Sally Beauty Holdings Inc Stock Research

Market Summary

USD11.46+0.40

Delayedas of 24 May 2023, 02:08 pm

3.62%

SBH Stock Price

SBH RSI Chart

SBH Valuation

Market Cap

1.2B

Price/Earnings (Trailing)

7.48

Price/Sales (Trailing)

0.31

EV/EBITDA

5.51

Price/Free Cashflow

8.4

SBH Price/Sales (Trailing)

SBH Profitability

EBT Margin

5.81%

Return on Equity

44.21%

Return on Assets

6.19%

Free Cashflow Yield

11.9%

SBH Fundamentals

SBH Revenue

Revenue (TTM)

3.8B

Revenue Y/Y

0.8%

Revenue Q/Q

-4.01%

SBH Earnings

Earnings (TTM)

159.1M

Earnings Y/Y

-12.71%

Earnings Q/Q

-18.83%

Price Action

52 Week Range

10.8018.42

(Low)(High)

Last 7 days

4.1%

Last 30 days

-19.3%

Last 90 days

-29.4%

Trailing 12 Months

-13.4%

SBH Financial Health

Current Ratio

1.8

Debt/Equity

2.9

Debt/Cashflow

0.2

SBH Investor Care

Shares Dilution (1Y)

0.58%

Diluted EPS (TTM)

1.46

Peers (Alternatives to Sally Beauty Holdings)

View All Peers In Detail

Name	Mkt Capsorted ascending	Revenue	Price %, 1M	Returns, 1Y	P/E	P/S	Rev 1-Yr	Inc 1-Yr
LARGE-CAP
ULTA	24.2B	10.2B	-11.22%	38.64%	19.48	2.37	18.28%	26.03%
BBY	15.2B	46.3B	-4.49%	0.35%	10.68	0.33	-10.55%	-42.18%
DKS	10.6B	12.4B	-16.34%	69.10%	10.14	0.85	0.61%	-31.37%
MID-CAP
WSM	7.4B	8.7B	-7.77%	4.57%	6.59	0.86	5.20%	0.14%
GME	7.4B	5.9B	13.03%	-3.63%	-23.55	1.24	-1.39%	17.89%
RH	5.7B	3.6B	4.70%	0.10%	10.7	1.58	-4.48%	-23.22%
SIG	3.2B	7.8B	-5.15%	30.22%	8.48	0.41	0.21%	-51.07%
ODP	1.6B	8.4B	-7.57%	5.32%	8.72	0.19	-0.58%	188.83%
SMALL-CAP
SBH	1.2B	3.8B	-19.28%	-13.39%	7.48	0.31	-2.68%	-38.81%
WINA	1.2B	81.9M	-2.67%	80.65%	30.26	14.23	2.86%	-4.81%
SPWH	222.6M	1.4B	-0.81%	-34.52%	5.49	0.16	-7.08%	-62.65%
CONN	107.1M	1.3B	-8.61%	-64.37%	-1.81	0.08	-15.57%	-154.80%
PRTY	42.4M	2.2B	-10.90%	-93.38%	-0.16	0.02	1.89%	-208.17%
KIRK	38.4M	498.8M	-	-52.64%	-0.86	0.08	-10.63%	-302.91%
BBBY	12.6M	6.2B	-82.43%	-99.45%	-0.01	0	-26.37%	-225.93%

Financials for Sally Beauty Holdings

* denotes actual numbers (not divided by Millions)
Income Statement (Last 12 Months)					(In Millions)
Description	(%) Q/Q	2023Q1	2022Q4	2022Q3	2022Q2	2022Q1
Revenue	0.2%	3,800	3,792	3,816	3,843	3,904
Gross Profit	0.2%	1,911	1,908	1,919	1,957	1,981
S&GA Expenses	0.7%	1,570	1,559	1,554	1,543	1,538
EBITDA	-5.8%	412	438	507	536	-
EBITDA Margin	-5.2%	0.11*	0.11*	0.13*	0.14*	-
Earnings Before Taxes	-5.4%	208	220	244	313	354
EBT Margin	-9.2%	0.06*	0.06*	0.08*	0.09*	-
Interest Expenses	-3.5%	88.00	91.00	94.00	96.00	84.00
Net Income	-3.6%	159	165	184	230	260
Net Income Margin	-9.5%	0.04*	0.05*	0.06*	0.07*	-
Free Cahsflow	108.3%	119	57.00	117	157	-

