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Sally Beauty
(NYSE:SBH)
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Rating:70Outperform
Price Target:
$17.50
▲(16.67% Upside)
Action:Reiterated
Date:08/04/26
SBH scores well on improving fundamentals and strong free cash flow generation, supported by constructive technical momentum (price above key moving averages with positive MACD). The score is moderated by meaningful leverage and signs of margin/SG&A pressure, while the earnings call tone remains positive but acknowledges category and promotional headwinds. A low P/E provides additional support to the overall rating.
Positive Factors
Free Cash Flow Generation
Sustained, rising free cash flow (~$325M TTM, +23% y/y) provides durable funding for capex, debt paydown, buybacks and investment in omnichannel execution. Strong cash conversion supports resilience through retail cycles and funds strategic initiatives without relying on external financing.
Negative Factors
Elevated Leverage
Meaningful leverage (debt/equity ~1.74) limits strategic flexibility and raises interest and refinancing risk in a consumer retail business. In a downturn, higher leverage can constrain promotional flexibility, capital allocation choices and the pace of share repurchases or reinvestment.
Read all positive and negative factors
Positive Factors
Negative Factors
Free Cash Flow Generation
Sustained, rising free cash flow (~$325M TTM, +23% y/y) provides durable funding for capex, debt paydown, buybacks and investment in omnichannel execution. Strong cash conversion supports resilience through retail cycles and funds strategic initiatives without relying on external financing.
Read all positive factors
Sally Beauty Key Performance Indicators (KPIs)
Any
Operating Income by Segment
Breaks down profit contribution from each business unit (e.g., Beauty Systems Group vs. Sally retail), revealing which parts of the company generate cash and which may be loss-making. Highlights margin strength, cost control, and whether growth is translating into sustainable earnings or being eroded by higher expenses.
Breaks down profit contribution from each business unit (e.g., Beauty Systems Group vs. Sally retail), revealing which parts of the company generate cash and which may be loss-making. Highlights margin strength, cost control, and whether growth is translating into sustainable earnings or being eroded by higher expenses.
Data provided by:
The Fly
The FlySally Beauty (SBH) vs. SPDR S&P 500 ETF (SPY)
Market Cap
$1.43B
Dividend YieldN/A
Average Volume (3M)1.42M
Price to Earnings (P/E)8.0
Beta (1Y)1.21
Revenue Growth0.77%
EPS Growth2.73%
CountryUS
Employees27,000
SectorConsumer Cyclical
Sector Strength84
IndustrySpecialty Retail
Share Statistics
EPS (TTM)1.99
Shares Outstanding95,408,485
10 Day Avg. Volume1,213,910
30 Day Avg. Volume1,421,693
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 Cap<0.01
Enterprise Value/Revenue<0.01
Enterprise Value/Gross Profit<0.01
Enterprise Value/Ebitda<0.01
Forecast
1Y Price Target
$17.33Price Target Upside15.56% Upside
Rating ConsensusModerate Buy
Number of Analyst Covering3
EPS Forecast (FY)2.07
Revenue Forecast (FY)$3.73B
Sally Beauty Business Overview & Revenue Model
Company Description
Sally Beauty Holdings, Inc. functions as a specialized vendor and distributor of professional beauty products. The company’s operations are divided into two main business units: Sally Beauty Supply and Beauty Systems Group. The Sally Beauty Supply...
How the Company Makes Money
SBH makes money primarily by selling beauty products at retail and through professional distribution channels. Its core revenue stream is merchandise sales (e.g., hair color, hair care, styling tools, nail and skincare products) through company-op...
Sally Beauty Earnings Call Summary
Earnings Call Date:Aug 03, 2026
(Q3-2026)
| % Change Since: |
Next Earnings Date:Nov 12, 2026
Earnings Call Sentiment Positive
The call presented a predominantly positive operational and financial picture: management delivered results within or above guidance, reported margin expansion, strong e‑commerce growth, solid cash generation, progress on store refreshes and assortment/innovation initiatives, and tangible benefits from the Fuel for Growth program. Headwinds remain in the care category and within the BSG segment, promotional intensity is elevated, and certain regions (e.g., Mexico and parts of Europe due to strategic exits) are softer. Overall, the positive momentum in Sally, sustained e‑commerce strength, improved margins and cash flow outweigh the identified challenges.Positive Updates
Solid Top- and Bottom-Line Delivery within Guidance
Fiscal Q3 net sales of $935 million (approximately flat YoY) with consolidated comparable sales flat; adjusted operating income of $87 million; adjusted diluted EPS of $0.55, up 8% YoY; both adjusted operating income and EPS at the high end of guidance.
Negative Updates
Care Category Underperformance
Care declined across the business: Sally care down 6% YoY and BSG care down 5%; hair care softness pressured BSG comps and reflected a lap of last year's April 2025 K18 product launch.
Read all updates
Q3-2026 Updates
Positive
Negative
Solid Top- and Bottom-Line Delivery within Guidance
Fiscal Q3 net sales of $935 million (approximately flat YoY) with consolidated comparable sales flat; adjusted operating income of $87 million; adjusted diluted EPS of $0.55, up 8% YoY; both adjusted operating income and EPS at the high end of guidance.
