
SBH Stock Forecast & Price Target
SBH Analyst Ratings
Bulls say
Sally Beauty Holdings Inc. benefits from its strong positioning in the hair coloring market, evidenced by an impressive 25% increase in average transaction values (ATVs) among its professional customers compared to non-LCOD customers. The overall beauty category is projected to grow at rates ranging from low-single-digit to mid-single-digit percentages, with the prestige subcategory expected to experience even stronger growth. Furthermore, the company's strong free cash flow generation is leading to an improved balance sheet and enhanced flexibility in capital allocation, setting a solid foundation for future growth initiatives.
Bears say
Sally Beauty Holdings Inc. faces a challenging outlook primarily due to the reliance on franchisee performance, as deteriorating sales trends or economic conditions for Armstrong McCall’s franchisees could adversely impact financial results. Historical data indicates that the company has struggled to maintain strong earnings before interest and taxes (EBIT) margins, which were in the low-to-mid-teens range from FY13 to FY19, despite achieving slightly lower gross margins. Additionally, as of the end of the third quarter of 2025, the company carries significant long-term debt of $882 million with a net leverage ratio of approximately 1.7x, raising concerns regarding financial stability and future cash flow generation.
This aggregate rating is based on analysts' research of Sally Beauty Hlds and is not a guaranteed prediction by Public.com or investment advice.
SBH Analyst Forecast & Price Prediction
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