Sally Beauty (SBH) AI Stock Analysis

• Market Cap: $1.52B
• Dividend Yield: N/A
• Average Volume (3M): 1.94M
• Price to Earnings (P/E): 8.3
• Beta (1Y): 1.09
• Revenue Growth: -0.42%
• EPS Growth: 31.64%
• Country: US
• Employees: 12,000
• Sector: Consumer Cyclical
• Sector Strength: 84
• Industry: Specialty Retail
• EPS (TTM): 0.55
• Shares Outstanding: 97,497,665
• 10 Day Avg. Volume: 1,479,820
• 30 Day Avg. Volume: 1,941,304
• PEG Ratio: 0.26
• Price to Book (P/B): 5.57
• Price to Sales (P/S): 0.44
• P/FCF Ratio: 5.96
• Enterprise Value/Market Cap: 2.01
• Enterprise Value/Revenue: 0.83
• Enterprise Value/Gross Profit: 1.61
• Enterprise Value/Ebitda: 7.64
• 1Y Price Target: $15.88
• Price Target Upside: 1.60% Upside
• Rating Consensus: Hold
• Number of Analyst Covering: 4
• EPS Forecast (FY): 2.06
• Revenue Forecast (FY): $3.74B

• Rating: 73 Outperform
• Price Target: $17.50 ▲(11.96% Upside)

Sally Beauty's overall stock score reflects strong earnings performance and attractive valuation. The company's strategic initiatives and robust cash flow generation provide a solid foundation for future growth. While technical indicators are mixed, the positive earnings outlook and undervaluation are significant strengths.

Positive Factors

E-commerce Growth

Strong e-commerce growth driven by partnerships with platforms like DoorDash and Amazon reflects a robust digital strategy, enhancing market reach.

Operating Margin Expansion

Consistent operating margin expansion indicates effective cost management and operational efficiency, supporting long-term profitability.

Debt Reduction

Debt reduction enhances financial stability and flexibility, reducing interest burden and improving the balance sheet's health.

Negative Factors

Declining Revenue

A decline in net sales suggests challenges in maintaining market share and demand, potentially impacting future revenue growth.

High Leverage

High leverage poses financial risks, limiting the company's ability to invest in growth opportunities and increasing vulnerability to economic downturns.

Comparable Sales Decline

Declining comparable sales reflect challenges in maintaining customer engagement and competitive positioning, affecting long-term growth prospects.

Sally Beauty Business Overview & Revenue Model

Company Description

Sally Beauty Holdings, Inc. (SBH) is a leading retailer and distributor of professional beauty supplies, catering primarily to beauty professionals and consumers. The company operates through two segments: Sally Beauty Supply, which offers a wide range of hair care, skin care, and nail care products, and Beauty Systems Group, which serves licensed professionals with a focused selection of professional-grade products. With thousands of stores across North America and Europe, Sally Beauty provides a comprehensive assortment of beauty products that includes both proprietary brands and well-known third-party brands.

How the Company Makes Money

Sally Beauty generates revenue primarily through the sale of beauty products in its retail stores and online platforms. Key revenue streams include sales from its Sally Beauty Supply stores, which cater to both retail customers and professionals, and its Beauty Systems Group segment, which supplies salon professionals with high-quality beauty products. The company also benefits from private label brands, which typically offer higher margins compared to third-party brands. Additionally, Sally Beauty has established relationships with various professional beauty brands, allowing them to offer exclusive products that attract customers. Their loyalty programs and promotional sales further drive customer retention and increase sales volume, contributing significantly to their overall earnings.

Sally Beauty Financial Statement Overview

Summary

Sally Beauty's financial statements reflect stable profitability and strong cash flow generation. The income statement shows consistent margins, though revenue growth is a concern. The balance sheet indicates improved leverage management, but financial stability could be further enhanced. Strong cash flow performance supports future growth and debt management.

Income Statement

Sally Beauty has shown a consistent gross profit margin around 50%, indicating stable cost management. The net profit margin has improved to 5.29% in the latest year, reflecting enhanced profitability. Revenue growth has been volatile, with a notable decline in recent years, but the EBIT and EBITDA margins have shown resilience, maintaining healthy levels. Overall, the income statement reflects a stable profitability profile with some concerns about revenue growth.

Balance Sheet

The company's debt-to-equity ratio has improved significantly from extremely high levels, indicating better financial leverage management, but it remains relatively high at 1.83. Return on equity has improved to 66.58%, suggesting efficient use of equity. However, the equity ratio remains low, highlighting potential risks in financial stability. The balance sheet shows progress in reducing leverage but still indicates a need for cautious financial management.

