Sally Beauty Holdings, Inc. (NYSE:SBH) is a leading entity in the beauty supply industry, offering an extensive selection of products for hair, skin, and nails. The company boasts a comprehensive network of retail stores alongside a dynamic online platform. As a key player in the beauty sector, SBH competes with giants such as Ulta Beauty and Sephora.
On February 13, 2025, SBH is set to unveil its quarterly earnings, with Wall Street analysts predicting an earnings per share (EPS) of $0.43. This estimate signifies a 10.3% increase from the prior year, showcasing anticipated positive growth. Revenue is expected to hit approximately $943.2 million, slightly up from the $941 million forecasted, representing a 1.1% year-over-year growth.
However, the last 30 days have seen a 0.7% downward revision in the consensus EPS estimate, potentially affecting investor sentiment and the stock’s market performance. Investors are eager to discover if SBH can surpass these projections, as an earnings beat could enhance the stock’s value, whereas failing to meet expectations might trigger a price drop.
Examining SBH’s financial indicators offers deeper insights into its market valuation. The company’s price-to-earnings (P/E) ratio stands at 6.46, indicating a relatively low valuation against its earnings. The price-to-sales ratio is pegged at 0.27, suggesting that investors are paying $0.27 for every dollar of sales. Furthermore, the enterprise value to sales ratio is 0.67, reflecting the company’s overall valuation in comparison to its sales figures.
The enterprise value to operating cash flow ratio is 10.07, providing a perspective on the company’s valuation concerning its cash flow. With an earnings yield of 15.49%, SBH offers a significant return on investment for its shareholders. The debt-to-equity ratio is 2.54, indicating a higher level of debt relative to equity, while the current ratio of 2.20 demonstrates a robust capacity to meet short-term obligations.
