ULTA BEAUTY INC (ULTA) Stock Fundamental Analysis
USA - NASDAQ:ULTA - US90384S3031 - Common Stock
514.62 USD
-7.27 (-1.39%)
513.95 USD
-0.67 (-0.13%)
Taking everything into account, ULTA scores 7 out of 10 in our fundamental rating. ULTA was compared to 123 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
In the past year ULTA was profitable.
ULTA had a positive operating cash flow in the past year.
Each year in the past 5 years ULTA has been profitable.
Each year in the past 5 years ULTA had a positive operating cash flow.
1.2 Ratios
ULTA has a better Return On Assets (19.93%) than 96.75% of its industry peers.
Looking at the Return On Equity, with a value of 49.09%, ULTA belongs to the top of the industry, outperforming 94.31% of the companies in the same industry.
The Return On Invested Capital of ULTA (28.21%) is better than 94.31% 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 91.06% of its industry peers.
ULTA's Profit Margin has improved in the last couple of years.
ULTA has a Operating Margin of 13.71%. This is amongst the best in the industry. ULTA outperforms 91.06% of its industry peers.
In the last couple of years the Operating Margin of ULTA has grown nicely.
ULTA has a Gross Margin of 38.81%. This is in the better half of the industry: ULTA outperforms 60.16% of its industry peers.
In the last couple of years the Gross Margin of ULTA has remained more or less at the same level.
| 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
The Return on Invested Capital (ROIC) is well above the Cost of Capital (WACC), so ULTA is creating value.
The number of shares outstanding for ULTA has been reduced compared to 1 year ago.
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
An Altman-Z score of 7.23 indicates that ULTA is not in any danger for bankruptcy at the moment.
Looking at the Altman-Z score, with a value of 7.23, ULTA belongs to the top of the industry, outperforming 94.31% of the companies in the same industry.
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 | 7.23 |
ROIC/WACC2.97
WACC9.5%
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 71.54% of its industry peers.
A Quick Ratio of 0.46 indicates that ULTA may have some problems paying its short term obligations.
ULTA has a Quick ratio (0.46) which is in line with 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 | 1.67 | ||
| Quick Ratio | 0.46 |
3. Growth
3.1 Past
The Earnings Per Share has been growing slightly by 4.78% over the past 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.
The Revenue has been growing slightly by 0.79% in the past year.
The Revenue has been growing by 8.83% on average over the past years. This is quite good.
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
Based on estimates for the next years, ULTA will show a quite strong growth in Earnings Per Share. The EPS will grow by 8.37% on average per year.
The Revenue is expected to grow by 5.12% on average over the next years.
EPS Next Y-5.47%
EPS Next 2Y2.56%
EPS Next 3Y6.29%
EPS Next 5Y8.37%
Revenue Next Year7.04%
Revenue Next 2Y5.93%
Revenue Next 3Y5.97%
Revenue Next 5Y5.12%
3.3 Evolution
When comparing the EPS growth rate of the last years to the growth rate of the upcoming years, we see that the growth is decreasing.
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 19.71, the valuation of ULTA can be described as rather expensive.
Based on the Price/Earnings ratio, ULTA is valued a bit cheaper than 73.98% of the companies in the same industry.
When comparing the Price/Earnings ratio of ULTA to the average of the S&P500 Index (27.30), we can say ULTA is valued slightly cheaper.
The Price/Forward Earnings ratio is 19.28, which indicates a rather expensive current valuation of ULTA.
ULTA's Price/Forward Earnings ratio is a bit cheaper when compared to the industry. ULTA is cheaper than 62.60% of the companies in the same industry.
When comparing the Price/Forward Earnings ratio of ULTA to the average of the S&P500 Index (22.73), we can say ULTA is valued inline with the index average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 19.71 | ||
| Fwd PE | 19.28 |
4.2 Price Multiples
ULTA's Enterprise Value to EBITDA ratio is in line with the industry average.
73.17% 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 | 22.26 | ||
| EV/EBITDA | 12.29 |
4.3 Compensation for Growth
The excellent profitability rating of ULTA may justify a higher PE ratio.
PEG (NY)N/A
PEG (5Y)1.24
EPS Next 2Y2.56%
EPS Next 3Y6.29%
5. Dividend
5.1 Amount
No dividends for ULTA!.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | N/A |
514.62
-7.27 (-1.39%)
Chartmill FA Rating
GICS SectorConsumer Discretionary
GICS IndustryGroupConsumer Discretionary Distribution & Retail
GICS IndustrySpecialty Retail
Earnings (Last)
Earnings (Next)
Inst Owners100.55%
Inst Owner Change1.2%
Ins Owners0.13%
Ins Owner Change4.52%
Market Cap23.08B
Analysts74.55
Price Target589.29 (14.51%)
Short Float %4.98%
Short Ratio3.15
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)15.73%
PT rev (3m)21.05%
EPS NQ rev (1m)1.66%
EPS NQ rev (3m)3.04%
EPS NY rev (1m)-0.4%
EPS NY rev (3m)1.93%
Revenue NQ rev (1m)0.07%
Revenue NQ rev (3m)0.85%
Revenue NY rev (1m)3.01%
Revenue NY rev (3m)3.5%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 19.71 | ||
| Fwd PE | 19.28 | ||
| P/S | 2.02 | ||
| P/FCF | 22.26 | ||
| P/OCF | 16.49 | ||
| P/B | 9.49 | ||
| P/tB | 9.54 | ||
| EV/EBITDA | 12.29 |
EPS(TTM)26.11
EY5.07%
EPS(NY)26.69
Fwd EY5.19%
FCF(TTM)23.12
FCFY4.49%
OCF(TTM)31.21
OCFY6.06%
SpS254.64
BVpS54.2
TBVpS53.96
PEG (NY)N/A
PEG (5Y)1.24
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 | 7.23 |
F-Score5
WACC9.5%
ROIC/WACC2.97
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-5.47%
EPS Next 2Y2.56%
EPS Next 3Y6.29%
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 Year13.51%
EBIT Next 3Y10.2%
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%