Sally Beauty (SBH) AI Stock Analysis

• Market Cap: $1.34B
• Dividend Yield: N/A
• Average Volume (3M): 1.85M
• Price to Earnings (P/E): 7.3
• Beta (1Y): 1.02
• Revenue Growth: -0.38%
• EPS Growth: 35.78%
• Country: US
• Employees: 12,000
• Sector: Consumer Cyclical
• Sector Strength: 80
• Industry: Specialty Retail
• EPS (TTM): 0.51
• Shares Outstanding: 98,944,790
• 10 Day Avg. Volume: 1,938,497
• 30 Day Avg. Volume: 1,852,228
• PEG Ratio: N/A
• Price to Book (P/B): N/A
• Price to Sales (P/S): N/A
• P/FCF Ratio: N/A
• Enterprise Value/Market Cap: 1.75
• Enterprise Value/Revenue: 0.64
• Enterprise Value/Gross Profit: 1.24
• Enterprise Value/Ebitda: 6.18
• 1Y Price Target: $14.00
• Price Target Upside: 3.17% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 2

• Rating: 72 Outperform
• Price Target: $15.00 ▲(10.54% Upside)

Sally Beauty's stock score is driven by strong technical momentum and attractive valuation, despite mixed financial performance. The company's strategic initiatives and operational execution are promising, but challenges in revenue growth and consumer behavior remain.

Positive Factors

Debt Management

The company has shown financial discipline by repaying debt and repurchasing shares, maintaining a leverage ratio within its target range.

Financial Performance

Sally Beauty Holdings reported a better-than-expected Adj. EBIT margin of 8.5%, indicating strong operational efficiency.

Sales Growth

Beauty Systems Group delivered sales growth and positive comps driven by expanded distribution and strength in color.

Negative Factors

Consumer Demand

Sales were pressured by weak start due to poor weather and increased illness rates, impacting consumer demand and the BSG business.

Economic Environment

Management lowered FY25 operating margin guidance and comps due to macro concerns, reflecting challenges in the economic environment.

Market Outlook

The stock is trading in-line with the $10 price target, and the risk/reward skews negative with significant downside potential.

Sally Beauty Business Overview & Revenue Model

Company Description

Sally Beauty Holdings, Inc. (SBH) is a leading retailer and distributor of professional beauty supplies, catering to both salon professionals and retail consumers. The company operates through two primary segments: Sally Beauty Supply, which offers a wide range of hair care, skin care, and nail care products, and Beauty Systems Group, which serves salon professionals with professional-grade products and tools. With a vast network of stores and e-commerce platforms, Sally Beauty provides access to a diverse assortment of beauty brands and products, making it a go-to destination for beauty enthusiasts and professionals alike.

How the Company Makes Money

Sally Beauty generates revenue through multiple key streams, primarily from the sale of beauty supplies across its retail and wholesale operations. The Sally Beauty Supply segment generates income from direct sales to consumers in its physical stores and online, offering a range of branded and private label products. The Beauty Systems Group focuses on serving salon professionals, providing them with professional products and tools, often through a membership model that offers exclusive discounts and services. Additionally, the company benefits from strategic partnerships with various beauty brands, allowing it to expand its product offerings and enhance customer loyalty. E-commerce sales have also become a significant revenue source, driven by increasing online shopping trends in the beauty industry.

Sally Beauty Financial Statement Overview

Summary

Sally Beauty presents a solid financial position with strong profitability and cash generation. While revenue growth has been slightly negative, the company maintains healthy margins and effective use of equity. The moderate leverage and strong cash flow ratios provide a stable foundation, with potential for future growth if revenue trends improve.

Income Statement

Sally Beauty's income statement shows strong profitability with a healthy Gross Profit Margin of 51.3% and Net Profit Margin of 5.0% for TTM. However, revenue has shown a slight decline of 0.5% on an annual basis, which could be a concern if this trend continues. The EBIT Margin at 8.8% and EBITDA Margin at 10.2% indicate stable operating efficiency.

Balance Sheet

The balance sheet reflects a moderate risk profile with a Debt-to-Equity Ratio of 0.66 for TTM, indicating manageable leverage. The Return on Equity is strong at 26.6%, showcasing effective use of equity to generate profits. However, the Equity Ratio stands at 25.8%, suggesting a relatively lower proportion of equity financing.

