ULTA BEAUTY INC (ULTA) Stock Fundamental Analysis
NASDAQ:ULTA - Nasdaq - US90384S3031 - Common Stock - Currency: USD
Taking everything into account, ULTA scores 6 out of 10 in our fundamental rating. ULTA was compared to 121 industry peers in the Specialty Retail industry. ULTA has outstanding health and profitabily ratings, belonging to the best of the industry. This is a solid base for any company. ULTA has a correct valuation and a medium growth rate.
1. Profitability
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.
1.2 Ratios
ULTA has a Return On Assets of 20.01%. This is amongst the best in the industry. ULTA outperforms 96.69% of its industry peers.
With an excellent Return On Equity value of 48.27%, ULTA belongs to the best of the industry, outperforming 93.39% of the companies in the same industry.
ULTA's Return On Invested Capital of 28.20% is amongst the best of the industry. ULTA outperforms 94.21% of its industry peers.
The Average Return On Invested Capital over the past 3 years for ULTA is significantly above the industry average of 13.08%.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 20.01% | ||
| ROE | 48.27% | ||
| ROIC | 28.2% |
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
ULTA's Profit Margin of 10.63% is amongst the best of the industry. ULTA outperforms 91.74% of its industry peers.
In the last couple of years the Profit Margin of ULTA has grown nicely.
ULTA has a better Operating Margin (13.85%) than 91.74% of its industry peers.
ULTA's Operating Margin has improved in the last couple of years.
Looking at the Gross Margin, with a value of 38.84%, ULTA is in line with its industry, outperforming 57.02% of the companies in the same industry.
ULTA's Gross Margin has been stable in the last couple of years.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 13.85% | ||
| PM (TTM) | 10.63% | ||
| GM | 38.84% |
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
With a Return on Invested Capital (ROIC) well above the Cost of Capital (WACC), ULTA is creating value.
The number of shares outstanding for ULTA has been reduced compared to 1 year ago.
Compared to 5 years ago, ULTA has less shares outstanding
ULTA has no outstanding debt. Therefor its Debt/Equity and Debt/FCF ratios are 0 and belong to the best of the industry.
2.2 Solvency
An Altman-Z score of 6.38 indicates that ULTA is not in any danger for bankruptcy at the moment.
ULTA has a better Altman-Z score (6.38) than 92.56% of its industry peers.
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 | 6.38 |
ROIC/WACC3.1
WACC9.11%
2.3 Liquidity
A Current Ratio of 1.70 indicates that ULTA should not have too much problems paying its short term obligations.
ULTA has a Current ratio of 1.70. This is in the better half of the industry: ULTA outperforms 71.07% of its industry peers.
A Quick Ratio of 0.60 indicates that ULTA may have some problems paying its short term obligations.
The Quick ratio of ULTA (0.60) is comparable to the rest of the industry.
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 Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.7 | ||
| Quick Ratio | 0.6 |
3. Growth
3.1 Past
The earnings per share for ULTA have decreased by -2.61% in the last year.
Measured over the past years, ULTA shows a quite strong growth in Earnings Per Share. The EPS has been growing by 15.85% on average per year.
Looking at the last year, ULTA shows a small growth in Revenue. The Revenue has grown by 0.79% in the last year.
Measured over the past years, ULTA shows a quite strong growth in Revenue. The Revenue has been growing by 8.83% on average per year.
EPS 1Y (TTM)-2.61%
EPS 3Y12.16%
EPS 5Y15.85%
EPS Q2Q%4.7%
Revenue 1Y (TTM)0.79%
Revenue growth 3Y9.38%
Revenue growth 5Y8.83%
Sales Q2Q%-1.88%
3.2 Future
The Earnings Per Share is expected to grow by 7.99% on average over the next years.
ULTA is expected to show a small growth in Revenue. In the coming years, the Revenue will grow by 4.64% yearly.
EPS Next Y-7.28%
EPS Next 2Y1.41%
EPS Next 3Y4.9%
EPS Next 5Y7.99%
Revenue Next Year3.14%
Revenue Next 2Y3.86%
Revenue Next 3Y4.42%
Revenue Next 5Y4.64%
3.3 Evolution
The EPS growth rate is decreasing: in the next years the growth will be less 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 decreasing.
4. Valuation
4.1 Price/Earnings Ratio
ULTA is valuated correctly with a Price/Earnings ratio of 15.59.
Based on the Price/Earnings ratio, ULTA is valued a bit cheaper than 71.07% of the companies in the same industry.
Compared to an average S&P500 Price/Earnings ratio of 27.75, ULTA is valued a bit cheaper.
A Price/Forward Earnings ratio of 16.82 indicates a correct valuation of ULTA.
Based on the Price/Forward Earnings ratio, ULTA is valued a bit cheaper than 65.29% of the companies in the same industry.
ULTA's Price/Forward Earnings ratio indicates a similar valuation than the S&P500 average which is at 20.49.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 15.59 | ||
| Fwd PE | 16.82 |
4.2 Price Multiples
ULTA's Enterprise Value to EBITDA is on the same level as the industry average.
