Ulta Salon Cosmetics & Fragrance Inc

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ULTA : NASDAQ : Services
$259.55 up 0.95 | 0.37%
Today's Range: 258.41 - 260.00
Avg. Daily Volume: 824,100
07/25/16 - 4:00 PM ET

Financial Analysis


ULTA SALON COSMETCS & FRAG's gross profit margin for the first 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 weak liquidity. Currently, the Quick Ratio is 0.85 which shows a lack of ability to cover short-term cash needs. The company's liquidity has decreased from the same period last year.

At the same time, stockholders' equity ("net worth") has remained virtually unchanged only increasing by 1.28% 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 FY16 Q1 FY15
Net Sales ($mil)1073.72868.12
EBITDA ($mil)195.05145.55
EBIT ($mil)147.16107.58
Net Income ($mil)91.9866.95


Balance Sheet Q1 FY16 Q1 FY15
Cash & Equiv. ($mil)369.25536.22
Total Assets ($mil)2218.952077.95
Total Debt ($mil)0.00.0
Equity ($mil)1319.691302.99


Profitability Q1 FY16 Q1 FY15
Gross Profit Margin40.8239.3
EBITDA Margin18.1616.76
Operating Margin13.7112.39
Sales Turnover1.861.63
Return on Assets15.5413.19
Return on Equity26.1421.03
Debt Q1 FY16 Q1 FY15
Current Ratio2.73.45
Debt/Capital0.00.0
Interest Expense0.00.0
Interest Coverage0.00.0


Share Data Q1 FY16 Q1 FY15
Shares outstanding (mil)62.6364.19
Div / share0.00.0
EPS1.451.04
Book value / share21.0720.3
Institutional Own % n/a n/a
Avg Daily Volume825655.01492693.0

Valuation


BUY. ULTA SALON COSMETCS & FRAG's P/E ratio indicates a significant premium compared to an average of 24.35 for the Specialty Retail industry and a significant premium compared to the S&P 500 average of 25.05. To use another comparison, its price-to-book ratio of 12.10 indicates a significant premium versus the S&P 500 average of 2.81 and a significant discount versus the industry average of 13.96. 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 47.21 Peers 24.35   ULTA 33.91 Peers 15.74

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 33.99 Peers 20.26   ULTA 2.03 Peers 2.04

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.

 

Average. 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 valuation on par to its peers.

 
Price/Book
1 2 3 4 5
premium   discount
  Earnings Growth
1 2 3 4 5
lower   higher
ULTA 12.10 Peers 13.96   ULTA 27.35 Peers -3.13

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 3.87 Peers 1.56   ULTA 21.61 Peers 8.06

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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