ULTA BEAUTY INC (ULTA) Stock Fundamental Analysis
NASDAQ:ULTA - Nasdaq - US90384S3031 - Common Stock - Currency: USD
We assign a fundamental rating of 6 out of 10 to ULTA. ULTA was compared to 121 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 correct valuation and a medium growth rate.
1. Profitability
1.1 Basic Checks
ULTA had positive earnings in the past year.
ULTA had a positive operating cash flow in the past year.
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 Return On Assets of 20.01%. This is amongst the best in the industry. ULTA outperforms 96.69% of its industry peers.
The Return On Equity of ULTA (48.27%) is better than 93.39% of its industry peers.
ULTA has a better Return On Invested Capital (28.20%) than 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 12.74%.
| 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 90.91% of its industry peers.
In the last couple of years the Profit Margin of ULTA has grown nicely.
With an excellent Operating Margin value of 13.85%, ULTA belongs to the best of the industry, outperforming 91.74% of the companies in the same industry.
ULTA's Operating Margin has improved in the last couple of years.
With a Gross Margin value of 38.84%, ULTA perfoms like the industry average, 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.
Compared to 1 year ago, ULTA has less shares outstanding
ULTA has less shares outstanding than it did 5 years ago.
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
ULTA has an Altman-Z score of 6.47. This indicates that ULTA is financially healthy and has little risk of bankruptcy at the moment.
ULTA has a Altman-Z score of 6.47. This is amongst the best in the industry. ULTA outperforms 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 | 6.47 |
ROIC/WACC2.87
WACC9.81%
2.3 Liquidity
A Current Ratio of 1.70 indicates that ULTA should not have too much problems paying its short term obligations.
The Current ratio of ULTA (1.70) is better than 71.90% of its industry peers.
ULTA has a Quick Ratio of 1.70. This is a bad value and indicates that ULTA is not financially healthy enough and could expect problems in meeting its short term obligations.
ULTA has a Quick ratio of 0.60. This is comparable to the rest of the industry: ULTA outperforms 54.55% of its industry peers.
ULTA does not score too well on the current and quick ratio evaluation. However, as it has 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
ULTA shows a slight negative growth in Earnings Per Share. In the last year, the EPS has decreased by -2.61%.
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.
ULTA shows a small growth in Revenue. In the last year, the Revenue has grown by 0.79%.
The Revenue has been growing by 8.83% on average over the past years. This is quite good.
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.
Based on estimates for the next years, ULTA will show a small growth in Revenue. The Revenue will grow by 4.64% on average per year.
EPS Next Y-7.26%
EPS Next 2Y1.46%
EPS Next 3Y4.92%
EPS Next 5Y7.99%
Revenue Next Year3.12%
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 16.04.
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 25.82, ULTA is valued a bit cheaper.
A Price/Forward Earnings ratio of 17.30 indicates a rather expensive valuation of ULTA.
60.33% of the companies in the same industry are more expensive than ULTA, based on the Price/Forward Earnings ratio.
Compared to an average S&P500 Price/Forward Earnings ratio of 21.76, ULTA is valued a bit cheaper.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 16.04 | ||
| Fwd PE | 17.3 |
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 70.25% of the companies listed in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 19.06 | ||
| EV/EBITDA | 9.65 |
4.3 Compensation for Growth
ULTA has an outstanding profitability rating, which may justify a higher PE ratio.
PEG (NY)N/A
PEG (5Y)1.01
EPS Next 2Y1.46%
EPS Next 3Y4.92%
5. Dividend
5.1 Amount
ULTA does not give a dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | N/A |
407.04
-3.35 (-0.82%)
Chartmill FA Rating
GICS SectorConsumer Discretionary
GICS IndustryGroupConsumer Discretionary Distribution & Retail
GICS IndustrySpecialty Retail
Earnings (Last)
Earnings (Next)
Inst Owners93.36%
Inst Owner Change2.81%
Ins Owners0.09%
Ins Owner Change4.06%
Market Cap18.38B
Analysts71.35
Price Target421.67 (3.59%)
Short Float %6.11%
Short Ratio2.62
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)-0.17%
PT rev (3m)-10.32%
EPS NQ rev (1m)0.37%
EPS NQ rev (3m)-7.19%
EPS NY rev (1m)0.02%
EPS NY rev (3m)-2.17%
Revenue NQ rev (1m)0.14%
Revenue NQ rev (3m)-0.77%
Revenue NY rev (1m)-0.02%
Revenue NY rev (3m)-0.5%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 16.04 | ||
| Fwd PE | 17.3 | ||
| P/S | 1.63 | ||
| P/FCF | 19.06 | ||
| P/OCF | 13.73 | ||
| P/B | 7.39 | ||
| P/tB | 7.42 | ||
| EV/EBITDA | 9.65 |
EPS(TTM)25.37
EY6.23%
EPS(NY)23.53
Fwd EY5.78%
FCF(TTM)21.35
FCFY5.25%
OCF(TTM)29.65
OCFY7.28%
SpS250.18
BVpS55.11
TBVpS54.87
PEG (NY)N/A
PEG (5Y)1.01
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 | 6.47 |
F-Score5
WACC9.81%
ROIC/WACC2.87
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-7.26%
EPS Next 2Y1.46%
EPS Next 3Y4.92%
EPS Next 5Y7.99%
Revenue 1Y (TTM)0.79%
Revenue growth 3Y9.38%
Revenue growth 5Y8.83%
Sales Q2Q%-1.88%
Revenue Next Year3.12%
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 Year12.38%
EBIT Next 3Y8.3%
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%