NasdaqGS:ULTA

Stock Analysis Report

Executive Summary

Ulta Beauty, Inc. operates as a beauty retailer in the United States.

Snowflake

Fundamentals

Flawless balance sheet with proven 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


Market Performance


7 Day Return

-2.7%

ULTA

1.5%

US Specialty Retail

0.5%

US Market


1 Year Return

-12.6%

ULTA

7.6%

US Specialty Retail

6.8%

US Market

Return vs Industry: ULTA underperformed the US Specialty Retail industry which returned 7.6% over the past year.

Return vs Market: ULTA underperformed the US Market which returned 6.8% over the past year.


Shareholder returns

ULTAIndustryMarket
7 Day-2.7%1.5%0.5%
30 Day4.9%4.8%-0.8%
90 Day-31.8%4.5%-0.9%
1 Year-12.6%-12.6%9.4%7.6%9.2%6.8%
3 Year-4.9%-4.9%42.6%35.3%45.6%36.2%
5 Year103.8%103.8%57.5%43.6%63.2%45.4%

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?

20.21x

Price to Earnings (PE) ratio


Share Price vs. Fair Value

Below Fair Value: ULTA ($239.92) is trading above our estimate of fair value ($208.6)

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 (20.2x) compared to the Specialty Retail industry average (15.4x).

PE vs Market: ULTA is poor value based on its PE Ratio (20.2x) compared to the US market (17.7x).


Price to Earnings Growth Ratio

PEG Ratio: ULTA is poor value based on its PEG Ratio (2.3x)


Price to Book Ratio

PB vs Industry: ULTA is overvalued based on its PB Ratio (7.5x) compared to the US Specialty Retail industry average (1.4x).


Next Steps

Future Growth

How is Ulta Beauty forecast to perform in the next 1 to 3 years based on estimates from 24 analysts?

8.8%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: ULTA's forecast earnings growth (8.8% per year) is above the savings rate (2.7%).

Earnings vs Market: ULTA's earnings (8.8% per year) are forecast to grow slower than the US market (14.6% per year).

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

Revenue vs Market: ULTA's revenue (8.8% per year) is forecast to grow faster than the US market (7.2% per year).

High Growth Revenue: ULTA's revenue (8.8% 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 (46.9%).


Next Steps

Past Performance

How has Ulta Beauty performed over the past 5 years?

23.2%

Historical annual earnings growth


Earnings and Revenue History


Past Earnings Growth Analysis

Earnings Trend: ULTA's earnings have grown significantly by 23.2% per year over the past 5 years.

Accelerating Growth: ULTA's earnings growth over the past year (11.9%) is below its 5-year average (23.2% per year).

Earnings vs Industry: ULTA earnings growth over the past year (11.9%) exceeded the Specialty Retail industry 8.3%.


Return on Equity

High ROE: ULTA's Return on Equity (38%) is considered high.


Return on Assets

ROA vs Industry: ULTA has a higher Return on Assets than the Specialty Retail industry average last year.


Return on Capital Employed

ROCE Improving: ULTA's Return on Capital Employed has declined over the past 3 years.


Next Steps

Financial Health

How is Ulta Beauty's financial position?


Financial Position Analysis

Short Term Liabilities: ULTA's short term assets ($1.9B) exceeds its short term liabilities ($1.1B)

Long Term Liabilities: ULTA's short term assets (1.9B) exceeds its long term liabilities (1.8B)


Debt to Equity History and Analysis

Debt Level: ULTA is debt free.

Reducing Debt: ULTA has not had any debt for past 5 years.

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

Inventory Level: ULTA has a high level of physical assets or inventory.

Debt Coverage by Assets: Insufficient data to determine if ULTA's debt is covered by short term assets.


Next Steps

Dividend

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


Dividend Yield vs Market

companyn/amarketbottom25%1.4%markettop25%3.7%industryaverage2.0%forecastin3Years0%

Current dividend yield vs market & industry


Stability and Growth of Payments

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

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

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

What is the CEO of Ulta Beauty's salary, the management and board of directors tenure and is there insider trading?

5.3yrs

Average management tenure


CEO

Mary Dillon (58yo)

6.3yrs

Tenure

US$14,245,418

Compensation

Ms. Mary N. Dillon has been the Chief Executive Officer of Ulta Beauty, Inc. since July 1, 2013 and serves as its President. Ms. Dillon has been an Independent Director at KKR & Co. Inc. (formerly, KKR & C ...


CEO Compensation Analysis

Compensation vs. Market: Mary's total compensation ($USD14.25M) is about average for companies of similar size in the US market ($USD11.18M).

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


Management Age and Tenure

5.3yrs

Average Tenure

58yo

Average Age

Experienced Management: ULTA's management team is seasoned and experienced (5.3 years average tenure).


Board Age and Tenure

5.6yrs

Average Tenure

60.5yo

Average Age

Experienced Board: ULTA's board of directors are considered experienced (5.6 years average tenure).


Insider Trading

Insider Buying: ULTA insiders have bought more shares than they have sold in the past 3 months.


