ULTA BEAUTY INC (ULTA) Stock Fundamental Analysis
USA - NASDAQ:ULTA - US90384S3031 - Common Stock
556.45 USD
-1.37 (-0.25%)
556.45 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 decent growth rate and is not valued too expensively.
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.
In the past 5 years ULTA always reported a positive cash flow from operatings.
1.2 Ratios
ULTA has a better Return On Assets (19.93%) than 96.72% of its industry peers.
The Return On Equity of ULTA (49.09%) is better than 95.08% of its industry peers.
ULTA has a Return On Invested Capital of 28.21%. This is amongst the best in the industry. ULTA outperforms 94.26% of its industry peers.
ULTA had an Average Return On Invested Capital over the past 3 years of 31.18%. This is significantly above the industry average of 11.93%.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 19.93% | ||
| ROE | 49.09% | ||
| ROIC | 28.21% |
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
The Profit Margin of ULTA (10.45%) is better than 90.98% of its industry peers.
ULTA's Profit Margin has improved in the last couple of years.
Looking at the Operating Margin, with a value of 13.71%, ULTA belongs to the top of the industry, outperforming 90.16% of the companies in the same industry.
In the last couple of years the Operating Margin of ULTA has grown nicely.
With a Gross Margin value of 38.81%, ULTA perfoms like the industry average, outperforming 59.84% 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 | 13.71% | ||
| PM (TTM) | 10.45% | ||
| GM | 38.81% |
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.
Compared to 1 year ago, ULTA has less shares outstanding
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
An Altman-Z score of 7.56 indicates that ULTA is not in any danger for bankruptcy at the moment.
ULTA has a Altman-Z score of 7.56. This is amongst the best in the industry. ULTA outperforms 93.44% 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 | 7.56 |
ROIC/WACC2.92
WACC9.67%
2.3 Liquidity
A Current Ratio of 1.67 indicates that ULTA should not have too much problems paying its short term obligations.
ULTA has a Current ratio of 1.67. This is in the better half of the industry: ULTA outperforms 72.13% of its industry peers.
A Quick Ratio of 0.46 indicates that ULTA may have some problems paying its short term obligations.
The Quick ratio of ULTA (0.46) 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 | 1.67 | ||
| Quick Ratio | 0.46 |
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%.
ULTA shows quite a strong growth in Earnings Per Share. Measured over the last years, the EPS has been growing by 15.85% yearly.
The Revenue has been growing slightly by 0.79% in the past year.
ULTA shows quite a strong growth in Revenue. Measured over the last years, the Revenue has been growing by 8.83% yearly.
EPS 1Y (TTM)4.78%
EPS 3Y12.16%
EPS 5Y15.85%
EPS Q2Q%9.25%
Revenue 1Y (TTM)0.79%
Revenue growth 3Y9.38%
Revenue growth 5Y8.83%
Sales Q2Q%9.26%
3.2 Future
The Earnings Per Share is expected to grow by 8.37% on average over the next years. This is quite good.
ULTA is expected to show a small growth in Revenue. In the coming years, the Revenue will grow by 5.12% yearly.
EPS Next Y-1.84%
EPS Next 2Y4.41%
EPS Next 3Y6.61%
EPS Next 5Y8.37%
Revenue Next Year7.04%
Revenue Next 2Y5.93%
Revenue Next 3Y5.97%
Revenue Next 5Y5.12%
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
Based on the Price/Earnings ratio of 21.31, the valuation of ULTA can be described as rather expensive.
Based on the Price/Earnings ratio, ULTA is valued a bit cheaper than 71.31% of the companies in the same industry.
The average S&P500 Price/Earnings ratio is at 27.86. ULTA is valued slightly cheaper when compared to this.
With a Price/Forward Earnings ratio of 20.12, ULTA is valued on the expensive side.
Based on the Price/Forward Earnings ratio, ULTA is valued a bit cheaper than 61.48% of the companies in the same industry.
Compared to an average S&P500 Price/Forward Earnings ratio of 23.32, ULTA is valued at the same level.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 21.31 | ||
| Fwd PE | 20.12 |
4.2 Price Multiples
Compared to the rest of the industry, the Enterprise Value to EBITDA ratio of ULTA is on the same level as its industry peers.
Based on the Price/Free Cash Flow ratio, ULTA is valued a bit cheaper than 72.13% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 24.07 | ||
| EV/EBITDA | 13.35 |
4.3 Compensation for Growth
ULTA has an outstanding profitability rating, which may justify a higher PE ratio.
