Ulta Salon Cosmetics & Fragrance Inc

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ULTA : NASDAQ : Services
$251.14 | %
Today's Range: 249.83 - 253.45
Avg. Daily Volume: 951700.0
12/09/16 - 4:00 PM ET

Financial Analysis


ULTA SALON COSMETCS & FRAG's gross profit margin for the third quarter of its fiscal year 2016 is essentially unchanged when compared to the same period a year ago. The company managed to grow both sales and net income at a faster pace than the average competitor in its industry this quarter as compared to the same quarter a year ago. ULTA SALON COSMETCS & FRAG has very weak liquidity. Currently, the Quick Ratio is 0.47 which clearly shows a lack of ability to cover short-term cash needs. The company's liquidity has decreased from the same period last year.

During the same period, stockholders' equity ("net worth") has increased by 5.67% from the same quarter last year. The key liquidity measurements indicate that the company is in a position in which financial difficulties could develop in the near future.

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Income Statement Q3 FY16 Q3 FY15
Net Sales ($mil)1131.23910.7
EBITDA ($mil)193.12153.08
EBIT ($mil)139.66110.77
Net Income ($mil)87.5671.07


Balance Sheet Q3 FY16 Q3 FY15
Cash & Equiv. ($mil)243.11359.76
Total Assets ($mil)2551.22240.0
Total Debt ($mil)0.00.0
Equity ($mil)1452.081374.16


Profitability Q3 FY16 Q3 FY15
Gross Profit Margin42.4841.5
EBITDA Margin17.0716.8
Operating Margin12.3512.16
Sales Turnover1.781.65
Return on Assets14.7913.36
Return on Equity25.9821.79
Debt Q3 FY16 Q3 FY15
Current Ratio2.353.03
Debt/Capital0.00.0
Interest Expense0.00.0
Interest Coverage0.00.0


Share Data Q3 FY16 Q3 FY15
Shares outstanding (mil)62.3263.77
Div / share0.00.0
EPS1.41.11
Book value / share23.321.55
Institutional Own % n/a n/a
Avg Daily Volume957008.0768729.0

Valuation


BUY. ULTA SALON COSMETCS & FRAG's P/E ratio indicates a significant premium compared to an average of 22.94 for the Specialty Retail industry and a significant premium compared to the S&P 500 average of 25.79. To use another comparison, its price-to-book ratio of 10.90 indicates a significant premium versus the S&P 500 average of 2.86 and a significant discount versus the industry average of 13.62. The price-to-sales ratio is well above both the S&P 500 average and the industry average, indicating a premium. The valuation analysis reveals that, ULTA SALON COSMETCS & FRAG seems to be trading at a premium to investment alternatives within the industry.


Price/Earnings
1 2 3 4 5
premium   discount
  Price/Cash Flow
1 2 3 4 5
premium   discount
ULTA 42.54 Peers 22.94   ULTA 28.98 Peers 14.36

Premium. A higher P/E ratio than its peers can signify a more expensive stock or higher growth expectations.

ULTA is trading at a significant premium to its peers.

 

Premium. The P/CF ratio, a stock’s price divided by the company's cash flow from operations, is useful for comparing companies with different capital requirements or financing structures.

ULTA is trading at a significant premium to its peers.

 
Price/Projected
Earnings
1 2 3 4 5
premium   discount
  Price to
Earnings/Growth
1 2 3 4 5
premium   discount
ULTA 31.84 Peers 22.15   ULTA 1.59 Peers 2.00

Premium. A higher price-to-projected earnings ratio than its peers can signify a more expensive stock or higher future growth expectations.

ULTA is trading at a significant premium to its peers.

 

Discount. The PEG ratio is the stock’s P/E divided by the consensus estimate of long-term earnings growth. Faster growth can justify higher price multiples.

ULTA trades at a discount to its peers.

 
Price/Book
1 2 3 4 5
premium   discount
  Earnings Growth
1 2 3 4 5
lower   higher
ULTA 10.90 Peers 13.62   ULTA 28.38 Peers -11.94

Discount. A lower price-to-book ratio makes a stock more attractive to investors seeking stocks with lower market values per dollar of equity on the balance sheet.

ULTA is trading at a discount to its peers.

 

Higher. Elevated earnings growth rates can lead to capital appreciation and justify higher price-to-earnings ratios.

ULTA is expected to have an earnings growth rate that significantly exceeds its peers.

 
Price/Sales
1 2 3 4 5
premium   discount
  Sales Growth
1 2 3 4 5
premium   discount
ULTA 3.48 Peers 1.50   ULTA 22.65 Peers 6.98

Premium. In the absence of P/E and P/B multiples, the price-to-sales ratio can display the value investors are placing on each dollar of sales.

ULTA is trading at a significant premium to its industry.

 

Higher. A sales growth rate that exceeds the industry implies that a company is gaining market share.

ULTA has a sales growth rate that significantly exceeds its peers.

 

 

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