Education
About Us
Working with TipRanks
Follow Us
Sally Beauty Holdings (SBH)
NYSE:SBH
Top Page
Sally Beauty
(NYSE:SBH)
73Outperform
Positive Factors
Growth Initiatives
Management's strategies have shown success with strong growth in the digital channel and a more omnichannel experience.
Operational Efficiency
Sally Beauty Holdings reported a better-than-expected Adj. EBIT margin of 8.5%, indicating strong operational efficiency.
Negative Factors
Consumer Confidence
The dynamic tariff rate environment adds uncertainty to consumer confidence/spending.
Economic Environment
Management lowered FY25 operating margin guidance and comps due to macro concerns, reflecting challenges in the economic environment.
Sally Beauty (SBH) vs. S&P 500 (SPY)
Market Cap
$944.37M
Dividend YieldN/A
Average Volume (3M)2.26M
Price to Earnings (P/E)5.2
Beta (1Y)0.80
Revenue Growth0.17%
EPS Growth20.26%
CountryUS
Employees12,000
SectorConsumer Cyclical
Sector Strength73
IndustrySpecialty Retail
Share Statistics
EPS (TTM)0.42
Shares Outstanding100,894,226
10 Day Avg. Volume2,186,716
30 Day Avg. Volume2,259,488
Financial Highlights & Ratios
PEG Ratio0.29
Price to Book (P/B)1.28
Price to Sales (P/S)0.00
P/FCF Ratio6.08
Enterprise Value/Market CapN/A
Enterprise Value/RevenueN/A
Enterprise Value/Gross ProfitN/A
Enterprise Value/EbitdaN/A
Forecast
1Y Price Target
$13.00Price Target Upside43.01% Upside
Rating ConsensusModerate Buy
Number of Analyst Covering4
Sally Beauty Business Overview & Revenue Model
Company DescriptionSally Beauty Holdings, Inc. operates as a specialty retailer and distributor of professional beauty supplies. The company operates through two segments, Sally Beauty Supply and Beauty Systems Group. The Sally Beauty Supply segment offers beauty products, including hair color and care products, skin and nail care products, styling tools, and other beauty products for retail customers, salons, and salon professionals. This segment also provides products under third-party brands, such as Wella, Clairol, OPI, Conair, and L'Oreal, as well as exclusive-label brand merchandise. The Beauty Systems Group segment offers professional beauty products, such as hair color and care products, skin and nail care products, styling tools, and other beauty items directly to salons and salon professionals through its professional-only stores, e-commerce platforms, and sales force, as well as through franchised stores under the Armstrong McCall store name. This segment also sells products under third-party brands, such as Paul Mitchell, Wella, Matrix, Schwarzkopf, Kenra, Goldwell, Joico, and Olaplex. As of September 30, 2021, the company operated 4,777 stores, including 134 franchised units in the United States, Puerto Rico, Canada, Mexico, Chile, Peru, the United Kingdom, Ireland, Belgium, France, the Netherlands, Spain, and Germany. It also distributes its products through full-service/exclusive distributors, open-line distributors, direct sales, and mega-salon stores. Sally Beauty Holdings, Inc. was founded in 1964 and is headquartered in Denton, Texas.
How the Company Makes MoneySally Beauty Holdings generates revenue through the sale of beauty products and supplies via its two main business segments: Sally Beauty Supply and Beauty Systems Group. Sally Beauty Supply focuses on retail sales, targeting individual consumers and do-it-yourself beauty enthusiasts through its network of physical stores and online platforms. Beauty Systems Group, on the other hand, caters to professional stylists and salons, providing them with professional-grade products and equipment. Revenue is primarily driven by product sales, with additional income from private label brands that often offer higher margins. The company benefits from strategic partnerships with well-known beauty brands and leverages its distribution network to maintain a strong market presence. Additionally, Sally Beauty engages in promotional activities and loyalty programs to attract and retain customers, further supporting its revenue streams.
