Sally Buy Hold or Sell Recommendation

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SBH -- USA Stock  

Report: 29th of July 2020  

Considering the 30-days investment horizon, and your above-average risk tolerance our recommendation regarding Sally Beauty Holdings is 'Strong Hold'. Macroaxis provides Sally Beauty buy-hold-or-sell recommendation only in the context of selected investment horizon and investor attitude towards risk assumed by holding SBH positions. The advice algorithm takes into account all of Sally Beauty Holdings available fundamental, technical, and predictive indicators you will find on this site. The advice is provided from SBH buy-and-hold perspective. Additionally, take a look at Sally Beauty Analyst Recommendation to compare Macroaxis Buy or Sell Recommendation with the current analyst consensus. To check ratings for multiple equity instruments please use Instant Ratings tool.

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Time Horizon

Risk Tolerance

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Sell Sally BeautyBuy Sally Beauty
Strong Hold

Hype Condition

Current Valuation

Odds of Distress

Analyst Consensus

Piotroski F Score

Financial Leverage

For the selected time horizon Sally Beauty Holdings has a risk adjusted performance of 0.2832, jensen alpha of 0.4831, total risk alpha of 0.2586, sortino ratio of 0.1162 and treynor ratio of 0.4806
Our advice tool can cross-verify current analyst consensus on Sally Beauty and to analyze the firm potential to grow in the current economic cycle. To make sure Sally Beauty Holdings is not overpriced, please validate all Sally Beauty fundamentals, including its total debt, beta, and the relationship between the ebitda and short ratio . Given that Sally Beauty Holdings has a number of shares shorted of 18.55 M, we advise you to double-check Sally Beauty Holdings market performance and probability of bankruptcy to ensure the company can sustain itself in the current economic cycle given your current risk tolerance and investing horizon.

Sally Beauty Trading Alerts and Improvement Suggestions

Sally Beauty appears to be very risky and stock price may revert if volatility continues
Over 118.0% of the company shares are owned by institutional investors

Sally Beauty current analysts advice

We track the performance of the top 100 financial experts across various large and mid-size financial boutiques. Sally analyst recommendations are determined by taking all analyst recommendations and averaging them as Strong Buy, Buy, Hold, Strong Sell or Sell. There is no one specific way to measure analysis performance other than comparing it to the past results via a very sophisticated attribution analysis. Sally analyst consensus and target price projections should be used in combination with other traditional techniques such as stock price forecasting, technical analysis, earnings estimate, and various momentum models.
Target Median Price14.75
Target Mean Price14.44
Recommendation Mean3.10
Target High Price19.00
Number Of Analyst Opinions8
Target Low Price9.00
Average Consensus Sell
The consensus estimates and target price estimation is comprised of individual analyst assessments, and may or may not mutch the Macroaxis buy or sell advice. It is determined by taking an average of all analyst recommendations and classifying them as Strong Buy, Buy, Hold, or Sell.

Sally Beauty Returns Distribution Density

The chart of the probability distribution of Sally Beauty stock daily returns describes the distribution of returns around its average expected value. We use Sally Beauty Holdings' stock's Value At Risk and its Upside Potential as a relative measure of the distribution. The distribution of Sally Beauty returns is essential to provide solid investment advice for Sally Beauty stock.
Mean Return0.79Value At Risk-7.42
Potential Upside9.89Standard Deviation5.16
 Return Density 
      Distribution 
Investment risk management requires an estimate of the probability of extreme price changes. Therefore, the correct representation of the distribution of Sally Beauty historical returns presented in an easy-to-digest graphical form helps investors and money managers understand the risk-reward trade-off of different investement strategies.

Sally Beauty Cash Flow Accounts

2014201520162017201820192020 (projected)
Net Cash Flow from Financing(151.96 M)(229.03 M)(278.39 M)(263.28 M)(229.31 M)(263.7 M)(284.52 M)
Net Cash Flow from Investing(112.82 M)(174.83 M)(89.62 M)(95.31 M)(95.87 M)(86.28 M)(93.09 M)
Net Cash Flow from Operations300.79 M351 M344.38 M372.66 M320.42 M288.37 M283.24 M

Sally Beauty Greeks

Most traded equities are subject to two types of risk - systematic (i.e., market) and unsystematic (i.e., nonmarket or company-specific) risk. Unsystematic risk is the risk that events specific to Sally Beauty or Consumer Cyclical sector will adversely affect the stock's price. This type of risk can be diversified away by owning several different stocks in different industries whose stock prices have shown a small correlation to each other. On the other hand, systematic risk is the risk that Sally Beauty stock's price will be affected by overall stock market movements and cannot be diversified away. So, no matter how many positions you have, you cannot eliminate market risk. However, you can measure a Sally stock's historical response to market movements and buy it if you are comfortable with its volatility direction. Beta and standard deviation are two commonly used measures to help you make the right decision.
α
Alpha over DOW
=0.48
β
Beta against DOW=1.62
σ
Overall volatility
=4.97
Ir
Information ratio =0.12

Sally Beauty Volatility Alert

Sally Beauty Holdings exhibits above-average semi-deviation of 4.36 for your current time horizon. We encourage investors to investigate Sally Beauty Holdings individually to make sure intended market timing strategies and available technical indicagtors are consistent with their estimates about Sally Beauty future systematic risk.
    
