Ulta Beauty, Inc. (ULTA) Stock Recommendation | Score, Valuation, Technicals & Financial Trend

Score

Click here to find our call on this stock

Strong Sell

Sell

Hold

Buy

Strong Buy

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Comparison

Company

Score

Quality

Valuation

Financial

Technical

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Target Corp.

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Ulta Beauty, Inc.

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CarMax, Inc.

O'Reilly Automotive, Inc.

AutoZone, Inc.

Why is Ulta Beauty, Inc. ?

Strong Long Term Fundamental Strength with an average Return on Equity (ROE) of 51.19%

Healthy long term growth as Net Sales has grown by an annual rate of 12.77% and Operating profit at 29.05%
Company has a low Debt to Equity ratio (avg) at times

Negative results in Jul 25

OPERATING CASH FLOW(Y) Lowest at USD 1,296.19 MM
ROCE(HY) Lowest at 48.52%
CASH AND EQV(HY) Lowest at USD 697.37 MM

With ROE of 49.09%, it has a fair valuation with a 8.75 Price to Book Value

The stock is trading at a discount compared to its peers' average historical valuations
Over the past year, while the stock has generated a return of 43.67%, its profits have fallen by -5.1%

High Institutional Holdings at 100%

These investors have better capability and resources to analyse fundamentals of companies than most retail investors.

Market Beating Performance

The stock has generated a return of 43.67% in the last 1 year, much higher than market (S&P 500) returns of 12.33%

Real-Time Research Report

Verdict Report

How much should you hold?

Overall Portfolio exposure to Ulta Beauty, Inc. should be less than 10%
Overall Portfolio exposure to Retailing should be less than 30%

(If sector exposure > 30%, please use optimiser tool to see which are the best stocks to hold in Retailing)

When to exit? - We will constantly monitor the company and suggest at the appropriate time to exit from the stock

Is Ulta Beauty, Inc. for you?

Medium Risk, High Return

Absolute

Risk Adjusted

Volatility

Ulta Beauty, Inc.

35.07%

0.97

37.51%

S&P 500

13.22%

0.61

20.17%

Quality

Management Risk

Growth

Capital Structure

Quality grade scale :

Below Average, Average, Good, Excellent

Quality key factors

Factor

Value

Sales Growth (5y)

12.77%

EBIT Growth (5y)

29.05%

EBIT to Interest (avg)

100.00

Debt to EBITDA (avg)

Net Debt to Equity (avg)

-0.07

Sales to Capital Employed (avg)

4.25

Tax Ratio

24.33%

Dividend Payout Ratio

Pledged Shares

Institutional Holding

100.00%

ROCE (avg)

82.83%

ROE (avg)

51.19%

Valuation

Valuation Scorecard

Valuation grade scale :

Very Risky, Risky, Very Expensive, Expensive, Fair, Attractive, Very Attractive

Valuation Key Factors

Factor

Value

P/E Ratio

Industry P/E

Price to Book Value

8.75

EV to EBIT

13.37

EV to EBITDA

11.39

EV to Capital Employed

9.33

EV to Sales

1.85

PEG Ratio

Dividend Yield

ROCE (Latest)

69.80%

ROE (Latest)

49.09%

Technicals

Technical key factors

Indicator

Weekly

Monthly

MACD

Mildly Bearish

Bullish

RSI

No Signal

Bollinger Bands

Sideways

Bullish

Moving Averages

Mildly Bullish (Daily)

KST

Mildly Bearish

Bullish

Dow Theory

No Trend

Mildly Bullish

OBV

Mildly Bearish

Technical Indicator Scale: Bearish, Mildly Bearish, Sideways, Mildly Bullish, Bullish Turned

Technical Movement

Analyse All Technical Factors

Financial Trend

Financial Trend Scorecard

Financial Trend scale:

Very Negative, Negative, Flat, Positive, Very Positive, Outstanding

1What is working for the Company

RAW MATERIAL COST(Y)

Fallen by -2.2% (YoY

-8What is not working for the Company

OPERATING CASH FLOW(Y)

Lowest at USD 1,296.19 MM

ROCE(HY)

Lowest at 48.52%

CASH AND EQV(HY)

Lowest at USD 697.37 MM

DEBT-EQUITY RATIO (HY)

Highest at 78.54 %

INVENTORY TURNOVER RATIO(HY)

Lowest at 3.23 times

OPERATING PROFIT MARGIN(Q)

Lowest at 15.1 %

Here's what is working for Ulta Beauty, Inc.

Raw Material Cost

Fallen by -2.2% (YoY)

MOJO Watch

The company's ability to pass on the cost of raw materials to customers has improved; this may lead to a rise in profit margin

Raw Material Cost as a percentage of Sales

Here's what is not working for Ulta Beauty, Inc.

Operating Cash Flow

Lowest at USD 1,296.19 MM

in the last three years

MOJO Watch

The company's cash revenues from business operations are falling

Operating Cash Flows (USD MM)

Operating Profit Margin

Lowest at 15.1 %

in the last five periods

MOJO Watch

Company's profit margin has deteriorated

Operating Profit to Sales

Cash and Eqv

Lowest at USD 697.37 MM

in the last six Semi-Annual periods

MOJO Watch

Short Term liquidity is deteriorating

Cash and Cash Equivalents

Debt-Equity Ratio

Highest at 78.54 %

in the last five Semi-Annual periods

MOJO Watch

The company is borrowing more to fund its operations; it's liquidity situation may be stressed

Debt-Equity Ratio

Inventory Turnover Ratio

Lowest at 3.23 times

in the last five Semi-Annual periods

MOJO Watch

Company's pace of selling inventory has slowed

Inventory Turnover Ratio