FMP

FMP

Datasets
Market NewsEducationHow ToDiscounted Cash Flow ModelDeveloper

Sally Beauty Holdings, Inc. (NYSE: SBH) Surpasses Q1 Earnings and Revenue Estimates

  • Earnings per share (EPS) of $0.4907 exceeded the estimated $0.47, indicating a strong start to fiscal 2026.
  • Revenue of approximately $947.08 million surpassed the estimated $940.15 million, showcasing the company's solid performance.
  • Price-to-earnings (P/E) ratio of 8.13 suggests a relatively low valuation compared to its earnings, hinting at potential growth opportunities for investors.

Sally Beauty Holdings, Inc. (NYSE: SBH) is a prominent player in the professional hair color industry. The company recently reported its financial results for the first quarter ending December 31, 2025. SBH's earnings per share (EPS) of $0.4907 exceeded the estimated $0.47, showcasing a strong start to fiscal 2026. The revenue of approximately $947.08 million also surpassed the estimated $940.15 million.

SBH's financial metrics provide insight into its market valuation. The company's price-to-earnings (P/E) ratio is 8.13, indicating a relatively low valuation compared to its earnings. This suggests that investors may see potential for growth in the company's stock. The price-to-sales ratio of 0.43 implies that investors are paying $0.43 for every dollar of sales, which is considered attractive.

The enterprise value to sales ratio of 0.81 reflects SBH's total valuation in relation to its sales. This metric helps investors understand how the market values the company's sales. Additionally, the enterprise value to operating cash flow ratio of 10.92 shows how SBH's cash flow compares to its overall valuation, providing insight into its financial health.

SBH's earnings yield of 12.30% is the inverse of the P/E ratio and indicates the return on investment for shareholders. This yield suggests that the company is generating a solid return for its investors. The debt-to-equity ratio of 1.97 highlights SBH's use of debt in its capital structure, which is a common practice for companies to finance growth.

The current ratio of 2.26 suggests that SBH has a strong ability to cover its short-term liabilities with its short-term assets. This indicates a healthy liquidity position, which is crucial for the company's ongoing operations. Overall, SBH's financial performance and metrics reflect a solid foundation for future growth.