Balance Sheet					(In Millions)
Description	(%) Q/Q	2023Q1	2022Q4	2022Q3	2022Q2	2022Q1
Assets	0.2%	2,675	2,669	2,577	2,686	2,743
Current Assets	-0.8%	1,209	1,219	1,132	1,243	1,302
Cash Equivalents	-37.8%	62.00	99.00	71.00	101	227
Inventory	3.7%	1,024	987	936	1,015	963
Net PPE	-1.9%	283	289	298	290	288
Goodwill	0.3%	534	533	526	533	540
Liabilities	-2.0%	2,249	2,295	2,283	2,390	2,471
Current Liabilities	-6.9%	631	677	668	775	574
Long Term Debt	-1.5%	1,065	1,082	1,083	1,084	1,381
Shareholder's Equity	14.1%	426	373	294	296	272
Retained Earnings	8.3%	531	491	440	419	372
Additional Paid-In Capital	65.6%	14.00	8.00	4.00	2.00	-
Accumulated Depreciation	-0.9%	842	849	821	808	801
Shares Outstanding	0.2%	108	107	107	107	107

Cashflow (Last 12 Months)					(In Millions)
Description	(%) Q/Q	2023Q1	2022Q4	2022Q3	2022Q2	2022Q1
Cashflow From Operations	10.0%	239	217	157	213	248
Share Based Compensation	16.2%	13.00	11.00	10.00	12.00	12.00
Cashflow From Investing	0.5%	-100	-100	-102	-96.68	-91.11
Cashflow From Financing	4.2%	-296	-309	-373	-277	-335
Buy Backs	-25.0%	130	174	261	-	-

Risks for SBH

What is the probability of a big loss on SBH?

100%

Probability that Sally Beauty Holdings stock will be more than 20% underwater in next one year

80.4%

Probability that Sally Beauty Holdings stock will be more than 30% underwater in next one year.

46.1%

Probability that Sally Beauty Holdings stock will be more than 40% underwater in next one year.

*Calculated based on probability distribution of losses observed in actual data in the last 5 years.

How does SBH drawdown profile look like?

Y-axis is the maximum loss one would have experienced if Sally Beauty Holdings was unfortunately bought at previous high price.

Drawdowns

Returns for SBH

Cumulative Returns on SBH

-9.4%

10-Year Cumulative Returns

-11.7%

7-Year Cumulative Returns

-5.9%

5-Year Cumulative Returns

0.1%

3-Year Cumulative Returns

What are the long-term rolling returns for SBH?

FIve years rolling returns for Sally Beauty Holdings.

Annualized Returns

Which funds bought or sold SBH recently?

View All Details

Datesorted ascending	Fund Name	Type	% Chg	$ Change	$ Held	% Portfolio
2023-05-22	AMERIPRISE FINANCIAL INC	reduced	-1.91	1,121,670	6,205,670	-%
2023-05-22	PUTNAM INVESTMENTS LLC	reduced	-4.05	300,837	1,851,780	-%
2023-05-22	EMC Capital Management	unchanged	-	38,000	194,000	0.16%
2023-05-19	Coppell Advisory Solutions LLC	sold off	-100	-388	-	-%
2023-05-18	NEW YORK STATE COMMON RETIREMENT FUND	reduced	-5.89	852,000	5,829,000	0.01%
2023-05-18	JPMORGAN CHASE & CO	added	4.57	2,461,000	10,635,000	-%
2023-05-17	KB FINANCIAL PARTNERS, LLC	unchanged	-	-	2,000	-%
2023-05-17	Thrivent Financial for Lutherans	reduced	-3.1	283,000	1,657,000	-%
2023-05-16	SUSQUEHANNA INTERNATIONAL GROUP, LLP	new	-	829,168	829,168	-%
2023-05-16	JANE STREET GROUP, LLC	reduced	-11.39	44,257	475,408	-%

Latest Funds Activity

Are funds buying SBH calls or puts?

