SBH
Consumer CyclicalSally Beauty Holdings, Inc. · Specialty Retail · $1B
What is Sally Beauty Holdings, Inc.?
Sally Beauty Holdings operates one of the largest specialty retail and distribution networks for professional beauty supplies in the world. The company serves both everyday consumers and licensed salon professionals across thousands of store locations.
The company runs two distinct segments. Sally Beauty Supply sells hair color, nail care, skincare, and styling tools directly to retail shoppers and salon professionals through its store network and online channels. Beauty Systems Group focuses exclusively on licensed salon professionals, supplying them through professional-only stores, a dedicated sales force, e-commerce, and franchised Armstrong McCall locations. Together, these segments give Sally Beauty reach across North America and several European markets.
Sally Beauty Holdings was incorporated in 2006 and is headquartered in Denton, Texas.
- Professional and retail hair color products from leading third-party brands
- Nail and skincare products for consumers and salon professionals
- Styling tools and accessories across price tiers
- Exclusive private-label beauty merchandise
- Professional-only distribution through Beauty Systems Group and Armstrong McCall franchises
Is SBH a Good Stock to Buy?
UQS Score rates SBH as Below Average overall, reflecting meaningful headwinds across several key pillars.
The Quality pillar stands out as the relative bright spot, suggesting the underlying business retains some operational discipline. The Valuation pillar is rated Attractive, meaning the stock may already reflect much of the concern priced into it relative to fundamentals.
The Moat, Growth, and Risk pillars all carry Weak ratings — pointing to limited competitive differentiation, a challenging growth outlook, and elevated financial or operational risk factors that investors should weigh carefully.
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Past performance does not guarantee future results. UQS Score is based on fundamental data and is not a buy/sell recommendation.
Does SBH pay dividends?
No — Sally Beauty Holdings, Inc. does not currently pay a dividend.
Sally Beauty Holdings does not currently pay a dividend. For a specialty retailer carrying meaningful debt, retaining cash flow to manage the balance sheet and fund operational priorities tends to take precedence over shareholder distributions. Income-focused investors should factor this into their assessment of SBH.
When does SBH report earnings?
Sally Beauty Holdings reports earnings on a quarterly cadence, consistent with standard practice for US-listed equities.
The company's recent results have reflected the pressures visible in its UQS Growth and Risk pillar ratings — a retail environment that has grown more competitive and a consumer base that remains price-sensitive. Trends in professional beauty demand and store traffic are key variables to watch each quarter.
For the most recent quarter's results and guidance, visit Sally Beauty Holdings' investor relations page directly.
SBH Price History
-30.4% over 5Y
Monthly close, adjusted for stock splits and dividend reinvestment.
What if I invested in Sally Beauty Holdings, Inc.?
Based on Sally Beauty Holdings, Inc.'s historical closing prices, adjusted for stock splits and dividend reinvestment. Past performance does not guarantee future results. This is for informational purposes only and is not financial advice.
SBH Long-term Outlook
The combination of Weak Growth and Weak Risk pillar ratings suggests the near-term fundamental outlook for SBH carries more uncertainty than opportunity. The specialty beauty retail space faces ongoing pressure from e-commerce alternatives and shifting consumer preferences. That said, the Attractive Valuation rating indicates the market may have already discounted a cautious scenario, leaving room for re-rating if execution improves.
Growth drivers
- Expansion of the professional-only Beauty Systems Group channel, which serves a more captive salon customer base
- Private-label and exclusive brand development that could improve margins relative to third-party brand sales
- Digital and e-commerce investment to capture beauty shoppers shifting online
Key risks
- Elevated financial risk reflected in the Weak Risk pillar, including balance sheet considerations
- Limited competitive moat in a fragmented specialty retail market with strong online alternatives
- Weak Growth pillar signals that top-line momentum may be difficult to sustain in the current environment
SBH vs Peers
Sally Beauty operates in a broader specialty retail and beauty distribution landscape alongside several distinct peers.
