Sally Beauty Holdings Inc. (Name to be changed from Sally Holdings Inc.) Common Stock (SBH)

FairStock Score: 59/100 — STEADY

Key Financials

AI Analysis

AI-generated, general educational analysis — not personal investment advice.

I am usually drawn to dull, necessary retailers selling everyday products at reasonable prices, and Sally Beauty fits part of that picture. It distributes professional beauty supplies through Sally Beauty Supply and Beauty Systems Group, serving retail customers and salon professionals. Scale and longstanding brand relationships may give it a modest edge, but this is no wide moat; beauty retail is competitive and switching costs are low. The growth record is the problem. In fiscal 2025, the year ended 2025-09-30, revenue was $3.7B and net income was $195.9M, or diluted EPS of $1.89. In fiscal 2024, the year ended 2024-09-30, revenue was also $3.7B with net income of $153.4M and diluted EPS of $1.43. In the latest filed quarter, fiscal Q3 2026 ended 2026-06-30, revenue was $935.5M and net income was $54.1M, or $0.55 per diluted share. That is better than fiscal Q2 2026 ended 2026-03-31, when net income was $42.7M, but sales remain essentially flat. FairStock classifies it as a slow grower, with profit growth of 1.2% a year and revenue growth of 1.0% over five years. Financial health is mixed. FairStock's Piotroski score of 8/9 is strong, and trailing free cash flow is $241.2M, a 16.2% FCF yield on the $1.5B market cap. But debt to equity is 1.74, Altman Z-score is 1.66, and ROCE is only 6.45%, so leverage and weak capital returns temper the cheapness. At the 2026-10-13 close of $15.90, FairStock's P/E is 8.28, P/B is 1.72, Graham Number is $20.00, and EV/EBITDA is 6.84. The stock looks inexpensive, but flat sales and high debt mean the margin of safety is not as wide as the headline multiples suggest.

In plain English: Sally Beauty sells and distributes hair color, skin, nail and styling products to consumers and salon professionals. The company is profitable and produces a lot of cash, but sales have been almost flat for years and it carries a fair amount of debt. At the recent close, the stock price looks somewhat low compared with its profits and assets, though the weak growth and heavy borrowing keep it from looking clearly cheap.

The full AI analysis, bull and bear case and key monitorables are in FairStock Pro.

Data as of 2026-10-13 close · note generated 2026-10-15 · model deepseek-flash

Sources (SEC EDGAR): fiscal Q3 2026 10-Q (period ended 2026-06-30) · fiscal Q2 2026 10-Q (period ended 2026-03-31) · fiscal Q1 2026 10-Q (period ended 2025-12-31) · fiscal Q3 2025 10-Q (period ended 2025-06-30) · FY2025 10-K (period ended 2025-09-30) · FY2024 10-K (period ended 2024-09-30) · FY2023 10-K (period ended 2023-09-30)

Fundamentals from company filings and market-data providers; prices are end-of-day, not real-time. AI-generated analysis is general and educational — not personal investment advice. Scoring methodology · Score test · Disclaimer