NasdaqGS:ULTA

Stock Analysis Report

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Market Cap

US$18.4b

Last Updated

2021/07/31 22:08 UTC

Data Sources

Company Financials +

Executive Summary

Ulta Beauty, Inc. operates as a retailer of beauty products in the United States. More Details


Snowflake Analysis

Flawless balance sheet with solid track record.


Similar Companies

Share Price & News

How has Ulta Beauty's share price performed over time and what events caused price changes?


Latest Share Price and Events

Stable Share Price: ULTA is not significantly more volatile than the rest of US stocks over the past 3 months, typically moving +/- 4% a week.

Volatility Over Time: ULTA's weekly volatility (4%) has been stable over the past year.


Market Performance


7 Day Return

-1.7%

ULTA

-0.8%

US Specialty Retail

-0.5%

US Market


1 Year Return

74.0%

ULTA

65.7%

US Specialty Retail

35.9%

US Market

Return vs Industry: ULTA exceeded the US Specialty Retail industry which returned 65.7% over the past year.

Return vs Market: ULTA exceeded the US Market which returned 35.9% over the past year.


Shareholder returns

ULTAIndustryMarket
7 Day-1.7%-0.8%-0.5%
30 Day-3.8%-0.1%0.3%
90 Day2.0%0.6%3.1%
1 Year74.0%74.0%66.9%65.7%38.0%35.9%
3 Year42.9%42.9%93.0%86.2%62.9%52.7%
5 Year28.0%28.0%110.3%96.1%121.7%97.3%

Long-Term Price Volatility Vs. Market

How volatile is Ulta Beauty's share price compared to the market and industry in the last 5 years?


Simply Wall St News

Valuation

Is Ulta Beauty undervalued compared to its fair value and its price relative to the market?

38.94x

Price to Earnings (PE) ratio


Share Price vs. Fair Value

Below Fair Value: ULTA ($335.8) is trading above our estimate of fair value ($266.37)

Significantly Below Fair Value: ULTA is trading above our estimate of fair value.


Price To Earnings Ratio

PE vs Industry: ULTA is poor value based on its PE Ratio (38.9x) compared to the US Specialty Retail industry average (13.6x).

PE vs Market: ULTA is poor value based on its PE Ratio (38.9x) compared to the US market (18x).


Price to Earnings Growth Ratio

PEG Ratio: ULTA is poor value based on its PEG Ratio (5x)


Price to Book Ratio

PB vs Industry: ULTA is overvalued based on its PB Ratio (10x) compared to the US Specialty Retail industry average (3.2x).


Future Growth

How is Ulta Beauty forecast to perform in the next 1 to 3 years based on estimates from 27 analysts?

7.8%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: ULTA's forecast earnings growth (7.8% per year) is above the savings rate (2%).

Earnings vs Market: ULTA's earnings (7.8% per year) are forecast to grow slower than the US market (14.9% per year).

High Growth Earnings: ULTA's earnings are forecast to grow, but not significantly.

Revenue vs Market: ULTA's revenue (6.1% per year) is forecast to grow slower than the US market (9.2% per year).

High Growth Revenue: ULTA's revenue (6.1% per year) is forecast to grow slower than 20% per year.


Earnings per Share Growth Forecasts


Future Return on Equity

Future ROE: ULTA's Return on Equity is forecast to be very high in 3 years time (46.2%).


Past Performance

How has Ulta Beauty performed over the past 5 years?

0.3%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: ULTA has high quality earnings.

Growing Profit Margin: ULTA's current net profit margins (7%) are higher than last year (6.4%).


Past Earnings Growth Analysis

Earnings Trend: ULTA's earnings have grown by 0.3% per year over the past 5 years.

Accelerating Growth: ULTA's earnings growth over the past year (10.6%) exceeds its 5-year average (0.3% per year).

Earnings vs Industry: ULTA earnings growth over the past year (10.6%) underperformed the Specialty Retail industry 157.5%.


