Ulta Beauty (ULTA) AI Stock Analysis

• Market Cap: $23.09B
• Dividend Yield: N/A
• Average Volume (3M): 648.31K
• Price to Earnings (P/E): 20.2
• Beta (1Y): 0.68
• Revenue Growth: 1.06%
• EPS Growth: -0.29%
• Country: US
• Employees: 20,000
• Sector: Consumer Cyclical
• Sector Strength: 66
• Industry: Specialty Retail
• EPS (TTM): 6.70
• Shares Outstanding: 44,945,606
• 10 Day Avg. Volume: 559,332
• 30 Day Avg. Volume: 648,312
• PEG Ratio: 21.89
• Price to Book (P/B): 8.85
• Price to Sales (P/S): 0.00
• P/FCF Ratio: 20.56
• Enterprise Value/Market Cap: 0.99
• Enterprise Value/Revenue: 0.50
• Enterprise Value/Gross Profit: 5.15
• Enterprise Value/Ebitda: 3.10
• 1Y Price Target: $498.95
• Price Target Upside: -3.12% Downside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 23

• Rating: 78 Outperform
• Price Target: $521.00 ▲(1.16%Upside)

Ulta Beauty's strong financial performance and strategic initiatives in brand and digital engagement are significant strengths. However, overbought technical indicators and uncertainties in economic outlook present cautionary notes. The company's valuation is reasonable, but lack of a dividend may deter some investors.

Positive Factors

Financial Stability

Ulta uses a mix of cash on hand and existing credit facility to fund the acquisition, showcasing financial stability.

International Growth

ULTA expands into UK with acquisition of Space NK, aligning with management's strategy of growing internationally.

Leadership Strategy

New CEO Kecia Steelman is making swift strategic decisions, which has led to improved market perception and an upward revision in ULTA's performance.

Negative Factors

Competitive Pressure

WMT is expanding into the beauty arena, adding over 60 brands and launching their own shop-in-shop pilot, positioning itself as a competitor to ULTA.

Expansion Challenges

ULTA announced they would pause expansions of TGT shop-in-shops, leaving around 610 shops, which is below their stated goal of 800.

Market Concerns

International expansion not typically liked by the market. The market tends to view international acquisitions as a potential risk of distraction from core domestic growth.

Ulta Beauty Business Overview & Revenue Model

Company Description

Ulta Beauty, Inc. operates as a retailer of beauty products in the United States. The company's stores offer cosmetics, fragrances, skincare and haircare products, bath and body products, and salon styling tools; professional hair products; salon services, including hair, skin, makeup, and brow services; and nail services. It also provides its private label products, such as the Ulta Beauty Collection branded cosmetics, skincare, and bath products, as well as Ulta Beauty branded products; and the Ulta Beauty branded gifts. As of March 10, 2022, the company operated 1,308 retail stores across 50 states. It also distributes its products through its website ulta.com; and mobile applications. The company was formerly known as Ulta Salon, Cosmetics & Fragrance, Inc. and changed its name to Ulta Beauty, Inc. in January 2017. Ulta Beauty, Inc. was incorporated in 1990 and is based in Bolingbrook, Illinois.

How the Company Makes Money

Ulta Beauty generates revenue primarily through the sale of beauty products across multiple categories, including cosmetics, skincare, haircare, and fragrance. The company's revenue model is centered around its retail operations, both in physical stores and online, where it sells products from a wide array of well-known brands. Additionally, Ulta Beauty earns money through its salon services, which offer hair, skin, and brow treatments to customers seeking personalized beauty services. The company's loyalty program, Ultamate Rewards, also plays a critical role in driving repeat business and customer engagement. Key revenue streams for Ulta Beauty include product sales, salon services, and membership fees from its rewards program. Strong vendor partnerships and exclusive product launches further contribute to Ulta Beauty's earnings, enhancing its appeal to a broad customer demographic.

Ulta Beauty Financial Statement Overview

Summary

Ulta Beauty demonstrates strong revenue growth, profitability, and cash flow generation. The income statement and cash flow metrics are robust, although there's room for improvement in equity strength on the balance sheet.

Income Statement

Ulta Beauty's income statement shows strong performance with consistent revenue growth and solid profitability metrics. The TTM revenue growth rate is robust at 1.08%, indicating steady expansion. Gross profit margin is healthy at 38.81%, and net profit margin at 10.45% demonstrates efficient cost management. Both EBIT and EBITDA margins are strong, at 13.71% and 16.23% respectively, reflecting operational efficiency.

Balance Sheet

The balance sheet reveals a solid financial position with a manageable debt-to-equity ratio of 0.81, indicating balanced leverage. ROE is impressive at 49.10%, showcasing effective use of equity to generate profits. The equity ratio of 40.59% signifies a stable asset base funded by equity, though there's room for improvement in strengthening equity further.

