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ULTA

Ulta BeautyNasdaqGS:ULTA Stock Report

Market Cap

US$21.8b

7D

-2.5%

1Y

45.8%

Updated

30 Nov, 2021

Data

Company Financials +
ULTA fundamental analysis
Snowflake Score
Valuation0/6
Future Growth2/6
Past Performance6/6
Financial Health6/6
Dividends0/6

ULTA Stock Overview

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

Rewards

Earnings are forecast to grow 5.94% per year

Earnings grew by 156.4% over the past year

Risk Analysis

No risks detected for ULTA from our risk checks.

Ulta Beauty Competitors

Bath & Body Works

NYSE:BBWI

US$20.1b

Regis

NYSE:RGS

US$126.6m

Price History & Performance

Summary of all time highs, changes and price drops for Ulta Beauty
Historical stock prices
Current Share PriceUS$401.42
52 Week HighUS$417.85
52 Week LowUS$258.00
Beta1.67
1 Month Change9.27%
3 Month Change3.64%
1 Year Change45.76%
3 Year Change30.97%
5 Year Change55.83%
Change since IPO1,246.14%

Recent News & Updates

Nov 17

Ulta's More Attractive Than Ever

Ulta’s analyst day caused a sell-off but in my opinion, the announcements of the day were a net positive. Ulta’s positioning itself towards e-commerce. This should drive growth and profitability. UB Media vertical is overlooked but, I believe, will grow into a material part of the Ulta story. The reopening thesis holds and is now further supported by real-world data. The stock relatively de-rated. Consensus estimates and management guidance is low both near and long-term. Ulta is a strong buy.

Oct 11
Is It Time To Consider Buying Ulta Beauty, Inc. (NASDAQ:ULTA)?

Is It Time To Consider Buying Ulta Beauty, Inc. (NASDAQ:ULTA)?

Ulta Beauty, Inc. ( NASDAQ:ULTA ) saw a decent share price growth in the teens level on the NASDAQGS over the last few...

Sep 28

Spruce Up Your Portfolio With Ulta

Ulta Beauty, Inc. is one of the largest publicly traded beauty and personal care retailers in the United States. Ulta Beauty is not only actively growing by opening new branches across the country but also increasing online sales, which is its key advantage over its competitors. We expect the company to demonstrate strong LFL sales growth even after full recovery of results, due to working on brand awareness, excellent understanding of the target audience, and other factors.

Sep 16

Ulta Beauty Stock: COVID-19 Resurgence Might Limit Upside

Ulta Beauty delivered robust second quarter results as the beauty category recovered faster-than-anticipated from the disruption triggered by COVID-19 last year. The company raised its fiscal 2021 guidance for the second time backed by strong sales momentum. In my opinion, much of the anticipated recovery in Ulta Beauty’s business is already priced into its stock. Additional upside might be limited by certain potential headwinds, mainly COVID-19 resurgence.

Sep 07
Ulta Beauty (NASDAQ:ULTA) Might Become A Compounding Machine

Ulta Beauty (NASDAQ:ULTA) Might Become A Compounding Machine

If we want to find a potential multi-bagger, often there are underlying trends that can provide clues. In a perfect...

Shareholder Returns

ULTAUS Specialty RetailUS Market
7D-2.5%-3.8%-0.9%
1Y45.8%31.6%23.3%

Return vs Industry: ULTA exceeded the US Specialty Retail industry which returned 29.4% over the past year.

Return vs Market: ULTA exceeded the US Market which returned 21.3% over the past year.

Price Volatility

Is ULTA's price volatile compared to industry and market?
ULTA volatility
ULTA Average Weekly Movement4.6%
Specialty Retail Industry Average Movement6.8%
Market Average Movement6.0%
10% most volatile stocks in US Market15.0%
10% least volatile stocks in US Market2.3%

Stable Share Price: ULTA is not significantly more volatile than the rest of US stocks over the past 3 months, typically moving +/- 5% a week.

Volatility Over Time: ULTA's weekly volatility (5%) has been stable over the past year.

