Ulta Beauty Net Income vs. Price To Sales

ULTA Stock  USD 423.91  6.18  1.44%   
Based on the key profitability measurements obtained from Ulta Beauty's financial statements, Ulta Beauty may not be well positioned to generate adequate gross income at the moment. It has a very high risk of underperforming in January. Profitability indicators assess Ulta Beauty's ability to earn profits and add value for shareholders.
 
Net Income  
First Reported
2005-04-30
Previous Quarter
252.6 M
Current Value
242.2 M
Quarterly Volatility
109.3 M
 
Housing Crash
 
Credit Downgrade
 
Yuan Drop
 
Covid
At present, Ulta Beauty's Price To Sales Ratio is projected to increase slightly based on the last few years of reporting. The current year's EV To Sales is expected to grow to 2.50, whereas Days Sales Outstanding is forecasted to decline to 5.91. At present, Ulta Beauty's Operating Income is projected to increase significantly based on the last few years of reporting. The current year's Income Before Tax is expected to grow to about 1.8 B, whereas Interest Income is forecasted to decline to about 4.3 M.
Current ValueLast YearChange From Last Year 10 Year Trend
Gross Profit Margin0.350.3909
Moderately Down
Slightly volatile
Net Profit Margin0.07930.1152
Way Down
Slightly volatile
Operating Profit Margin0.130.1497
Fairly Down
Slightly volatile
Pretax Profit Margin0.130.1513
Fairly Down
Slightly volatile
Return On Assets0.130.2262
Way Down
Slightly volatile
Return On Equity0.210.5664
Way Down
Slightly volatile
For Ulta Beauty profitability analysis, we use financial ratios and fundamental drivers that measure the ability of Ulta Beauty to generate income relative to revenue, assets, operating costs, and current equity. These fundamental indicators attest to how well Ulta Beauty utilizes its assets to generate profit and value for its shareholders. The profitability module also shows relationships between Ulta Beauty's most relevant fundamental drivers. It provides multiple suggestions of what could affect the performance of Ulta Beauty over time as well as its relative position and ranking within its peers.
  

Ulta Beauty's Revenue Breakdown by Earning Segment

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For information on how to trade Ulta Stock refer to our How to Trade Ulta Stock guide.
Is Other Specialty Retail space 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 Ulta Beauty. If investors know Ulta 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 Ulta 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
(0.12)
Earnings Share
24.63
Revenue Per Share
234.543
Quarterly Revenue Growth
0.009
Return On Assets
0.1791
The market value of Ulta Beauty is measured differently than its book value, which is the value of Ulta that is recorded on the company's balance sheet. Investors also form their own opinion of Ulta Beauty's value that differs from its market value or its book value, called intrinsic value, which is Ulta 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 Ulta Beauty's market value can be influenced by many factors that don't directly affect Ulta 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 Ulta Beauty's value and its price as these two are different measures arrived at by different means. Investors typically determine if Ulta Beauty is a good investment by looking at such factors as earnings, sales, fundamental and technical indicators, competition as well as analyst projections. However, Ulta 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.

Ulta Beauty Price To Sales vs. Net Income Fundamental Analysis

Comparative valuation techniques use various fundamental indicators to help in determining Ulta Beauty's current stock value. Our valuation model uses many indicators to compare Ulta Beauty value to that of its competitors to determine the firm's financial worth.
Ulta Beauty is rated first in net income category among its peers. It is rated first in price to sales category among its peers . The ratio of Net Income to Price To Sales for Ulta Beauty is about  732,817,733 . At present, Ulta Beauty's Net Income is projected to increase significantly based on the last few years of reporting. 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 Ulta Beauty's earnings, one of the primary drivers of an investment's value.

Ulta Price To Sales 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.

Ulta Beauty

Net Income

 = 

(Rev + Gain)

-

(Exp + Loss)

 = 
1.29 B
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.
Price to Sales ratio is typically used for valuing equity relative to its own past performance as well as to performance of other companies or market indexes. In most cases, the lower the ratio, the better it is for investors. However, it is advisable for investors to exercise caution when looking at price-to-sales ratios across different industries.