Recent Insider Transactions

BuyUS$58,894,22830 Sep 19
Mousseluxe S.à.r.l.
EntityCompany
Shares243,849
Max PriceUS$249.78
BuyUS$308,32127 Sep 19
Mary Dillon
EntityIndividual
Role
Chief Executive Officer
CEO & Director
Shares1,300
Max PriceUS$237.17
SellUS$113,17324 Jun 19
Sally Blount
EntityIndividual
Role
Member of the Board of Directors
Independent Director
Shares315
Max PriceUS$359.28
SellUS$137,20910 Jun 19
Catherine Halligan
EntityIndividual
Role
Member of the Board of Directors
Independent Director
Shares400
Max PriceUS$343.02
SellUS$3,528,34202 Apr 19
Dennis Eck
EntityIndividual
Shares10,000
Max PriceUS$352.83
SellUS$3,872,34301 Apr 19
Dennis Eck
EntityIndividual
Shares11,067
Max PriceUS$349.90
SellUS$14,301,01627 Mar 19
Mousseluxe S.à.r.l.
EntityCompany
Shares42,500
Max PriceUS$336.49
SellUS$34,43627 Mar 19
Catherine Halligan
EntityIndividual
Role
Member of the Board of Directors
Independent Director
Shares100
Max PriceUS$344.36
SellUS$12,271,99727 Mar 19
Dennis Eck
EntityIndividual
Shares36,100
Max PriceUS$341.24
SellUS$22,658,77427 Mar 19
Naples Ventures
EntityCompany
Shares66,902
Max PriceUS$343.74
SellUS$54,436,24925 Mar 19
Mousseluxe S.à.r.l.
EntityCompany
Shares162,490
Max PriceUS$335.01
SellUS$3,360,07525 Mar 19
Dennis Eck
EntityIndividual
Shares10,000
Max PriceUS$336.01
SellUS$1,044,40522 Mar 19
Naples Ventures
EntityCompany
Shares3,098
Max PriceUS$337.12
SellUS$81,213,49421 Mar 19
Mousseluxe S.à.r.l.
EntityCompany
Shares242,432
Max PriceUS$335.04
SellUS$241,45121 Mar 19
Catherine Halligan
EntityIndividual
Role
Member of the Board of Directors
Independent Director
Shares704
Max PriceUS$342.97
SellUS$5,040,86321 Mar 19
Dennis Eck
EntityIndividual
Shares15,000
Max PriceUS$336.06
SellUS$1,169,62621 Mar 19
Jeffrey Childs
EntityIndividual
Role
Head of Human Resources
Chief Human Resources Officer
Shares3,500
Max PriceUS$334.18

Ownership Breakdown


Management Team

  • Jodi Caro (53yo)

    General Counsel

    • Tenure: 4.2yrs
    • Compensation: US$1.55m
  • Jeff Childs (62yo)

    Chief Human Resources Officer

    • Tenure: 6yrs
    • Compensation: US$1.49m
  • Mary Dillon (58yo)

    CEO & Director

    • Tenure: 6.3yrs
    • Compensation: US$14.25m
  • Kiley Rawlins

    Vice President of Investor Relations

    • Tenure: 0yrs
  • Diane Randolph

    Chief Information Officer

    • Tenure: 5.1yrs
  • David Kimbell (52yo)

    President and Chief Merchandising & Marketing Officer

    • Tenure: 0.5yrs
    • Compensation: US$2.92m
  • Scott Settersten (59yo)

    CFO, Treasurer & Assistant Secretary

    • Tenure: 6.6yrs
    • Compensation: US$2.58m
  • Kecia Steelman

    Chief Store Operations Officer

    • Tenure: 5.3yrs
  • Karen May

    Director of Public Relations

    • Tenure: 5.3yrs
  • Prama Bhatt

    Senior VP of Digital & eCommerce

    • Tenure: 0yrs

Board Members

  • Michelle Collins (59yo)

    Independent Director

    • Tenure: 5yrs
    • Compensation: US$276.83k
  • Bob DiRomualdo (74yo)

    Non-Executive Chairperson of the Board

    • Tenure: 1.1yrs
    • Compensation: US$329.76k
  • George Mrkonic (67yo)

    Independent Director

    • Tenure: 4.1yrs
    • Compensation: US$258.51k
  • Lorna Nagler (62yo)

    Independent Director

    • Tenure: 10.3yrs
    • Compensation: US$258.51k
  • Charles Heilbronn (64yo)

    Independent Director

    • Tenure: 24.3yrs
    • Compensation: US$258.51k
  • Mike MacDonald (67yo)

    Independent Director

    • Tenure: 7yrs
    • Compensation: US$268.81k
  • Mary Dillon (58yo)

    CEO & Director

    • Tenure: 6.3yrs
    • Compensation: US$14.25m
  • Cathy Halligan (56yo)

    Independent Director

    • Tenure: 7.8yrs
    • Compensation: US$281.83k
  • Sally Blount (57yo)

    Independent Director

    • Tenure: 1.8yrs
    • Compensation: US$258.51k
  • Mike Smith (49yo)

    Director

    • Tenure: 0.08yrs

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$14.119b
  • Shares outstanding: 58.85m
  • Website: https://www.ulta.com

Number of Employees


Location

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

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
ULTANasdaqGS (Nasdaq Global Select)YesCommon StockUSUSDOct 2007
34UDB (Deutsche Boerse AG)YesCommon StockDEEUROct 2007
ULTAWBAG (Wiener Boerse AG)YesCommon StockATEUROct 2007
0LIBLSE (London Stock Exchange)YesCommon StockGBUSDOct 2007
ULTA *BMV (Bolsa Mexicana de Valores)YesCommon StockMXMXNOct 2007

Biography

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


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2019/10/21 00:08
End of Day Share Price2019/10/18 00:00
Earnings2019/08/03
Annual Earnings2019/02/02


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.