Ulta Beauty, Inc. [NASDAQ:ULTA]: Analyst Rating and Earnings
Pro stock market traders often keep their attention pointed at what top market analysts have to say regarding a potential equity investment. For Ulta Beauty, Inc. [ULTA] currently, the latest-available mean analyst rating is for the fiscal quarter that will end in January. On average, stock market experts give ULTA an Outperform rating. The average 12-month price forecast for this stock is $302.89, with the high estimate being $350.00, the low estimate being $270.00 and the median estimate amounting to $295.50. This is compared to its latest closing price of $277.03.
Wall Street analysts provide their ratings on a scale of 1 to 5, and the current average score for Ulta Beauty, Inc. [ULTA] is sitting at 1.92. This is compared to 1 month ago, when its average rating was 2.07.
For the quarter ending in Jul-18 Ulta Beauty, Inc. [ULTA] generated $1.49 billion in sales. That’s 0.09% lower than the average estimate of $1.49 billion as provided by Wall Street analysts. The three indicators above suggest that on the whole, this stock is not presenting an attractive investment option, as there are too many red flags that don’t point to a high-value ROI.
Keep your eyes peeled for this company’s upcoming financial results publication, which is slated for Thu 21 Mar (In 68 Days).
Fundamental Analysis of Ulta Beauty, Inc. [ULTA]
Now let’s turn to look at profitability: with a current Operating Margin for Ulta Beauty, Inc. [ULTA] sitting at +13.76 and its Gross Margin at +35.63, this company’s Net Margin is now 10.00%. These metrics indicate that this company is not generating as much profit, after accounting for expenses, compared to its market peers.
This company’s Return on Total Capital is 48.70, and its Return on Invested Capital has reached 33.40%. Its Return on Equity is 33.40, and its Return on Assets is 19.90. These metrics all suggest that Ulta Beauty, Inc. is doing well at using the money it earns to generate returns.
What about valuation? This company’s Enterprise Value to EBITDA is 13.87. The Enterprise Value to Sales for this firm is now 2.26. Ulta Beauty, Inc. [ULTA] has a Price to Book Ratio of 7.52, a Price to Cash Flow Ratio of 17.45 and P/E Ratio of 26.45. These metrics show that this company has a mixed appeal, and ROI could be a gain or a loss.
Shifting the focus to workforce efficiency, Ulta Beauty, Inc. [ULTA] earns $169,582 for each employee under its payroll. Similarly, this company’s Receivables Turnover is 62.48 and its Total Asset Turnover is 2.11. This publicly-traded organization’s liquidity data is also interesting: its Quick Ratio is 0.93 and its Current Ratio is 2.64. This company, considering these metrics, has a healthy ratio between its short-term liquid assets and its short-term liabilities, making it a less risky investment.
Let’s now turn our attention to trading performance: Ulta Beauty, Inc. [ULTA] has 57.67M shares outstanding, amounting to a total market cap of $16.38B. Its stock price has been found in the range of 191.70 to 322.49. At its current price, it has moved by -11.90% from its 52-week high, and it has moved 48.20% from its 52-week low.
This stock’s Beta value is currently 0.87, which indicates that it is more volatile that the wider market. This stock’s Relative Strength Index (RSI) is at 62.71. This RSI score is good, suggesting this stock is neither overbought or oversold.
Conclusion: Is Ulta Beauty, Inc. [ULTA] a Reliable Buy?
Shares of Ulta Beauty, Inc. [ULTA], on the whole, present investors with both positive and negative signals. Wall Street analysts have mixed reviews when it comes to the 12-month price outlook, and this company’s financials show a combination of strengths and weaknesses. Based on the price performance, this investment is somewhat risky while presenting reasonable potential for ROI.