NYSE:SBH

Stock Analysis Report

NOT FOR DISTRIBUTION
Header cover image

Sally Beauty Holdings

Executive Summary

Sally Beauty Holdings, Inc. operates as a specialty retailer and distributor of professional beauty supplies. More Details


Snowflake Analysis

Undervalued with reasonable growth potential.


Similar Companies

Share Price & News

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


Latest Share Price and Events

Stable Share Price: SBH is not significantly more volatile than the rest of US stocks over the past 3 months, typically moving +/- 8% a week.

Volatility Over Time: SBH's weekly volatility (8%) has been stable over the past year.


Market Performance


7 Day Return

5.2%

SBH

0.3%

US Specialty Retail

-0.5%

US Market


1 Year Return

-35.6%

SBH

22.1%

US Specialty Retail

18.3%

US Market

Return vs Industry: SBH underperformed the US Specialty Retail industry which returned 22.9% over the past year.

Return vs Market: SBH underperformed the US Market which returned 19.1% over the past year.


Shareholder returns

SBHIndustryMarket
7 Day5.2%0.3%-0.5%
30 Day25.7%1.3%3.6%
90 Day-1.8%6.0%5.6%
1 Year-35.6%-35.6%23.3%22.1%21.0%18.3%
3 Year-26.1%-26.1%85.6%77.7%45.2%35.6%
5 Year-54.4%-54.4%76.0%62.6%89.8%68.8%

Long-Term Price Volatility Vs. Market

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


Simply Wall St News

Valuation

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

19.2%

Undervalued compared to fair value


Share Price vs. Fair Value

Below Fair Value: SBH ($10.8) is trading below our estimate of fair value ($14.58)

Significantly Below Fair Value: SBH is trading below fair value by more than 20%.


Price To Earnings Ratio

PE vs Industry: SBH is good value based on its PE Ratio (10.9x) compared to the US Specialty Retail industry average (19x).

PE vs Market: SBH is good value based on its PE Ratio (10.9x) compared to the US market (19.2x).


Price to Earnings Growth Ratio

PEG Ratio: SBH is good value based on its PEG Ratio (0.4x)


Price to Book Ratio

PB vs Industry: SBH is overvalued based on its PB Ratio (78.5x) compared to the US Specialty Retail industry average (2.1x).


Next Steps

Future Growth

How is Sally Beauty Holdings forecast to perform in the next 1 to 3 years based on estimates from 8 analysts?

30.9%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: SBH's forecast earnings growth (30.9% per year) is above the savings rate (2.2%).

Earnings vs Market: SBH's earnings (30.9% per year) are forecast to grow faster than the US market (21.9% per year).

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

Revenue vs Market: SBH's revenue (3.5% per year) is forecast to grow slower than the US market (10.2% per year).

High Growth Revenue: SBH's revenue (3.5% per year) is forecast to grow slower than 20% per year.


Earnings per Share Growth Forecasts


Future Return on Equity

Future ROE: SBH's Return on Equity is forecast to be very high in 3 years time (48.4%).


Next Steps

Past Performance

How has Sally Beauty Holdings performed over the past 5 years?

-3.6%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: SBH has high quality earnings.

Growing Profit Margin: SBH's current net profit margins (3.2%) are lower than last year (7%).


Past Earnings Growth Analysis

Earnings Trend: SBH's earnings have declined by 3.6% per year over the past 5 years.

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

Earnings vs Industry: SBH had negative earnings growth (-58.3%) over the past year, making it difficult to compare to the Specialty Retail industry average (13.2%).


Return on Equity

High ROE: Whilst SBH's Return on Equity (733.31%) is outstanding, this metric is skewed due to their high level of debt.


Next Steps

Financial Health

How is Sally Beauty Holdings's financial position?


Financial Position Analysis

Short Term Liabilities: SBH's short term assets ($1.4B) exceed its short term liabilities ($563.4M).

Long Term Liabilities: SBH's short term assets ($1.4B) do not cover its long term liabilities ($2.3B).


Debt to Equity History and Analysis

Debt Level: SBH's debt to equity ratio (11635.7%) is considered high.

Reducing Debt: SBH had negative shareholder equity 5 years ago, but is now positive and has therefore improved.

Debt Coverage: SBH's debt is well covered by operating cash flow (21.8%).

Interest Coverage: SBH's interest payments on its debt are not well covered by EBIT (3x coverage).


Balance Sheet


Next Steps

Dividend

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


Dividend Yield vs Market

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

High Dividend: Unable to evaluate SBH'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 SBH's dividends per share have been stable in the past.

