SBH Stock Analysis: Sally Beauty Holdings | NYSE
Specialty Retail | NYSE, USA | Market Cap: 1.629m USD | 12M Return: 25.3% | US79546E1047 | Charts, Fundamentals & Technical Analysis
Avg Turnover: 22.0M
EPS Trend: 79.1%
Qual. Beats: 0
Rev. Trend: 18.9%
Qual. Beats: 0
Warnings
No concerns identified
Tailwinds
Seasonality 11.7 years of data
How good or bad each month usually is (without trend). The score below shows how much you can trust it: 0 = pure chance, >40 gets interesting and >55 is strong.
Sally Beauty Holdings (NYSE: SBH) is a U.S.-based specialty retailer and distributor of professional beauty supplies, headquartered in Plano, Texas and operating within the Consumer Discretionary sector. The company runs two distinct segments - Sally Beauty Supply and Beauty Systems Group - allowing it to serve both walk-in retail customers and licensed salon professionals through separate go-to-market channels.
The Sally Beauty Supply segment sells hair color and care, skin and nail care, styling tools, and related beauty products to retail consumers, salons, and salon professionals. Carried brands include Wella, LOréal, Clairol, OPI, Wahl, and BaByliss Pro. This segment competes in the broader specialty beauty retail channel alongside players such as Ulta Beauty and Sephora.
The Beauty Systems Group (BSG) segment distributes professional-grade beauty products directly to salons and licensed beauty professionals via professional-only stores, e-commerce platforms, and a dedicated sales force, as well as through Armstrong McCall franchised stores. Brands offered include Paul Mitchell, Wella, Matrix, Schwarzkopf, Kenra, Goldwell, Joico, Amika, and Moroccanoil. BSGs hybrid wholesale-plus-franchise model is characteristic of professional beauty distribution, where direct relationships with salons are a key competitive advantage.
Sally Beauty operates across the United States, Puerto Rico, Canada, Mexico, Chile, the United Kingdom, Ireland, Belgium, France, the Netherlands, and Germany, distributing through company-operated stores, digital platforms, franchised units, and full-service/exclusive as well as open-line distributors. The company was founded in 1964 and has been publicly traded since its November 2006 IPO.
- Sally Beauty Supply comp sales soften on weak discretionary spending
- Beauty Systems Group revenue tracks salon industry demand
- Ulta Beauty competition pressures specialty retail market share
| Net Income: 192.3m TTM > 0 and > 6% of Revenue |
| FCF/TA: 0.08 > 0.02 and ΔFCF/TA 2.24 > 1.0 |
| NWC/Revenue: 20.31% < 20% (prev 20.00%; Δ 0.31% < -1%) |
| CFO/TA 0.13 > 3% & CFO 368.3m > Net Income 192.3m |
| Net Debt (2.05b) to EBITDA (390.2m): 5.25 < 3 |
| Current Ratio: 2.37 > 1.5 & < 3 |
| Outstanding Shares: last quarter (97.9m) vs 12m ago -5.16% < -2% |
| Gross Margin: 52.10% > 18% (prev 51.39%; Δ 0.72% > 0.5%) |
| Asset Turnover: 132.5% > 50% (prev 134.4%; Δ -1.91% > 0%) |
| Interest Coverage Ratio: 5.06 > 6 (EBIT TTM 290.7m / Interest Expense TTM 57.4m) |
| A: 0.26 (Total Current Assets 1.31b - Total Current Liabilities 553.9m) / Total Assets 2.88b |
| B: 0.34 (Retained Earnings 980.0m / Total Assets 2.88b) |
| C: 0.10 (EBIT TTM 290.7m / Avg Total Assets 2.81b) |
| D: 0.43 (Book Value of Equity 871.5m / Total Liabilities 2.01b) |
| Altman-Z'' = 3.98 = AA |
| DSRI: 0.99 (Receivables 95.9m/96.0m, Revenue 3.73b/3.69b) |
| GMI: 0.99 (GM 51.39% / 52.10%) |
| AQI: 0.96 (AQ_t 0.22 / AQ_t-1 0.23) |
| SGI: 1.01 (Revenue 3.73b / 3.69b) |
| TATA: -0.06 (NI 192.3m - CFO 368.3m) / TA 2.88b) |
| Beneish M = -3.07 (Cap -4..+1) = AA |
As of November 02, 2026, the stock is trading at USD 18.15 with a total of 1,503,217 shares traded. Over the past week, the price has changed by +4.31%, over one month by +10.27%, over three months by +18.24% and over the past year by +25.26%.
