03
Cap/Depr 144.57%
Cap/Sales 3.51%
Interest Coverage 158.48
Cash Conversion 81.95%
Profit Quality 92.59%
Current Ratio 1.41
Quick Ratio 0.43
Altman-Z 6.33
F-Score6
WACC9.05%
ROIC/WACC2.65
Cap/Depr(3y)154.43%
Cap/Depr(5y)131.34%
Cap/Sales(3y)3.57%
Cap/Sales(5y)3.15%
Profit Quality(3y)84.5%
Profit Quality(5y)87.53%
High Growth Momentum
Growth
EPS 1Y (TTM)1.14%
EPS 3Y2.23%
EPS 5Y40.24%
EPS Q2Q%-5.32%
EPS Next Y13.75%
EPS Next 2Y11.72%
EPS Next 3Y11.03%
EPS Next 5Y11.45%
Revenue 1Y (TTM)9.71%
Revenue growth 3Y6.67%
Revenue growth 5Y15.04%
Sales Q2Q%11.78%
Revenue Next Year7.36%
Revenue Next 2Y6.23%
Revenue Next 3Y5.9%
Revenue Next 5Y5.88%
EBIT growth 1Y-2.04%
EBIT growth 3Y-2.2%
EBIT growth 5Y34.29%
EBIT Next Year29.26%
EBIT Next 3Y13.02%
EBIT Next 5Y10.06%
FCF growth 1Y10.77%
FCF growth 3Y-2.99%
FCF growth 5Y10.15%
OCF growth 1Y12.26%
OCF growth 3Y0.47%
OCF growth 5Y13.15%

ULTA BEAUTY INC / ULTA Fundamental Analysis FAQ

Can you provide the ChartMill fundamental rating for ULTA BEAUTY INC?

ChartMill assigns a fundamental rating of 7 / 10 to ULTA.


Can you provide the valuation status for ULTA BEAUTY INC?

ChartMill assigns a valuation rating of 4 / 10 to ULTA BEAUTY INC (ULTA). This can be considered as Fairly Valued.


What is the profitability of ULTA stock?

ULTA BEAUTY INC (ULTA) has a profitability rating of 9 / 10.


What is the valuation of ULTA BEAUTY INC based on its PE and PB ratios?

The Price/Earnings (PE) ratio for ULTA BEAUTY INC (ULTA) is 20.73 and the Price/Book (PB) ratio is 8.3.


How financially healthy is ULTA BEAUTY INC?

The financial health rating of ULTA BEAUTY INC (ULTA) is 8 / 10.