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Sally Beauty
(NYSE:SBH)
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Rating:62Neutral
Price Target:
$15.00
▲(3.23% Upside)
Action:Reiterated
Date:06/01/26
The score is supported most by improving operating/cash-flow trends and a very low P/E valuation, with earnings-call commentary reinforcing margin progress and shareholder returns. Offsetting these positives are still-elevated leverage and a weaker technical setup, with the stock below key longer-term moving averages and MACD negative.
Positive Factors
Free Cash Flow Generation
Consistent TTM free cash flow provides durable financing flexibility for debt reduction, targeted share repurchases, and reinvestment in omnichannel initiatives. Reliable FCF underpins capital allocation choices and cushions the business through retail cyclicality.
Negative Factors
Elevated Leverage
Sustained above-target leverage limits financial flexibility in a discretionary retail model, raising refinancing and interest-rate sensitivity. Though improved, high leverage constrains capital allocation, increases risk during demand slumps, and can slow growth investments.
Read all positive and negative factors
Positive Factors
Negative Factors
Free Cash Flow Generation
Consistent TTM free cash flow provides durable financing flexibility for debt reduction, targeted share repurchases, and reinvestment in omnichannel initiatives. Reliable FCF underpins capital allocation choices and cushions the business through retail cyclicality.
Read all positive factors
Sally Beauty Key Performance Indicators (KPIs)
Any
Operating Income by Segment
Breaks down profit contribution from each business unit (e.g., Beauty Systems Group vs. Sally retail), revealing which parts of the company generate cash and which may be loss-making. Highlights margin strength, cost control, and whether growth is translating into sustainable earnings or being eroded by higher expenses.
Breaks down profit contribution from each business unit (e.g., Beauty Systems Group vs. Sally retail), revealing which parts of the company generate cash and which may be loss-making. Highlights margin strength, cost control, and whether growth is translating into sustainable earnings or being eroded by higher expenses.
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The Fly
The FlySally Beauty (SBH) vs. SPDR S&P 500 ETF (SPY)
Market Cap
$1.37B
Dividend YieldN/A
Average Volume (3M)1.47M
Price to Earnings (P/E)7.8
Beta (1Y)1.17
Revenue Growth0.77%
EPS Growth2.73%
CountryUS
Employees27,000
SectorConsumer Cyclical
Sector Strength84
IndustrySpecialty Retail
Share Statistics
EPS (TTM)1.88
Shares Outstanding95,408,485
10 Day Avg. Volume1,438,992
30 Day Avg. Volume1,468,927
Financial Highlights & Ratios
PEG Ratio0.26
Price to Book (P/B)2.06
Price to Sales (P/S)0.44
P/FCF Ratio9.49
Enterprise Value/Market Cap1.91
Enterprise Value/Revenue0.70
Enterprise Value/Gross Profit1.35
Enterprise Value/Ebitda6.84
Forecast
1Y Price Target
$16.67Price Target Upside14.71% Upside
Rating ConsensusModerate Buy
Number of Analyst Covering3
EPS Forecast (FY)2.06
Revenue Forecast (FY)$3.74B
Sally Beauty Business Overview & Revenue Model
Company Description
Sally Beauty Holdings, Inc. functions as a specialized vendor and distributor of professional beauty products. The company’s operations are divided into two main business units: Sally Beauty Supply and Beauty Systems Group. The Sally Beauty Supply...
How the Company Makes Money
SBH makes money primarily by selling beauty products at retail and through professional distribution channels. Its core revenue stream is merchandise sales (e.g., hair color, hair care, styling tools, nail and skincare products) through company-op...
Sally Beauty Earnings Call Summary
Earnings Call Date:May 11, 2026
(Q2-2026)
| % Change Since: |
Next Earnings Date:Jul 30, 2026
Earnings Call Sentiment Positive
The call conveyed a generally positive tone: consolidated revenue and comps grew, gross margins expanded, cash flow and shareholder returns were strong, digital and product innovation initiatives showed early traction, and the Fuel for Growth program remains on track. Offsetting these positives were persistent softness in the care/haircare category, flat-to-slightly-negative trends in the BSG top line, SG&A expense pressures, store reductions and an inventory write-off. Management presented clear remediation plans (POG reset, Ignited store rollouts, marketing and digital initiatives) and a tightened guidance range, indicating confidence in momentum while acknowledging near-term risks.Positive Updates
Consolidated Revenue and Comparable Sales Growth
Total sales of $903 million, up 2.3% year-over-year, with consolidated comparable sales increasing 1.3% and results described as at the high end of expectations.
Negative Updates
Haircare / Care Category Weakness
Care category softness persisted: Global Sally Care down 6% year-over-year; overall haircare trends described as soft though improving sequentially, prompting a planned POG reset (August) to remove underperforming SKUs and add ~110 new SKUs.
Read all updates
Q2-2026 Updates
Positive
Negative
Consolidated Revenue and Comparable Sales Growth
Total sales of $903 million, up 2.3% year-over-year, with consolidated comparable sales increasing 1.3% and results described as at the high end of expectations.
