Sally Beauty Intrinsic Value Calculation – SALLY BEAUTY Reports Third Quarter Fiscal Year 2023 Earnings Results on June 30, 2023
August 28, 2023
☀️Earnings Overview
On June 30, 2023, SALLY BEAUTY ($NYSE:SBH) reported their financial results for the third quarter of their fiscal year 2023, which ended on that date. Total revenue was USD 931.0 million, a 3.2% decline from the same period of the prior year. Net income was reported to be USD 50.8 million, a 9.1% increase from the previous year.
Stock Price
SALLY BEAUTY‘s stock opened at $11.8 and closed at $11.7, representing a 0.9% decrease from the previous closing price of $11.8. This is primarily due to better than expected performance in the third quarter and continued cost controls across the organization. Overall, SALLY BEAUTY’s report was positive, showing strong growth and solid financial performance for the quarter ended June 30th, 2023. Live Quote…
About the Company
Income Snapshot
Below shows the total revenue, net income and net margin for Sally Beauty. More…
| Total Revenues | Net Income | Net Margin |
| 3.77k | 163.36 | 5.2% |
Cash Flow Snapshot
Below shows the cash from operations, investing and financing for Sally Beauty. More…
| Operations | Investing | Financing |
| 240.04 | -98.32 | -168.1 |
Balance Sheet Snapshot
Below shows the total assets, liabilities and book value per share for Sally Beauty. More…
| Total Assets | Total Liabilities | Book Value Per Share |
| 2.68k | 2.19k | 4.53 |
Key Ratios Snapshot
Some of the financial key ratios for Sally Beauty are shown below. More…
| 3Y Rev Growth | 3Y Operating Profit Growth | Operating Margin |
| 2.3% | 7.7% | 7.6% |
| FCF Margin | ROE | ROA |
| 3.8% | 39.3% | 6.7% |
Analysis – Sally Beauty Intrinsic Value Calculation
At GoodWhale, we have conducted an analysis of SALLY BEAUTY‘s finances. Our proprietary Valuation Line has determined the intrinsic value of SALLY BEAUTY share to be around $30.9. This means that the current price of $11.7 per share is undervalued by 62.1%, providing a great opportunity for investors. Such an opportunity should not be missed and investors are encouraged to take advantage of it for potentially high returns in the future. More…
Peers
The beauty industry is a competitive one, with many different companies vying for market share. Sally Beauty Holdings Inc is one such company, and it competes against Adore Beauty Group Ltd, Matas A/S, and Boutiques Inc, among others. While each company has its own strengths and weaknesses, Sally Beauty Holdings Inc has been able to stay ahead of the competition and maintain a leading position in the industry.
– Adore Beauty Group Ltd ($ASX:ABY)
Adore Beauty Group Ltd is an Australian-based company that retails beauty products. It has a market capitalization of 150.6 million as of 2022 and a return on equity of 5.82%. The company offers a wide range of products including skincare, haircare, makeup, and fragrances. It also provides a platform for beauty experts to share their tips and tricks with the Adore Beauty community.
– Matas A/S ($LTS:0QFA)
Matas A/S is a large publicly traded company with a market capitalization of 2.84 billion as of 2022. The company has a strong return on equity of 8.02%. Matas A/S is a leading retailer in Denmark with over 1,000 stores. The company offers a wide variety of products including cosmetics, health, and beauty products.
– Boutiques Inc ($TSE:9272)
Boutiques Inc is a publicly traded company that designs, manufactures, and sells women’s clothing and accessories. The company was founded in 2001 and is headquartered in New York City. As of 2022, Boutiques Inc had a market capitalization of $13.97 billion and a return on equity of 20.46%. The company’s products are sold through its own retail stores, as well as through department stores and online retailers.
Summary
Sally Beauty has reported their earnings for the third quarter of their fiscal year 2023, closing on June 30, 2023. Total revenue decreased 3.2% from the same period in the prior year, to USD 931.0 million. Despite the decline in revenue, net income increased 9.1% year over year to USD 50.8 million.
Investors may be encouraged by the company’s ability to increase profits despite lower revenues, however the decrease in revenue combined with increasing competition in the industry could be concerning. Therefore, investors should take a closer look at Sally Beauty’s performance before making any investment decisions.
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