Sally Beauty Holdings, Inc. operates as a specialty retailer and distributor of professional beauty supplies. More Details
Reasonable growth potential and fair value.
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.
7 Day Return
US Specialty Retail
1 Year Return
US Specialty Retail
Return vs Industry: SBH exceeded the US Specialty Retail industry which returned 116.8% over the past year.
Return vs Market: SBH exceeded the US Market which returned 56.3% over the past year.
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
1 week ago | Simply Wall StInvestors Could Be Concerned With Sally Beauty Holdings' (NYSE:SBH) Returns On Capital
4 weeks ago | Simply Wall StDoes Sally Beauty Holdings (NYSE:SBH) Have A Healthy Balance Sheet?
1 month ago | Simply Wall StAre Sally Beauty Holdings' (NYSE:SBH) Statutory Earnings A Good Reflection Of Its Earnings Potential?
Is Sally Beauty Holdings undervalued compared to its fair value and its price relative to the market?
Price to Earnings (PE) ratio
Share Price vs. Fair Value
Below Fair Value: SBH ($20.33) is trading above our estimate of fair value ($13.66)
Significantly Below Fair Value: SBH is trading above our estimate of fair value.
Price To Earnings Ratio
PE vs Industry: SBH is good value based on its PE Ratio (19.6x) compared to the US Specialty Retail industry average (19.8x).
PE vs Market: SBH is good value based on its PE Ratio (19.6x) compared to the US market (22.3x).
Price to Earnings Growth Ratio
PEG Ratio: SBH is good value based on its PEG Ratio (0.7x)
Price to Book Ratio
PB vs Industry: SBH is overvalued based on its PB Ratio (23.1x) compared to the US Specialty Retail industry average (3.1x).
How is Sally Beauty Holdings forecast to perform in the next 1 to 3 years based on estimates from 7 analysts?
Forecasted annual earnings growth
Earnings and Revenue Growth Forecasts
Analyst Future Growth Forecasts
Earnings vs Savings Rate: SBH's forecast earnings growth (28.2% per year) is above the savings rate (2%).
Earnings vs Market: SBH's earnings (28.2% per year) are forecast to grow faster than the US market (18.6% per year).
High Growth Earnings: earnings are expected to grow significantly over the next 3 years.
Revenue vs Market: SBH's revenue (2.1% per year) is forecast to grow slower than the US market (9.9% per year).
High Growth Revenue: SBH's revenue (2.1% 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 (69.9%).
How has Sally Beauty Holdings performed over the past 5 years?
Historical annual earnings growth
Earnings and Revenue History
Quality Earnings: SBH has high quality earnings.
Growing Profit Margin: SBH's current net profit margins (3.4%) are lower than last year (6.7%).
Past Earnings Growth Analysis
Earnings Trend: SBH's earnings have declined by 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 (-54.7%) over the past year, making it difficult to compare to the Specialty Retail industry average (30.5%).
Return on Equity
High ROE: Whilst SBH's Return on Equity (118.57%) is outstanding, this metric is skewed due to their high level of debt.
How is Sally Beauty Holdings's financial position?
Financial Position Analysis
Short Term Liabilities: SBH's short term assets ($1.5B) exceed its short term liabilities ($590.3M).
Long Term Liabilities: SBH's short term assets ($1.5B) do not cover its long term liabilities ($2.3B).
Debt to Equity History and Analysis
Debt Level: SBH's debt to equity ratio (1818.8%) is considered high.
Reducing Debt: SBH had negative shareholder equity 5 years ago, but is now positive and has therefore improved.
Debt Coverage: SBH's debt is well covered by operating cash flow (22.4%).
Interest Coverage: SBH's interest payments on its debt are not well covered by EBIT (2.7x coverage).
What is Sally Beauty Holdings's current dividend yield, its reliability and sustainability?
Dividend Yield vs Market
Notable Dividend: Unable to evaluate SBH's dividend yield against the bottom 25% of dividend payers, as the company has not reported any recent payouts.
High Dividend: Unable to evaluate SBH's dividend yield against the top 25% of dividend payers, as the company has not reported any recent payouts.
Stability and Growth of Payments
Stable Dividend: Insufficient data to determine if SBH's dividends per share have been stable in the past.
Growing Dividend: Insufficient data to determine if SBH's dividend payments have been increasing.
Current Payout to Shareholders
Dividend Coverage: Insufficient data to calculate payout ratio to determine if its dividend payments are covered by earnings.
Future Payout to Shareholders
Future Dividend Coverage: No need to calculate the sustainability of SBH's dividend in 3 years as they are not forecast to pay a notable one for the US market.
How experienced are the management team and are they aligned to shareholders interests?
Average management tenure
Chris Brickman (55 yo)
Mr. Christian A. Brickman, also known as Chris, has been the Chief Executive Officer at Sally Beauty Holdings Inc. since February 1, 2015 and has been its President since June 2, 2014. Mr. Brickman has bee...
CEO Compensation Analysis
Compensation vs Market: Chris's total compensation ($USD5.60M) is above average for companies of similar size in the US market ($USD3.67M).
Compensation vs Earnings: Chris's compensation has been consistent with company performance over the past year.
Experienced Management: SBH's management team is not considered experienced ( 1.5 years average tenure), which suggests a new team.
Experienced Board: SBH's board of directors are considered experienced (4.5 years average tenure).
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
Dilution of Shares: Shareholders have not been meaningfully diluted in the past year.
Sally Beauty Holdings, Inc.'s company bio, employee growth, exchange listings and data sources
- Name: Sally Beauty Holdings, Inc.
- Ticker: SBH
- Exchange: NYSE
- Founded: 1964
- Industry: Specialty Stores
- Sector: Retail
- Market Cap: US$2.288b
- Shares outstanding: 112.54m
- Website: https://www.sallybeautyholdings.com
Number of Employees
- Sally Beauty Holdings, Inc.
- 3001 Colorado Boulevard
- United States
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
|Data||Last Updated (UTC time)|
|Company Analysis||2021/04/11 22:23|
|End of Day Share Price||2021/04/09 00:00|
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.