Sally Beauty Market Capitalization vs. Retained Earnings

SBH Stock  USD 12.17  0.54  4.64%   
Based on the key profitability measurements obtained from Sally Beauty's financial statements, Sally Beauty Holdings is yielding more profit at the moment then in previous quarter. It has a moderate risk of reporting better profitability numbers in April. Profitability indicators assess Sally Beauty's ability to earn profits and add value for shareholders. As of now, Sally Beauty's Operating Cash Flow Sales Ratio is decreasing as compared to previous years. The Sally Beauty's current Days Of Sales Outstanding is estimated to increase to 10.04, while Price To Sales Ratio is projected to decrease to 0.26. As of now, Sally Beauty's Interest Income is decreasing as compared to previous years.
Current ValueLast YearChange From Last Year 10 Year Trend
Gross Profit Margin0.380.46
Significantly Down
Pretty Stable
Net Profit Margin0.04280.0446
Sufficiently Down
Slightly volatile
Operating Profit Margin0.130.1
Significantly Up
Slightly volatile
Pretax Profit Margin0.090.0777
Fairly Up
Slightly volatile
Return On Assets0.110.0779
Significantly Up
Slightly volatile
For Sally Beauty profitability analysis, we use financial ratios and fundamental drivers that measure the ability of Sally Beauty to generate income relative to revenue, assets, operating costs, and current equity. These fundamental indicators attest to how well Sally Beauty Holdings utilizes its assets to generate profit and value for its shareholders. The profitability module also shows relationships between Sally Beauty's most relevant fundamental drivers. It provides multiple suggestions of what could affect the performance of Sally Beauty Holdings over time as well as its relative position and ranking within its peers.
  
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Is Sally Beauty's industry expected to grow? Or is there an opportunity to expand the business' product line in the future? Factors like these will boost the valuation of Sally Beauty. If investors know Sally will grow in the future, the company's valuation will be higher. The financial industry is built on trying to define current growth potential and future valuation accurately. All the valuation information about Sally Beauty listed above have to be considered, but the key to understanding future value is determining which factors weigh more heavily than others.
Quarterly Earnings Growth
(0.24)
Earnings Share
1.58
Revenue Per Share
34.591
Quarterly Revenue Growth
(0.03)
Return On Assets
0.0723
The market value of Sally Beauty Holdings is measured differently than its book value, which is the value of Sally that is recorded on the company's balance sheet. Investors also form their own opinion of Sally Beauty's value that differs from its market value or its book value, called intrinsic value, which is Sally Beauty's true underlying value. Investors use various methods to calculate intrinsic value and buy a stock when its market value falls below its intrinsic value. Because Sally Beauty's market value can be influenced by many factors that don't directly affect Sally Beauty's underlying business (such as a pandemic or basic market pessimism), market value can vary widely from intrinsic value.
Please note, there is a significant difference between Sally Beauty's value and its price as these two are different measures arrived at by different means. Investors typically determine if Sally Beauty is a good investment by looking at such factors as earnings, sales, fundamental and technical indicators, competition as well as analyst projections. However, Sally Beauty's price is the amount at which it trades on the open market and represents the number that a seller and buyer find agreeable to each party.

Sally Beauty Holdings Retained Earnings vs. Market Capitalization Fundamental Analysis

Comparative valuation techniques use various fundamental indicators to help in determining Sally Beauty's current stock value. Our valuation model uses many indicators to compare Sally Beauty value to that of its competitors to determine the firm's financial worth.
Sally Beauty Holdings is rated below average in market capitalization category among related companies. It is rated below average in retained earnings category among related companies reporting about  0.49  of Retained Earnings per Market Capitalization. The ratio of Market Capitalization to Retained Earnings for Sally Beauty Holdings is roughly  2.04 . As of now, Sally Beauty's Retained Earnings are increasing as compared to previous years.. Comparative valuation analysis is a catch-all model that can be used if you cannot value Sally Beauty by discounting back its dividends or cash flows. This model doesn't attempt to find an intrinsic value for Sally Beauty's Stock . Still, instead, it compares the stock's price multiples to a benchmark or nearest competition to determine if the stock is relatively undervalued or overvalued. The reason why the comparable model can be used in almost all circumstances is due to the vast number of multiples that can be utilized, such as the price-to-earnings (P/E), price-to-book (P/B), price-to-sales (P/S), price-to-cash flow (P/CF), and many others. The P/E ratio is the most commonly used of these ratios because it focuses on the Sally Beauty's earnings, one of the primary drivers of an investment's value.