PEG (NY)N/A
PEG (5Y)1.35
EPS Next 2Y4.41%
EPS Next 3Y6.61%
5. Dividend
5.1 Amount
No dividends for ULTA!.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | N/A |
556.45
-1.37 (-0.25%)
Chartmill FA Rating
GICS SectorConsumer Discretionary
GICS IndustryGroupConsumer Discretionary Distribution & Retail
GICS IndustrySpecialty Retail
Earnings (Last)
Earnings (Next)
Inst Owners100.95%
Inst Owner Change1.19%
Ins Owners0.13%
Ins Owner Change3.34%
Market Cap24.95B
Analysts74.55
Price Target589.29 (5.9%)
Short Float %4.36%
Short Ratio2.71
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)15%
Min EPS beat(2)13.47%
Max EPS beat(2)16.52%
EPS beat(4)3
Avg EPS beat(4)9.01%
Min EPS beat(4)-4.85%
Max EPS beat(4)16.52%
EPS beat(8)7
Avg EPS beat(8)5.52%
EPS beat(12)10
Avg EPS beat(12)7.96%
EPS beat(16)14
Avg EPS beat(16)17.55%
Revenue beat(2)0
Avg Revenue beat(2)-0.66%
Min Revenue beat(2)-1.26%
Max Revenue beat(2)-0.06%
Revenue beat(4)0
Avg Revenue beat(4)-1.53%
Min Revenue beat(4)-4.24%
Max Revenue beat(4)-0.06%
Revenue beat(8)0
Avg Revenue beat(8)-1.43%
Revenue beat(12)3
Avg Revenue beat(12)-0.23%
Revenue beat(16)6
Avg Revenue beat(16)1.18%
PT rev (1m)11.4%
PT rev (3m)21.06%
EPS NQ rev (1m)0%
EPS NQ rev (3m)3.04%
EPS NY rev (1m)3.83%
EPS NY rev (3m)4.41%
Revenue NQ rev (1m)0.04%
Revenue NQ rev (3m)0.85%
Revenue NY rev (1m)3.18%
Revenue NY rev (3m)3.36%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 21.31 | ||
| Fwd PE | 20.12 | ||
| P/S | 2.19 | ||
| P/FCF | 24.07 | ||
| P/OCF | 17.83 | ||
| P/B | 10.27 | ||
| P/tB | 10.31 | ||
| EV/EBITDA | 13.35 |
EPS(TTM)26.11
EY4.69%
EPS(NY)27.66
Fwd EY4.97%
FCF(TTM)23.12
FCFY4.16%
OCF(TTM)31.21
OCFY5.61%
SpS254.64
BVpS54.2
TBVpS53.96
PEG (NY)N/A
PEG (5Y)1.35
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 19.93% | ||
| ROE | 49.09% | ||
| ROCE | 37.08% | ||
| ROIC | 28.21% | ||
| ROICexc | 31.61% | ||
| ROICexgc | 31.7% | ||
| OM | 13.71% | ||
| PM (TTM) | 10.45% | ||
| GM | 38.81% | ||
| FCFM | 9.08% |
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 Turnover1.91
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0 | ||
| Debt/FCF | 0 | ||
| Debt/EBITDA | 0 | ||
| Cap/Depr | 132.12% | ||
| Cap/Sales | 3.17% | ||
| Interest Coverage | 250 | ||
| Cash Conversion | 76.04% | ||
| Profit Quality | 86.9% | ||
| Current Ratio | 1.67 | ||
| Quick Ratio | 0.46 | ||
| Altman-Z | 7.56 |
F-Score5
WACC9.67%
ROIC/WACC2.92
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-1.84%
EPS Next 2Y4.41%
EPS Next 3Y6.61%
EPS Next 5Y8.37%
Revenue 1Y (TTM)0.79%
Revenue growth 3Y9.38%
Revenue growth 5Y8.83%
Sales Q2Q%9.26%
Revenue Next Year7.04%
Revenue Next 2Y5.93%
Revenue Next 3Y5.97%
Revenue Next 5Y5.12%
EBIT growth 1Y-4.34%
EBIT growth 3Y6.46%
EBIT growth 5Y11.68%
EBIT Next Year18.28%
EBIT Next 3Y10.48%
EBIT Next 5Y7.37%
FCF growth 1Y2.69%
FCF growth 3Y2.82%
FCF growth 5Y3.73%
OCF growth 1Y2.85%
OCF growth 3Y8.11%
OCF growth 5Y3.98%