A Canadian specialty retailer focused on pet food and supplies rather than beauty, representing a different consumer niche within specialty retail.
A prestige haircare brand that sells through professional and retail channels — overlapping with Sally Beauty's supplier relationships but operating as a brand rather than a distributor.
A value-oriented thrift retailer serving cost-conscious consumers, sharing the small-cap specialty retail space but with a fundamentally different product category.
Frequently Asked Questions
What does Sally Beauty Holdings do?
Sally Beauty Holdings is a specialty retailer and distributor of professional beauty supplies. It operates two segments: Sally Beauty Supply, which serves retail consumers and salon professionals, and Beauty Systems Group, which distributes exclusively to licensed salon professionals through dedicated stores, a sales force, and franchised locations.
Does SBH pay dividends?
No, Sally Beauty Holdings does not currently pay a dividend. The company prioritizes retaining cash for operational and balance sheet needs rather than distributing income to shareholders. Investors seeking dividend income should note this when evaluating SBH.
When does SBH report earnings?
Sally Beauty Holdings follows a standard quarterly earnings cadence for US-listed companies. For exact dates and the most recent results, check the investor relations section of the company's official website, as our data source does not cover specific upcoming earnings dates.
Is SBH a good stock to buy?
UQS Score rates SBH as Below Average overall. While the Valuation pillar is Attractive and Quality is rated Good, the Moat, Growth, and Risk pillars all carry Weak ratings. Whether that profile suits your portfolio depends on your risk tolerance and investment horizon. View the full pillar breakdown on UQS Pro.
Is SBH overvalued?
The UQS Valuation pillar for SBH is rated Attractive, suggesting the stock is not considered expensive relative to its fundamentals at current levels. However, an attractive price alone does not offset the Weak ratings in Growth and Risk — context across all five pillars matters.
How does SBH compare to its competitors?
Sally Beauty competes in specialty retail alongside peers like Olaplex, which operates as a prestige haircare brand rather than a distributor. SBH's broad store network and dual-segment model give it scale, but its Weak Moat rating suggests limited structural advantages over alternatives in the beauty supply space.
What is SBH's market cap bracket?
Sally Beauty Holdings is classified as a small-cap company. This places it in a segment of the market that can carry higher volatility and liquidity considerations compared to large- or mega-cap peers, which is worth factoring into any position-sizing decisions.
Who founded Sally Beauty Holdings?
Sally Beauty Holdings was incorporated in 2006 as a standalone public company. The Sally Beauty brand itself has a longer operating history as part of larger retail conglomerates before the company became independently listed. Detailed founding history is widely available through public sources.
Is SBH a long-term quality investment?
As a long-term quality indicator, SBH's UQS profile presents a mixed picture. The Good Quality rating suggests some operational resilience, but Weak scores in Moat, Growth, and Risk raise questions about durable competitive positioning over time. Long-term investors should weigh these factors carefully before committing capital.
What is the main competitive advantage of Sally Beauty Holdings?
Sally Beauty's primary advantage lies in its scale as a specialty distributor — operating thousands of stores and a dedicated professional sales force across multiple countries. However, the UQS Moat pillar rates this advantage as Weak, reflecting the competitive pressure from online beauty retailers and brand-direct channels.
What sector does SBH belong to?
Sally Beauty Holdings is classified under the Consumer Cyclical sector. This means its business performance tends to be sensitive to consumer spending trends, discretionary income levels, and broader economic conditions — factors that can amplify both upside and downside in the stock.