Cash Flow

Cash flow analysis indicates a strong cash-generating capability. The free cash flow growth rate is notable at 7.56%, reflecting improved cash generation. Operating cash flow to net income ratio is 1.17, showing efficient conversion of income to cash. The free cash flow to net income ratio at 0.87 suggests healthy cash retention relative to earnings.

Breakdown	Mar 2025	Mar 2024	Mar 2023	Mar 2022	Mar 2021
Income Statement
Total Revenue	11.30B	11.21B	10.21B	8.63B	6.15B
Gross Profit	4.39B	4.38B	4.04B	3.37B	1.95B
EBITDA	1.85B	1.94B	1.88B	1.57B	534.59M
Net Income	1.20B	1.29B	1.24B	985.84M	175.84M
Balance Sheet
Total Assets	6.00B	5.71B	5.37B	4.76B	5.09B
Cash, Cash Equivalents and Short-Term Investments	703.20M	766.59M	737.88M	431.56M	1.05B
Total Debt	1.92B	1.91B	1.90B	1.85B	1.90B
Total Liabilities	3.51B	3.43B	3.41B	3.23B	3.09B
Stockholders Equity	2.49B	2.28B	1.96B	1.54B	2.00B
Cash Flow
Free Cash Flow	964.15M	1.04B	1.17B	887.08M	658.49M
Operating Cash Flow	1.34B	1.48B	1.48B	1.06B	810.36M
Investing Cash Flow	-383.09M	-441.43M	-314.58M	-176.48M	-48.75M
Financing Cash Flow	-1.02B	-1.01B	-861.01M	-1.50B	-107.93M

Ulta Beauty Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 515.01
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Negative
• RSI: Negative
• STOCH: Negative

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For ULTA, the sentiment is Positive. The current price of 515.01 is above the 20-day moving average (MA) of 494.48, above the 50-day MA of 470.64, and above the 200-day MA of 405.89, indicating a bullish trend. The MACD of 14.58 indicates Negative momentum. The RSI at 71.12 is Negative, neither overbought nor oversold. The STOCH value of 80.02 is Negative, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for ULTA.

Ulta Beauty Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
EBAY	80 Outperform	$36.19B	18.76	42.63%	1.22%	2.93%	-10.82%
ULTA	78 Outperform	$23.09B	20.21	50.44%	―	1.06%	-0.29%
SBH	74 Outperform	$982.71M	5.51	29.74%	―	0.17%	20.26%
CHWY	74 Outperform	$15.04B	40.27	76.24%	―	7.64%	369.79%
Sector *	67 Neutral	¥261.79B	13.64	6.45%	2.57%	5.11%	-13.15%
BBWI	63 Neutral	$6.55B	8.27	-52.83%	2.76%	-0.93%	-4.07%
ETSY	63 Neutral	$6.29B	49.57	-39.97%	―	2.38%	-38.88%

Ulta Beauty Corporate Events

Ulta Beauty CFO Departure and Severance Agreement

Paula Oyibo, the former CFO of Ulta Beauty, departed the company on June 24, 2025. As part of her exit, she entered into a Separation and Release Agreement, receiving severance benefits including two years of base salary, a lump sum cash bonus, and health care benefits, while agreeing to non-competition and non-solicitation covenants for 24 months.

The most recent analyst rating on (ULTA) stock is a Hold with a $395.00 price target. To see the full list of analyst forecasts on Ulta Beauty stock, see the ULTA Stock Forecast page.

Ulta Beauty Appoints Interim CFO Amid Leadership Change

On June 25, 2025, Ulta Beauty announced the appointment of Christopher Lialios as Interim Chief Financial Officer following the departure of Paula Oyibo. Lialios, who has been with the company since 1999, will lead the financial operations while an external search for a permanent CFO is conducted. The company reaffirmed its fiscal 2025 guidance, indicating stability in its financial outlook.

The most recent analyst rating on (ULTA) stock is a Hold with a $395.00 price target. To see the full list of analyst forecasts on Ulta Beauty stock, see the ULTA Stock Forecast page.

Ulta Beauty Holds Annual Stockholder Meeting June 2025

On June 11, 2025, Ulta Beauty, Inc. held its annual meeting of stockholders, where several key proposals were voted on. Stockholders elected ten directors to serve until the 2026 annual meeting, ratified Ernst & Young LLP as the independent accounting firm for fiscal year 2025, and approved the company’s executive compensation. Approximately 87.52% of shares were represented at the meeting, reflecting strong shareholder engagement.

The most recent analyst rating on (ULTA) stock is a Hold with a $395.00 price target. To see the full list of analyst forecasts on Ulta Beauty stock, see the ULTA Stock Forecast page.