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Sally Beauty Holdings Earnings Yield (Joel Greenblatt) %

: 13.62% (As of Jun. 2022)
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Sally Beauty Holdings's Enterprise Value for the quarter that ended in Jun. 2022 was $3,005 Mil. Sally Beauty Holdings's EBIT for the trailing twelve months (TTM) ended in Jun. 2022 was $410 Mil. Sally Beauty Holdings's Earnings Yield (Joel Greenblatt) for the quarter that ended in Jun. 2022 was 13.62%.

The historical rank and industry rank for Sally Beauty Holdings's Earnings Yield (Joel Greenblatt) % or its related term are showing as below:

SBH' s Earnings Yield (Joel Greenblatt) % Range Over the Past 10 Years
Min: 6.52   Med: 8.88   Max: 15.07
Current: 12.08

During the past 13 years, the highest Earnings Yield (Joel Greenblatt) of Sally Beauty Holdings was 15.07%. The lowest was 6.52%. And the median was 8.88%.

SBH's Earnings Yield (Joel Greenblatt) % is ranked better than
77.41% of 1120 companies
in the Retail - Cyclical industry
Industry Median: 5.41 vs SBH: 12.08

Joel Greenblatt's definition of earnings yield has the same problems the regular earnings yield does. It does not consider the growth of the company. It only looks at one-year's business operation. For cyclical companies, the earnings yield is usually highest at the peak of the business cycle. But these earnings are rarely sustainable.

A better indicator of the attractiveness of an investment which takes growth into account is the Forward Rate of Return (Yacktman) %. Sally Beauty Holdings's Forward Rate of Return (Yacktman) % for the quarter that ended in Jun. 2022 was 16.26%. The Forward Rate of Return uses the normalized Free Cash Flow of the past seven years, and considers growth. The forward rate of return can be thought of as the return that investors buying the stock today can expect from it in the future.


Sally Beauty Holdings Earnings Yield (Joel Greenblatt) % Historical Data

The historical data trend for Sally Beauty Holdings's Earnings Yield (Joel Greenblatt) % can be seen below:

* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD.
* For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.

* Premium members only.

Sally Beauty Holdings Annual Data
Trend Sep12 Sep13 Sep14 Sep15 Sep16 Sep17 Sep18 Sep19 Sep20 Sep21
Earnings Yield (Joel Greenblatt) %
Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only 11.03 10.93 14.06 9.22 12.15

Sally Beauty Holdings Quarterly Data
Sep17 Dec17 Mar18 Jun18 Sep18 Dec18 Mar19 Jun19 Sep19 Dec19 Mar20 Jun20 Sep20 Dec20 Mar21 Jun21 Sep21 Dec21 Mar22 Jun22
Earnings Yield (Joel Greenblatt) % Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only 10.26 12.15 11.61 12.90 13.62

Competitive Comparison

For the Specialty Retail subindustry, Sally Beauty Holdings's Earnings Yield (Joel Greenblatt) %, along with its competitors' market caps and Earnings Yield (Joel Greenblatt) % data, can be viewed below:

* Competitive companies are chosen from companies within the same industry, with headquarter located in same country, with closest market capitalization; x-axis shows the market cap, and y-axis shows the term value; the bigger the dot, the larger the market cap. Note that "N/A" values will not show up in the chart.

   

Sally Beauty Holdings Earnings Yield (Joel Greenblatt) % Distribution

For the Retail - Cyclical industry and Consumer Cyclical sector, Sally Beauty Holdings's Earnings Yield (Joel Greenblatt) % distribution charts can be found below:

* The bar in red indicates where Sally Beauty Holdings's Earnings Yield (Joel Greenblatt) % falls into.



Sally Beauty Holdings Earnings Yield (Joel Greenblatt) % Calculation

In his book, The Little That Beat the Market, hedge fund manager Joel Greenblatt defines Earnings Yield as operating income divided by enterprise value.

Sally Beauty Holdingss Earnings Yield (Joel Greenblatt) for the fiscal year that ended in Sep. 2021 is calculated as

Earnings Yield (Joel Greenblatt)=EBIT/Enterprise Value
=418.443/3444.73005
=12.15 %

Sally Beauty Holdings's EBIT for the trailing twelve months (TTM) ended in Jun. 2022 adds up the quarterly data reported by the company within the most recent 12 months, which was $410 Mil.



Sally Beauty Holdings  (NYSE:SBH) Earnings Yield (Joel Greenblatt) % Explanation

Joel Greenblatt defines the earnings yield using the above equation because it more accurately reflects the company's profitability relative to its stock price. Items like interest payment and tax etc. are not directly related to the company's operational profitability.

Enterprise Value instead of market cap (share price) is used in the calculation because it is the real price stock and bond investors together pay for the company.


Be Aware

Joel Greenblatt's definition of earnings yield has the same problems the regular earnings yield does. It does not consider the growth of the company. It only looks at one-year's business operation. For cyclical companies, the earnings yield is usually highest at the peak of the business cycle. But these earnings are rarely sustainable.

Forward Rate of Return (Yacktman) % based on Don Yacktman's definition is a better measure of the expected rate of return for a stock.


Sally Beauty Holdings Earnings Yield (Joel Greenblatt) % Related Terms

Thank you for viewing the detailed overview of Sally Beauty Holdings's Earnings Yield (Joel Greenblatt) % provided by GuruFocus.com. Please click on the following links to see related term pages.


Sally Beauty Holdings Business Description

Sally Beauty Holdings logo
Traded in Other Exchanges
Address
3001 Colorado Boulevard, Denton, TX, USA, 76210
Sally Beauty Holdings Inc is a professional beauty-products retailer based in the United States. Sally Beauty operates throughout the United States, Puerto Rico, the United Kingdom, Belgium, Canada, Chile, Colombia, Mexico, Peru, France, Ireland, Spain, Germany, and the Netherlands. The company operates through two business segments: Sally Beauty Supply and Beauty Systems Group. Product offerings include hair color and care, hair dryers and hair-styling appliances, nail care, skin care, and others.
Executives
Heasley Linda director 4 BATTERYMARCH PARK QUINCY MA 02169
Paulonis Denise director, officer: President & CEO 8000 BENT BRANCH DRIVE IRVING TX 75063
Mcmaster Robert R director, other: Chairman of the Board 907-B EAST MAIN STREET HUMBLE TX 77338-4662
Platz Marlo Michelle Cormier officer: SVP, CFO 2180 RUTHERFORD ROAD CARLSBAD CA 92008
Miller John A director 3001 COLORADO BLVD DENTON TX 76210
Eisenberg Marshall E director TWO NORTH LASALLE STREET CHICAGO IL 60602
Rabin Edward W director 200 WEST MADISON STE.3900 CHICAGO IL 60606
Kohn Pamela K officer: See Remarks 3001 COLORADO BLVD DENTON TX 76210
Spinks Mark Gregory officer: See Remarks 3001 COLORADO BLVD. DENTON TX 76210
Henrich John M officer: See Remarks 3001 COLORADO BLVD DENTON TX 76210
Sherman Scott C officer: SVP & CHRO 3001 COLORADO BLVD. DENTON TX 76210
Mulder Susan R director 3001 COLORADO BLVD. DENTON TX 76210
Cox Erin Nealy director 3001 COLORADO BLVD. DENTON TX 76210
Goss John Howard Jr officer: See Remarks 3001 COLORADO BLVD DENTON TX 76210
Edwards Mary Beth Beth officer: SVP, CIO & CTO 3001 COLORADO BLVD DENTON TX 76210

Sally Beauty Holdings Headlines

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