I think Ulta Beauty Inc ($ULTA) is a Cautious Buy/Hold. It currently should be $243. Confident Investor Rating: Fair

 

Company name Ulta Beauty Inc
Stock ticker ULTA
Live stock price [stckqut]ULTA[/stckqut]
P/E compared to competitors Fair

 

MANAGEMENT EXECUTION

Employee productivity Poor
Sales growth Good
EPS growth Good
P/E growth Poor
EBITDA growth Good
Price growth Good
R&D growth Poor
Income growth Good
Assets growth Good
Return on Assets growth Fair
Income / Rev growth Poor
TWCA Plus Fair
Standard TWCA Good
Weighted ann. stock price increase Poor

 

ANALYSIS

Confident Investor Rating Fair
Target stock price (TWCA growth scenario) $205.11
Target stock price (averages with growth) $320.51
Target stock price (averages with no growth) $301.88
Target stock price (manual assumptions) $261.19

 

The following company description is from Yahoo: https://finance.yahoo.com/quote/ulta/profile?p=ulta

Ulta Beauty, Inc. operates as a beauty retailer in the United States. The company’s stores offer cosmetics, fragrances, skincare and haircare products, bath and body products, and salon styling tools; professional hair products; salon services, including hair, skin, makeup, and brow services; and others, including nail products and accessories. It also provides private label products, such as the Ulta Beauty Collection branded cosmetics, skincare, and bath products, as well as Ulta Beauty branded products; and the Ulta Beauty branded gifts. As of May 2, 2020, the company operated 1,264 retail stores across 50 states. It also distributes its products through its Website, ulta.com. The company was formerly known as Ulta Salon, Cosmetics & Fragrance, Inc. and changed its name to Ulta Beauty, Inc. in January 2017. Ulta Beauty, Inc. was founded in 1990 and is based in Bolingbrook, Illinois.

Confident Investor comments: At this time, I think that a Confident Investor can cautiously invest in Ulta Beauty Inc as long as the price is correct and the indicators that I describe in my book The Confident Investor are favorable. Most of the fundamentals of this company are good but there are some concerns.

If you would like to understand how to evaluate companies like I do on this site, please read my book, The Confident Investor. You can review the best companies that I have found (and I probably invest my own money in most of these companies) in my Watch List.

How was this analysis of Ulta Beauty Inc calculated?

For owners of my book, “The Confident Investor” I offer the following analysis (you must be logged in to this site as a book owner in order to see the following analysis). If you have registered and cannot see the balance of this article, make sure you are logged in and refresh your browser.
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In order to assist you in using the techniques of this book, the values that I used when calculating the Manual pricing above were:

  • Stock price at the time of the calculation: $193.01
  • Growth: 0.166559371029988
  • Current EPS (TTM): $7.8190365
  • P/E: 24.9016705007103
  • Future EPS Calc: $16.89
  • Future Stock Price Calc: $420.64
  • Target stock price: $261.18

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I hope that this makes you a Confident Investor.

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