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

Comparison

Company

Score

Quality

Valuation

Financial

Technical

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Ulta Beauty, Inc.

CarMax, Inc.

AutoZone, Inc.

O'Reilly Automotive, 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 13.87% and Operating profit at 31.84%
Company has a low Debt to Equity ratio (avg) at times

Negative results in Oct 25

ROCE(HY) Lowest at 47.97%
CASH AND EQV(HY) Lowest at USD 447.67 MM
INVENTORY TURNOVER RATIO(HY) Lowest at 2.85 times

With ROE of 46.14%, it has a attractive valuation with a 9.17 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 70.36%, its profits have fallen by -0.7% ; the PEG ratio of the company is 9

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 70.36% in the last 1 year, much higher than market (S&P 500) returns of 20.12%

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.

70.36%

1.07

37.39%

S&P 500

20.12%

1.04

19.28%

Quality

Management Risk

Growth

Capital Structure

Quality grade scale :

Below Average, Average, Good, Excellent

Quality key factors

Factor

Value

Sales Growth (5y)

13.87%

EBIT Growth (5y)

31.84%

EBIT to Interest (avg)

100.00

Debt to EBITDA (avg)

Net Debt to Equity (avg)

-0.07

Sales to Capital Employed (avg)

4.14

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

9.17

EV to EBIT

15.17

EV to EBITDA

12.90

EV to Capital Employed

8.25

EV to Sales

2.08

PEG Ratio

9.01

Dividend Yield

ROCE (Latest)

54.38%

ROE (Latest)

46.14%

Technicals

Technical key factors

Indicator

Weekly

Monthly

MACD

Mildly Bearish

Bullish

RSI

No Signal

Bollinger Bands

Bearish

Mildly Bullish

Moving Averages

Mildly Bullish (Daily)

KST

Mildly Bearish

Bullish

Dow Theory

Mildly Bearish

Bullish

OBV

Mildly Bearish

Mildly Bullish

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 -1.78% (YoY

-16What is not working for the Company

ROCE(HY)

Lowest at 47.97%

CASH AND EQV(HY)

Lowest at USD 447.67 MM

INVENTORY TURNOVER RATIO(HY)

Lowest at 2.85 times

DEBTORS TURNOVER RATIO(HY)

Lowest at 53.14 times

INTEREST(Q)

Highest at USD 4.12 MM

OPERATING PROFIT MARGIN(Q)

Lowest at 13.67 %

PRE-TAX PROFIT(Q)

Lowest at USD 305.3 MM

NET PROFIT(Q)

Lowest at USD 230.88 MM

EPS(Q)

Lowest at USD 5.14

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

Raw Material Cost

Fallen by -1.78% (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

Depreciation

Highest at USD 75.79 MM

in the last five periods

MOJO Watch

The expenditure on assets done by the company may have gone into operation

Depreciation (USD MM)

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

Interest

At USD 4.12 MM has Grown at inf%

period on period (QoQ)

MOJO Watch

Rising interest cost signifies increased borrowings

Interest Paid (USD MM)

Interest

Highest at USD 4.12 MM

in the last five periods and Increased by inf% (QoQ)

MOJO Watch

Rising interest cost signifies increased borrowings

Interest Paid (USD MM)

Operating Profit Margin

Lowest at 13.67 %

in the last five periods

MOJO Watch

Company's profit margin has deteriorated

Operating Profit to Sales

Pre-Tax Profit

Lowest at USD 305.3 MM

in the last five periods

MOJO Watch

Near term Pre-Tax Profit trend is negative

Pre-Tax Profit (USD MM)

Net Profit

Lowest at USD 230.88 MM

in the last five periods

MOJO Watch

Near term Net Profit trend is negative

Net Profit (USD MM)

EPS

Lowest at USD 5.14

in the last five periods

MOJO Watch

Declining profitability; company has created lower earnings for shareholders

EPS (USD)

Cash and Eqv

Lowest at USD 447.67 MM

in the last six Semi-Annual periods

MOJO Watch

Short Term liquidity is deteriorating

Cash and Cash Equivalents

Inventory Turnover Ratio

Lowest at 2.85 times

in the last five Semi-Annual periods

MOJO Watch

Company's pace of selling inventory has slowed

Inventory Turnover Ratio

Debtors Turnover Ratio

Lowest at 53.14 times

in the last five Semi-Annual periods

MOJO Watch

Company's pace of selling Debtors has slowed

Debtors Turnover Ratio