Cash Flow

Sally Beauty has demonstrated strong free cash flow growth of 47.06% recently, indicating improved cash generation capabilities. The operating cash flow to net income ratio is healthy, suggesting good cash conversion. The free cash flow to net income ratio of 1.0 reflects strong cash flow relative to earnings. Overall, the cash flow statement indicates robust cash generation, supporting financial flexibility.

Breakdown	TTM	Dec 2025	Dec 2025	Dec 2024	Dec 2023	Dec 2022
Income Statement
Total Revenue	3.70B	―	3.70B	3.72B	3.73B	3.82B
Gross Profit	1.91B	―	1.91B	1.89B	1.89B	1.94B
EBITDA	402.01M	―	427.73M	393.50M	441.06M	493.06M
Net Income	195.88M	―	195.88M	153.41M	184.60M	183.55M
Balance Sheet
Total Assets	2.87B	―	2.87B	2.79B	2.73B	2.58B
Cash, Cash Equivalents and Short-Term Investments	149.16M	―	149.16M	107.96M	123.00M	70.56M
Total Debt	1.56B	―	1.56B	1.60B	1.68B	1.73B
Total Liabilities	2.08B	―	2.08B	2.16B	2.22B	2.28B
Stockholders Equity	794.21M	―	794.21M	628.53M	508.75M	293.64M
Cash Flow
Free Cash Flow	172.69M	―	172.69M	145.36M	158.57M	57.25M
Operating Cash Flow	274.83M	―	274.83M	246.53M	249.31M	156.50M
Investing Cash Flow	-58.28M	―	-58.28M	-108.91M	-99.78M	-102.42M
Financing Cash Flow	-178.42M	―	-178.42M	-153.73M	-100.82M	-373.68M

Sally Beauty Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 15.63
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Negative
• RSI: Neutral
• 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 15.63 is above the 20-day moving average (MA) of 15.02, above the 50-day MA of 15.13, and above the 200-day MA of 11.45, indicating a bullish trend. The MACD of 0.28 indicates Negative momentum. The RSI at 54.89 is Neutral, neither overbought nor oversold. The STOCH value of 51.96 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	77 Outperform	$23.94B	20.47	47.97%	―	5.45%	4.28%
SBH	73 Outperform	$1.52B	8.27	27.54%	―	-0.42%	31.64%
Sector *	61 Neutral	$18.38B	12.79	-2.54%	3.03%	1.52%	-15.83%
CHWY	54 Neutral	$13.88B	94.44	34.48%	―	9.04%	-56.79%
BBWI	53 Neutral	$3.85B	5.79	―	4.25%	-1.04%	-20.88%
OLPX	49 Neutral	$834.39M	―	-0.56%	―	-3.47%	-111.68%
YSG	48 Neutral	$530.18M	―	-13.99%	―	22.58%	33.18%

Sally Beauty Corporate Events

Sally Beauty Holdings Reports Strong Earnings Growth

Sally Beauty Holdings, Inc. is a global leader in professional hair color, selling and distributing beauty supplies through its Sally Beauty Supply and Beauty Systems Group segments. The company offers a wide range of products for hair, nails, and skin care, catering to both professional and retail consumers.

Sally Beauty Holdings Reports Strong Earnings and Growth

Sally Beauty Holdings’ recent earnings call conveyed a positive sentiment, underscoring strong financial performance and successful strategic initiatives. The company demonstrated significant growth in key areas such as e-commerce and color, despite facing challenges in certain categories and consumer segments. Overall, the outlook remains optimistic.

Sally Beauty Reports Q4 Financial Results, EPS Rises

On November 13, 2025, Sally Beauty Holdings reported its financial results for the fourth quarter and full fiscal year ending September 30, 2025. The company saw a 1.3% increase in consolidated net sales for the fourth quarter, with a 10% rise in adjusted diluted EPS. For the full year, GAAP diluted EPS increased by 32%, and the company generated $275 million in cash flow from operations, which was used to invest in growth, strengthen the balance sheet, and return value to shareholders. As Sally Beauty enters fiscal 2026, it remains confident in its strategic initiatives and financial targets, supported by resilient customers and strong core categories.

The most recent analyst rating on (SBH) stock is a Buy with a $13.89 price target. To see the full list of analyst forecasts on Sally Beauty stock, see the SBH Stock Forecast page.