Based on the Price/Free Cash Flow ratio, ULTA is valued a bit cheaper than the industry average as 66.94% of the companies are valued more expensively.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 18.59 | ||
| EV/EBITDA | 9.33 |
4.3 Compensation for Growth
ULTA has an outstanding profitability rating, which may justify a higher PE ratio.
PEG (NY)N/A
PEG (5Y)0.98
EPS Next 2Y1.41%
EPS Next 3Y4.9%
5. Dividend
5.1 Amount
No dividends for ULTA!.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | N/A |
NASDAQ:ULTA (5/2/2025, 1:12:35 PM)
395.64
+2.71 (+0.69%)
Chartmill FA Rating
GICS SectorConsumer Discretionary
GICS IndustryGroupConsumer Discretionary Distribution & Retail
GICS IndustrySpecialty Retail
Earnings (Last)
Earnings (Next)
Inst Owners93.36%
Inst Owner Change1.33%
Ins Owners0.09%
Ins Owner Change4.07%
Market Cap17.93B
Analysts71.89
Price Target421.53 (6.54%)
Short Float %5.88%
Short Ratio2.37
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)13.7%
Min EPS beat(2)10.88%
Max EPS beat(2)16.52%
EPS beat(4)3
Avg EPS beat(4)6.07%
Min EPS beat(4)-4.85%
Max EPS beat(4)16.52%
EPS beat(8)6
Avg EPS beat(8)3.61%
EPS beat(12)10
Avg EPS beat(12)10.04%
EPS beat(16)14
Avg EPS beat(16)23.23%
Revenue beat(2)0
Avg Revenue beat(2)-0.92%
Min Revenue beat(2)-1.26%
Max Revenue beat(2)-0.59%
Revenue beat(4)0
Avg Revenue beat(4)-1.96%
Min Revenue beat(4)-4.24%
Max Revenue beat(4)-0.59%
Revenue beat(8)0
Avg Revenue beat(8)-1.6%
Revenue beat(12)4
Avg Revenue beat(12)0.48%
Revenue beat(16)7
Avg Revenue beat(16)2.18%
PT rev (1m)-10.35%
PT rev (3m)-6.34%
EPS NQ rev (1m)0.02%
EPS NQ rev (3m)-5.87%
EPS NY rev (1m)0.61%
EPS NY rev (3m)-0.74%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)-0.28%
Revenue NY rev (1m)-0.7%
Revenue NY rev (3m)-0.45%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 15.59 | ||
| Fwd PE | 16.82 | ||
| P/S | 1.59 | ||
| P/FCF | 18.59 | ||
| P/OCF | 13.39 | ||
| P/B | 7.2 | ||
| P/tB | 7.24 | ||
| EV/EBITDA | 9.33 |
EPS(TTM)25.37
EY6.41%
EPS(NY)23.52
Fwd EY5.95%
FCF(TTM)21.28
FCFY5.38%
OCF(TTM)29.54
OCFY7.47%
SpS249.3
BVpS54.92
TBVpS54.67
PEG (NY)N/A
PEG (5Y)0.98
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 20.01% | ||
| ROE | 48.27% | ||
| ROCE | 37.07% | ||
| ROIC | 28.2% | ||
| ROICexc | 33.83% | ||
| ROICexgc | 33.94% | ||
| OM | 13.85% | ||
| PM (TTM) | 10.63% | ||
| GM | 38.84% | ||
| FCFM | 8.54% |
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%
ROICexcg growth 3Y-1.69%
ROICexcg 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-Score5
Asset Turnover1.88
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0 | ||
| Debt/FCF | 0 | ||
| Debt/EBITDA | 0 | ||
| Cap/Depr | 140.22% | ||
| Cap/Sales | 3.32% | ||
| Interest Coverage | 376.29 | ||
| Cash Conversion | 73.07% | ||
| Profit Quality | 80.27% | ||
| Current Ratio | 1.7 | ||
| Quick Ratio | 0.6 | ||
| Altman-Z | 6.38 |
F-Score5
WACC9.11%
ROIC/WACC3.1
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)-2.61%
EPS 3Y12.16%
EPS 5Y15.85%
EPS Q2Q%4.7%
EPS Next Y-7.28%
EPS Next 2Y1.41%
EPS Next 3Y4.9%
EPS Next 5Y7.99%
Revenue 1Y (TTM)0.79%
Revenue growth 3Y9.38%
Revenue growth 5Y8.83%
Sales Q2Q%-1.88%
Revenue Next Year3.14%
Revenue Next 2Y3.86%
Revenue Next 3Y4.42%
Revenue Next 5Y4.64%
EBIT growth 1Y-6.74%
EBIT growth 3Y6.46%
EBIT growth 5Y11.68%
EBIT Next Year12.12%
EBIT Next 3Y8.64%
EBIT Next 5Y7.21%
FCF growth 1Y-7.38%
FCF growth 3Y2.82%
FCF growth 5Y3.73%
OCF growth 1Y-9.32%
OCF growth 3Y8.11%
OCF growth 5Y3.98%