Sally Beauty Holdings (SBH)
NYSE:SBH
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Sally Beauty
(NYSE:SBH)
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Rating:64Neutral
Price Target:
$15.00
▲(8.62% Upside)
Action:ReiteratedDate:02/09/26
SBH scores as a mid-range opportunity: improving operating performance and cash generation are tempered by balance-sheet leverage, while technicals are constructive and valuation is attractive (low P/E). The latest earnings call adds support via a raised EPS floor and continued margin/cash-flow execution, but flat comps and category/promotional pressures remain key risks.
Positive Factors
Strong cash generation
Sustained operating cash flow (~$335M TTM) and strong free cash flow (~$253M TTM) provide durable internal funding for capex, debt reduction, buybacks and reinvestment. This cash profile improves resilience through cycles and supports strategic execution without heavy external financing.
Negative Factors
Elevated leverage
Leverage near ~2.0x materially constrains financial flexibility for a retailer reliant on working capital and inventory. High debt amplifies stress from sales volatility, limits strategic optionality for M&A or outsized reinvestment, and increases interest and refinancing risk across cycles.
Read all positive and negative factors
Positive Factors
Negative Factors
Strong cash generation
Sustained operating cash flow (~$335M TTM) and strong free cash flow (~$253M TTM) provide durable internal funding for capex, debt reduction, buybacks and reinvestment. This cash profile improves resilience through cycles and supports strategic execution without heavy external financing.
Read all positive factors
Sally Beauty (SBH) vs. SPDR S&P 500 ETF (SPY)
Market Cap
$1.34B
Dividend YieldN/A
Average Volume (3M)1.63M
Price to Earnings (P/E)7.7
Beta (1Y)1.10
Revenue Growth-0.42%
EPS Growth31.64%
CountryUS
Employees12,000
SectorConsumer Cyclical
Sector Strength84
IndustrySpecialty Retail
Share Statistics
EPS (TTM)0.48
Shares Outstanding97,008,810
10 Day Avg. Volume1,704,555
30 Day Avg. Volume1,631,606
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 Cap2.05
Enterprise Value/Revenue0.74
Enterprise Value/Gross Profit1.43
Enterprise Value/Ebitda6.79
Forecast
1Y Price Target
$18.20Price Target Upside31.79% Upside
Rating ConsensusModerate Buy
Number of Analyst Covering5
EPS Forecast (FY)2.07
Revenue Forecast (FY)$3.75B
Sally Beauty Business Overview & Revenue Model
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 pr...
How the Company Makes Money
SBH makes money primarily by selling beauty products at retail and through professional distribution. Its core revenue stream is merchandise sales across categories such as hair color (including professional-grade color), shampoos and conditioners...
Sally Beauty Earnings Call Summary
Earnings Call Date:Feb 09, 2026
(Q1-2026)
| % Change Since: |
Next Earnings Date:Apr 30, 2026
Earnings Call Sentiment Positive
The call presented multiple clear operational and financial wins — EPS beat, margin expansion, strong cash flow, progress on the Fuel for Growth program, robust color and ecommerce performance, and strategic initiatives (fragrance roll-out, Sally Ignited) gaining traction. These positives were balanced by near-term headwinds: flat consolidated comps, weakness in the care category, slightly elevated promotions and SG&A pressures, modest sales impact from the Europe exit, and macro-driven softness (government shutdown, weather). Overall, the company demonstrated disciplined execution and provided a modestly improved full-year outlook, with the strategic initiatives positioned to drive future growth.Positive Updates
Consolidated Sales and EPS Beat
Total net sales of $943 million, up 0.6% year-over-year; consolidated comparable sales flat to prior year. Adjusted diluted EPS of $0.48, up 12% year-over-year and above guidance.
Negative Updates
Overall Comp Sales Stagnation
Consolidated comparable sales were flat for the quarter, reflecting pockets of softness despite other gains; BSG comparable sales declined slightly by ~20 basis points.
Read all updates
Q1-2026 Updates
Positive
Negative
Consolidated Sales and EPS Beat
Total net sales of $943 million, up 0.6% year-over-year; consolidated comparable sales flat to prior year. Adjusted diluted EPS of $0.48, up 12% year-over-year and above guidance.
