Ulta Beauty Inc (ULTA) Stock Analysis
Verdict: HOLD
Valuation compression creates a margin of safety for a market leader, provided margins stabilize against intensifying beauty competition.
Investment score: 62/100
Analysis as of
Is Ulta Beauty Inc stock worth reviewing? AI model thesis
ULTA is a buy based on valuation extremis; the stock trades at 17x P/E despite maintaining 40% gross margins and mid-single-digit comp growth.
7-factor investment score
- Valuation: 78/100 (weight 20%)
- Financial Health: 70/100 (weight 15%)
- Technical Momentum: 35/100 (weight 15%)
- Earnings Quality: 75/100 (weight 15%)
- Insider Sentiment: 40/100 (weight 10%)
- Analyst Consensus: 85/100 (weight 10%)
- Risk-Adjusted Return: 55/100 (weight 15%)
Ulta Beauty Inc opportunities and risks
What speaks for ULTA
- Valuation Relative to Peers
What speaks against ULTA
- Market Share Erosion from Multi-Channel Competitors
Peers and competitors
| Ticker | P/E | P/S | EV/EBITDA | Gross margin | Net margin | FCF yield |
|---|---|---|---|---|---|---|
| ULTA | 17.2x | 1.6x | 12.3x | 39.3% | 9.4% | 5.2% |
| DKS | 21.6x | 1.0x | 16.4x | 32.2% | 4.7% | 3.2% |
| TSCO | 15.2x | 1.0x | 11.6x | 32.5% | 6.9% | 3.4% |
| FIVE | 24.9x | 2.2x | 15.8x | 34.8% | 8.7% | 4.6% |
| CHWY | 40.1x | 0.6x | 24.1x | 29.7% | 1.6% | 7.3% |
| BBWI | 5.4x | 0.5x | 5.5x | 43.2% | 10.0% | 23.2% |
| Peer median | 21.6x | 1.0x | 15.8x | 32.5% | 6.9% | 4.6% |
Frequently asked questions about Ulta Beauty Inc (ULTA)
Is ULTA stock a good investment?
The cached TradeMates AI model rates Ulta Beauty Inc as HOLD with an investment score of 62/100. ULTA is a buy based on valuation extremis; the stock trades at 17x P/E despite maintaining 40% gross margins and mid-single-digit comp growth. This is algorithmic model output, not personal investment advice.
Is ULTA stock a buy?
The TradeMates model verdict for ULTA is HOLD with an investment score of 62/100. Treat this as a model signal to review, not a personal buy recommendation.