ULTA Ulta Beauty Inc

Ulta Beauty operates the largest US specialty beauty retailer, offering cosmetics, skincare, haircare, and salon services across its stores and online channels. Sector: Consumer Discretionary.

Ulta Beauty Inc (ULTA) is an individual stock. The analysis below presents key financial metrics for the company, covering profitability, capital efficiency, valuation, margins, and growth.

Through the lens of capital efficiency, ROIC is 23.97%, WACC is 9.05%, and the economic spread is 14.92%. On balance, the gap between operating returns and funding costs is healthy, pointing to businesses with genuine pricing and reinvestment advantages. Supporting metrics show ROE at 44.05% and ROA at 16.20%, a combination that helps frame whether profitability strength is broad enough to hold through different market conditions. Taken together, the return profile suggests a company with credible compounding capacity if current operating execution persists.

From a market pricing perspective, trailing P/E of 20.77, forward P/E of 18.57, PEG of 1.59. With trailing and forward P/E closely aligned, the market appears to be pricing the company on the assumption that earnings remain broadly stable near term. On a growth-adjusted basis, valuation appears reasonable relative to expected growth. The company's weighted current ratio of 1.41 suggests near-term liquidity is more constrained than average. The overall valuation picture is one where the market is paying for a specific earnings and growth outcome — and where any deviation from that path would likely pressure multiples.

The margin profile breaks down as follows: gross margin sits at 41.08%, operating margin at 12.44%, and free cash flow margin at 8.62%. Gross margins are in good shape, suggesting the the company maintain pricing discipline at the revenue-to-cost interface. Operating margins are modest, suggesting overhead costs are consuming a meaningful share of gross profit. The company's FCF margin is adequate — cash generation is present, but capital expenditure needs absorb a notable portion of earnings. This stack calls for monitoring: profitability is present, but conversion from revenue to operating income to free cash is not fully consistent.

The growth and outlook picture reads as follows: TTM revenue growth of 11.78% pointing to reasonable revenue execution across the company. In parallel, analyst consensus projects significant upside from current levels based on current consensus targets. The gap between trailing fundamentals and forward expectations matters most at inflection points — and the current environment is not without those. For long-term holders, the central question is whether today's execution quality is a leading indicator of what's already priced into analyst targets. The estimated 12-month price change is based on analyst consensus price target estimates, sourced from publicly available data, and should not be interpreted as a reliable prediction of future performance.

Reviewed in aggregate, this is a high-quality profile with few clear structural weaknesses — a combination that historically tends to support above-average long-term outcomes.

This assessment is based solely on the quantitative metrics presented above and does not constitute financial advice. Investors should consider their own risk tolerance and conduct independent research before making investment decisions.