(SBH) Sally Beauty Holdings - Overview
Sector: Consumer Cyclical | Industry: Specialty Retail | Exchange: NYSE (USA) | Market Cap: 1.203m USD | Total Return: 42.5% in 12m
Avg Turnover: 21.6M
EPS Trend: 39.1%
Qual. Beats: 0
Rev. Trend: -39.3%
Qual. Beats: 0
Warnings
Choppy
Tailwinds
No distinct edge detected
Sally Beauty Holdings (SBH) is a global specialty retailer and distributor of professional beauty supplies, operating through two primary segments: Sally Beauty Supply and Beauty Systems Group (BSG). The company serves both retail consumers and licensed salon professionals across North America, South America, and Europe. Its business model relies on a dual-distribution strategy, utilizing a network of company-operated stores, franchised units under the Armstrong McCall brand, and a dedicated professional sales force.
The company maintains a competitive position by offering a mix of third-party brands like Wella and LOreal alongside exclusive labels. In the specialty retail sector, this hybrid model of professional-only and consumer-facing channels provides a hedge against broader retail volatility, as professional beauty services often exhibit more inelastic demand than general consumer goods. Investors can find deeper insights into the company’s competitive positioning on ValueRay.
Headquartered in Plano, Texas, Sally Beauty Holdings manages an extensive supply chain that includes e-commerce platforms and digital tools tailored for salon business consultants. The firm’s international footprint spans several major European and Latin American markets, supported by both full-service and open-line distribution networks.
- Professional hair color demand drives recurring revenue from salon and retail customers
- Store optimization and footprint rationalization impact operating margins and free cash flow
- Exclusive brand partnerships influence competitive positioning against mass-market beauty retailers
- Consumer discretionary spending shifts dictate sales volume across professional and DIY segments
- Digital platform expansion and e-commerce integration determine long-term omnichannel growth potential
| Net Income: 183.9m TTM > 0 and > 6% of Revenue |
| FCF/TA: 0.09 > 0.02 and ΔFCF/TA 3.79 > 1.0 |
| NWC/Revenue: 19.84% < 20% (prev 19.08%; Δ 0.75% < -1%) |
| CFO/TA 0.14 > 3% & CFO 391.9m > Net Income 183.9m |
| Net Debt (2.05b) to EBITDA (404.5m): 5.06 < 3 |
| Current Ratio: 2.34 > 1.5 & < 3 |
| Outstanding Shares: last quarter (99.7m) vs 12m ago -4.74% < -2% |
| Gross Margin: 51.88% > 18% (prev 0.51%; Δ 5.14k% > 0.5%) |
| Asset Turnover: 134.1% > 50% (prev 136.7%; Δ -2.60% > 0%) |
| Interest Coverage Ratio: 5.16 > 6 (EBITDA TTM 404.5m / Interest Expense TTM 59.4m) |
| A: 0.26 (Total Current Assets 1.29b - Total Current Liabilities 553.5m) / Total Assets 2.85b |
| B: 0.33 (Retained Earnings 946.5m / Total Assets 2.85b) |
| C: 0.11 (EBIT TTM 306.6m / Avg Total Assets 2.78b) |
| D: 0.42 (Book Value of Equity 837.9m / Total Liabilities 2.02b) |
| Altman-Z'' = 3.96 = AA |
| DSRI: 1.06 (Receivables 101.6m/95.0m, Revenue 3.73b/3.70b) |
| GMI: 0.99 (GM 51.88% / 51.26%) |
| AQI: 0.97 (AQ_t 0.22 / AQ_t-1 0.23) |
| SGI: 1.01 (Revenue 3.73b / 3.70b) |
| TATA: -0.07 (NI 183.9m - CFO 391.9m) / TA 2.85b) |
| Beneish M = -3.08 (Cap -4..+1) = AA |
As of May 27, 2026, the stock is trading at USD 12.70 with a total of 877,871 shares traded.
Over the past week, the price has changed by +7.45%,
over one month by -10.88%,
over three months by -23.49% and
over the past year by +42.54%.
