NasdaqGS:ULTA

Stock Analysis Report

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Executive Summary

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


Snowflake Analysis

High growth potential with adequate balance sheet.


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's share price has been volatile over the past 3 months.


Market Performance


7 Day Return

10.6%

ULTA

3.6%

US Specialty Retail

3.0%

US Market


1 Year Return

-26.8%

ULTA

0.3%

US Specialty Retail

9.9%

US Market

Return vs Industry: ULTA underperformed the US Specialty Retail industry which returned 0.3% over the past year.

Return vs Market: ULTA underperformed the US Market which returned 9.5% over the past year.


Shareholder returns

ULTAIndustryMarket
7 Day10.6%3.6%3.0%
30 Day13.9%12.4%8.2%
90 Day-6.5%-7.0%0.4%
1 Year-26.8%-26.8%1.7%0.3%12.4%9.9%
3 Year-21.7%-21.7%21.6%15.7%31.0%22.3%
5 Year56.1%56.1%17.7%7.5%58.1%40.3%

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?

32.12x

Price to Earnings (PE) ratio


Share Price vs. Fair Value

Below Fair Value: ULTA ($244.01) is trading above our estimate of fair value ($161.18)

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 (32.1x) compared to the Specialty Retail industry average (12.9x).

PE vs Market: ULTA is poor value based on its PE Ratio (32.1x) compared to the US market (15.8x).


Price to Earnings Growth Ratio

PEG Ratio: ULTA is good value based on its PEG Ratio (0.6x)


Price to Book Ratio

PB vs Industry: ULTA is overvalued based on its PB Ratio (7.8x) compared to the US Specialty Retail industry average (1.1x).


Next Steps

Future Growth

How is Ulta Beauty forecast to perform in the next 1 to 3 years based on estimates from 25 analysts?

52.3%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: ULTA's forecast earnings growth (52.3% per year) is above the savings rate (2.2%).

Earnings vs Market: ULTA's earnings (52.3% per year) are forecast to grow faster than the US market (22% per year).

High Growth Earnings: earnings are expected to grow significantly over the next 3 years.

Revenue vs Market: ULTA's revenue (11.8% per year) is forecast to grow faster than the US market (8.8% per year).

High Growth Revenue: ULTA's revenue (11.8% 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 high in 3 years time (32.4%)


Next Steps

Past Performance

How has Ulta Beauty performed over the past 5 years?

17.7%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: ULTA has high quality earnings.

Growing Profit Margin: ULTA's current net profit margins (6.4%) are lower than last year (9.9%).


Past Earnings Growth Analysis

Earnings Trend: ULTA's earnings have grown by 17.7% per year over the past 5 years.

Accelerating Growth: ULTA's has had negative earnings growth over the past year, so it can't be compared to its 5-year average.

Earnings vs Industry: ULTA had negative earnings growth (-36.6%) over the past year, making it difficult to compare to the Specialty Retail industry average (-6.3%).


Return on Equity

High ROE: ULTA's Return on Equity (24.8%) is considered high.


Next Steps

Financial Health

How is Ulta Beauty's financial position?


Financial Position Analysis

Short Term Liabilities: ULTA's short term assets ($2.7B) exceed its short term liabilities ($1.1B).

Long Term Liabilities: ULTA's short term assets ($2.7B) exceed its long term liabilities ($2.7B).


Debt to Equity History and Analysis

Debt Level: ULTA's debt to equity ratio (45.6%) is considered high.

Reducing Debt: Insufficient data to determine if ULTA's debt to equity ratio has reduced over the past 5 years.

Debt Coverage: ULTA's debt is well covered by operating cash flow (100.7%).

Interest Coverage: ULTA earns more interest than it pays, so coverage of interest payments is not a concern.


Balance Sheet


Next Steps

Dividend

What is Ulta Beauty's 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?

5.8yrs

Average management tenure


CEO

Mary Dillon (58yo)

6.83yrs

Tenure

US$7,064,799

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 ($USD7.06M) is below average for companies of similar size in the US market ($USD11.65M).

Compensation vs Earnings: Mary's compensation has been consistent with company performance over the past year.


Leadership Team

NamePositionTenureCompensationOwnership
Mary Dillon
CEO & Director6.83yrsUS$7.06m0.13% $17.5m
David Kimbell
President1yrUS$3.11m0.017% $2.4m
Scott Settersten
CFO, Treasurer & Assistant Secretary7.17yrsUS$2.62m0.0073% $1.0m
Jodi Caro
General Counsel4.75yrsUS$1.41m0.0036% $497.4k
Jeffrey Childs
Chief Human Resources Officer6.58yrsUS$1.38m0.011% $1.5m
Diane Randolph
Chief Information Officer5.58yrsno datano data
Kiley Rawlins
Vice President of Investor Relationsno datano datano data
Karen May
Director of Public Relations5.83yrsno datano data
Kecia Steelman
Chief Store Operations Officer & President of International5.83yrsno datano data
Prama Bhatt
Senior VP of Digital & eCommerceno datano datano data

5.8yrs

Average Tenure

58yo

Average Age

Experienced Management: ULTA's management team is seasoned and experienced (5.8 years average tenure).


Board Members

NamePositionTenureCompensationOwnership
Mary Dillon
CEO & Director6.83yrsUS$7.06m0.13% $17.5m
Michelle Collins
Independent Director5.58yrsUS$280.18k0.0067% $922.0k
Robert DiRomualdo
Independent Non-Executive Chairperson1.58yrsUS$415.18k0.010% $1.4m
George Mrkonic
Independent Director4.58yrsUS$260.18k0.0077% $1.1m
Lorna Nagler
Independent Director10.83yrsUS$260.18k0.011% $1.6m
Charles Heilbronn
Independent Director24.83yrsUS$260.18k0.11% $14.7m
Michael MacDonald
Independent Director7.58yrsUS$290.18k0.013% $1.8m
Catherine Halligan
Independent Director8.33yrsUS$285.18k0.0047% $648.6k
Sally Blount
Independent Director2.42yrsUS$260.18k0.0018% $241.8k
Michael Smith
Independent Director0.58yrUS$148.50kno data

6.2yrs

Average Tenure

60.5yo

Average Age

Experienced Board: ULTA's board of directors are considered experienced (6.2 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 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$13.741b
  • Shares outstanding: 56.31m
  • 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
U1LT34BOVESPA (Bolsa de Valores de Sao Paulo)BDR EACH 10 REPR 1 COMBRBRLJan 2020

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; salon services, including hair, skin, makeup, and brow services; and others, including nail products and accessories. It also provides private label products, such as the Ulta Beauty Collection branded cosmetics, skincare, and bath products, as well as Ulta Beauty branded products. As of February 1, 2020, the company operated 1,254 retail stores across 50 states. It also distributes its products through its Website, ulta.com. The company was formerly known as Ulta Salon, Cosmetics & Fragrance, Inc. and changed its name to Ulta Beauty, Inc. in January 2017. Ulta Beauty, Inc. was founded in 1990 and is based in Bolingbrook, Illinois. 


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2020/05/31 05:11
End of Day Share Price2020/05/29 00:00
Earnings2020/05/02
Annual Earnings2020/02/01


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.