Investment Analysis of Ulta Beauty Inc (ULTA)

ULTA April 28, 2025 By Brad

Investment Thesis Buy

Investment Criteria
Anticipated Hold Period:

Long-term (3-5 years)

Investment Amount

$833

Decision

Buy

Conviction Level

Medium - Wouldn't bet the farm on it... but maybe the tractor.

Your Share of Net Income

$54.92

Competitive Analysis
Competitive Advantage

No competitive advantage analysis provided.

Key Non-Financial Metrics

No key metrics provided.

Net Income Projections
Net Income
CAGR: 17.6%
Analyst Notes:

No comments provided by the analyst.

Operating Margin Analysis
CAGR: 0.4%
Analyst Notes:

No comments provided by the analyst.

What is Operating Margin?

Operating margin measures a company's profit from operations as a percentage of revenue. It shows how efficiently a company can generate profit from its core business operations, before accounting for interest and taxes. Higher margins typically indicate better operational efficiency.

Dividends
Analyst Notes:

No comments provided by the analyst.

Payout Ratio
Analyst Notes:

No comments provided by the analyst.

Revenue
CAGR: 14.7%
Analyst Notes:

No comments provided by the analyst.

Avg Annual Growth Rate (10Y)
Balance Sheet Cash
CAGR: 6.0%
Analyst Notes:

No comments provided by the analyst.

Debt
Analyst Notes:

No comments provided by the analyst.

Free Cash Flow
CAGR: 33.8%
Analyst Notes:

No comments provided by the analyst.

Cash Flow from Operations
CAGR: 17.6%
Analyst Notes:

No comments provided by the analyst.

Comments

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1 Comment
Brad
May 31, 2025, 03:22 AM

Update 5/30/2025: Ulta reported its earnings, and it was definitely a mixed bag from my perspective. Looks like their earnings were flat year-over-year. All things considered from a macro standpoint, that's not so bad. And same store sales grew by around 2.9% - certainly a healthy metric. But I was hoping that my makeup line of business would have grown both top line and bottom line a bit more. Ehh, it's just one quarter ... with lots of headwinds due to things outside of their control (this tariffs stuff) ... and a very strong management track record. I'm not about to exit this business now! Especially not when my earnings yield is above 5% ... and growing.