Sally Beauty Financial Statement Overview
Summary
Sally Beauty presents a solid financial position with consistent profitability and efficient cash flow management. While leverage remains a concern, the company is improving its equity base and maintaining stable margins. The lack of revenue growth is a notable challenge, but operational efficiencies provide some stability. Overall, Sally Beauty is navigating its competitive landscape with moderate financial health.Income Statement
Sally Beauty shows a stable gross profit margin of around 50% over recent years, indicating consistent cost management. However, the revenue growth has been stagnant, with minor fluctuations. The net profit margin is modest, reflecting competitive industry pressures. EBIT and EBITDA margins are stable, suggesting operational efficiency but limited top-line growth.72
Positive
Balance Sheet
The debt-to-equity ratio is relatively high, indicating significant leverage, which could pose risks in volatile markets. However, the company has improved its equity base over the years, enhancing its equity ratio. Return on equity shows a positive trend, suggesting effective utilization of shareholder funds despite the leverage concerns.65
Positive
Cash Flow
Sally Beauty demonstrates strong operating cash flow relative to net income, indicating good cash conversion efficiency. The free cash flow is positive and shows growth over the years, which supports financial flexibility. However, the capital expenditures indicate ongoing investments, which could impact future cash flow if not managed carefully.77
Positive
| Breakdown | |||||
| TTM | Sep 2024 | Sep 2023 | Sep 2022 | Sep 2021 | Sep 2020 |
|---|---|---|---|---|---|
| Income Statement | Total Revenue | ||||
| 3.72B | 3.72B | 3.73B | 3.82B | 3.87B | 3.51B | Gross Profit |
| 1.87B | 1.89B | 1.89B | 1.92B | 1.95B | 1.72B | EBIT |
| 314.29M | 282.73M | 338.65M | 265.29M | 320.85M | 166.01M | EBITDA |
| 421.53M | 392.47M | 441.06M | 365.22M | 423.05M | 272.79M | Net Income Common Stockholders |
| 176.04M | 153.41M | 184.60M | 183.55M | 239.86M | 113.25M |
| Balance Sheet | Cash, Cash Equivalents and Short-Term Investments | ||||
| 105.53M | 107.96M | 123.00M | 70.56M | 400.96M | 514.15M | Total Assets |
| 2.71B | 2.79B | 2.73B | 2.58B | 2.85B | 2.90B | Total Debt |
| 1.55B | 1.60B | 1.68B | 1.73B | 1.94B | 2.34B | Net Debt |
| 1.45B | 1.49B | 1.55B | 1.66B | 1.54B | 1.83B | Total Liabilities |
| 2.05B | 2.16B | 2.22B | 2.28B | 2.57B | 2.88B | Stockholders Equity |
| 656.49M | 628.53M | 508.75M | 293.64M | 280.74M | 15.44M |
| Cash Flow | Free Cash Flow | ||||
| 138.27M | 145.36M | 158.57M | 57.25M | 307.96M | 316.03M | Operating Cash Flow |
| 228.97M | 246.53M | 249.31M | 156.50M | 381.86M | 426.89M | Investing Cash Flow |
| -55.02M | -108.91M | -99.78M | -102.42M | -76.02M | -123.78M | Financing Cash Flow |
| -188.63M | -153.73M | -100.82M | -373.68M | -419.97M | 139.76M |
Sally Beauty Technical Analysis
Positive
9.09
Price Trends
8.58
Positive
9.50
Negative
11.09
Negative
Market Momentum
0.15
Negative
59.24
Neutral
64.85
Neutral
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For SBH, the sentiment is Positive. The current price of 9.09 is above the 20-day moving average (MA) of 8.28, above the 50-day MA of 8.58, and below the 200-day MA of 11.09, indicating a neutral trend. The MACD of 0.15 indicates Negative momentum. The RSI at 59.24 is Neutral, neither overbought nor oversold. The STOCH value of 64.85 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for SBH.