 Better Than Average     
    
 Worse Than Average Compare Sally Beauty to competition

Sally Beauty Fundamental Vs Peers

FundamentalsSally BeautyPeer Average
Return On Equity23.50 %(0.31) %
Return On Asset9.49 %(0.14) %
Profit Margin5.45 %(1.27) %
Operating Margin10.04 %(5.51) %
Current Valuation3.51 B16.62 B
Shares Outstanding112.87 M571.82 M
Shares Owned by Insiders1.08 %10.09 %
Shares Owned by Institutions118.47 %39.21 %
Number of Shares Shorted18.55 M4.71 M
Price to Earning7.16 X28.72 X
Price to Book432.63 X9.51 X
Price to Sales0.37 X11.42 X
Revenue3.79 B9.43 B
Gross Profit1.91 B27.38 B
EBITDA489.13 M3.9 B
Net Income206.75 M570.98 M
Cash and Equivalents364.41 M2.7 B
Cash per Share3.24 X5.01 X
Total Debt2.5 B5.32 B
Current Ratio1.58 X2.16 X
Book Value Per Share(0.47) X1.93 K
Cash Flow from Operations286.44 M971.22 M
Short Ratio10.11 X4.00 X
Earnings Per Share1.75 X3.12 X
Price to Earnings To Growth(2.15) X4.89 X
Number of Employees30.05 K18.84 K
Beta1.26-0.15
Market Capitalization1.41 B19.03 B
Total Asset2.13 B29.47 B
Retained Earnings(220.32 M)9.33 B
Working Capital684.16 M1.48 B
Current Asset1.17 B9.34 B
Current Liabilities488.67 M7.9 B
   Sale by Spinozzi Michael G of 64525 shares of Sally Beauty [view details]

Sally Beauty Market Momentum

Traders often use several daily momentume indicators to supplement a more traditional technical analysis when analyzing securities such as Sally . With many different options, investors must choose the best indicators for them and familiarize themselves with how they work. We suggest combining traditional momentum indicators with more near-term forms of technical analysis such as Accumulation Distribution or Daily Balance Of Power. With their quantitative nature, daily value technical indicators can also be incorporated into your automated trading systems.
Accumulation Distribution163771.802326
Daily Balance Of Power0.672
Rate Of Daily Change1.065625
Day Median Price13.135
Day Typical Price13.303333
Market Facilitation Index0.0
Price Action Indicator0.925

About Sally Beauty Buy or Sell Advice

When is the right time to buy or sell Sally Beauty Holdings? Buying stocks such as Sally Beauty isn't very hard. However, what challenging for most investors is doing it at the right time to beat the stock market. Proper market timing is something most people cannot do without sophisticated tools, which help to isolate the right opportunities. Macroaxis provides hands-on modules to deliver winning trades and diversify your portfolios on a daily bases. Although Sally Beauty investors may find it confusing at the beginning, most of our advising modules are very easy to use and apply. Please read more on our stock advisor page.
 2017 2018 2019 2020 (projected)
Receivables90.49 M104.54 M94.09 M89.05 M
Inventories944.34 M952.91 M857.62 M799.27 M

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Additionally, take a look at Sally Beauty Analyst Recommendation to compare Macroaxis Buy or Sell Recommendation with the current analyst consensus. To check ratings for multiple equity instruments please use Instant Ratings tool. Please also try Price Ceiling Movement module to calculate and plot price ceiling movement for different equity instruments.
Macroaxis is not a registered investment advisor or broker/dealer. All investments, including stocks, funds, ETFs, or cryptocurrencies, are speculative and involve substantial risk of loss. We encourage our investors to invest carefully. Much of our information is derived directly from data published by companies or submitted to governmental agencies which we believe are reliable, but are without our independent verification. Therefore, we cannot assure you that the information is accurate or complete. We do not in any way warrant or guarantee the success of any action you take in reliance on our statements or recommendations. Also, note that past performance is not necessarily indicative of future results. All investments carry risk, and all investment decisions of an individual remain the responsibility of that individual. There is no guarantee that systems, indicators, or signals will result in profits or that they will not result in losses. All investors are advised to fully understand all risks associated with any investing they choose to do. Hypothetical or simulated performance is not indicative of future results. We make no representations or warranties that any investor will, or is likely to, achieve profits similar to those shown because hypothetical or simulated performance is not necessarily indicative of future results. For more information please visit our terms and condition page