Ulta Beauty Inc (ULTA, Financial) has recently been in the spotlight, drawing interest from investors and financial analysts due to its robust financial stance. With shares currently priced at $489.95, Ulta Beauty Inc has witnessed a daily gain of 0.65%, marked against a three-month change of 22.66%. A thorough analysis, underlined by the GF Score, suggests that Ulta Beauty Inc is well-positioned for substantial growth in the near future.
What Is the GF Score?
The GF Score is a stock performance ranking system developed by GuruFocus using five aspects of valuation, which has been found to be closely correlated to the long-term performances of stocks by backtesting from 2006 to 2021. The stocks with a higher GF Score generally generate higher returns than those with a lower GF Score. Therefore, when picking stocks, investors should invest in companies with high GF Scores. The GF Score ranges from 0 to 100, with 100 as the highest rank.
- Financial strength rank: 5/10
- Profitability rank: 9/10
- Growth rank: 10/10
- GF Value rank: 7/10
- Momentum rank: 5/10
Considering these components, GuruFocus assigned Ulta Beauty Inc a GF Score of 92 out of 100, which signals the highest outperformance potential.
Understanding Ulta Beauty Inc's Business
Ulta Beauty Inc, with a market cap of $23.79 billion and sales of $10.88 billion, is the largest specialized beauty retailer in the U.S. The company, founded in 1990 and based in Bolingbrook, Illinois, operates 1,355 stores and has a partnership with Target. Ulta Beauty's diverse product range includes makeup, fragrances, skin care, hair care products, and bath and body items. It also offers salon services in all stores and boasts private-label products alongside merchandise from over 500 vendors. With an operating margin of 14.85%, Ulta Beauty Inc is a dominant player in the beauty retail space.
Profitability Rank Breakdown
The Profitability Rank of Ulta Beauty Inc is a testament to its efficiency in generating profits. The company's Operating Margin has shown an upward trend over the past five years, with the most recent figures indicating a margin of 14.78%. Similarly, Ulta Beauty Inc's Gross Margin has consistently improved, reflecting the company's ability to convert revenue into profit effectively. The Piotroski F-Score further confirms Ulta Beauty Inc's solid financial health, while a Predictability Rank of 4.0 stars out of five highlights its reliable operational performance.
Growth Rank Breakdown
Ulta Beauty Inc's high Growth Rank reflects its commitment to business expansion. The company's 3-Year Revenue Growth Rate of 15.7% outperforms 76.69% of companies in the Retail - Cyclical industry. Additionally, Ulta Beauty Inc's EBITDA has seen significant growth, with a three-year growth rate of 20.4 and a five-year rate of 13.5, showcasing the company's sustained growth capabilities.
Next Steps
Considering Ulta Beauty Inc's financial strength, profitability, and growth metrics, the GF Score highlights the firm's unparalleled position for potential outperformance. Investors looking for similar opportunities can explore more companies with strong GF Scores using the GF Score Screen. With its solid market standing and promising growth trajectory, Ulta Beauty Inc represents a compelling investment case for those seeking to capitalize on the beauty industry's dynamics.
This article, generated by GuruFocus, is designed to provide general insights and is not tailored financial advice. Our commentary is rooted in historical data and analyst projections, utilizing an impartial methodology, and is not intended to serve as specific investment guidance. It does not formulate a recommendation to purchase or divest any stock and does not consider individual investment objectives or financial circumstances. Our objective is to deliver long-term, fundamental data-driven analysis. Be aware that our analysis might not incorporate the most recent, price-sensitive company announcements or qualitative information. GuruFocus holds no position in the stocks mentioned herein.