Read all positive updates
Company Guidance
Management tightened the top‑line outlook and maintained the rest of fiscal 2026 guidance: consolidated net sales of $3.725–3.750 billion (about +50 bps FX benefit), comparable sales flat to +1%, adjusted operating earnings $328–342 million, and adjusted diluted EPS $2.02–2.10; capital expenditures are expected to be ~ $100 million, free cash flow ~ $200 million with ~50% of FCF earmarked for share repurchases. For fiscal Q3 they guide consolidated net sales of $932–942 million (about +40 bps FX benefit), comparable sales roughly flat, adjusted operating earnings $83–89 million and adjusted diluted EPS $0.52–0.56. Management said they remain on track to capture roughly $45 million of Fuel for Growth benefits in FY2026 and to reach ~$120 million of cumulative run‑rate savings, and indicated Q4 net sales are expected to be slightly higher sequentially as Sally outperforms and BSG improves.Sally Beauty Financial Statement Overview
Summary
Income Statement
62
Positive
Balance Sheet
52
Neutral
Cash Flow
66
Positive
| Breakdown | TTM | Sep 2025 | Sep 2024 | Sep 2023 | Sep 2022 | Sep 2021 |
|---|---|---|---|---|---|---|
Income Statement | ||||||
| Total Revenue | 3.73B | 3.70B | 3.72B | 3.73B | 3.82B | 3.87B |
| Gross Profit | 1.93B | 1.91B | 1.89B | 1.89B | 1.94B | 1.95B |
| EBITDA | 380.39M | 427.73M | 393.50M | 441.06M | 493.06M | 529.70M |
| Net Income | 183.91M | 195.88M | 153.41M | 184.60M | 183.55M | 239.86M |
Balance Sheet | ||||||
| Total Assets | 2.85B | 2.87B | 2.79B | 2.73B | 2.58B | 2.85B |
| Cash, Cash Equivalents and Short-Term Investments | 157.40M | 149.16M | 107.96M | 123.00M | 70.56M | 400.96M |
| Total Debt | 1.52B | 1.56B | 1.60B | 1.68B | 1.73B | 1.94B |
| Total Liabilities | 2.02B | 2.08B | 2.16B | 2.22B | 2.28B | 2.57B |
| Stockholders Equity | 837.87M | 794.21M | 628.53M | 508.75M | 293.64M | 280.74M |
Cash Flow | ||||||
| Free Cash Flow | 263.76M | 172.69M | 145.36M | 158.57M | 57.25M | 307.96M |
| Operating Cash Flow | 391.88M | 274.83M | 246.53M | 249.31M | 156.50M | 381.86M |
| Investing Cash Flow | -127.46M | -58.28M | -108.91M | -99.78M | -102.42M | -76.02M |
| Financing Cash Flow | -166.02M | -178.42M | -153.73M | -100.82M | -373.68M | -419.97M |
Sally Beauty Technical Analysis
Positive
14.53
Price Trends
13.33
Positive
13.98
Positive
14.64
Positive
Market Momentum
0.35
Negative
62.70
Neutral
79.11
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 14.53 is above the 20-day moving average (MA) of 13.89, above the 50-day MA of 13.33, and below the 200-day MA of 14.64, indicating a bullish trend. The MACD of 0.35 indicates Negative momentum. The RSI at 62.70 is Neutral, neither overbought nor oversold. The STOCH value of 79.11 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 34 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
UnderperformOutperform
Sector (61)
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
66 Neutral | $19.56B | 17.19 | 44.77% | ― | 11.30% | 4.23% | |
63 Neutral | $3.91B | 5.74 | -52.38% | 4.16% | -1.40% | -4.34% | |
62 Neutral | $1.37B | 7.82 | 22.86% | ― | 0.77% | 2.73% | |
62 Neutral | $8.42B | 43.98 | 44.82% | ― | 6.14% | -32.48% | |
61 Neutral | $18.38B | 12.79 | -2.54% | 3.03% | 1.52% | -15.83% | |
57 Neutral | $1.39B | -92.00 | -1.70% | ― | 1.10% | -221.08% | |
52 Neutral | $324.76M | -16.57 | -4.51% | ― | 32.03% | 76.28% |
* Consumer Cyclical Sector Average
SBH
Sally Beauty
14.70
4.70
47.00%
BBWI
Bath & Body Works
19.93
-12.43
-38.41%
ULTA
Ulta Beauty
460.24
-15.90
-3.34%
CHWY
Chewy
20.67
-18.10
-46.69%
YSG
Yatsen Holding
3.43
-5.93
-63.35%
OLPX
Olaplex Holdings
2.07
0.58
38.93%
Sally Beauty Corporate Events
Business Operations and StrategyStock BuybackFinancial Disclosures
Sally Beauty Reports Solid Q2 Results, Tightens 2026 Outlook
Positive
May 11, 2026
On May 11, 2026, Sally Beauty Holdings reported that second-quarter fiscal 2026 net sales rose 2.3% year over year to $903 million, with comparable sales up 1.3% and global e-commerce revenue advancing 13% to $108 million. The company expanded its...
Glossary
BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
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.