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Sally Beauty Holdings, Inc. (SBH) Stock Verdict & Ratings | Investment Bastion

Stock Verdict·Updated 1d ago

Sally Beauty Holdings, Inc.

SBHMarket cap $1.54BPrice $16.5

Country🇺🇸United States

SectorConsumer

IndustrySpecialty Retail

Sells beauty supplies to both salon professionals and everyday shoppers through thousands of stores across North America and Europe. It's one of the few retailers where hairstylists and DIY colorists shop the exact same aisles.

In Bastion Portfolios?

52W Return+12%Global Market +16%?

01Key Ratings

How does this stock score across Bastion factors?

Growth

Historical Revenue

Rev CAGR (3y)-1%3

Revenue Forecast

Rev CAGR (1y)+1%3

Rev CAGR (3y)+1%2

Rev CAGR (5y)+1%1

Earnings Forecast

EPS Growth Y+1+12%7

EPS Growth Y+2+5%5

EPS Growth Y+3+2%4

Quality

Margins

EBIT Margin8%4

Net Income Margin5%4

Free Cash Flow Margin6%5

Debt

Net Debt/EBITDA2.14

Efficiency

ROE24%8

ROA7%7

Earnings Stability55

GEAR+AVERAGE36

Overall rating across all five factors

Value

Price Multiples

P/E Ratio (Forward)710

P/E Ratio (Forward 3y)79

P/BV1.87

EV Multiples

EV/EBITDA Fwd69

EV/EBIT Fwd99

Yield

Free Cash Flow Yield15.6%10

Dividend Yieldna–

Momentum

Short term

1 month return+2%9

3 month return+15%9

YTD return+16%7

Mid term

Price vs 52wHigh92%9

1 year return+6%5

Long term

3 year return+108%8

5 year return+5%4

Risk Shield

Price Risk

Beta1.04

Volatility43%4

Free Cash Flow

Free Cash Flow Margin6%5

Free Cash Flow Yield15.6%10

Quality

ROCE13%7

Earnings Stability55

Net Debt/EBITDA2.14

02Growth

Is it actually growing, and how fast?

SBHSally Beauty Holdings

Revenue FY25$3.7B

GROWTH RATING↗

VERY WEAK9 / 100

REVENUE GROWTH▾SCORE

Revenue, last 3Y, CAGR-1%3

Revenue, next 1Y+1%3

Revenue, next 3Y, CAGR+1%2

Revenue, next 5Y, CAGR+1%1

EARNINGS FORECAST▾SCORE

EPS growth, FY26E+12%7

EPS growth, FY27E+5%5

EPS growth, FY28E+2%4

GROWTH ASSESSMENT

STRENGTHS

None flagged.

WATCH

Revenue fell 1%/yr over the last 3 years and is set to grow around 1%/yr from here.

Earnings are set to grow in step with sales (EPS about 5%/yr vs revenue 1%/yr).

WEAKNESSES

Growth is the weak spot here, trailing 91% of companies worldwide.

Revenue fell 1%/yr over the last 3 years, behind 70% of companies worldwide.3/10

Revenue is set to grow 1%/yr over the next 3 years, behind most of the market.2/10

Over five years revenue is set to grow 0.8%/yr, behind 90% of companies worldwide.1/10

BOTTOM LINE

Stalled Business

Growth is a weak point here. The one thing to watch: revenue has shrunk over the past 3 years.

03Price Momentum

Is the market behind it right now?

MOMENTUM RATING↗

STRONG81 / 100

SHORT-TERM RETURNS▾SCORE

1-month return+2%9

3-month return+15%9

YTD return+16%7

MID & LONG-TERM▾SCORE

% of 52-week high92%9

1-year return+6%5

3-year return+108%8

5-year return+5%4

MOMENTUM ASSESSMENT

STRENGTHS

It's up 6% over the past year, now 8% below its 52-week high. That is clearly ahead of the market.

Strong recent results. The stock is outperforming over the past month (+2%), over three months (+15%) and so far this year (+16%).

WATCH

Average long-term results. Multi-year returns are middling (+108% over three years and +4.9% over five), roughly average for the market.

WEAKNESSES

None flagged.

BOTTOM LINE

Fresh Momentum

Short-term returns are strong but the long track record is thin. Momentum is building — confirmation from longer horizons would strengthen the case.

04Value

Are you paying a fair price for it?

Stop guessing on Sally Beauty Holdings, Inc.. Get the full investment case.

Premium

$20.75/month

Billed annually at $249/year $348

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Loading charts…

02Growth

Is it actually growing, and how fast?

SBHSally Beauty Holdings

Revenue FY25$3.7B

GROWTH RATING↗

VERY WEAK9 / 100

REVENUE GROWTH▾SCORE

Revenue, last 3Y, CAGR-1%3

Revenue, next 1Y+1%3

Revenue, next 3Y, CAGR+1%2

Revenue, next 5Y, CAGR+1%1

EARNINGS FORECAST▾SCORE

EPS growth, FY26E+12%7

EPS growth, FY27E+5%5

EPS growth, FY28E+2%4

GROWTH ASSESSMENT

STRENGTHS

None flagged.

WATCH

Revenue fell 1%/yr over the last 3 years and is set to grow around 1%/yr from here.

Earnings are set to grow in step with sales (EPS about 5%/yr vs revenue 1%/yr).

WEAKNESSES

Growth is the weak spot here, trailing 91% of companies worldwide.

Revenue fell 1%/yr over the last 3 years, behind 70% of companies worldwide.3/10

Revenue is set to grow 1%/yr over the next 3 years, behind most of the market.2/10

Over five years revenue is set to grow 0.8%/yr, behind 90% of companies worldwide.1/10

BOTTOM LINE

Stalled Business

Growth is a weak point here. The one thing to watch: revenue has shrunk over the past 3 years.

03Price Momentum

Is the market behind it right now?

MOMENTUM RATING↗

STRONG81 / 100

SHORT-TERM RETURNS▾SCORE

1-month return+2%9

3-month return+15%9

YTD return+16%7

MID & LONG-TERM▾SCORE

% of 52-week high92%9

1-year return+6%5

3-year return+108%8

5-year return+5%4

MOMENTUM ASSESSMENT

STRENGTHS

It's up 6% over the past year, now 8% below its 52-week high. That is clearly ahead of the market.

Strong recent results. The stock is outperforming over the past month (+2%), over three months (+15%) and so far this year (+16%).

WATCH

Average long-term results. Multi-year returns are middling (+108% over three years and +4.9% over five), roughly average for the market.

WEAKNESSES

None flagged.

BOTTOM LINE

Fresh Momentum

Short-term returns are strong but the long track record is thin. Momentum is building — confirmation from longer horizons would strengthen the case.

04Value

Are you paying a fair price for it?

Stop guessing on Sally Beauty Holdings, Inc.. Get the full investment case.

Premium

$20.75/month

Billed annually at $249/year $348

✓
Stock VerdictValuation and investment strategy for 4,000+ stocks. Days of hedge fund analyst research, done in 2 minutes.
✓
RadarFind your next investment idea: top-ranked stocks across all 9 Bastion strategies.
✓
Portfolio ManagerCheck if Bastion algorithms added the stock you care about to their portfolios.

Secure via Stripe

Trusted by 1,000+ investors in our community