Calls

Puts

Are funds bullish or bearish(Calls - Puts)?

Net Call Options

No. of funds that own SBH

No. of Funds

Sally Beauty Holdings News

Schedule 13G FIlings of Sally Beauty Holdings

Date Filed	Name of Filer	Percent of Class	No. of Shares	Form Type
Feb 15, 2023	arrowmark colorado holdings llc	7.06%	7,558,730	SC 13G/A
Feb 14, 2023	alliancebernstein l.p.	8.0%	8,610,218	SC 13G/A
Feb 09, 2023	fmr llc	-	0	SC 13G/A
Feb 09, 2023	vanguard group inc	11.31%	12,102,662	SC 13G/A
Jan 23, 2023	blackrock inc.	16.0%	17,148,656	SC 13G/A
Feb 14, 2022	alliancebernstein l.p.	5.8%	6,615,754	SC 13G
Feb 14, 2022	arrowmark colorado holdings llc	13.57%	15,337,028	SC 13G/A
Feb 09, 2022	fmr llc	-	0	SC 13G/A
Jan 27, 2022	blackrock inc.	15.6%	17,614,295	SC 13G/A
Jan 26, 2022	blackrock inc.	15.6%	17,614,295	SC 13G/A

SBH Fair Value

Sally Beauty Holdings fair value in different scenarios

The table shows the Fair Value estimates for Sally Beauty Holdings for various scenarios. Disclaimer: These are just estimations from a model. None of the models are good at predicting the future. Please dont buy or sell stocks based on these outputs.

Fair Value	Very Pessimistic	Pessimistic	Base Case	Optimistic	Very Optimistic
Very Low Inflation	11.52 0.52%	14.11 23.12%	17.98 56.89%	21.41 86.82%	25.74 124.61%
Current Inflation	10.99 -4.10%	13.38 16.75%	16.94 47.82%	20.08 75.22%	23.19 102.36%
Very High Inflation	10.29 -10.21%	12.45 8.64%	15.62 36.30%	18.39 60.47%	20.15 75.83%

Historical Sally Beauty Holdings Fair Value Estimates

Very Pessimistic Case

Pessimistic Case

Fair Value

Optimistic Case

Very Optimistic Case

Closing Stock Price

Recent SEC filings of Sally Beauty Holdings

View All Filings

Date Filed	Form Type	Document
May 04, 2023	8-K	Current Report
May 04, 2023	10-Q	Quarterly Report
Apr 11, 2023	4	Insider Trading
Mar 01, 2023	8-K	Current Report
Feb 17, 2023	4	Insider Trading
Feb 15, 2023	SC 13G/A	Major Ownership Report
Feb 14, 2023	SC 13G/A	Major Ownership Report

Latest Insider Trading transactions for SBH

Filter Transactions

Datesorted ascending	Name	Buy/Sell	$ Value	Avg. Price	# Shares	Title
2023-04-09	Platz Marlo Michelle Cormier	sold (taxes)	-26,640	14.67	-1,816	svp, cfo
2023-02-16	Spinks Mark Gregory	sold	-609,134	17.18	-35,456	see remarks
2023-02-16	Spinks Mark Gregory	acquired	322,295	9.09	35,456	see remarks
2023-01-26	MCMASTER ROBERT R	acquired	-	-	64,865	-
2023-01-26	MILLER JOHN A	acquired	-	-	48,479	-
2023-01-26	RABIN EDWARD W	acquired	-	-	75,997	-
2023-01-26	EISENBERG MARSHALL E	acquired	-	-	103,797	-
2022-11-23	Goss John Howard JR	acquired	-	-	1,587	svp & president, sally beauty
2022-11-23	Platz Marlo Michelle Cormier	acquired	-	-	1,634	svp, cfo
2022-11-23	Edwards Mary Beth Beth	sold (taxes)	-660	11.58	-57.00	svp, cio & cto

About Sally Beauty Holdings

Denise A. Paulonis

www.sallybeautyholdings.com

29000

Sally 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.