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Pro Analysis
SBH — Score History
| Date | UQS | Quality | Moat | Growth | Risk | Value | Change |
|---|---|---|---|---|---|---|---|
| May 23, 2026 | 46.5 | 63.4 | 21.0 | 34.0 | 25.2 | 98.9 | -0.2 |
| May 7, 2026 | 46.7 | 63.7 | 21.0 | 35.5 | 24.4 | 98.8 | -0.1 |
| May 6, 2026 | 46.8 | 63.7 | 21.0 | 35.5 | 24.4 | 99.0 | +0.1 |
| Apr 26, 2026 | 46.7 | 63.7 | 21.0 | 35.2 | 24.4 | 99.0 | +0.1 |
| Apr 19, 2026 | 46.6 | 63.7 | 21.0 | 35.2 | 24.4 | 98.5 | -0.1 |
| Apr 18, 2026 | 46.7 | 63.7 | 21.0 | 35.2 | 24.4 | 98.8 | -0.2 |
| Apr 14, 2026 | 46.9 | 63.7 | 21.0 | 35.2 | 24.4 | 100.0 | -7.2 |
| Apr 13, 2026 | 54.1 | 63.7 | 50.0 | 35.2 | 24.4 | 100.0 | +7.2 |
| Apr 2, 2026 | 46.9 | 63.7 | 21.0 | 35.2 | 24.4 | 100.0 | — |
SBH — Pillar Breakdown
Quality
— 63.4/100 (25%)Sally Beauty Holdings, Inc. shows solid profitability with healthy returns on capital and reasonable margins.
How effectively capital is deployed to generate returns.
Profitability relative to shareholders' equity.
Ability to convert revenue into operating profit.
Bottom-line profit as a share of revenue.
Asset productivity — how much gross profit each dollar of assets generates.
Free cash flow relative to market value.
Growth
— 34.0/100 (20%)Sally Beauty Holdings, Inc. faces growth headwinds with declining or stagnant revenue trends.
Revenue trajectory over the last twelve months.
Compound annual revenue growth rate over 3 years.
Year-over-year earnings per share growth.
Analyst consensus for future revenue growth.
Analyst consensus for future earnings growth.
Risk
— 25.2/100 (15%)Sally Beauty Holdings, Inc. presents elevated risk with concerns around leverage or financial stability.
Debt levels relative to earnings capacity.
Total debt relative to shareholder equity.
Short-term liquidity — ability to pay near-term obligations.
Earnings capacity relative to interest payments.
Valuation
— 98.9/100 (15%)Sally Beauty Holdings, Inc. appears attractively valued relative to its earnings, cash flows, and sector peers.
Inverse of forward P/E — higher yield means cheaper stock.
How many years of FCF the market cap represents.
P/E relative to earnings growth — lower is more attractive.
Enterprise value multiple relative to sector median.
Moat
— 21/100 (25%)Sally Beauty Holdings, Inc. operates in a highly competitive environment with limited sustainable advantages. The Moat pillar evaluates competitive advantages across five dimensions: Switching Costs, Network Effects, Cost Advantage, Intangible Assets, and Scale & Ecosystem. Sign in to customize moat ratings for SBH.
Score Composition
Financial Data
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How is the SBH UQS Score Calculated?
The UQS (Unified Quality Score) for Sally Beauty Holdings, Inc. is calculated using a proprietary 6-pillar framework with 29 financial metrics. Each pillar evaluates a different dimension on a 0–100 scale, then combines into a single weighted score. Scoring thresholds are calibrated per sector. Momentum is an optional Pro toggle — without it, you get the 5-pillar / 25-metric core shown below.
Quality (25%) measures profitability and capital efficiency — ROIC, ROE, margins, GP/Assets, and FCF Yield.
Moat (25%) assesses Sally Beauty Holdings, Inc.'s competitive advantages across switching costs, network effects, cost advantages, intangible assets, and ecosystem scale.
Growth (20%) tracks revenue trajectory and earnings momentum, combining historical results with analyst forward estimates.
Risk (15%) is inversely scored — lower leverage and strong balance sheet health result in higher scores.
Valuation (15%) measures whether Sally Beauty Holdings, Inc. is fairly priced using earnings yield, price-to-FCF, PEG ratio, and EV/EBITDA relative to sector peers.
Six investor-inspired presets are available, each with different pillar weights: Balanced, Buffett, Munger, Lynch, Cathie Wood, and Graham. The public score shown here uses the Balanced preset. Learn more in our FAQ.