Ulta Beauty Inc

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ULTA : NASDAQ : Services
$256.58 up 4.5 | 1.8%
Today's Range: 250.53 - 257.11
Avg. Daily Volume: 890400.0
07/25/17 - 3:59 PM ET

Financial Analysis


ULTA BEAUTY INC's gross profit margin for the first quarter of its fiscal year 2017 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 BEAUTY INC has weak liquidity. Currently, the Quick Ratio is 0.92 which shows a lack of ability to cover short-term cash needs. The company's liquidity has increased from the same period last year, indicating improving cash flow.

During the same period, stockholders' equity ("net worth") has increased by 24.39% from the same quarter last year. Overall, the key liquidity measurements indicate that the company is in a position in which financial difficulties could develop in the future.

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Income Statement Q1 FY17 Q1 FY16
Net Sales ($mil)1314.881073.72
EBITDA ($mil)250.88195.05
EBIT ($mil)188.41147.16
Net Income ($mil)128.2291.98


Balance Sheet Q1 FY17 Q1 FY16
Cash & Equiv. ($mil)471.73369.25
Total Assets ($mil)2707.62218.95
Total Debt ($mil)0.00.0
Equity ($mil)1641.661319.69


Profitability Q1 FY17 Q1 FY16
Gross Profit Margin40.9540.82
EBITDA Margin19.0818.16
Operating Margin14.3313.71
Sales Turnover1.881.86
Return on Assets16.4715.54
Return on Equity27.1626.14
Debt Q1 FY17 Q1 FY16
Current Ratio2.862.7
Debt/Capital0.00.0
Interest Expense0.00.0
Interest Coverage0.00.0


Share Data Q1 FY17 Q1 FY16
Shares outstanding (mil)62.0862.63
Div / share0.00.0
EPS2.051.45
Book value / share26.4521.07
Institutional Own % n/a n/a
Avg Daily Volume878872.0625703.0

Valuation


BUY. ULTA BEAUTY INC's P/E ratio indicates a significant premium compared to an average of 21.00 for the Specialty Retail industry and a significant premium compared to the S&P 500 average of 24.66. To use another comparison, its price-to-book ratio of 9.67 indicates a significant premium versus the S&P 500 average of 3.07 and a significant discount versus the industry average of 20.22. 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 BEAUTY INC 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 35.92 Peers 21.00   ULTA 24.63 Peers 12.80

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 25.78 Peers 17.67   ULTA 1.30 Peers 1.65

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 9.67 Peers 20.22   ULTA 31.85 Peers 14.78

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 significant 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 3.12 Peers 1.36   ULTA 23.39 Peers 5.65

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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