Sally Beauty Risk Analysis
Sally Beauty disclosed 32 risk factors in its most recent earnings report. Sally Beauty reported the most risks in the “Ability to Sell” category.
Finance & Corporate - Financial and accounting risks. Risks related to the execution of corporate activity and strategy
Latest Risks Added 0 New Risks
Sally Beauty Peers Comparison
Overall Rating
UnderperformOutperform
Sector (61)
Financial Indicators
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
74 Outperform | $788.64M | 31.26 | 14.01% | ― | 35.78% | 23.49% | |
74 Outperform | $307.76M | 10.59 | 11.76% | 3.24% | -5.46% | -1.09% | |
73 Outperform | $944.37M | 5.23 | 29.74% | ― | 0.17% | 20.26% | |
72 Outperform | $1.80B | 14.95 | 12.40% | 1.93% | 1.81% | 8.09% | |
63 Neutral | $852.38M | 69.95 | 1.41% | ― | -5.11% | -74.90% | |
61 Neutral | $7.00B | 11.55 | 3.07% | 3.89% | 2.60% | -21.53% | |
61 Neutral | $1.04B | ― | -0.45% | 3.57% | -12.29% | -105.55% |
* Consumer Cyclical Sector Average
Performance Comparison
SBH
Sally Beauty
9.09
-2.19
-19.41%
LZB
La-Z-Boy Incorporated
43.23
7.92
22.43%
LQDT
Liquidity Services
25.26
5.61
28.55%
WEYS
Weyco Group
31.90
4.29
15.54%
WGO
Winnebago Industries
36.31
-24.13
-39.92%
OLPX
Olaplex Holdings
1.29
-0.36
-21.82%
Sally Beauty Earnings Call Summary
Earnings Call Date:May 12, 2025
(Q2-2025)
| % Change Since: 11.26%|
Next Earnings Date:Jul 31, 2025
Earnings Call Sentiment Neutral
The earnings call highlighted solid financial management and strategic initiatives such as innovation and ecommerce growth. However, it also acknowledged significant challenges like sales declines in both the Sally and BSG segments due to external factors such as the flu season and macroeconomic uncertainty. The company remains cautious about the macro environment and adjusted its full-year guidance accordingly.Q2-2025 Updates
Positive Updates
Increase in Adjusted Operating Earnings
The company reported a 10% increase in adjusted operating earnings and 20% growth in adjusted earnings per share over the prior year.
Gross Margin Expansion
Adjusted operating margin expanded by 90 basis points supported by a gross margin of 52%.
Strong Free Cash Flow
The company continued to generate strong free cash flow, which was used to strengthen its balance sheet and return value to shareholders through share repurchases.
Ecommerce Growth
Ecommerce sales at Sally US and Canada increased by 29% compared to the previous year.
Product Innovation
Successful launches in BSG with brands like K18, Amika, Schwarzkopf, and Moroccan Oil, contributing to expanded distribution and innovation across categories.
Fuel for Growth Program
The program is on track to generate cumulative gross margin and SG&A benefits of approximately $70 million by the end of the year.
Negative Updates
Decline in Comparable Sales
Consolidated comparable sales declined by 1.3% due to a challenging macro environment and an unusually harsh flu season.
Sally Segment Challenges
Sally segment comparable sales dipped into negative territory, declining by 30 basis points.
BSG Segment Challenges
BSG segment saw a 2.7% decline in comparable sales due to external factors like a harsh flu season and macroeconomic uncertainty.
Reduced Full-Year Sales Outlook
The company adjusted its full-year sales guidance to reflect flat to down 1% comparable sales, down from flat to up 2%.
