-0.36%
-4.12%
13.02%
14.29%
-16.93%
14.65%
55.66%

Company Description

Ulta Beauty, Inc.operates as a retailer of beauty products in the United States.The company's stores offer cosmetics, fragrances, skincare and haircare products, bath and body products, and salon styling tools; professional hair products; salon services, including hair, skin, makeup, and brow services; and nail services.


It also provides its private label products, such as the Ulta Beauty Collection branded cosmetics, skincare, and bath products, as well as Ulta Beauty branded products; and the Ulta Beauty branded gifts.As of March 10, 2022, the company operated 1,308 retail stores across 50 states.It also distributes its products through its website ulta.com; and mobile applications.


The company was formerly known as Ulta Salon, Cosmetics & Fragrance, Inc.and changed its name to Ulta Beauty, Inc.in January 2017.


Ulta Beauty, Inc.was incorporated in 1990 and is based in Bolingbrook, Illinois.

Market Data

Last Price 417.03
Change Percentage -0.36%
Open 418.36
Previous Close 418.53
Market Cap ( Millions) 19339
Volume 22701
Year High 574.76
Year Low 318.17
M A 50 406.28
M A 200 388.61

Financial Ratios

FCF Yield 5.13%
Dividend Yield 0.00%
ROE 51.95%
Debt / Equity 91.93%
Net Debt / EBIDTA 106.82%
Price To Book 8.4
Price Earnings Ratio 16.28
Price To FCF 19.5
Price To sales 1.7
EV / EBITDA 11.59

News

Business Breakdown

Expected Mid-Term Growth

Segment nΒ°1 -> Cosmetics

Expected Growth : 8 %

What the company do ?

Ulta Beauty, Inc. offers a wide range of cosmetics, including skincare, haircare, and makeup products from popular brands, as well as its own private labels.

Why we expect these perspectives ?

Ulta Beauty's 8% growth in cosmetics is driven by increasing demand for premium and niche brands, expansion of online presence, and strategic partnerships. Additionally, the company's loyalty program, Ultamate Rewards, contributes to repeat business and customer retention. Furthermore, the growing popularity of skincare and makeup among younger generations, particularly Gen Z, fuels sales growth.

Segment nΒ°2 -> Haircare Products and Styling Tools

Expected Growth : 6 %

What the company do ?

Ulta Beauty, Inc. offers a wide range of haircare products and styling tools from popular brands, including shampoos, conditioners, hair masks, dryers, flat irons, and curling irons.

Why we expect these perspectives ?

Ulta Beauty's 6% growth in haircare products and styling tools is driven by increasing demand for premium and natural products, rising popularity of e-commerce and social media influencer marketing, expanding product offerings in curly and textured hair, and growing interest in at-home hair coloring and styling. Additionally, the company's loyalty program and strategic partnerships with popular brands contribute to the segment's growth.

Segment nΒ°3 -> Skincare

Expected Growth : 9 %

What the company do ?

Ulta Beauty's Skincare offers a wide range of products and treatments to help customers achieve healthy, glowing skin, from cleansers to moisturizers and more.

Why we expect these perspectives ?

Uptick in skincare sales at Ulta Beauty driven by increasing consumer focus on self-care, rising demand for natural and organic products, and growing popularity of skincare routines among younger generations. Additionally, Ulta's loyalty program, Ultamate Rewards, and strategic partnerships with popular skincare brands contribute to the 9% growth.

Segment nΒ°4 -> Fragrance and Bath

Expected Growth : 5 %

What the company do ?

Fragrance and Bath from Ulta Beauty, Inc. offers a wide range of luxurious scents and pampering products for a relaxing experience.

Why we expect these perspectives ?

Ulta Beauty's Fragrance and Bath segment growth is driven by increasing demand for premium and niche fragrances, expansion of online sales, and strategic partnerships with popular brands. Additionally, the rise of wellness and self-care trends, as well as the growing popularity of experiential retail, contribute to the segment's 5% growth.

Segment nΒ°5 -> Services

Expected Growth : 4 %

What the company do ?

Ulta Beauty, Inc. offers various services including hair, skin, and brow services, makeup applications, and classes, as well as a loyalty program and online booking.

Why we expect these perspectives ?

