-2.12%
6.12%
-14.69%
-3.14%
-9.98%
-35.41%
-27.75%
Stock-Card

AI Spotlight on SBH

Company Description

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.

Market Data

Last Price 11.09
Change Percentage -2.12%
Open 11.23
Previous Close 11.33
Market Cap ( Millions) 1136
Volume 446563
Year High 14.79
Year Low 9.06
M A 50 12.08
M A 200 11.84

Financial Ratios

FCF Yield 12.79%
Dividend Yield 0.00%
ROE 26.70%
Debt / Equity 254.25%
Net Debt / EBIDTA 379.32%
Price To Book 1.81
Price Earnings Ratio 7.4
Price To FCF 7.82
Price To sales 0.31
EV / EBITDA 6.69

News

Business Breakdown

Expected Mid-Term Growth

Segment n°1 -> Sally Beauty Supply

Expected Growth : 1.0 %

What the company do ?

Sally Beauty Supply is a retail chain offering a wide range of professional beauty supplies, including hair care, nail care, and skincare products.

Why we expect these perspectives ?

Sally Beauty Supply's 1.0% growth is driven by increasing demand for professional beauty products, expansion of e-commerce platform, and strategic partnerships with popular beauty brands. Additionally, the company's focus on omnichannel retailing, loyalty programs, and cost savings initiatives contribute to its steady growth.

Segment n°2 -> Beauty Systems Group

Expected Growth : 1.0 %

What the company do ?

Beauty Systems Group is a business segment of Sally Beauty Holdings, Inc. that provides professional beauty products and services to salons and stylists.

Why we expect these perspectives ?

Beauty Systems Group's 1.0% growth is driven by increasing demand for professional beauty products, expansion of e-commerce channels, and strategic partnerships with key suppliers. Additionally, the segment benefits from Sally Beauty's strong brand recognition, loyalty programs, and investments in digital marketing, which enhance customer engagement and retention.

Sally Beauty Holdings, Inc. Products

Product Range What is it ?
Professional Beauty Products A wide range of professional beauty products including hair color, hair care, skincare, and nail care products
Retail Beauty Products A variety of beauty products for retail sale to consumers, including hair care, skincare, and nail care products
Beauty Supply Products A range of products for beauty professionals, including hair dryers, flat irons, and other styling tools
Nail Care Products A variety of nail care products, including nail polish, nail care tools, and nail art supplies
Hair Extension and Wig Products A range of hair extension and wig products, including human hair and synthetic hair extensions

Sally Beauty Holdings, Inc.'s Porter Forces

Sally Beauty Holdings, Inc. operates in a moderately competitive industry with several substitutes available, including online retailers and specialty beauty stores. However, the company's strong brand recognition and loyalty programs help to mitigate the threat of substitutes.

Sally Beauty Holdings, Inc. has a large customer base, but individual customers do not have significant bargaining power due to the company's diversified customer base and lack of concentration.

Sally Beauty Holdings, Inc. has a moderate level of dependence on its suppliers, but the company's large scale and diversified supplier base help to mitigate the bargaining power of suppliers.

The beauty industry has moderate barriers to entry, including regulatory hurdles and the need for significant capital investment. However, Sally Beauty Holdings, Inc.'s strong brand recognition and established distribution network make it difficult for new entrants to gain traction.

The beauty industry is highly competitive, with many established players and a high level of advertising and promotional activity. Sally Beauty Holdings, Inc. faces intense competition from online retailers, specialty beauty stores, and mass merchandisers.

Strength

Weaknesses

Opportunities

Threats

Capital Structure

Value
Debt Weight 76.71%
Debt Cost 5.95%
Equity Weight 23.29%
Equity Cost 11.38%
WACC 7.21%
Leverage 329.35%

Sally Beauty Holdings, Inc. : Quality Control

Historical Valuation

Price/Earnings Ratio

Margin Valuation

Peers Valuation

Competitors

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Peers Metrics

DCF BETA

Parameters

Short Term Growth
Short term Time
Long-Term Growth
WACC
Target Price
11.09$
Current Price
11.09$
Potential
-0.00%

Expected Cash-Flows

Scoring Insights

Peers Group Analysis

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