Cash Flow

Cash flow metrics are stable with a Free Cash Flow Growth Rate of 14.5% and a robust Operating Cash Flow to Net Income Ratio of 1.3 in TTM, indicating good cash generation relative to earnings. The Free Cash Flow to Net Income Ratio is 0.9, reflecting solid cash profitability.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	3.69B	3.72B	3.73B	3.82B	3.87B	3.51B
Gross Profit	1.90B	1.89B	1.89B	1.92B	1.95B	1.72B
EBITDA	381.01M	392.47M	441.06M	365.22M	423.05M	272.79M
Net Income	194.00M	153.41M	184.60M	183.55M	239.86M	113.25M
Balance Sheet
Total Assets	2.74B	2.79B	2.73B	2.58B	2.85B	2.90B
Cash, Cash Equivalents and Short-Term Investments	112.80M	107.96M	123.00M	70.56M	400.96M	514.15M
Total Debt	1.51B	1.60B	1.68B	1.73B	1.94B	2.34B
Total Liabilities	1.98B	2.16B	2.22B	2.28B	2.57B	2.88B
Stockholders Equity	762.91M	628.53M	508.75M	293.64M	280.74M	15.44M
Cash Flow
Free Cash Flow	186.89M	145.36M	158.57M	57.25M	307.96M	316.03M
Operating Cash Flow	264.63M	246.53M	249.31M	156.50M	381.86M	426.89M
Investing Cash Flow	-57.82M	-108.91M	-99.78M	-102.42M	-76.02M	-123.78M
Financing Cash Flow	-193.76M	-153.73M	-100.82M	-373.68M	-419.97M	139.76M

Sally Beauty Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 13.57
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Negative
• RSI: Negative
• STOCH: 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 13.57 is above the 20-day moving average (MA) of 11.91, above the 50-day MA of 10.46, and above the 200-day MA of 10.26, indicating a bullish trend. The MACD of 0.93 indicates Negative momentum. The RSI at 73.59 is Negative, neither overbought nor oversold. The STOCH value of 78.54 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for SBH.

Sally Beauty Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
ULTA	78 Outperform	$23.80B	20.68	50.44%	―	1.06%	-0.29%
SBH	72 Outperform	$1.34B	7.31	28.94%	―	-0.38%	35.78%
CHWY	72 Outperform	$16.43B	44.32	76.24%	―	7.64%	369.79%
BBWI	65 Neutral	$6.58B	8.31	-52.83%	2.57%	-0.93%	-4.07%
Sector *	61 Neutral	$17.70B	12.60	-3.90%	3.04%	1.52%	-15.30%
OLPX	56 Neutral	$933.91M	77.05	-0.15%	―	-3.43%	-102.60%
YSG	51 Neutral	$944.32M	―	-16.81%	―	0.23%	26.92%

Sally Beauty Corporate Events

Sally Beauty Reports Q3 2025 Results with Margin Growth

On August 5, 2025, Sally Beauty Holdings reported its third-quarter fiscal 2025 results, highlighting a 1.0% decrease in consolidated net sales to $933 million and a 0.4% drop in comparable sales. Despite these declines, the company achieved a fourth consecutive quarter of operating margin expansion and double-digit earnings per share growth, driven by its ‘Fuel for Growth’ program. The company also strengthened its balance sheet by repaying $21 million in term loan debt and repurchasing shares worth $13 million. Additionally, Sally Beauty raised its full-year adjusted operating margin guidance, reflecting confidence in its strategic initiatives amid a challenging macroeconomic environment.

The most recent analyst rating on (SBH) stock is a Buy with a $16.00 price target. To see the full list of analyst forecasts on Sally Beauty stock, see the SBH Stock Forecast page.

Sally Beauty Updates By-Laws for Enhanced Governance

On July 2, 2025, Sally Beauty Holdings, Inc. adopted new Amended and Restated By-Laws to enhance procedural mechanics and disclosure requirements for stockholder nominations and proposals. These changes aim to improve transparency and governance by defining terms, requiring disclosures, and clarifying the powers of the Board and meeting chairs, impacting the company’s operational governance and stakeholder engagement.

The most recent analyst rating on (SBH) stock is a Buy with a $16.00 price target. To see the full list of analyst forecasts on Sally Beauty stock, see the SBH Stock Forecast page.

Sally Beauty Appoints Max Rangel to Board

On June 12, 2025, Sally Beauty Holdings appointed Max Rangel, a seasoned executive with extensive experience in the consumer products industry, to its Board of Directors. Mr. Rangel’s appointment is expected to bring valuable insights and expertise to the company as it continues to focus on strategic initiatives and profitable growth, enhancing its position in the beauty industry.

The most recent analyst rating on (SBH) stock is a Buy with a $16.00 price target. To see the full list of analyst forecasts on Sally Beauty stock, see the SBH Stock Forecast page.