Company Guidance
During Sally Beauty Holdings' call discussing their second quarter fiscal 2025 results, the company provided guidance with several key metrics. Despite a challenging external environment, the company achieved a 10% increase in adjusted operating earnings and a 20% growth in adjusted earnings per share over the previous year. Adjusted operating margin expanded by 90 basis points, and gross margins were healthy at 52%. The Sally segment's comparable sales dipped slightly, declining by 30 basis points, while the BSG segment saw a 2.7% decline in comparable sales. Ecommerce sales at Sally US and Canada increased by 29% year-over-year. The company expects fiscal Q3 comparable sales to range from flat to down 2%, with an adjusted operating margin between 8% and 8.5%. For the full year, they anticipate comparable sales to be flat to down 1% and adjusted operating margins to range from 8% to 8.5%. Sally Beauty Holdings continues to focus on strategic initiatives such as digital marketplaces and product innovation to drive future growth.Sally Beauty Corporate Events
Stock BuybackFinancial Disclosures
Sally Beauty Reports Q2 2025 Financial Results
Neutral
May 12, 2025
Sally Beauty Holdings reported its financial results for the second quarter of fiscal 2025, highlighting a third consecutive quarter of operating margin expansion despite a challenging macroeconomic environment. The company achieved a GAAP operating margin of 7.9% and an adjusted operating margin of 8.5%, supported by strong gross margin performance and cost control measures. Net sales decreased by 2.8% due to external factors, including unfavorable foreign currency impacts and reduced store operations. However, the company maintained strong cash flow, allowing for debt reduction and share repurchases. The Board of Directors approved a four-year extension to the share repurchase program, authorizing up to $501.1 million in stock repurchases.
The most recent analyst rating on (SBH) stock is a Buy with a $16.0000 price target. To see the full list of analyst forecasts on Sally Beauty stock, see the SBH Stock Forecast page.
Spark’s Take on SBH Stock
According to Spark, TipRanks’ AI Analyst, SBH is a Outperform.
Sally Beauty presents a moderate investment opportunity with strengths in profitability and valuation. While financial performance shows stability, challenges in revenue growth and a bearish technical outlook temper enthusiasm. Positive earnings call sentiment and strategic initiatives provide confidence, but macroeconomic factors remain a risk.
To see Spark’s full report on SBH stock, click here.
Stock BuybackBusiness Operations and Strategy
Sally Beauty Extends Share Repurchase Program
Positive
May 12, 2025
Sally Beauty Holdings, Inc. announced on May 6, 2025, that its Board of Directors has approved an extension of the company’s share repurchase program until September 30, 2029. This extension allows the company to repurchase up to $501.1 million of its common stock, continuing its strategy to enhance shareholder value. The repurchases will comply with U.S. Securities and Exchange Commission rules, including Rule 10b-18, and may involve Rule 10b5-1 plans to facilitate purchases during restricted periods.
The most recent analyst rating on (SBH) stock is a Buy with a $16.0000 price target. To see the full list of analyst forecasts on Sally Beauty stock, see the SBH Stock Forecast page.
Spark’s Take on SBH Stock
According to Spark, TipRanks’ AI Analyst, SBH is a Outperform.
Sally Beauty presents a moderate investment opportunity with strengths in profitability and valuation. While financial performance shows stability, challenges in revenue growth and a bearish technical outlook temper enthusiasm. Positive earnings call sentiment and strategic initiatives provide confidence, but macroeconomic factors remain a risk.
To see Spark’s full report on SBH stock, click here.
Glossary
OutperformA stock rated as "Outperform" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests that the stock is likely to deliver higher returns compared to the average returns of other stocks in the same sector or market index. Investors might consider this stock a good buying opportunity.
NeutralA stock rated as "Neutral" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly attractive nor unattractive for investment. Investors may consider holding onto the stock, as it is not expected to either significantly outperform or underperform the market.
UnderperformA stock rated as "Underperform" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests that the stock may deliver lower returns compared to the average returns of other stocks in the same sector or market index. Investors might consider selling the stock or avoiding it as an investment.
Disclaimer
This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.