
SBH Stock Forecast & Price Target
SBH Analyst Ratings
Bulls say
Sally Beauty Holdings Inc. benefits from a business model that leverages professional expertise in hair coloring, resulting in increased conversion rates and average transaction values (ATVs) that are 25% higher compared to non-coloring customers. The overall beauty category is projected to grow at low single-digit to mid-single-digit rates, with an anticipated higher growth trajectory in the prestige segment, positioning the company favorably within the market. Additionally, the company's sound financial health is evidenced by robust free cash flow generation and an improving balance sheet, enhancing its ability to allocate capital effectively.
Bears say
Sally Beauty Holdings faces potential financial instability due to the adverse economic conditions impacting its franchisees, which could lead to worsened financial outcomes for the company. Historically, the company has demonstrated low-to-mid-teens EBIT margins from FY13-FY19, indicating a struggle to maintain profitable operations amid changing market dynamics. Additionally, with $882 million in long-term debt and a net leverage ratio of approximately 1.7x, which improved from higher levels in previous years, the company still faces challenges in generating sufficient free cash flow given its current financial structure.
This aggregate rating is based on analysts' research of Sally Beauty Hlds and is not a guaranteed prediction by Public.com or investment advice.
SBH Analyst Forecast & Price Prediction
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