Sally Market Capitalization vs. Competition

Sally Beauty Holdings is rated below average in market capitalization category among related companies. Market capitalization of Consumer Discretionary industry is at this time estimated at about 450.89 Billion. Sally Beauty adds roughly 1.28 Billion in market capitalization claiming only tiny portion of stocks in Consumer Discretionary industry.
Capitalization  Total debt  Workforce  Revenue  Valuation

Sally Retained Earnings vs. Market Capitalization

Market Capitalization is the total market value of a company's equity. It is one of many ways to value a company and is calculated by multiplying the price of the stock by the number of shares issued. If a firm has one type of stock its market capitalization will be the current market share price multiplied by the number of shares. However, if a company has multiple types of equities then the market cap will be the total of the market caps of the different types of shares.

Sally Beauty

Market Cap

 = 

Shares Outstanding

X

Share Price

 = 
1.28 B
In most publications or references market cap is broken down into the mega-cap, large-cap, mid-cap, small-cap, micro-cap, and nano-cap. Market Cap is a measurement of business as total market value of all of the outstanding shares at a given time, and can be used to compare different companies based on their size.
Retained Earnings is a balance sheet account that refers to the portion of company income that is retained by the firm. In other words, it is a part of earnings that is not paid out as dividends or otherwise distributed to owners. Retained Earnings are calculated by adding net income to last period retained earnings and subtracting any dividends paid to owners.

Sally Beauty

Retained Earnings

 = 

Beginning RE + Income

-

Dividends

 = 
624.77 M
Retained Earnings shows how the firm utilizes its profits over time. In simple terms, investors can think of retained earnings as the amount of profit the company has reinvested in the business since its inceptions. However the methodology to make a decision over how much profit to retain is different between companies in different industries. For example, growing industries tend to retain more of their earnings than more matured industries as they need more assets investment to sustain their growth.

Sally Retained Earnings Comparison

Sally Beauty is currently under evaluation in retained earnings category among related companies.

Sally Beauty Profitability Projections

The most important aspect of a successful company is its ability to generate a profit. For investors in Sally Beauty, profitability is also one of the essential criteria for including it into their portfolios because, without profit, Sally Beauty will eventually generate negative long term returns. The profitability progress is the general direction of Sally Beauty's change in net profit over the period of time. It can combine multiple indicators of Sally Beauty, where stable trends show no significant progress. An accelerating trend is seen as positive, while a decreasing one is unfavorable. A rising trend means that profits are rising, and operational efficiency may be rising as well. A decreasing trend is a sign of poor performance and may indicate upcoming losses.
Last ReportedProjected for 2024
Accumulated Other Comprehensive Income-110.5 M-105 M
Operating Income373.8 M381.5 M
Income Before Tax289.9 M279.9 M
Total Other Income Expense Net-19.8 M-20.8 M
Net Income212.3 M196.6 M
Income Tax Expense77.6 M89.8 M
Net Income Applicable To Common Shares212.3 M196.6 M
Net Income From Continuing Ops166.1 M252.8 M
Interest Income68 M85.6 M
Net Interest Income-83.9 M-88.1 M
Change To Netincome35.9 M24.5 M
Net Income Per E B T 0.66  0.52 

Sally Profitability Driver Comparison

Profitability drivers are factors that can directly affect your investment outlook on Sally Beauty. Investors often realize that things won't turn out the way they predict. There are maybe way too many unforeseen events and contingencies during the holding period of Sally Beauty position where the market behavior may be hard to predict, tax policy changes, gold or oil price hikes, calamities change, and many others. The question is, are you prepared for these unexpected events? Although some of these situations are obviously beyond your control, you can still follow the important profit indicators to know where you should focus on when things like this occur. Below are some of the Sally Beauty's important profitability drivers and their relationship over time.

Use Sally Beauty in pair-trading

One of the main advantages of trading using pair correlations is that every trade hedges away some risk. Because there are two separate transactions required, even if Sally Beauty position performs unexpectedly, the other equity can make up some of the losses. Pair trading also minimizes risk from directional movements in the market. For example, if an entire industry or sector drops because of unexpected headlines, the short position in Sally Beauty will appreciate offsetting losses from the drop in the long position's value.

