Sally Beauty Holdings, Inc. (NYSE:SBH)

CAPS Rating: 3 out of 5

The Company is a distributor of professional beauty supplies in the United States based on store count and operates primarily through two business units, Sally Beauty Supply and BSG.

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Player Avatar kliu112 (70.82) Submitted: 2/9/2007 8:55:07 PM : Underperform Start Price: $9.40 SBH Score: -133.68

While I believe this is a solid company with a strong competitive position in an attractive niche, I think the current stock price incorporates overly rosy expectations. Although results in the recent quarter were good, the company has yet to report a full quarter reflecting the loss of the L'Oreal. Additionally, the high level of debt incurred will result in less free cash flow.

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Member Avatar susanherna (< 20) Submitted: 6/26/2008 8:37:23 AM
Recs: 0

Beauty Systems Group might have lost Loreal Professional, but Sally Beauty Supply still distributes Loreal products.

Member Avatar susanbochert (83.33) Submitted: 3/8/2009 12:39:06 PM
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Sally Beauty sales seem to be strong and growing stronger from what I see in store. Instead of loosing sales in store it seems to be increasing.

Member Avatar DIVISION23 (< 20) Submitted: 3/5/2012 12:23:07 PM
Recs: 0

They have shown amazing comps, even during recession.

As Cash flow from OPs expand, debt reduction will occur, multiple will shrink. Typical LBO metrics.
Once Debt/Asset reaches industry avg, a large cap will swallow SBH.

I would not be surprised to see SBH reaching $10B market cap.

Been family core holding since 2007 ! (was 2.6% of portfolio in 07)

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