About the Company

FoundedEmployeesCEOWebsite
199026,500Dave Kimbellhttps://www.ulta.com

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 tools; professional hair products; salon services, including hair, skin, makeup, and brow services; and others, including nail products and accessories. It also provides its private label products, such as the Ulta Beauty Collection branded cosmetics, skincare, and bath products, as well as Ulta Beauty branded products; and the Ulta Beauty branded gifts.

Ulta Beauty Fundamentals Summary

How do Ulta Beauty's earnings and revenue compare to its market cap?
ULTA fundamental statistics
Market CapUS$21.82b
Earnings (TTM)US$727.47m
Revenue (TTM)US$7.66b

30.0x

P/E Ratio

2.8x

P/S Ratio

Earnings & Revenue

Key profitability statistics from the latest earnings report
ULTA income statement (TTM)
RevenueUS$7.66b
Cost of RevenueUS$4.40b
Gross ProfitUS$3.25b
ExpensesUS$2.53b
EarningsUS$727.47m

Last Reported Earnings

Jul 31, 2021

Next Earnings Date

Dec 02, 2021

Earnings per share (EPS)13.38
Gross Margin42.49%
Net Profit Margin9.50%
Debt/Equity Ratio0%

How did ULTA perform over the long term?

See historical performance and comparison

Valuation

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

29.99x

Price to Earnings (PE) ratio


Share Price vs. Fair Value

Below Fair Value: ULTA ($401.42) is trading above our estimate of fair value ($305.89)

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 (30x) compared to the US Specialty Retail industry average (9.7x).

PE vs Market: ULTA is poor value based on its PE Ratio (30x) compared to the US market (17.1x).


Price to Earnings Growth Ratio

PEG Ratio: ULTA is poor value based on its PEG Ratio (5.1x)


Price to Book Ratio

PB vs Industry: ULTA is overvalued based on its PB Ratio (11.6x) compared to the US Specialty Retail industry average (3.1x).


Future Growth

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

5.9%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: ULTA's forecast earnings growth (5.9% per year) is above the savings rate (2%).

Earnings vs Market: ULTA's earnings (5.9% per year) are forecast to grow slower than the US market (14.3% per year).

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

Revenue vs Market: ULTA's revenue (6.2% per year) is forecast to grow slower than the US market (10.1% per year).

High Growth Revenue: ULTA's revenue (6.2% 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 (43%).


Past Performance

How has Ulta Beauty performed over the past 5 years?

1.0%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: ULTA has high quality earnings.

Growing Profit Margin: ULTA's current net profit margins (9.5%) are higher than last year (4.4%).


Past Earnings Growth Analysis

Earnings Trend: ULTA's earnings have grown by 1% per year over the past 5 years.

Accelerating Growth: ULTA's earnings growth over the past year (156.4%) exceeds its 5-year average (1% per year).

Earnings vs Industry: ULTA earnings growth over the past year (156.4%) exceeded the Specialty Retail industry 144.8%.


Return on Equity

High ROE: ULTA's Return on Equity (38.7%) is considered high.


Financial Health

How is Ulta Beauty's financial position?


Financial Position Analysis

Short Term Liabilities: ULTA's short term assets ($2.5B) exceed its short term liabilities ($1.4B).

Long Term Liabilities: ULTA's short term assets ($2.5B) 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?

1.5yrs

Average management tenure


CEO

Dave Kimbell (54 yo)

0.42

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 ($USD9.47M) is about average for companies of similar size in the US market ($USD11.11M).

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 not considered experienced ( 1.5 years average tenure), which suggests a new team.


Board Members

Experienced Board: ULTA's board of directors are considered experienced (3.9 years average tenure).


Ownership

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


Insider Trading Volume

Insider Buying: Insufficient data to determine if insiders have bought more shares than they have sold 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 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$21.820b
  • Shares outstanding: 54.36m
  • Website: https://www.ulta.com

Number of Employees


Location

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

Listings


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2021/11/30 00:10
End of Day Share Price2021/11/29 00:00
Earnings2021/07/31
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.