SBH Income Statement

2023-03-31

Condensed Consolidated Statements of Earnings - USD ($) shares in Thousands, $ in Thousands	3 Months Ended		6 Months Ended
	Mar. 31, 2023	Mar. 31, 2022	Mar. 31, 2023	Mar. 31, 2022
Income Statement [Abstract]
Net sales	$ 918,712	$ 911,387	$ 1,875,767	$ 1,891,638
Cost of goods sold	450,373	446,055	918,854	926,177
Gross profit	468,339	465,332	956,913	965,461
Selling, general and administrative expenses	389,657	378,871	781,237	765,121
Restructuring	7,274		17,680	1,099
Operating earnings	71,408	86,461	157,996	199,241
Interest expense	16,685	19,896	34,608	40,137
Earnings before provision for income taxes	54,723	66,565	123,388	159,104
Provision for income taxes	13,862	19,757	32,190	43,458
Net earnings	$ 40,861	$ 46,808	$ 91,198	$ 115,646
Earnings per share:
Basic	$ 0.38	$ 0.43	$ 0.85	$ 1.05
Diluted	$ 0.37	$ 0.42	$ 0.83	$ 1.03
Weighted-average shares:
Basic	107,453	108,743	107,294	110,387
Diluted	109,706	110,540	109,499	112,207

SBH Balance Sheet

2023-03-31

Condensed Consolidated Balance Sheets - USD ($) $ in Thousands	Mar. 31, 2023	Sep. 30, 2022
Current assets:
Cash and cash equivalents	$ 61,620	$ 70,558
Trade accounts receivable, net	30,540	34,102
Accounts receivable, other	45,123	38,175
Inventory	1,023,656	936,374
Other current assets	48,072	53,192
Total current assets	1,209,011	1,132,401
Property and equipment, net of accumulated depreciation of $841,760 at March 31, 2023, and $820,811 at September 30, 2022	283,356	297,876
Operating lease assets	562,336	532,177
Goodwill	534,218	526,066
Intangible assets, excluding goodwill, net of accumulated amortization of $29,921 at March 31, 2023, and $26,794 at September 30, 2022	50,533	50,315
Other assets	35,660	38,032
Total assets	2,675,114	2,576,867
Current liabilities:
Current maturities of long-term debt	38,175	68,658
Accounts payable	265,075	275,717
Accrued liabilities	168,187	161,065
Current operating lease liabilities	154,255	157,734
Income taxes payable	4,949	4,740
Total current liabilities	630,641	667,914
Long-term debt	1,065,439	1,083,043
Long-term operating lease liabilities	444,819	424,762
Other liabilities	22,044	22,427
Deferred income tax liabilities, net	86,283	85,085
Total liabilities	2,249,226	2,283,231
Stockholders’ equity:
Common stock, $0.01 par value. Authorized 500,000 shares; 107,556 and 107,024 shares issued and 107,549 and 106,970 shares outstanding at March 31, 2023, and September 30, 2022, respectively	1,076	1,070
Preferred stock, $0.01 par value. Authorized 50,000 shares; none issued
Additional paid-in capital	13,790	4,241
Accumulated earnings	531,370	440,172
Accumulated other comprehensive loss, net of tax	(120,348)	(151,847)
Total stockholders’ equity	425,888	293,636
Total liabilities and stockholders’ equity	$ 2,675,114	$ 2,576,867