Return on Equity

High ROE: ULTA's Return on Equity (26.3%) is considered high.


Financial Health

How is Ulta Beauty's financial position?


Financial Position Analysis

Short Term Liabilities: ULTA's short term assets ($2.6B) exceed its short term liabilities ($1.5B).

Long Term Liabilities: ULTA's short term assets ($2.6B) exceed its long term liabilities ($1.7B).


Debt to Equity History and Analysis

Debt Level: ULTA is debt free.

Reducing Debt: ULTA had no debt 5 years ago.

Debt Coverage: ULTA has no debt, therefore it does not need to be covered by operating cash flow.

Interest Coverage: ULTA has no debt, therefore coverage of interest payments is not a concern.


Balance Sheet


Dividend

What is Ulta Beauty current dividend yield, its reliability and sustainability?


Dividend Yield vs Market

Notable Dividend: Unable to evaluate ULTA's dividend yield against the bottom 25% of dividend payers, as the company has not reported any recent payouts.

High Dividend: Unable to evaluate ULTA's dividend yield against the top 25% of dividend payers, as the company has not reported any recent payouts.


Stability and Growth of Payments

Stable Dividend: Insufficient data to determine if ULTA's dividends per share have been stable in the past.

Growing Dividend: Insufficient data to determine if ULTA's dividend payments have been increasing.


Current Payout to Shareholders

Dividend Coverage: Insufficient data to calculate payout ratio to determine if its dividend payments are covered by earnings.


Future Payout to Shareholders

Future Dividend Coverage: No need to calculate the sustainability of ULTA's dividend in 3 years as they are not forecast to pay a notable one for the US market.


Next Steps

Management

How experienced are the management team and are they aligned to shareholders interests?

6.8yrs

Average management tenure


CEO

Dave Kimbell (54 yo)

no data

Tenure

US$9,468,825

Compensation

Mr. David C. Kimbell, also known as Dave, has been the Chief Executive Officer of Ulta Beauty, Inc. since June 2, 2021. Mr. Kimbell served as President at Ulta Beauty, Inc. since April 12, 2019 until June ...


CEO Compensation Analysis

Compensation vs Market: Dave's total compensation ($USD9.47M) is about average for companies of similar size in the US market ($USD11.17M).

Compensation vs Earnings: Dave's compensation has increased by more than 20% in the past year.


Leadership Team

Experienced Management: ULTA's management team is seasoned and experienced (6.8 years average tenure).


Board Members

Experienced Board: ULTA's board of directors are considered experienced (6.3 years average tenure).


Ownership

Who are the major shareholders and have insiders been buying or selling?


Insider Trading Volume

Insider Buying: ULTA insiders have only sold shares in the past 3 months.


Recent Insider Transactions

Ownership Breakdown

Dilution of Shares: Shareholders have not been meaningfully diluted in the past year.


Top Shareholders

Company Information

Ulta Beauty, Inc.'s company bio, employee growth, exchange listings and data sources


Key Information

  • Name: Ulta Beauty, Inc.
  • Ticker: ULTA
  • Exchange: NasdaqGS
  • Founded: 1990
  • Industry: Specialty Stores
  • Sector: Retail
  • Market Cap: US$18.388b
  • Shares outstanding: 54.76m
  • Website: https://www.ulta.com

Number of Employees


Location

  • Ulta Beauty, Inc.
  • 1000 Remington Boulevard
  • Suite 120
  • Bolingbrook
  • Illinois
  • 60440
  • United States

Listings


Biography

Ulta Beauty, Inc. operates as a retailer of beauty products in the United States. The company’s stores offer cosmetics, fragrances, skincare and haircare products, bath and body products, and salon styling...


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2021/07/31 22:08
End of Day Share Price2021/07/30 00:00
Earnings2021/05/01
Annual Earnings2021/01/30


Unless specified all financial data is based on a yearly period but updated quarterly. This is known as Trailing Twelve Month (TTM) or Last Twelve Month (LTM) Data. Learn more here.