Current recommended Stop Loss: 16.70 (which is 8% or 2.4 ATR below the current price).
Sally Beauty Holdings has received a consensus analysts rating of 3.60. Therefore, it is recommended to hold SBH.
- StrongBuy: 2
- Buy: 1
- Hold: 1
- Sell: 0
- StrongSell: 1
| Analysts Target Price | 17 | -6.3% |
P/E Trailing = 9.0625
P/E Forward = 7.1174
P/S = 0.4368
P/B = 1.72
P/EG = 0.7045
Revenue TTM = 3.73b USD
EBIT TTM = 290.7m USD
EBITDA TTM = 390.2m USD
Long Term Debt = 803.6m USD (from longTermDebt, last quarter)
Short Term Debt = 165.7m USD (from shortTermDebt, last quarter)
Debt = 2.22b USD (from shortLongTermDebtTotal, last quarter) + Leases 707.8m
Net Debt = 2.05b USD (calculated: Debt 2.22b - CCE 173.1m)
Enterprise Value = 3.68b USD (1.63b + Debt 2.22b - CCE 173.1m)
Interest Coverage Ratio = 5.06 (Ebit TTM 290.7m / Interest Expense TTM 57.4m)
EV/FCF = 15.25x (Enterprise Value 3.68b / FCF TTM 241.2m)
FCF Yield = 6.56% (FCF TTM 241.2m / Enterprise Value 3.68b)
FCF Margin = 6.47% (FCF TTM 241.2m / Revenue TTM 3.73b)
Net Margin = 5.16% (Net Income TTM 192.3m / Revenue TTM 3.73b)
Gross Margin = 52.10% ((Revenue TTM 3.73b - Cost of Revenue TTM 1.79b) / Revenue TTM)
Gross Margin QoQ = 52.41% (prev 52.62%)
Tobins Q-Ratio = 1.28 (Enterprise Value 3.68b / Total Assets 2.88b)
Interest Expense / Debt = 2.58% (Interest Expense 57.4m / Debt 2.22b)
Taxrate = 25.12% (64.5m / 256.8m)
NOPAT = 217.7m (EBIT 290.7m * (1 - 25.12%))
Current Ratio = 2.37 (Total Current Assets 1.31b / Total Current Liabilities 553.9m)
Debt / Equity = 2.55 (Debt 2.22b / totalStockholderEquity, last quarter 871.5m)
Debt / EBITDA = 5.25 (Net Debt 2.05b / EBITDA 390.2m)
Debt / FCF = 8.50 (Net Debt 2.05b / FCF TTM 241.2m)
Total Stockholder Equity = 831.8m (last 4 quarters mean from totalStockholderEquity)
RoA = 6.83% (Net Income 192.3m / Total Assets 2.88b)
RoE = 23.11% (Net Income TTM 192.3m / Total Stockholder Equity 831.8m)
RoCE = 17.78% (EBIT 290.7m / Capital Employed (Equity 831.8m + L.T.Debt 803.6m))
RoIC = 9.37% (NOPAT 217.7m / Invested Capital 2.32b)
WACC = 4.72% (E(1.63b)/V(3.85b) * Re(8.53%) + D(2.22b)/V(3.85b) * Rd(2.58%) * (1-Tc(0.25)))
Discount Rate = 8.53% (= CAPM, Blume Beta Adj.)
Shares (quarterly) Correlation: -98.12 | Cagr: -3.90%
[DCF] Terminal Value 77.97% ; FCFF base≈211.9m ; Y1≈242.9m ; Y5≈357.5m
[DCF] Fair Price = 35.57 (EV 5.38b - Net Debt 2.05b = Equity 3.33b / Shares 93.6m; r=8.35% [WACC [floored]]; 5y FCF grow 15.0% → 2.50% )
EPS Correlation: 79.07 | EPS CAGR: 6.84% | SUE: 0.69 | # QB: 0
Revenue Correlation: 18.93 | Revenue CAGR: 0.08% | SUE: -0.37 | # QB: 0
EPS current Quarter (2026-12-31): EPS=0.53 | Chg30d=-0.47% | Revisions=-25% | Analysts=4
EPS current Year (2026-09-30): EPS=2.07 | Chg30d=+0.10% | Revisions=+29% | GrowthEPS=+8.8% | GrowthRev=+0.8%
EPS next Year (2027-09-30): EPS=2.23 | Chg30d=-0.27% | Revisions=+29% | GrowthEPS=+8.0% | GrowthRev=+1.2%
[Analyst] Revisions Ratio: +25% (up=6, down=3)