(SBH) Sally Beauty Holdings - Ratings and Ratios

Sally Beauty Holdings, Inc. (NYSE: SBH) is a leading specialty retailer and distributor of professional beauty supplies, operating through two core segments: Sally Beauty Supply and Beauty Systems Group. The Sally Beauty Supply segment caters to both retail customers and salon professionals, offering a wide range of beauty products, including hair color and care items, skin and nail care products, styling tools, and other beauty essentials. This segment also markets products under the Wella and LOreal brands, enhancing its portfolio with well-known, high-quality offerings.

The Beauty Systems Group segment focuses on professional beauty products, distributing items such as hair color and care products, skin and nail care products, styling tools, and other beauty items exclusively to salons and salon professionals. This segment operates through professional-only stores, e-commerce platforms, and a dedicated sales force, as well as franchised stores under the Armstrong McCall name. It also sells products under the Paul Mitchell and Wella brands, further solidifying its position in the professional beauty market.

Geographically, Sally Beauty Holdings operates an extensive network of stores and franchised units across the United States, Puerto Rico, Canada, Mexico, Chile, the United Kingdom, Ireland, Belgium, France, the Netherlands, Spain, and Germany. The company employs a dual distribution strategy, utilizing full-service or exclusive distributors and open-line distributors to ensure broad market penetration and accessibility of its products.

Founded in 1964 and headquartered in Denton, Texas, Sally Beauty Holdings has established itself as a key player in the beauty supply industry, with a strong presence in both professional and retail markets. The companys strategic use of recognized brands and its multi-channel distribution network have contributed to its resilience and market reach.

Ticker Symbol: SBH
Exchange: NYSE
Type: common stock
Country Origin: United States
GICS Sub Industry: Other Specialty Retail

Average Volume 20d: 2,055,506
Last Price: 8.02
SMA 20: 8.13
SMA 50: 8.63
SMA 200: 11.18
ATR: 0.45

Market Cap: $829.91M USD
P/E: 4.90
P/E Forward: 4.43
P/B: 1.21
P/S: 0.23
RoE: 29.17

Forecast: Based on the technical and fundamental data, Sally Beauty Holdings, Inc. (NYSE: SBH) is currently trading below its 20-day and 50-day moving averages, which may indicate short-term bearish momentum. However, the stock is trading above its 200-day moving average, suggesting that the longer-term trend remains intact. The relatively low P/E ratio of 4.90 and forward P/E of 4.43, combined with a high return on equity (RoE) of 29.17%, suggest the stock may be undervalued given its profitability metrics. The companys ability to maintain strong margins and cash flow generation, coupled with its established distribution network, positions it well to navigate challenges in the beauty and personal care sector. However, the stocks performance could be sensitive to broader economic trends, particularly consumer spending on discretionary beauty products. Technical resistance at the 50-day SMA (8.63) will be a key level to watch for potential upside momentum.