Sally Beauty Holdings, Inc. (SBH)
NYSEConsumer DiscretionarySpecialty RetailSnapshot 2026-09-04
$16.70+1.40%
Close 2026-09-04 · 1-day change
NYSEConsumer DiscretionarySpecialty RetailSnapshot 2026-09-04
QuarterlyIQ Insights · SBH
How strong the business is — where it ranks within its sector on capital efficiency and cash generation, and how well management has been executing.
How management runs the business: capital, margins, balance sheet, and how reliably they guide and deliver.
A guidance track record builds as the company issues and delivers on guidance.
Priorities management has stated in recent disclosures, with status and evidence drawn from earnings calls, filings, and press releases.
Focus on investing behind growth initiatives to reshape customer experience, expand reach, and strengthen competitive position for long-term profitable growth.
Stated as a priority in 3 of last 3 quarters. Adjusted diluted EPS grew from $0.48 in 2026-Q1 to $0.55 in 2026-Q3, and consolidated net sales increased 0.2% in 2026-Q3 compared to prior year. Management is delivering on profitable growth while investing in strategic initiatives.
Each factor is a parallel diagnostic with a clear read of what it shows and how names like it have historically fared. Never aggregated into a single score.
Operating income rose in 1 of the last 3 quarter-over-quarter moves. Historically, Consumer Discretionary names rated neutral grew net income 45% of the time over the next year (vs 59% for the rest of the cohort, n=6943).
Not investment advice. Scores describe historical and current data; they are not forecasts of future returns. Consult a licensed advisor before making investment decisions.
“We delivered solid EPS growth and strong cash flow while continuing to invest in initiatives reshaping customer experience, expanding reach and strengthening competitive position.”
“We delivered low-single digit sales growth, gross margin expansion, and strong cash flow from operations, driven by the compounding benefits of our growth initiatives.”
“We made continued progress on our strategic initiatives designed to accelerate growth and increase profitability.”
Continue generating approximately $200 million in free cash flow annually to invest in growth, reduce debt, and return value to shareholders.
Stated as a priority in 3 of last 3 quarters. Free cash flow was $57M in 2026-Q1, $44M in 2026-Q2, and $62M in 2026-Q3, supporting the annual target of approximately $200M. Management is delivering consistent free cash flow generation aligned with guidance.
“Free Cash Flow of $62 million in the quarter; reaffirming approximately $200 million for fiscal 2026.”
“Free Cash Flow of $44 million; reaffirming approximately $200 million for fiscal 2026.”
“Free Cash Flow of $57 million; reaffirming approximately $200 million for fiscal 2026.”
Target adjusted diluted earnings per share in the range of $2.04 to $2.10 for fiscal year 2026, reflecting profitable growth.
Stated as a priority in 3 of last 3 quarters. Adjusted diluted EPS guidance was raised from $2.02-$2.10 in 2026-Q1 and Q2 to a narrowed range of $2.04-$2.08 in 2026-Q3. The trajectory is consistent with management's stated EPS growth target.
“Adjusted Diluted EPS guidance narrowed to $2.04 to $2.08 for fiscal 2026.”
“Adjusted Diluted EPS guidance reaffirmed at $2.02 to $2.10 for fiscal 2026.”
“Adjusted Diluted EPS guidance raised to $2.02 to $2.10 for fiscal 2026.”
Continue to improve gross margin percentage through cost management and operational efficiencies across segments.
Stated as a priority in 3 of last 3 quarters. GAAP gross margin expanded from 51.2% in 2026-Q1 to 52.4% in 2026-Q3, showing consistent improvement. Management is delivering on margin expansion through operational improvements.
“GAAP gross margin expansion of 90 basis points to 52.4%.”
“GAAP gross margin expansion of 70 basis points to 52.7%.”
“GAAP gross margin expansion of 40 basis points to 51.2%.”
Use cash flow to repay debt and repurchase shares, targeting a net debt leverage ratio around 1.4x to 1.5x.
Stated as a priority in 3 of last 3 quarters. The company repaid $20 million term loan each quarter and repurchased shares, reducing net debt leverage ratio from 1.5x in 2026-Q1/Q2 to 1.4x in 2026-Q3. Management is delivering on disciplined cash deployment to reduce leverage.
“Completed $20 million term loan repayment and $25 million in share repurchases; net debt leverage ratio 1.4x.”
“Completed $20 million term loan repayment and $25 million in share repurchases; net debt leverage ratio 1.5x.”
“Completed $20 million term loan repayment and $21 million in share repurchases; net debt leverage ratio 1.5x.”
Over the trailing year it converted 1.57x of net income into operating cash flow. Historically, Consumer Discretionary names rated neutral grew net income 49% of the time over the next year (vs 49% for the rest of the cohort, n=4864).
Most sensitive to the broad stock market.
Not enough signal to read sensitivity to the US dollar, long-term interest rates, real (inflation-adjusted) rates, Fed net liquidity (low R² over the window).
6 material management or governance events in the past 24 months, led by executive changes. Historically, Consumer Discretionary names rated stable grew net income 47% of the time over the next year (vs 53% for the rest of the cohort, n=1906).
Not investment advice. As of 2026-09-04.