📊 SBH Key Takeaways
Is Sally Beauty Holdings, Inc. (SBH) a Good Investment?
Sally Beauty demonstrates operational excellence with 27.7% net income growth and improving cost control despite flat revenues, reflecting management's execution on profitability. However, revenue stagnation, low capital returns (ROE 5.5%, ROA 1.6%), and a concerning quick ratio (0.57x) indicate the business faces structural headwinds typical of mature retail, with limited organic growth prospects.
Why Buy Sally Beauty Holdings, Inc. Stock? SBH Key Strengths
- Strong earnings leverage: net income grew 27.7% YoY on essentially flat revenues, demonstrating operational efficiency and cost discipline
- Solid gross margins at 51.2% provide pricing power and profitability buffer in competitive retail environment
- Manageable debt structure with 1.04x debt-to-equity ratio and 5.2x interest coverage; positive free cash flow of $57.5M supports debt service and strategic flexibility
SBH Stock Risks: Sally Beauty Holdings, Inc. Investment Risks
- Revenue decline of 0.4% YoY signals top-line stagnation; mature retail sector facing structural challenges from e-commerce and changing consumer preferences
- Quick ratio of 0.57x reveals liquidity dependency on inventory conversion; potential stress if inventory cannot be turned efficiently
- Low returns on capital (ROE 5.5%, ROA 1.6%) indicate shareholder capital is not being deployed efficiently; limited reinvestment opportunities for growth
Key Metrics to Watch
- Revenue growth trajectory - whether decline stabilizes or reverses
- Gross margin sustainability - ability to maintain at current levels amid competitive pressures
- Operating cash flow and free cash flow conversion - ensuring cash generation remains adequate for debt service and investment
- Inventory turnover and days inventory outstanding - critical given quick ratio concerns
- Return on equity trends - whether operational improvements can translate to better capital deployment
Sally Beauty Holdings, Inc. (SBH) Financial Metrics & Key Ratios
💡 AI Analyst Insight
Strong liquidity with a 2.37x current ratio provides a solid financial cushion.
SBH Profit Margin, ROE & Profitability Analysis
SBH vs Consumer Sector: How Sally Beauty Holdings, Inc. Compares
How Sally Beauty Holdings, Inc. compares to Consumer sector averages
Sector benchmarks are approximate industry averages. Actual sector performance may vary.
Is Sally Beauty Holdings, Inc. Stock Overvalued? SBH Valuation Analysis 2026
Based on fundamental analysis, Sally Beauty Holdings, Inc. has mixed fundamental signals relative to the Consumer sector in 2026.
Note: This is a fundamental analysis based on SEC filings. For P/E ratio, price targets, and market-based valuation, consult financial data providers. This is not investment advice.
Sally Beauty Holdings, Inc. Balance Sheet: SBH Debt, Cash & Liquidity
SBH Revenue & Earnings Growth: 5-Year Financial Trend
5-Year Trend Summary: Sally Beauty Holdings, Inc.'s revenue has remained relatively flat over the 5-year period, with a 4% decline. The most recent EPS of $1.69 reflects profitable operations.
SBH Revenue Growth, EPS Growth & YoY Performance
SBH Quarterly Earnings & Performance
| Quarter | Revenue | Net Income | EPS |
|---|---|---|---|
| Q1 2026 | $937.9M | $45.6M | $0.45 |
| Q3 2025 | $933.3M | $29.2M | $0.36 |
| Q2 2025 | $883.1M | $29.2M | $0.27 |
| Q1 2025 | $931.3M | $38.4M | $0.35 |
| Q3 2024 | $931.0M | $29.2M | $0.36 |
| Q2 2024 | $908.4M | $29.2M | $0.27 |
| Q1 2024 | $931.3M | $38.4M | $0.35 |
| Q3 2023 | $931.0M | $40.9M | $0.43 |
Data sourced from SEC EDGAR 10-Q quarterly filings. Figures may represent quarterly or cumulative values.
Sally Beauty Holdings, Inc. Dividends, Buybacks & Capital Allocation
SBH SEC Filings: Latest 10-K & 10-Q Analysis
Access official SEC EDGAR filings for Sally Beauty Holdings, Inc. (CIK: 0001368458)
📋 Recent SEC Filings
❓ Frequently Asked Questions about SBH
What is the AI rating for SBH?
Sally Beauty Holdings, Inc. (SBH) has an AI rating of HOLD with 72% confidence, based on fundamental analysis of SEC EDGAR filings.
What are SBH's key strengths?
Claude: Strong earnings leverage: net income grew 27.7% YoY on essentially flat revenues, demonstrating operational efficiency and cost discipline. Solid gross margins at 51.2% provide pricing power and profitability buffer in competitive retail environment.
What are the risks of investing in SBH?
Claude: Revenue decline of 0.4% YoY signals top-line stagnation; mature retail sector facing structural challenges from e-commerce and changing consumer preferences. Quick ratio of 0.57x reveals liquidity dependency on inventory conversion; potential stress if inventory cannot be turned efficiently.
What is SBH's revenue and growth?
Sally Beauty Holdings, Inc. reported revenue of $943.2M.
Does SBH pay dividends?
Sally Beauty Holdings, Inc. does not currently pay dividends.
Where can I find SBH SEC filings?
Official SEC filings for Sally Beauty Holdings, Inc. (CIK: 0001368458) including 10-K, 10-Q, and 8-K reports are available on SEC EDGAR.
What is SBH's EPS?
Sally Beauty Holdings, Inc. has a diluted EPS of $0.45.
How is the AI analysis conducted?
Two independent AI systems — Claude (Anthropic) and ChatGPT (OpenAI) — analyze SEC EDGAR filings including 10-K annual reports and 10-Q quarterly reports. Each AI evaluates financial health, profitability ratios, balance sheet strength, and growth metrics. The combined rating reflects both perspectives for balanced insights.
Is SBH a good stock to buy right now?
Based on our AI fundamental analysis in April 2026, Sally Beauty Holdings, Inc. has a HOLD rating with 72% confidence. Review the strengths and risks sections above before making a decision. This is not investment advice.
Is SBH stock overvalued or undervalued?
Valuation metrics for SBH: ROE of 5.5% (sector avg: 18%), net margin of 4.8% (sector avg: 8%). Compare these metrics with sector averages to assess valuation.
Should I buy SBH stock in 2026?
Our dual AI analysis gives Sally Beauty Holdings, Inc. a combined HOLD rating for 2026. Revenue is data pending, with profitability at or below sector average. Always conduct your own research.
What is SBH's free cash flow?
Sally Beauty Holdings, Inc.'s operating cash flow is $93.2M, with capital expenditures of $35.8M. FCF margin is 6.1%.
How does SBH compare to other Consumer stocks?
Vs Consumer sector averages: Net margin 4.8% (avg: 8%), ROE 5.5% (avg: 18%), current ratio 2.37 (avg: 1.5).