SBH Stock Analysis: Sally Beauty Holdings | NYSE
Specialty Retail | NYSE, USA | Market Cap: 1.541m USD | 12M Return: 13.7% | US79546E1047 | Charts, Fundamentals & Technical Analysis
Avg Turnover: 20.6M
EPS Trend: 79.1%
Qual. Beats: 0
Rev. Trend: 18.9%
Qual. Beats: 0
Warnings
Tailwinds
Seasonality 11.6 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 (SBH) is a specialty retailer and distributor of professional beauty supplies operating through two segments: Sally Beauty Supply, which targets retail customers and salon professionals, and Beauty Systems Group, which sells exclusively to licensed beauty professionals and salons via professional-only stores, e-commerce, and a direct sales force. The company carries a wide range of hair color, hair care, skin and nail care, and styling products, including brands such as Wella, LOréal, Clairol, OPI, Paul Mitchell, Matrix, and Moroccanoil. Beyond its company-operated stores, the business extends through franchised Armstrong McCall locations in the U.S. and Puerto Rico, as well as full-service and open-line distributors.
Founded in 1964 and headquartered in Plano, Texas, Sally Beauty maintains operations across the United States, Puerto Rico, Canada, Mexico, Chile, the United Kingdom, Ireland, Belgium, France, the Netherlands, and Germany. The companys dual-channel model, serving both everyday consumers and licensed salon professionals, is a key feature of the professional beauty supply sector, which is generally less cyclical than broader retail due to ongoing demand from salon operators for replenishment products.
- Beauty Systems Group sales lift consolidated revenue growth
- Sally Beauty Supply comp sales pressured by discretionary consumer weakness
- Tariffs and freight costs continue compressing gross margins
| 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 September 02, 2026, the stock is trading at USD 16.37 with a total of 963,806 shares traded. Over the past week, the price has changed by -0.55%, over one month by +1.49%, over three months by +27.49% and over the past year by +13.68%.
Current recommended Stop Loss: 14.80 (which is 9.6% or 2.7 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 | 3.8% |
P/E Trailing = 8.709
P/E Forward = 7.4294
P/S = 0.4132
P/B = 1.7952
P/EG = 0.7353
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 = 3.59b USD (1.54b + Debt 2.22b - CCE 173.1m)
Interest Coverage Ratio = 5.06 (Ebit TTM 290.7m / Interest Expense TTM 57.4m)
EV/FCF = 14.89x (Enterprise Value 3.59b / FCF TTM 241.2m)
FCF Yield = 6.72% (FCF TTM 241.2m / Enterprise Value 3.59b)
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 = 1.25 (Enterprise Value 3.59b / 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 = 4.83% (E(1.54b)/V(3.76b) * Re(9.0%) + D(2.22b)/V(3.76b) * Rd(2.58%) * (1-Tc(0.25)))
Discount Rate = 9.0% (= 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=+0.00% | Revisions=-25% | Analysts=3
EPS current Year (2026-09-30): EPS=2.07 | Chg30d=+0.29% | Revisions=+29% | GrowthEPS=+8.7% | GrowthRev=+0.8%
EPS next Year (2027-09-30): EPS=2.24 | Chg30d=+0.00% | Revisions=+29% | GrowthEPS=+8.4% | GrowthRev=+1.5%
[Analyst] Revisions Ratio: +25% (up=6, down=3)