Sally Beauty HoldingsSBH +2.26%75 Gross Margin % is 52.67% as of Mar. 2026, which is 5% above its 10-year median of 50.10. GuruFocus rates SBH with a GF Score™ of 75/100 and a GF Value™ of $12.80 (Modestly Overvalued). The stock has 3 warning signs investors should review. Among 1,117 Retail - Cyclical companies, Sally Beauty Holdings ranks better than 75.29% on this metric.
Warren Buffett believes that firms with excellent long term economics tend to have consistently higher margins.
Durable competitive advantage creates a high Gross Margin % because of the freedom to price in excess of cost. Companies can be categorized by their Gross Margin %
1. Greater than 40% = Durable competitive advantage
2. Less than 40% = Competition eroding margins
3. Less than 20% = no sustainable competitive advantage
Consistency of Gross Margin is key
Sally Beauty Holdings had a gross margin of 52.67% for the quarter that ended in Mar. 2026 => Durable competitive advantage
Be Aware
If a company loses its competitive advantages, usually its gross margin declines well before its sales declines. Watching Gross Margin % and Operating Margin % closely helps avoid value trap situations.
Sally Beauty Holdings Gross Margin % Related Terms
Sally Beauty Holdings Gross Margin % Historical Data
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The historical data trend for Sally Beauty Holdings's Gross Margin % 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.
For the Specialty Retail subindustry, Sally Beauty Holdings's Gross Margin %, along with its competitors' market caps and Gross Margin % 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 Gross Margin % vs Retail - Cyclical Industry
For the Retail - Cyclical industry and Consumer Cyclical sector, Sally Beauty Holdings's Gross Margin % distribution charts can be found below:
* The bar in red indicates where Sally Beauty Holdings's Gross Margin % falls into.
* 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.
A positive Gross Profit is only the first step for a company to make a net profit. The gross profit needs to be big enough to also cover related labor, equipment, rental, marketing/advertising, research and development and a lot of other costs in selling the products.
Sally Beauty Holdings (SBH) has a Gross Margin % of 52.67% as of Mar. 2026. Gross margin is the ratio of total gross profit to net sales. View historical data on Sally Beauty Holdings and its competitors. This is near median its historical median of 50.10. Over the past decade, Sally Beauty Holdings' Gross Margin % has ranged from 48.82 to 51.90. According to the industry distribution chart, Sally Beauty Holdings ranks #276 out of 1117 companies in the Retail - Cyclical industry, placing it in the top 24.7%.
Is Sally Beauty Holdings' Gross Margin % too high?
Sally Beauty Holdings' current Gross Margin % of 52.67% is near median its 10-year median of 50.10. Over the past 10 years, this metric has ranged from a low of 48.82 to a high of 51.90. The Retail - Cyclical industry median Gross Margin % is 36.23. Sally Beauty Holdings' value of 52.67% is 45.4% above this industry median. Based on the distribution chart, Sally Beauty Holdings ranks #276 out of 1117 companies in the Retail - Cyclical industry, which is in the top quartile — a strong position relative to peers. Overall, Sally Beauty Holdings has a GF Score™ of 75/100 and is considered Modestly Overvalued, reflecting its overall financial health beyond just this single metric.
How does Sally Beauty Holdings' Gross Margin % compare to EYE and WINA?
According to the Retail - Cyclical industry distribution chart, Sally Beauty Holdings ranks #276 out of 1117 companies for Gross Margin %. This places Sally Beauty Holdings in the top 25% of its industry — outperforming the majority of peers. The industry median Gross Margin % is 36.23. Sally Beauty Holdings' value of 52.67% is 45.4% above this benchmark. Historically, Sally Beauty Holdings' own Gross Margin % has ranged from 48.82 to 51.90 over the past decade. While the company's 10-year median is 50.10 vs. the industry median of 36.23, Sally Beauty Holdings has consistently been above the industry average. See the competitive comparison table and distribution chart on this page for a detailed peer-by-peer breakdown.
What is a good Gross Margin % for a Retail - Cyclical company?
The median Gross Margin % among Retail - Cyclical companies is 36.23, based on 1,117 companies in the industry. Companies in the top quartile (top 25%) have a Gross Margin % significantly above this median, while those in the bottom quartile fall well below. However, Gross Margin % should not be evaluated in isolation — investors should consider it alongside profitability, growth, and financial strength metrics. Sally Beauty Holdings's current Gross Margin % of 52.67% is 45.4% above the industry median. Use the industry distribution chart on this page to see where any company falls relative to its peers.
What does a high Gross Margin % mean?
A high Gross Margin % can signal that a stock is expensive relative to its fundamentals. Gross margin is the ratio of total gross profit to net sales. View historical data on Sally Beauty Holdings and its competitors. For the Retail - Cyclical industry, the median Gross Margin % is 36.23 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Sally Beauty Holdings's current Gross Margin % is 52.67%, which is near median its own 10-year median of 50.10. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Sally Beauty Holdings stock overvalued right now?
Based on GuruFocus' analysis, Sally Beauty Holdings (SBH) is currently considered Modestly Overvalued. The stock's GF Value™ is $12.80, compared to a current price of $14.46 — trading 13% above its estimated fair value. The current Gross Margin % is 52.67%, which is near median its 10-year median of 50.10 and 45.4% above the Retail - Cyclical industry median of 36.23. Sally Beauty Holdings' overall GF Score™ is 75/100 with 3 warning signs to review. Investors should evaluate multiple metrics — including profitability, growth, and financial strength — before making a decision.
How is Gross Margin % calculated?
Gross Margin % is calculated from a company's financial statements. For Sally Beauty Holdings (SBH), the current Gross Margin % is 52.67% as of Mar. 2026. GuruFocus calculates this using data sourced from SEC filings and annual reports. See the calculation section and 30-year financial data on this page for the full breakdown.
Is Sally Beauty Holdings (SBH) Overvalued in 2026?
Based on GuruFocus' analysis, Sally Beauty Holdings stock appears to be overvalued.
The current stock price of $14.46 is trading 13% above its estimated GF Value™ of $12.80.
GuruFocus considers Sally Beauty Holdings to be Modestly Overvalued.
Key valuation signals for SBH:
Gross Margin %: 52.67% (near median its 10-year median of 50.10)
GF Value™: $12.80 vs. price of $14.46 (13% above fair value)
Industry Position: 45.4% above the Retail - Cyclical median (#276 of 1117)
No single metric tells the full story. See the SBH stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
Sally Beauty Holdings Inc is a professional beauty-products retailer based in the United States. The company operates throughout the United States, Puerto Rico, the United Kingdom, Belgium, Canada, Chile, Mexico, Peru, France, Ireland, Spain, Germany, Netherlands, and other geographical regions. The company operates through two business segments: Sally Beauty Supply and Beauty Systems Group. The products offered by the company include hair color and care, hair dryers and hair-styling appliances, nail care, skin care, and others.
75GF Score
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