Sally Beauty Net Income vs. Operating Margin
| SBH Stock | USD 10.56 0.25 2.42% |
Net Income | First Reported 2003-12-31 | Previous Quarter 42.6 M | Current Value 38.4 M | Quarterly Volatility 21 M |
| Current Value | Last Year | Change From Last Year | 10 Year Trend | ||||||
|---|---|---|---|---|---|---|---|---|---|
| Gross Profit Margin | 0.38 | 0.46 |
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| Net Profit Margin | 0.0428 | 0.0446 |
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| Operating Profit Margin | 0.13 | 0.1 |
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| Pretax Profit Margin | 0.09 | 0.0777 |
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| Return On Assets | 0.11 | 0.0779 |
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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.
Sally |
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 Operating Margin vs. Net Income 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 currently regarded as top stock in net income category among related companies. It is currently regarded as top stock in operating margin category among related companies . The ratio of Net Income to Operating Margin for Sally Beauty Holdings is about 2,539,202,201 . As of now, Sally Beauty's Net Income is decreasing 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 Operating Margin vs. Net Income
Net income is the profit of a company for the reporting period, which is derived after taking revenues and gains and subtracting all expenses and losses. Net income is one of the most-watched numbers by money managers as well as individual investors.
Sally Beauty |
| = | 184.6 M |
Because income is reported on the Income Statement of a company and is measured in dollars some investors prefer to use Profit Margin, which measures income as a percentage of sales.
Operating Margin shows how much operating income a company makes on each dollar of sales. It is one of the profitability indicators which helps analysts to understand whether the firm is successful or not making money from everyday operations.
Sally Beauty |
| = | 0.07 % |
A good Operating Margin is required for a company to be able to pay for its fixed costs or payout its debt, which implies that the higher the margin, the better. This ratio is most effective in evaluating the earning potential of a company over time when comparing it against a firm's competitors.
Sally Operating Margin Comparison
Sally Beauty is currently under evaluation in operating margin 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 Reported | Projected for Next Year | ||
| Accumulated Other Comprehensive Income | -110.5 M | -105 M | |
| Operating Income | 373.8 M | 381.5 M | |
| Income Before Tax | 289.9 M | 279.9 M | |
| Total Other Income Expense Net | -19.8 M | -20.8 M | |
| Net Income | 212.3 M | 196.6 M | |
| Income Tax Expense | 77.6 M | 89.8 M | |
| Net Income Applicable To Common Shares | 212.3 M | 196.6 M | |
| Net Income From Continuing Ops | 166.1 M | 252.8 M | |
| Interest Income | 68 M | 85.6 M | |
| Net Interest Income | -83.9 M | -88.1 M | |
| Change To Netincome | 35.9 M | 24.5 M | |
| Net Income Per Share | 1.55 | 0.92 | |
| Income Quality | 1.55 | 1.83 | |
| 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.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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Check out World Market Map. 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 CEOs Directory module to screen CEOs from public companies around the world.
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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.