Read all positive updates
Company Guidance
Management raised the low end of fiscal 2026 EPS guidance after a strong Q1 and reiterated a full‑year outlook calling for consolidated net sales of $3.71–$3.77 billion (≈+50 bps FX benefit), comparable sales flat to +1%, adjusted operating earnings of $328–$342 million, adjusted diluted EPS of $2.02–$2.10 (up from a prior $2.00–$2.10 low end), capital expenditures of ≈$100 million, free cash flow of $200 million (with ~50% of FCF assumed for share repurchases), Fuel for Growth benefits of ~ $45 million in FY26 and cumulative run‑rate savings of ~$120 million by year‑end, and a roughly flat store count (≈40 openings, 40 closures, ~50 relocations); for Q2 FY26 they guided consolidated net sales of $895–$905 million (≈+100 bps FX), comparable sales +0.5% to +1.5%, adjusted operating earnings $68–$71 million, adjusted diluted EPS $0.39–$0.42, and SG&A dollars expected to be roughly consistent with Q1.Sally Beauty Financial Statement Overview
Summary
Income Statement
63
Positive
Balance Sheet
42
Neutral
Cash Flow
58
Neutral
| Breakdown | TTM | Sep 2025 | Sep 2024 | Sep 2023 | Sep 2022 | Sep 2021 |
|---|---|---|---|---|---|---|
Income Statement | ||||||
| Total Revenue | 3.71B | 3.70B | 3.72B | 3.73B | 3.82B | 3.87B |
| Gross Profit | 1.92B | 1.91B | 1.89B | 1.89B | 1.94B | 1.95B |
| EBITDA | 403.89M | 427.73M | 393.50M | 441.06M | 493.06M | 529.70M |
| Net Income | 180.42M | 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 | 157.19M | 149.16M | 107.96M | 123.00M | 70.56M | 400.96M |
| Total Debt | 1.54B | 1.56B | 1.60B | 1.68B | 1.73B | 1.94B |
| Total Liabilities | 2.03B | 2.08B | 2.16B | 2.22B | 2.28B | 2.57B |
| Stockholders Equity | 823.57M | 794.21M | 628.53M | 508.75M | 293.64M | 280.74M |
Cash Flow | ||||||
| Free Cash Flow | 216.76M | 172.69M | 145.36M | 158.57M | 57.25M | 307.96M |
| Operating Cash Flow | 334.61M | 274.83M | 246.53M | 249.31M | 156.50M | 381.86M |
| Investing Cash Flow | -117.19M | -58.28M | -108.91M | -99.78M | -102.42M | -76.02M |
| Financing Cash Flow | -168.64M | -178.42M | -153.73M | -100.82M | -373.68M | -419.97M |
Sally Beauty Technical Analysis
Negative
13.81
Price Trends
15.47
Negative
15.22
Negative
13.84
Negative
Market Momentum
-0.51
Positive
36.59
Neutral
27.82
Neutral
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For SBH, the sentiment is Negative. The current price of 13.81 is below the 20-day moving average (MA) of 14.96, below the 50-day MA of 15.47, and below the 200-day MA of 13.84, indicating a bearish trend. The MACD of -0.51 indicates Positive momentum. The RSI at 36.59 is Neutral, neither overbought nor oversold. The STOCH value of 27.82 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative 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 |
|---|---|---|---|---|---|---|---|
64 Neutral | $1.34B | 7.65 | 23.43% | ― | -0.42% | 31.64% | |
63 Neutral | $22.90B | 20.35 | 44.07% | ― | 5.45% | 4.28% | |
61 Neutral | $18.38B | 12.79 | -2.54% | 3.03% | 1.52% | -15.83% | |
56 Neutral | $3.74B | 7.11 | -44.22% | 4.16% | -1.04% | -20.88% | |
55 Neutral | $9.73B | 57.58 | 55.17% | ― | 9.80% | -46.84% | |
46 Neutral | $309.74M | -32.20 | -2.64% | ― | 22.58% | 33.18% | |
46 Neutral | $876.92M | -96.53 | -1.05% | ― | -3.47% | -111.68% |
* Consumer Cyclical Sector Average
SBH
Sally Beauty
13.81
5.15
59.47%
BBWI
Bath & Body Works
18.06
-13.02
-41.89%
ULTA
Ulta Beauty
515.22
144.47
38.97%
CHWY
Chewy
23.45
-10.16
-30.23%
YSG
Yatsen Holding
3.30
-2.04
-38.20%
OLPX
Olaplex Holdings
1.30
0.04
3.17%
Sally Beauty Corporate Events
Executive/Board Changes
Sally Beauty Announces Immediate Resignation of Board Director
Neutral
Mar 17, 2026
On March 12, 2026, Sally Beauty Holdings, Inc. announced that director Erin Nealy Cox resigned from its Board of Directors, effective immediately, as she transitions to a new role at Walmart, Inc. The company stated there was no disagreement under...
Business Operations and StrategyStock BuybackFinancial Disclosures
Sally Beauty Lifts EPS Outlook After Solid Q1 Results
Positive
Feb 9, 2026
On February 9, 2026, Sally Beauty Holdings reported first-quarter fiscal 2026 results for the period ended December 31, 2025, posting consolidated net sales of $943 million, up 0.6% year on year, with flat comparable sales and e-commerce contribut...
Executive/Board ChangesShareholder Meetings
Sally Beauty Shareholders Approve Directors, Pay and Auditor
Positive
Jan 26, 2026
At its annual meeting of stockholders held on January 22, 2026, Sally Beauty Holdings’ shareholders elected ten directors to serve until the 2027 annual meeting, with all nominees receiving sufficient support to remain or join the board. Inv...
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.