Sally Beauty Pair Trading

Sally Beauty Holdings Pair Trading Analysis

The ability to find closely correlated positions to Sally Beauty could be a great tool in your tax-loss harvesting strategies, allowing investors a quick way to find a similar-enough asset to replace Sally Beauty when you sell it. If you don't do this, your portfolio allocation will be skewed against your target asset allocation. So, investors can't just sell and buy back Sally Beauty - that would be a violation of the tax code under the "wash sale" rule, and this is why you need to find a similar enough asset and use the proceeds from selling Sally Beauty Holdings to buy it.
The correlation of Sally Beauty is a statistical measure of how it moves in relation to other instruments. This measure is expressed in what is known as the correlation coefficient, which ranges between -1 and +1. A perfect positive correlation (i.e., a correlation coefficient of +1) implies that as Sally Beauty moves, either up or down, the other security will move in the same direction. Alternatively, perfect negative correlation means that if Sally Beauty Holdings moves in either direction, the perfectly negatively correlated security will move in the opposite direction. If the correlation is 0, the equities are not correlated; they are entirely random. A correlation greater than 0.8 is generally described as strong, whereas a correlation less than 0.5 is generally considered weak.
Correlation analysis and pair trading evaluation for Sally Beauty can also be used as hedging techniques within a particular sector or industry or even over random equities to generate a better risk-adjusted return on your portfolios.
Pair CorrelationCorrelation Matching

Use Investing Themes to Complement your Sally Beauty position

In addition to having Sally Beauty in your portfolios, you can quickly add positions using our predefined set of ideas and optimize them against your very unique investing style. A single investing idea is a collection of funds, stocks, ETFs, or cryptocurrencies that are programmatically selected from a pull of investment themes. After you determine your investment opportunity, you can then find an optimal portfolio that will maximize potential returns on the chosen idea or minimize its exposure to market volatility.

Did You Try This Idea?

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Hotels
Hotels Theme
Hotels, inns, motels, and other companies providing lodging and hospitality services. The Hotels theme has 38 constituents at this time.
You can either use a buy-and-hold strategy to lock in the entire theme or actively trade it to take advantage of the short-term price volatility of individual constituents. Macroaxis can help you discover thousands of investment opportunities in different asset classes. In addition, you can partner with us for reliable portfolio optimization as you plan to utilize Hotels Theme or any other thematic opportunities.
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When determining whether Sally Beauty Holdings offers a strong return on investment in its stock, a comprehensive analysis is essential. The process typically begins with a thorough review of Sally Beauty's financial statements, including income statements, balance sheets, and cash flow statements, to assess its financial health. Key financial ratios are used to gauge profitability, efficiency, and growth potential of Sally Beauty Holdings Stock. Outlined below are crucial reports that will aid in making a well-informed decision on Sally Beauty Holdings Stock:
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Note that the Sally Beauty Holdings information on this page should be used as a complementary analysis to other Sally Beauty's statistical models used to find the right mix of equity instruments to add to your existing portfolios or create a brand new portfolio. You can also try the Sync Your Broker module to sync your existing holdings, watchlists, positions or portfolios from thousands of online brokerage services, banks, investment account aggregators and robo-advisors..

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When running Sally Beauty's price analysis, check to measure Sally Beauty's market volatility, profitability, liquidity, solvency, efficiency, growth potential, financial leverage, and other vital indicators. We have many different tools that can be utilized to determine how healthy Sally Beauty is operating at the current time. Most of Sally Beauty's value examination focuses on studying past and present price action to predict the probability of Sally Beauty's future price movements. You can analyze the entity against its peers and the financial market as a whole to determine factors that move Sally Beauty's price. Additionally, you may evaluate how the addition of Sally Beauty to your portfolios can decrease your overall portfolio volatility.
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To fully project Sally Beauty's future profitability, investors should examine all historical financial statements. These statements provide investors with a comprehensive snapshot of the financial position of Sally Beauty Holdings at a specified time, usually calculated after every quarter, six months, or one year. Three primary documents fall into the category of financial statements. These documents include Sally Beauty's income statement, its balance sheet, and the statement of cash flows.
Potential Sally Beauty investors and stakeholders can use historical trends found within financial statements to determine how well the company is positioned for the future. Although Sally Beauty investors may work on each financial statement separately, they are all related. The changes in Sally Beauty's assets and liabilities, for example, are also reflected in the revenues and expenses that we see on Sally Beauty's income statement, which results in the company's gains or losses. Cash flows can provide more information regarding cash listed on a balance sheet but not equivalent to net income shown on the income statement. Please read more on our technical analysis and fundamental analysis pages.