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 | 16.4 | 29.1% |
P/E Trailing = 6.9669
P/E Forward = 6.12
P/S = 0.3228
P/B = 1.4359
P/EG = 0.998
Revenue TTM = 3.73b USD
EBIT TTM = 306.6m USD
EBITDA TTM = 404.5m USD
Long Term Debt = 823.1m USD (from longTermDebt, last quarter)
Short Term Debt = 161.1m USD (from shortTermDebt, last quarter)
Debt = 2.21b USD (from shortLongTermDebtTotal, last quarter) + Leases 689.0m
Net Debt = 2.05b USD (calculated: Debt 2.21b - CCE 157.4m)
Enterprise Value = 3.25b USD (1.20b + Debt 2.21b - CCE 157.4m)
Interest Coverage Ratio = 5.16 (Ebit TTM 306.6m / Interest Expense TTM 59.4m)
EV/FCF = 12.32x (Enterprise Value 3.25b / FCF TTM 263.8m)
FCF Yield = 8.11% (FCF TTM 263.8m / Enterprise Value 3.25b)
FCF Margin = 7.08% (FCF TTM 263.8m / Revenue TTM 3.73b)
Net Margin = 4.93% (Net Income TTM 183.9m / Revenue TTM 3.73b)
Gross Margin = 51.88% ((Revenue TTM 3.73b - Cost of Revenue TTM 1.79b) / Revenue TTM)
Gross Margin QoQ = 52.62% (prev 51.24%)
Tobins Q-Ratio = 1.14 (Enterprise Value 3.25b / Total Assets 2.85b)
Interest Expense / Debt = 2.70% (Interest Expense 59.4m / Debt 2.21b)
Taxrate = 26.09% (15.1m / 57.8m)
NOPAT = 226.6m (EBIT 306.6m * (1 - 26.09%))
Current Ratio = 2.34 (Total Current Assets 1.29b / Total Current Liabilities 553.5m)
Debt / Equity = 2.63 (Debt 2.21b / totalStockholderEquity, last quarter 837.9m)
Debt / EBITDA = 5.06 (Net Debt 2.05b / EBITDA 404.5m)
Debt / FCF = 7.76 (Net Debt 2.05b / FCF TTM 263.8m)
Total Stockholder Equity = 804.6m (last 4 quarters mean from totalStockholderEquity)
RoA = 6.62% (Net Income 183.9m / Total Assets 2.85b)
RoE = 22.86% (Net Income TTM 183.9m / Total Stockholder Equity 804.6m)
RoCE = 18.84% (EBIT 306.6m / Capital Employed (Equity 804.6m + L.T.Debt 823.1m))
RoIC = 9.84% (NOPAT 226.6m / Invested Capital 2.30b)
WACC = 5.36% (E(1.20b)/V(3.41b) * Re(11.54%) + D(2.21b)/V(3.41b) * Rd(2.70%) * (1-Tc(0.26)))
Discount Rate = 11.54% (= CAPM, Blume Beta Adj.)
Shares (quarterly) Correlation: -100.00 | Cagr: -3.77%
[DCF] Terminal Value 77.97% ; FCFF base≈217.3m ; Y1≈249.1m ; Y5≈366.6m
[DCF] Fair Price = 36.36 (EV 5.52b - Net Debt 2.05b = Equity 3.47b / Shares 95.4m; r=8.35% [WACC [floored]]; 5y FCF grow 15.0% → 2.50% )
EPS Correlation: 39.11 | EPS CAGR: 2.82% | SUE: 0.59 | # QB: 0
Revenue Correlation: -39.31 | Revenue CAGR: -0.26% | SUE: 0.10 | # QB: 0
EPS current Quarter (2026-06-30): EPS=0.53 | Chg30d=-7.53% | Revisions=-43% | Analysts=5
EPS current Year (2026-09-30): EPS=2.06 | Chg30d=-0.39% | Revisions=-33% | GrowthEPS=+8.4% | GrowthRev=+1.0%
EPS next Year (2027-09-30): EPS=2.23 | Chg30d=-1.15% | Revisions=-14% | GrowthEPS=+8.5% | GrowthRev=+1.7%
[Analyst] Revisions Ratio: -43%