Sally Beauty Holdings, Inc. [NYSE:SBH]: Analyst Rating and Earnings
Equities traders oftentimes stay updated on what leading stock market analysts say about a potential stock purchase. When it comes to Sally Beauty Holdings, Inc. [SBH], the most recently available average analyst rating is from the quarter that ends in September. On average, stock market experts give SBH an Underperform rating. Its stock price has been found in the range of 13.72 to 23.61. This is compared to its latest closing price of $16.42.
Wall Street analysts provide their ratings on a scale of 1 to 5, and the current average score for Sally Beauty Holdings, Inc. [SBH] is sitting at 3.56. This is compared to 1 month ago, when its average rating was 3.50.
For the quarter ending in Mar-19 Sally Beauty Holdings, Inc. [SBH] generated $0.95 billion in sales. That’s 2.01% lower than the average estimate of $0.97 billion as provided by Wall Street analysts. The three indicators above suggest that overall, this stock is demonstrating a mixed bag of positive appeal and some drawbacks, making it a somewhat risky investment that also has the potential to generate high ROI in the long run.
Keep looking out for the next-scheduled quarterly financial results that this company is expected to put out, which is slated to occur on Thu 1 Aug (In 70 Days).
Fundamental Analysis of Sally Beauty Holdings, Inc. [SBH]
Now let’s turn to look at profitability: with a current Operating Margin for Sally Beauty Holdings, Inc. [SBH] sitting at +11.66 and its Gross Margin at +46.68, this company’s Net Margin is now 6.30%. These metrics indicate that this company is not generating as much profit, after accounting for expenses, compared to its market peers.
This company’s Return on Total Capital is 30.47, and its Return on Invested Capital has reached 21.90%. Its Return on Assets is 12.23.
Similarly, its Total Debt to Total Capital is 117.84, while its Total Debt to Total Assets stands at 84.60.
What about valuation? This company’s Enterprise Value to EBITDA is 6.46 and its Total Debt to EBITDA Value is 3.13. The Enterprise Value to Sales for this firm is now 0.94, and its Total Debt to Enterprise Value stands at 0.45.
Shifting the focus to workforce efficiency, Sally Beauty Holdings, Inc. [SBH] earns $131,217 for each employee under its payroll. Similarly, this company’s Receivables Turnover is 43.04 and its Total Asset Turnover is 1.86. This publicly-traded organization’s liquidity data is also interesting: its Quick Ratio is 0.43 and its Current Ratio is 2.35. This company, considering these metrics, has a healthy ratio between its short-term liquid assets and its short-term liabilities, making it a less risky investment.
Sally Beauty Holdings, Inc. [SBH] has 119.62M shares outstanding, amounting to a total market cap of $1.94B. Its stock price has been found in the range of 13.72 to 23.61. At its current price, it has moved by -31.34% from its 52-week high, and it has moved 18.12% from its 52-week low.
This stock’s Beta value is currently 0.46, which indicates that it is more volatile that the wider market. This stock’s Relative Strength Index (RSI) is at 40.76. This RSI score is good, suggesting this stock is neither overbought or oversold.
Conclusion: Is Sally Beauty Holdings, Inc. [SBH] a Reliable Buy?
Shares of Sally Beauty Holdings, Inc. [SBH], on the whole, present investors with both positive and negative signals. Wall Street analysts have mixed reviews when it comes to the 12-month price outlook, and this company’s financials show a combination of strengths and weaknesses. Based on the price performance, this investment is somewhat risky while presenting reasonable potential for ROI.