ULTA BEAUTY INC (ULTA) Stock Fundamental Analysis
NASDAQ:ULTA - US90384S3031 - Common Stock
529.5 USD
+9.32 (+1.79%)
529.5 USD
0 (0%)
ULTA gets a fundamental rating of 6 out of 10. The analysis compared the fundamentals against 123 industry peers in the Specialty Retail industry. ULTA gets an excellent profitability rating and is at the same time showing great financial health properties. 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.
In the past 5 years ULTA has always been profitable.
Each year in the past 5 years ULTA had a positive operating cash flow.
1.2 Ratios
Looking at the Return On Assets, with a value of 19.93%, ULTA belongs to the top of the industry, outperforming 96.77% of the companies in the same industry.
Looking at the Return On Equity, with a value of 49.09%, ULTA belongs to the top of the industry, outperforming 94.35% of the companies in the same industry.
ULTA has a better Return On Invested Capital (28.21%) than 94.35% of its industry peers.
The Average Return On Invested Capital over the past 3 years for ULTA is significantly above the industry average of 11.98%.
| 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 90.32% of its industry peers.
ULTA's Profit Margin has improved in the last couple of years.
ULTA's Operating Margin of 13.71% is amongst the best of the industry. ULTA outperforms 91.13% 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 38.81%, ULTA is in line with its industry, outperforming 59.68% 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
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 7.35. This indicates that ULTA is financially healthy and has little risk of bankruptcy at the moment.
With an excellent Altman-Z score value of 7.35, ULTA belongs to the best of the industry, outperforming 95.97% of the companies in the same industry.
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.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0 | ||
| Debt/FCF | 0 | ||
| Altman-Z | 7.35 |
ROIC/WACC2.98
WACC9.46%
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 72.58% of its industry peers.
ULTA has a Quick Ratio of 1.67. This is a bad value and indicates that ULTA is not financially healthy enough and could expect problems in meeting its short term obligations.
With a Quick ratio value of 0.46, ULTA perfoms like the industry average, outperforming 45.97% of the companies in the same 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 slight negative growth in Earnings Per Share. In the last year, the EPS has decreased by -0.08%.
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 1.06% 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)-0.08%
EPS 3Y12.16%
EPS 5Y15.85%
EPS Q2Q%3.86%
Revenue 1Y (TTM)1.06%
Revenue growth 3Y9.38%
Revenue growth 5Y8.83%
Sales Q2Q%4.49%
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 8.32% on average per year.
The Revenue is expected to grow by 4.81% on average over the next years.
EPS Next Y-5.47%
EPS Next 2Y2.56%
EPS Next 3Y5.38%
EPS Next 5Y8.32%
Revenue Next Year3.74%
Revenue Next 2Y4.37%
Revenue Next 3Y4.62%
Revenue Next 5Y4.81%
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 rather expensively with a Price/Earnings ratio of 20.67.
73.39% 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 27.24, which is the current average of the S&P500 Index.
Based on the Price/Forward Earnings ratio of 19.84, the valuation of ULTA can be described as rather expensive.
Compared to the rest of the industry, the Price/Forward Earnings ratio of ULTA indicates a somewhat cheap valuation: ULTA is cheaper than 61.29% of the companies listed in the same industry.
When comparing the Price/Forward Earnings ratio of ULTA to the average of the S&P500 Index (22.81), we can say ULTA is valued inline with the index average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 20.67 | ||
| Fwd PE | 19.84 |
4.2 Price Multiples
ULTA's Enterprise Value to EBITDA ratio is in line with the industry average.
71.77% of the companies in the same industry are more expensive than ULTA, based on the Price/Free Cash Flow ratio.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 22.96 | ||
| EV/EBITDA | 12.69 |
4.3 Compensation for Growth
ULTA has an outstanding profitability rating, which may justify a higher PE ratio.
PEG (NY)N/A
PEG (5Y)1.3
EPS Next 2Y2.56%
EPS Next 3Y5.38%
5. Dividend
5.1 Amount
No dividends for ULTA!.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | N/A |
529.5
+9.32 (+1.79%)
Chartmill FA Rating
GICS SectorConsumer Discretionary
GICS IndustryGroupConsumer Discretionary Distribution & Retail
GICS IndustrySpecialty Retail
Earnings (Last)
Earnings (Next)
Inst Owners100.55%
Inst Owner Change1.21%
Ins Owners0.13%
Ins Owner Change4.44%
Market Cap23.80B
Analysts74.55
Price Target528.98 (-0.1%)
Short Float %4.25%
Short Ratio2.97
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)7.23%
PT rev (3m)25.45%
EPS NQ rev (1m)0.27%
EPS NQ rev (3m)2.49%
EPS NY rev (1m)-0.4%
EPS NY rev (3m)1.93%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)0.82%
Revenue NY rev (1m)-0.07%
Revenue NY rev (3m)0.6%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 20.67 | ||
| Fwd PE | 19.84 | ||
| P/S | 2.08 | ||
| P/FCF | 22.96 | ||
| P/OCF | 17.01 | ||
| P/B | 9.79 | ||
| P/tB | 9.84 | ||
| EV/EBITDA | 12.69 |
EPS(TTM)25.62
EY4.84%
EPS(NY)26.69
Fwd EY5.04%
FCF(TTM)23.07
FCFY4.36%
OCF(TTM)31.13
OCFY5.88%
SpS254.02
BVpS54.07
TBVpS53.83
PEG (NY)N/A
PEG (5Y)1.3
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 | 7.35 |
F-Score5
WACC9.46%
ROIC/WACC2.98
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)-0.08%
EPS 3Y12.16%
EPS 5Y15.85%
EPS Q2Q%3.86%
EPS Next Y-5.47%
EPS Next 2Y2.56%
EPS Next 3Y5.38%
EPS Next 5Y8.32%
Revenue 1Y (TTM)1.06%
Revenue growth 3Y9.38%
Revenue growth 5Y8.83%
Sales Q2Q%4.49%
Revenue Next Year3.74%
Revenue Next 2Y4.37%
Revenue Next 3Y4.62%
Revenue Next 5Y4.81%
EBIT growth 1Y-4.34%
EBIT growth 3Y6.46%
EBIT growth 5Y11.68%
EBIT Next Year13.51%
EBIT Next 3Y8.69%
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%