Read all positive updates
Company Guidance
The company narrowed its full‑year fiscal 2026 outlook and expects consolidated net sales of $3.725 billion to $3.733 billion (including ~30 basis points of favorable FX), comparable sales of ~0.5%, adjusted operating earnings of $329 million to $335 million, and adjusted diluted EPS of $2.04 to $2.08 (versus the prior $2.02–$2.10 range); unchanged guidance includes deploying 50% of free cash flow to share repurchases, capital expenditures of ~ $100 million, and free cash flow of ~ $200 million, and management remains on track to deliver ~$45 million of Fuel for Growth benefits in FY26 (and roughly $120 million of cumulative run‑rate savings over the three‑year program).Sally Beauty Financial Statement Overview
Summary
Income Statement
64
Positive
Balance Sheet
55
Neutral
Cash Flow
76
Positive
| Breakdown | TTM | Sep 2025 | Sep 2024 | Sep 2023 | Sep 2022 | Sep 2021 |
|---|---|---|---|---|---|---|
Income Statement | ||||||
| Total Revenue | 3.73B | 3.70B | 3.72B | 3.73B | 3.82B | 3.87B |
| Gross Profit | 1.94B | 1.91B | 1.89B | 1.89B | 1.94B | 1.95B |
| EBITDA | 363.95M | 427.73M | 393.50M | 441.06M | 493.06M | 529.70M |
| Net Income | 192.26M | 195.88M | 153.41M | 184.60M | 183.55M | 239.86M |
Balance Sheet | ||||||
| Total Assets | 2.88B | 2.87B | 2.79B | 2.73B | 2.58B | 2.85B |
| Cash, Cash Equivalents and Short-Term Investments | 173.10M | 149.16M | 107.96M | 123.00M | 70.56M | 400.96M |
| Total Debt | 1.52B | 1.56B | 1.60B | 1.68B | 1.73B | 1.94B |
| Total Liabilities | 2.01B | 2.08B | 2.16B | 2.22B | 2.28B | 2.57B |
| Stockholders Equity | 871.47M | 794.21M | 628.53M | 508.75M | 293.64M | 280.74M |
Cash Flow | ||||||
| Free Cash Flow | 342.78M | 172.69M | 145.36M | 158.57M | 57.25M | 307.96M |
| Operating Cash Flow | 534.86M | 274.83M | 246.53M | 249.31M | 156.50M | 381.86M |
| Investing Cash Flow | -194.55M | -58.28M | -108.91M | -99.78M | -102.42M | -76.02M |
| Financing Cash Flow | -272.56M | -178.42M | -153.73M | -100.82M | -373.68M | -419.97M |
Sally Beauty Technical Analysis
Positive
15.00
Price Trends
14.24
Positive
13.94
Positive
14.61
Positive
Market Momentum
0.57
Negative
66.81
Neutral
63.50
Neutral
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For SBH, the sentiment is Positive. The current price of 15 is below the 20-day moving average (MA) of 15.25, above the 50-day MA of 14.24, and above the 200-day MA of 14.61, indicating a bullish trend. The MACD of 0.57 indicates Negative momentum. The RSI at 66.81 is Neutral, neither overbought nor oversold. The STOCH value of 63.50 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive 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 |
|---|---|---|---|---|---|---|---|
74 Outperform | $1.80B | 27.90 | 14.05% | ― | 10.02% | 26.46% | |
70 Outperform | $1.43B | 7.96 | 23.11% | ― | 0.77% | 2.73% | |
70 Outperform | $22.05B | 19.15 | 44.77% | ― | 11.30% | 4.23% | |
70 Outperform | $12.01B | 27.18 | 21.07% | ― | 25.87% | 66.82% | |
64 Neutral | $4.05B | 13.29 | 18.85% | 5.35% | 30.50% | -13.32% | |
63 Neutral | $4.06B | 5.80 | -52.38% | 4.02% | -1.40% | -4.34% | |
61 Neutral | $18.38B | 12.79 | -2.54% | 3.03% | 1.52% | -15.83% |
* Consumer Cyclical Sector Average
SBH
Sally Beauty
16.83
5.15
44.09%
BBWI
Bath & Body Works
20.36
-7.06
-25.74%
ULTA
Ulta Beauty
565.15
66.94
13.44%
FIVE
Five Below
244.37
110.85
83.02%
RVLV
Revolve Group
24.27
4.63
23.57%
MNSO
MINISO Group Holding
12.55
-6.90
-35.49%
Sally Beauty Corporate Events
Business Operations and StrategyStock BuybackFinancial Disclosures
Sally Beauty Reports Modest Growth and Profitability Improvement
Positive
Aug 3, 2026
Sally Beauty Holdings, a leading professional hair color and beauty supplies retailer, reported third-quarter fiscal 2026 results on August 3, 2026, showing modest top-line growth and improved profitability. Consolidated net sales edged up 0.2% to...
Business Operations and StrategyStock BuybackFinancial Disclosures
Sally Beauty Reports Solid Q2 Results, Tightens 2026 Outlook
Positive
May 11, 2026
On May 11, 2026, Sally Beauty Holdings reported that second-quarter fiscal 2026 net sales rose 2.3% year over year to $903 million, with comparable sales up 1.3% and global e-commerce revenue advancing 13% to $108 million. The company expanded its...
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.