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Does The Data Make Ulta Beauty, Inc. (NASDAQ:ULTA) An Attractive Investment?

Heidi Stubbs

Attractive stocks have exceptional fundamentals. In the case of Ulta Beauty, Inc. (NASDAQ:ULTA), there’s is a company with great financial health as well as a a strong history of performance. Below, I’ve touched on some key aspects you should know on a high level. For those interested in understanding where the figures come from and want to see the analysis, take a look at the report on Ulta Beauty here.

Flawless balance sheet with outstanding track record

In the previous year, ULTA has ramped up its bottom line by 33%, with its latest earnings level surpassing its average level over the last five years. This strong performance generated a robust double-digit return on equity of 36%, which is an optimistic signal for the future. ULTA is financially robust, with ample cash on hand and short-term investments to meet upcoming liabilities. This suggests prudent control over cash and cost by management, which is a key determinant of the company’s health. Looking at ULTA’s capital structure, the company has no debt on its balance sheet. This means it is running its business only on equity capital funding, which is rather impressive for a US$17b market cap company. Therefore the company has plenty of headroom to grow, and the ability to raise debt should it need to in the future.

NasdaqGS:ULTA Income Statement Export January 20th 19

Next Steps:

For Ulta Beauty, I’ve compiled three pertinent aspects you should further research:

  1. Future Outlook: What are well-informed industry analysts predicting for ULTA’s future growth? Take a look at our free research report of analyst consensus for ULTA’s outlook.
  2. Valuation: What is ULTA worth today? Is the stock undervalued, even when its growth outlook is factored into its intrinsic value? The intrinsic value infographic in our free research report helps visualize whether ULTA is currently mispriced by the market.
  3. Other Attractive Alternatives : Are there other well-rounded stocks you could be holding instead of ULTA? Explore our interactive list of stocks with large potential to get an idea of what else is out there you may be missing!

To help readers see past the short term volatility of the financial market, we aim to bring you a long-term focused research analysis purely driven by fundamental data. Note that our analysis does not factor in the latest price-sensitive company announcements.

The author is an independent contributor and at the time of publication had no position in the stocks mentioned. For errors that warrant correction please contact the editor at editorial-team@simplywallst.com.