Sally Beauty (SBH) AI Stock Analysis

• Market Cap: $1.04B
• Dividend Yield: N/A
• Average Volume (3M): 1.62M
• Price to Earnings (P/E): 5.8
• Beta (1Y): 0.91
• Revenue Growth: 0.17%
• EPS Growth: 20.26%
• Country: US
• Employees: 12,000
• Sector: Consumer Cyclical
• Sector Strength: 61
• Industry: Specialty Retail
• EPS (TTM): 0.42
• Shares Outstanding: 100,894,226
• 10 Day Avg. Volume: 1,902,975
• 30 Day Avg. Volume: 1,622,063
• PEG Ratio: 0.76
• Price to Book (P/B): -29.53
• Price to Sales (P/S): 0.00
• P/FCF Ratio: 8.38
• Enterprise Value/Market Cap: 2.92
• Enterprise Value/Revenue: 0.20
• Enterprise Value/Gross Profit: 1.60
• Enterprise Value/Ebitda: 1.92
• 1Y Price Target: $12.33
• Price Target Upside: 19.94% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 3

• Rating: 76 Outperform
• Price Target: $11.50 ▲(11.87%Upside)

Sally Beauty's overall stock score is driven by its strong valuation and positive technical indicators, despite challenges in revenue growth and sales declines. The company's strategic initiatives and corporate actions provide a solid foundation for future growth, although caution is warranted due to macroeconomic uncertainties.

Positive Factors

Cost Savings Initiatives

Despite macro uncertainty, Sally Beauty maintains strong expense control through their Fuel for Growth program on track to generate $70 million in cost savings.

Operational Efficiency

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

Product Expansion

Sally Beauty is adding fast-growing prestige coloring brand Madison Reed to their assortment, offering consumers increased choice with more premium beauty options.

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.

Revenue Outlook

Uncertain consumer trends could pressure topline growth, with a more muted topline outlook and uncertainty around further EBIT margin expansion.

Sally Beauty Business Overview & Revenue Model

Company Description

Sally Beauty Holdings, Inc. (SBH) is a leading international specialty retailer and distributor of professional beauty supplies. The company operates primarily through two business segments: Sally Beauty Supply and Beauty Systems Group. Sally Beauty Supply offers a wide range of professional-grade beauty products directly to consumers and salon professionals, including hair color, hair care, skin care, and nail products. Beauty Systems Group provides exclusive professional beauty products to licensed salon professionals and salon owners through its network of stores and direct sales consultants.

How the Company Makes Money

Sally Beauty Holdings generates revenue primarily through the sale of beauty products and supplies. The company's revenue streams are derived from its retail operations under the Sally Beauty Supply segment and distribution through the Beauty Systems Group segment. Sally Beauty Supply targets both retail consumers and professionals, selling products in physical stores and through e-commerce platforms. Beauty Systems Group focuses on exclusive distribution to licensed beauty professionals, offering products through professional-only stores and a dedicated sales force. Additionally, Sally Beauty may engage in strategic partnerships with beauty brands to enhance its product offerings and attract a broader customer base, further contributing to its revenue.

Sally Beauty Financial Statement Overview

Summary

Sally Beauty demonstrates strong profitability with a healthy gross profit margin and effective use of equity. Despite a slight revenue decline, stable operating efficiency and robust cash flow metrics provide a solid financial foundation.

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	Sep 2024	Sep 2023	Sep 2022	Sep 2021	Sep 2020
Income Statement
Total Revenue	3.70B	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	378.45M	392.47M	441.06M	365.22M	423.05M	272.79M
Net Income	186.00M	153.41M	184.60M	183.55M	239.86M	113.25M
Balance Sheet
Total Assets	2.71B	2.79B	2.73B	2.58B	2.85B	2.90B
Cash, Cash Equivalents and Short-Term Investments	92.17M	107.96M	123.00M	70.56M	400.96M	514.15M
Total Debt	461.35M	1.60B	1.68B	1.73B	1.94B	2.34B
Total Liabilities	2.01B	2.16B	2.22B	2.28B	2.57B	2.88B
Stockholders Equity	699.82M	628.53M	508.75M	293.64M	280.74M	15.44M
Cash Flow
Free Cash Flow	166.50M	145.36M	158.57M	57.25M	307.96M	316.03M
Operating Cash Flow	243.09M	246.53M	249.31M	156.50M	381.86M	426.89M
Investing Cash Flow	-64.03M	-108.91M	-99.78M	-102.42M	-76.02M	-123.78M
Financing Cash Flow	-84.80M	-153.73M	-100.82M	-373.68M	-419.97M	139.76M

Sally Beauty Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 10.28
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Negative
• MACD: Negative
• RSI: Negative
• STOCH: Negative

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 10.28 is above the 20-day moving average (MA) of 9.04, above the 50-day MA of 8.78, and below the 200-day MA of 10.60, indicating a neutral trend. The MACD of 0.28 indicates Negative momentum. The RSI at 71.11 is Negative, neither overbought nor oversold. The STOCH value of 93.17 is Negative, 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
SBH	76 Outperform	$1.04B	5.81	29.74%	―	0.17%	20.26%
LQDT	73 Outperform	$756.17M	30.70	14.01%	―	35.78%	23.49%
WEYS	70 Outperform	$325.87M	11.21	11.76%	3.17%	-5.46%	-1.09%
LZB	68 Neutral	$1.62B	16.83	9.84%	2.22%	3.04%	-16.49%
OLPX	65 Neutral	$1.05B	86.34	1.41%	―	-5.11%	-74.90%
Sector *	62 Neutral	C$5.24B	11.08	18.82%	3.79%	5.08%	6.52%
WGO	46 Neutral	$883.80M	―	-1.35%	4.31%	-9.32%	-120.00%

Sally Beauty Corporate Events

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.

Sally Beauty Reports Q2 2025 Financial Results

Sally Beauty Holdings reported its financial results for the second quarter of fiscal 2025, highlighting a third consecutive quarter of operating margin expansion despite a challenging macroeconomic environment. The company achieved a GAAP operating margin of 7.9% and an adjusted operating margin of 8.5%, supported by strong gross margin performance and cost control measures. Net sales decreased by 2.8% due to external factors, including unfavorable foreign currency impacts and reduced store operations. However, the company maintained strong cash flow, allowing for debt reduction and share repurchases. The Board of Directors approved a four-year extension to the share repurchase program, authorizing up to $501.1 million in stock repurchases.

The most recent analyst rating on (SBH) stock is a Buy with a $16.0000 price target. To see the full list of analyst forecasts on Sally Beauty stock, see the SBH Stock Forecast page.

Sally Beauty Extends Share Repurchase Program

Sally Beauty Holdings, Inc. announced on May 6, 2025, that its Board of Directors has approved an extension of the company’s share repurchase program until September 30, 2029. This extension allows the company to repurchase up to $501.1 million of its common stock, continuing its strategy to enhance shareholder value. The repurchases will comply with U.S. Securities and Exchange Commission rules, including Rule 10b-18, and may involve Rule 10b5-1 plans to facilitate purchases during restricted periods.

The most recent analyst rating on (SBH) stock is a Buy with a $16.0000 price target. To see the full list of analyst forecasts on Sally Beauty stock, see the SBH Stock Forecast page.