ULTA BEAUTY INC (ULTA) Stock Fundamental Analysis
USA - NASDAQ:ULTA - US90384S3031 - Common Stock
517.66 USD
-6.82 (-1.3%)
517.66 USD
0 (0%)
ULTA gets a fundamental rating of 6 out of 10. The analysis compared the fundamentals against 119 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.
In the past year ULTA had a positive cash flow from operations.
ULTA had positive earnings in each of the past 5 years.
ULTA had a positive operating cash flow in each of the past 5 years.
1.2 Ratios
ULTA's Return On Assets of 18.12% is amongst the best of the industry. ULTA outperforms 94.96% of its industry peers.
ULTA has a better Return On Equity (46.14%) than 94.96% of its industry peers.
With an excellent Return On Invested Capital value of 25.50%, ULTA belongs to the best of the industry, outperforming 94.12% of the companies in the same industry.
Measured over the past 3 years, the Average Return On Invested Capital for ULTA is significantly above the industry average of 11.94%.
The 3 year average ROIC (31.18%) for ULTA is well above the current ROIC(25.50%). The reason for the recent decline needs to be investigated.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 18.12% | ||
| ROE | 46.14% | ||
| ROIC | 25.5% |
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
Looking at the Profit Margin, with a value of 10.31%, ULTA belongs to the top of the industry, outperforming 90.76% of the companies in the same industry.
In the last couple of years the Profit Margin of ULTA has grown nicely.
ULTA has a better Operating Margin (13.57%) than 89.92% of its industry peers.
ULTA's Operating Margin has improved in the last couple of years.
With a Gross Margin value of 39.00%, ULTA perfoms like the industry average, outperforming 59.66% 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 | 13.57% | ||
| PM (TTM) | 10.31% | ||
| GM | 39% |
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.
ULTA has less shares outstanding than it did 1 year ago.
The number of shares outstanding for ULTA has been reduced compared to 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 6.54. This indicates that ULTA is financially healthy and has little risk of bankruptcy at the moment.
ULTA's Altman-Z score of 6.54 is amongst the best of the industry. ULTA outperforms 92.44% of its industry peers.
ULTA has a debt to FCF ratio of 0.30. This is a very positive value and a sign of high solvency as it would only need 0.30 years to pay back of all of its debts.
With an excellent Debt to FCF ratio value of 0.30, ULTA belongs to the best of the industry, outperforming 84.87% of the companies in the same industry.
ULTA has a Debt/Equity ratio of 0.11. This is a healthy value indicating a solid balance between debt and equity.
ULTA has a Debt to Equity ratio of 0.11. This is in the better half of the industry: ULTA outperforms 71.43% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.11 | ||
| Debt/FCF | 0.3 | ||
| Altman-Z | 6.54 |
ROIC/WACC2.7
WACC9.46%
2.3 Liquidity
ULTA has a Current Ratio of 1.39. This is a normal value and indicates that ULTA is financially healthy and should not expect problems in meeting its short term obligations.
ULTA's Current ratio of 1.39 is in line compared to the rest of the industry. ULTA outperforms 56.30% of its industry peers.
ULTA has a Quick Ratio of 1.39. This is a bad value and indicates that ULTA is not financially healthy enough and could expect problems in meeting its short term obligations.
Looking at the Quick ratio, with a value of 0.30, ULTA is doing worse than 75.63% of the companies in the same industry.
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 | 1.39 | ||
| Quick Ratio | 0.3 |
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.
ULTA shows a small growth in Revenue. In the last year, the Revenue has grown by 2.95%.
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)4.78%
EPS 3Y12.16%
EPS 5Y15.85%
EPS Q2Q%9.25%
Revenue 1Y (TTM)2.95%
Revenue growth 3Y9.38%
Revenue growth 5Y8.83%
Sales Q2Q%9.26%
3.2 Future
The Earnings Per Share is expected to grow by 8.69% on average over the next years. This is quite good.
Based on estimates for the next years, ULTA will show a small growth in Revenue. The Revenue will grow by 6.02% on average per year.
EPS Next Y-1.84%
EPS Next 2Y4.41%
EPS Next 3Y6.33%
EPS Next 5Y8.69%
Revenue Next Year7.44%
Revenue Next 2Y6.2%
Revenue Next 3Y5.87%
Revenue Next 5Y6.02%
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
A Price/Earnings ratio of 19.83 indicates a rather expensive valuation of ULTA.
Compared to the rest of the industry, the Price/Earnings ratio of ULTA indicates a somewhat cheap valuation: ULTA is cheaper than 73.11% of the companies listed in the same industry.
Compared to an average S&P500 Price/Earnings ratio of 26.91, ULTA is valued a bit cheaper.
A Price/Forward Earnings ratio of 18.72 indicates a rather expensive valuation of ULTA.
Compared to the rest of the industry, the Price/Forward Earnings ratio of ULTA indicates a somewhat cheap valuation: ULTA is cheaper than 61.34% of the companies listed in the same industry.
ULTA's Price/Forward Earnings ratio indicates a similar valuation than the S&P500 average which is at 22.92.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 19.83 | ||
| Fwd PE | 18.72 |
4.2 Price Multiples
ULTA's Enterprise Value to EBITDA ratio is in line with the industry average.
ULTA's Price/Free Cash Flow ratio is a bit cheaper when compared to the industry. ULTA is cheaper than 70.59% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 24.38 | ||
| EV/EBITDA | 12.5 |
4.3 Compensation for Growth
The excellent profitability rating of ULTA may justify a higher PE ratio.