Growing Dividend: Insufficient data to determine if SBH'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 SBH'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?

3.1yrs

Average management tenure


CEO

Chris Brickman (55 yo)

5.75yrs

Tenure

US$5,851,864

Compensation

Mr. Christian A. Brickman, also known as Chris, has been the Chief Executive Officer at Sally Beauty Holdings Inc. since February 1, 2015 and has been its President since June 2, 2014. Mr. Brickman has bee...


CEO Compensation Analysis

Compensation vs Market: Chris's total compensation ($USD5.85M) is above average for companies of similar size in the US market ($USD4.24M).

Compensation vs Earnings: Chris's compensation has increased by more than 20% whilst company earnings have fallen more than 20% in the past year.


Leadership Team

NamePositionTenureCompensationOwnership
Christian Brickman
President5.75yrsUS$5.85m0.41%
$ 5.4m
John Henrich
Senior VP2.83yrsUS$680.09k0.011%
$ 152.1k
Scott Sherman
Senior VP & Chief Human Resources Officer3.08yrsUS$1.01m0.017%
$ 223.1k
Aaron Alt
Senior Vice Presidentno dataUS$2.21m0.088%
$ 1.2m
Mark Spinks
President of Beauty Systems Group LLC5.33yrsUS$1.28m0.025%
$ 330.8k
Marlo Cormier
CFO, Senior VP of Finance & Chief Accounting Officerno datano datano data
Mary Edwards
Senior VPno datano datano data
Jeff Harkins
Vice President of Investor Relations & Strategic Planningno datano datano data
Dorothy Jones
Vice President of Category & Field Marketing0.083yrno datano data
Pamela Kohn
Senior VP & Chief Merchandising Officer1.08yrsno data0.030%
$ 390.6k
Olivier Badezet
Senior VP & MD of Europe3.83yrsno datano data
John Goss
Senior VP & President of Sally Beauty Supplyno datano datano data

3.1yrs

Average Tenure

49.5yo

Average Age

Experienced Management: SBH's management team is considered experienced (3.1 years average tenure).


Board Members

NamePositionTenureCompensationOwnership
Christian Brickman
President5.75yrsUS$5.85m0.41%
$ 5.4m
John Miller
Independent Director14yrsUS$235.99k0.061%
$ 801.0k
Diana Ferguson
Independent Director1.83yrsUS$149.86k0.0048%
$ 63.8k
Marshall Eisenberg
Independent Director14yrsUS$293.99k0.073%
$ 966.8k
Robert McMaster
Independent Non-Executive Chairman of the Board4.75yrsUS$562.00k0.071%
$ 932.9k
Edward Rabin
Independent Director14yrsUS$257.99k0.16%
$ 2.1m
Dorlisa Flur
Independent Director0.83yrno data0.0059%
$ 78.2k
Timothy Baer
Independent Director0.83yrno data0.0014%
$ 18.5k
P. Kelly Mooney
Independent Director2.25yrsUS$237.99k0.015%
$ 198.4k
Linda Heasley
Independent Director3.5yrsUS$243.99k0.018%
$ 237.3k
Susan Mulder
Independent Director6yrsUS$242.99kno data
Denise Paulonis
Independent Director2.5yrsUS$230.99k0.017%
$ 224.1k

4.1yrs

Average Tenure

57.5yo

Average Age

Experienced Board: SBH's board of directors are considered experienced (4.1 years average tenure).


Ownership

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


Insider Trading Volume

Insider Buying: SBH 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

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


Key Information

  • Name: Sally Beauty Holdings, Inc.
  • Ticker: SBH
  • Exchange: NYSE
  • Founded: 1964
  • Industry: Specialty Stores
  • Sector: Retail
  • Market Cap: US$1.323b
  • Shares outstanding: 112.28m
  • Website: https://www.sallybeautyholdings.com

Number of Employees


Location

  • Sally Beauty Holdings, Inc.
  • 3001 Colorado Boulevard
  • Denton
  • Texas
  • 76210
  • United States

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
SBHNYSE (New York Stock Exchange)YesCommon StockUSUSDNov 2006
S7VDB (Deutsche Boerse AG)YesCommon StockDEEURNov 2006

Biography

Sally Beauty Holdings, Inc. operates as a specialty retailer and distributor of professional beauty supplies. The company operates through two segments, Sally Beauty Supply and Beauty Systems Group. The Sa...


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2020/11/23 23:53
End of Day Share Price2020/11/23 00:00
Earnings2020/09/30
Annual Earnings2020/09/30


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.