Ulta Beauty

P/S

 = 

MV Per Share

Revenue Per Share

 = 
1.76 X
The most critical factor to remember is that the price of equity takes a firm's debt into account, whereas the sales indicators do not consider financial leverage. Generally speaking, Price to Sales ratio shows how much market values every dollar of the company's sales.

Ulta Price To Sales Comparison

Ulta Beauty is currently under evaluation in price to sales category among its peers.

Ulta Beauty Profitability Projections

The most important aspect of a successful company is its ability to generate a profit. For investors in Ulta Beauty, profitability is also one of the essential criteria for including it into their portfolios because, without profit, Ulta Beauty will eventually generate negative long term returns. The profitability progress is the general direction of Ulta Beauty's change in net profit over the period of time. It can combine multiple indicators of Ulta 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 ReportedProjected for Next Year
Operating Income1.7 B1.8 B
Income Before Tax1.7 B1.8 B
Total Other Income Expense Net17.6 M18.5 M
Net Income1.3 B1.4 B
Income Tax Expense404.6 M424.9 M
Net Income From Continuing Ops1.3 B1.4 B
Net Income Applicable To Common Shares1.4 B1.5 B
Net Interest Income17.6 M18.5 M
Interest Income5.8 M4.3 M
Change To Netincome25.7 M24.4 M
Net Income Per Share 26.18  4.00 
Income Quality 1.14  1.54 
Net Income Per E B T 0.76  0.63 

Ulta Profitability Driver Comparison

Profitability drivers are factors that can directly affect your investment outlook on Ulta 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 Ulta 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 Ulta Beauty's important profitability drivers and their relationship over time.

Use Ulta 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 Ulta 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 Ulta Beauty will appreciate offsetting losses from the drop in the long position's value.

Ulta Beauty Pair Trading

Ulta Beauty Pair Trading Analysis

The ability to find closely correlated positions to Ulta 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 Ulta 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 Ulta 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 Ulta Beauty to buy it.
The correlation of Ulta 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 Ulta Beauty moves, either up or down, the other security will move in the same direction. Alternatively, perfect negative correlation means that if Ulta Beauty 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 Ulta 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.
Pair CorrelationCorrelation Matching

Use Investing Themes to Complement your Ulta Beauty position

In addition to having Ulta 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?

Run Target Outcome ETFs Thematic Idea Now

Target Outcome ETFs
Target Outcome ETFs Theme
ETF themes focus on helping investors to gain exposure to a broad range of assets, diversify, and lower overall costs. The Target Outcome ETFs theme has 92 constituents at this time.
You can either use a buy-and-hold strategy to lock in the entire theme or actively trade it to take advantage of the short-term price volatility of individual constituents. Macroaxis can help you discover thousands of investment opportunities in different asset classes. In addition, you can partner with us for reliable portfolio optimization as you plan to utilize Target Outcome ETFs Theme or any other thematic opportunities.
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When determining whether Ulta Beauty offers a strong return on investment in its stock, a comprehensive analysis is essential. The process typically begins with a thorough review of Ulta Beauty's financial statements, including income statements, balance sheets, and cash flow statements, to assess its financial health. Key financial ratios are used to gauge profitability, efficiency, and growth potential of Ulta Beauty Stock. Outlined below are crucial reports that will aid in making a well-informed decision on Ulta Beauty Stock:
Check out World Market Map.
For information on how to trade Ulta Stock refer to our How to Trade Ulta Stock guide.
You can also try the Balance Of Power module to check stock momentum by analyzing Balance Of Power indicator and other technical ratios.
To fully project Ulta Beauty's future profitability, investors should examine all historical financial statements. These statements provide investors with a comprehensive snapshot of the financial position of Ulta Beauty 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 Ulta Beauty's income statement, its balance sheet, and the statement of cash flows.
Potential Ulta Beauty investors and stakeholders can use historical trends found within financial statements to determine how well the company is positioned for the future. Although Ulta Beauty investors may work on each financial statement separately, they are all related. The changes in Ulta Beauty's assets and liabilities, for example, are also reflected in the revenues and expenses that we see on Ulta Beauty's income statement, which results in the company's gains or losses. Cash flows can provide more information regarding cash listed on a balance sheet but not equivalent to net income shown on the income statement. Please read more on our technical analysis and fundamental analysis pages.