PEG (NY)N/A
PEG (5Y)1.25
EPS Next 2Y4.41%
EPS Next 3Y6.33%
5. Dividend
5.1 Amount
ULTA does not give a dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | N/A |
517.66
-6.82 (-1.3%)
Chartmill FA Rating
GICS SectorConsumer Discretionary
GICS IndustryGroupConsumer Discretionary Distribution & Retail
GICS IndustrySpecialty Retail
Earnings (Last)
Earnings (Next)
Inst Owners100.95%
Inst Owner Change-0.17%
Ins Owners0.13%
Ins Owner Change0.43%
Market Cap23.21B
Revenue(TTM)11.65B
Net Income(TTM)1.20B
Analysts75.88
Price Target589.29 (13.84%)
Short Float %4.09%
Short Ratio2.61
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)12.63%
Min EPS beat(2)11.78%
Max EPS beat(2)13.47%
EPS beat(4)4
Avg EPS beat(4)13.16%
Min EPS beat(4)10.88%
Max EPS beat(4)16.52%
EPS beat(8)7
Avg EPS beat(8)6.89%
EPS beat(12)10
Avg EPS beat(12)7.96%
EPS beat(16)14
Avg EPS beat(16)13.64%
Revenue beat(2)1
Avg Revenue beat(2)1.06%
Min Revenue beat(2)-0.06%
Max Revenue beat(2)2.18%
Revenue beat(4)1
Avg Revenue beat(4)0.07%
Min Revenue beat(4)-1.26%
Max Revenue beat(4)2.18%
Revenue beat(8)1
Avg Revenue beat(8)-1.02%
Revenue beat(12)3
Avg Revenue beat(12)-0.22%
Revenue beat(16)6
Avg Revenue beat(16)0.7%
PT rev (1m)0%
PT rev (3m)19.45%
EPS NQ rev (1m)-0.28%
EPS NQ rev (3m)2.62%
EPS NY rev (1m)3.83%
EPS NY rev (3m)3.42%
Revenue NQ rev (1m)0.33%
Revenue NQ rev (3m)3.65%
Revenue NY rev (1m)0.37%
Revenue NY rev (3m)3.5%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 19.83 | ||
| Fwd PE | 18.72 | ||
| P/S | 1.99 | ||
| P/FCF | 24.38 | ||
| P/OCF | 17.91 | ||
| P/B | 8.91 | ||
| P/tB | 10.52 | ||
| EV/EBITDA | 12.5 |
EPS(TTM)26.11
EY5.04%
EPS(NY)27.66
Fwd EY5.34%
FCF(TTM)21.23
FCFY4.1%
OCF(TTM)28.91
OCFY5.58%
SpS259.91
BVpS58.07
TBVpS49.19
PEG (NY)N/A
PEG (5Y)1.25
Graham Number184.7
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 18.12% | ||
| ROE | 46.14% | ||
| ROCE | 35.7% | ||
| ROIC | 25.5% | ||
| ROICexc | 26.88% | ||
| ROICexgc | 29.5% | ||
| OM | 13.57% | ||
| PM (TTM) | 10.31% | ||
| GM | 39% | ||
| FCFM | 8.17% |
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%
ROICexgc growth 3Y-1.69%
ROICexgc 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-Score6
Asset Turnover1.76
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.11 | ||
| Debt/FCF | 0.3 | ||
| Debt/EBITDA | 0.16 | ||
| Cap/Depr | 122.83% | ||
| Cap/Sales | 2.95% | ||
| Interest Coverage | 250 | ||
| Cash Conversion | 69.63% | ||
| Profit Quality | 79.25% | ||
| Current Ratio | 1.39 | ||
| Quick Ratio | 0.3 | ||
| Altman-Z | 6.54 |
F-Score6
WACC9.46%
ROIC/WACC2.7
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 3Y6.33%
EPS Next 5Y8.69%
Revenue 1Y (TTM)2.95%
Revenue growth 3Y9.38%
Revenue growth 5Y8.83%
Sales Q2Q%9.26%
Revenue Next Year7.44%
Revenue Next 2Y6.2%
Revenue Next 3Y5.87%
Revenue Next 5Y6.02%
EBIT growth 1Y0.45%
EBIT growth 3Y6.46%
EBIT growth 5Y11.68%
EBIT Next Year18.28%
EBIT Next 3Y10.39%
EBIT Next 5Y8.83%
FCF growth 1Y-2.22%
FCF growth 3Y2.82%
FCF growth 5Y3.73%
OCF growth 1Y-5.38%
OCF growth 3Y8.11%
OCF growth 5Y3.98%
ULTA BEAUTY INC / ULTA FAQ
Can you provide the ChartMill fundamental rating for ULTA BEAUTY INC?
ChartMill assigns a fundamental rating of 6 / 10 to ULTA.
What is the valuation status for ULTA stock?
ChartMill assigns a valuation rating of 4 / 10 to ULTA BEAUTY INC (ULTA). This can be considered as Fairly Valued.
Can you provide the profitability details for ULTA BEAUTY INC?
ULTA BEAUTY INC (ULTA) has a profitability rating of 9 / 10.
How financially healthy is ULTA BEAUTY INC?
The financial health rating of ULTA BEAUTY INC (ULTA) is 8 / 10.
Can you provide the expected EPS growth for ULTA stock?
The Earnings per Share (EPS) of ULTA BEAUTY INC (ULTA) is expected to decline by -1.84% in the next year.