Ulta Beauty's 4% growth is driven by increasing demand for premium beauty products, expansion of e-commerce capabilities, and strategic partnerships with popular brands. Additionally, the company's loyalty program and in-store experience enhancements contribute to customer retention and acquisition. Furthermore, the growing trend of self-care and wellness also fuels the demand for Ulta's services.

Segment nΒ°6 -> Accessories and Other

Expected Growth : 7 %

What the company do ?

Accessories and Other from Ulta Beauty, Inc. includes hair accessories, beauty tools, and other miscellaneous items, contributing to the company's overall revenue.

Why we expect these perspectives ?

Ulta Beauty's Accessories and Other segment growth of 7% is driven by increasing demand for beauty tools, travel-sized products, and gift sets. Strong sales of hair accessories, cosmetics bags, and skincare devices contribute to growth. Additionally, the rise of e-commerce and omnichannel retailing enables customers to easily purchase these items, further boosting segment growth.

Ulta Beauty, Inc. Products

Product Range What is it ?
Skincare Ulta Beauty offers a wide range of skincare products, including cleansers, moisturizers, serums, and masks from various brands, catering to different skin types and concerns.
Haircare Ulta Beauty provides a vast selection of haircare products, including shampoos, conditioners, styling products, and hair color, from popular brands, suitable for different hair types and textures.
Makeup Ulta Beauty offers an extensive range of makeup products, including foundation, eyeshadow, mascara, lipstick, and more, from various brands, catering to different skin tones and preferences.
Fragrances Ulta Beauty carries a wide selection of fragrances from popular brands, including perfumes, colognes, and body sprays, suitable for both men and women.
Tools and Accessories Ulta Beauty offers a variety of tools and accessories, including brushes, sponges, tweezers, and more, from popular brands, designed to help customers achieve professional-looking results at home.
Salon Services Ulta Beauty provides a range of salon services, including haircuts, color treatments, and waxing, performed by trained professionals in-store.

Ulta Beauty, Inc.'s Porter Forces

Ulta Beauty, Inc. has a low threat of substitutes due to its strong brand recognition and loyalty programs, making it difficult for customers to switch to alternative products or services.

Ulta Beauty, Inc. has a medium bargaining power of customers due to the presence of online retailers and specialty beauty stores, which gives customers some bargaining power, but the company's loyalty programs and strong brand recognition mitigate this power.

Ulta Beauty, Inc. has a low bargaining power of suppliers due to its large scale of operations and strong relationships with suppliers, giving it negotiating power to secure favorable prices and terms.

Ulta Beauty, Inc. has a medium threat of new entrants due to the high capital requirements and regulatory hurdles in the beauty industry, but the rise of e-commerce and social media has made it easier for new entrants to gain traction.

Ulta Beauty, Inc. operates in a highly competitive industry with many established players, leading to a high intensity of rivalry, with companies competing on price, product offerings, and customer experience.

Capital Structure

Value
Debt Weight 45.61%
Debt Cost 3.95%
Equity Weight 54.39%
Equity Cost 10.70%
WACC 7.62%
Leverage 83.84%

Historical Valuation

Price/Earnings Ratio

Margin Valuation

Peers Valuation

Competitors

Company Rational
EL The EstΓ©e Lauder Companies Inc. manufactures, markets, and sells skin care, makeup, fragrance, and hair care products worldwide. The company offers a range of skin care products, including moisturizers, serums, …
ELF e.l.f. Beauty, Inc., together with its subsidiaries, provides cosmetic and skin care products under the e.l.f. Cosmetics, e.l.f. Skin, Well People, and Keys Soulcare brand names worldwide. The company offers …
SBH 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 …
COTY Coty Inc., together with its subsidiaries, engages in the manufacture, marketing, distribution, and sale of beauty products worldwide. The company provides prestige fragrances, skin care, and color cosmetics products through …
BBWI Bath & Body Works, Inc. operates a specialty retailer of home fragrance, body care, and soaps and sanitizer products. The company sells its products under the Bath & Body Works, …

Peers Metrics

DCF BETA

Parameters

Short Term Growth
Short term Time
Long-Term Growth
WACC
Target Price
417.03$
Current Price
417.03$
Potential
-0.00%

Expected Cash-Flows

Scoring Insights

Peers Group Analysis

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