SBH (Sally Beauty Holdings) Operating Income: $306 Mil (TTM As of Mar. 2026)

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SBH Sally Beauty Holdings Inc SBH
75 GF Score
Price $14.97
GF Value $12.86
Valuation Modestly Overvalued
! 4 Warning Signs
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What is Sally Beauty Holdings Operating Income?

Sally Beauty Holdings SBH -2.48% 75 Operating Income is $306 Mil as of Mar. 2026. GuruFocus rates SBH with a GF Score™ of 75/100 and a GF Value™ of $12.86 (Modestly Overvalued). The stock has 4 warning signs investors should review.

Sally Beauty Holdings's Operating Income for the three months ended in Mar. 2026 was $72 Mil. Its Operating Income for the trailing twelve months (TTM) ended in Mar. 2026 was $306 Mil.

Operating Margin % is calculated as Operating Income divided by its Revenue. Sally Beauty Holdings's Operating Income for the three months ended in Mar. 2026 was $72 Mil. Sally Beauty Holdings's Revenue for the three months ended in Mar. 2026 was $903 Mil. Therefore, Sally Beauty Holdings's Operating Margin % for the quarter that ended in Mar. 2026 was 7.96%.

Warning Sign:

Sally Beauty Holdings Inc operating margin has been in a 5-year decline. The average rate of decline per year is -1.3%.

Sally Beauty Holdings's 5-Year average Growth Rate for Operating Margin % was -1.30% per year.

Operating Income or EBIT is linked to Return on Capital for both regular definition and Joel Greenblatt's definition. Sally Beauty Holdings's annualized ROC % for the quarter that ended in Mar. 2026 was 8.88%. Sally Beauty Holdings's annualized ROC (Joel Greenblatt) % for the quarter that ended in Mar. 2026 was 18.09%.


Sally Beauty Holdings  (NYSE:SBH) Operating Income Explanation

1. Operating Income or EBIT is linked to Return on Capital for both regular definition and Joel Greenblatt's definition.

Sally Beauty Holdings's annualized ROC % for the quarter that ended in Mar. 2026 is calculated as:

ROC % (Q: Mar. 2026 )
=NOPAT/Average Invested Capital
=Operating Income * ( 1 - Tax Rate % )/( (Invested Capital (Q: Dec. 2025 ) + Invested Capital (Q: Mar. 2026 ))/ count )
=287.724 * ( 1 - 26.09% )/( (2391.188 + 2398.977)/ 2 )
=212.6568084/2395.0825
=8.88 %

where

Invested Capital(Q: Dec. 2025 )
=Total Assets - Accounts Payable & Accrued Expense - Excess Cash
=Total Assets - Accounts Payable & Accrued Expense - ( Cash, Cash Equivalents, Marketable Securities - max(0, Total Current Liabilities - Total Current Assets+Cash, Cash Equivalents, Marketable Securities))
=2850.778 - 302.405 - ( 157.185 - max(0, 542.17 - 1285.685+157.185))
=2391.188

Invested Capital(Q: Mar. 2026 )
=Total Assets - Accounts Payable & Accrued Expense - Excess Cash
=Total Assets - Accounts Payable & Accrued Expense - ( Cash, Cash Equivalents, Marketable Securities - max(0, Total Current Liabilities - Total Current Assets+Cash, Cash Equivalents, Marketable Securities))
=2853.29 - 296.912 - ( 157.401 - max(0, 553.485 - 1292.76+157.401))
=2398.977

Note: The Operating Income data used here is four times the quarterly (Mar. 2026) data.

2. Joel Greenblatt's definition of Return on Capital:

Sally Beauty Holdings's annualized ROC (Joel Greenblatt) % for the quarter that ended in Mar. 2026 is calculated as:

ROC (Joel Greenblatt) %(Q: Mar. 2026 )
=EBIT/Average of (Net fixed Assets + Net Working Capital)
=EBIT/Average of (Property, Plant and Equipment+Net Working Capital)
     Q: Dec. 2025  Q: Mar. 2026
=EBIT/( ( (Property, Plant and Equipment + Net Working Capital) + (Property, Plant and Equipment + Net Working Capital) )/ count )
=287.724/( ( (922.626 + max(670.007, 0)) + (920.741 + max(667.523, 0)) )/ 2 )
=287.724/( ( 1592.633 + 1588.264 )/ 2 )
=287.724/1590.4485
=18.09 %

where Working Capital is:

Working Capital(Q: Dec. 2025 )
=(Accounts Receivable + Total Inventories + Other Current Assets) - (Accounts Payable & Accrued Expense + Defer. Rev. + Other Current Liabilities)
=(26.842 + 978.789 + 45.444) - (302.405 + 15.619 + 63.044)
=670.007

Working Capital(Q: Mar. 2026 )
=(Accounts Receivable + Total Inventories + Other Current Assets) - (Accounts Payable & Accrued Expense + Defer. Rev. + Other Current Liabilities)
=(26.231 + 986.787 + 46.94) - (296.912 + 14.443 + 81.08)
=667.523

When net working capital is negative, 0 is used.

Note: The EBIT data used here is four times the quarterly (Mar. 2026) EBIT data.

3. Operating Income is also linked to Operating Margin %:

Sally Beauty Holdings's Operating Margin % for the quarter that ended in Mar. 2026 is calculated as:

Operating Margin %=Operating Income (Q: Mar. 2026 )/Revenue (Q: Mar. 2026 )
=71.931/903.382
=7.96 %

* 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.

4. Please click Growth Rate Calculation Example (GuruFocus) to see how GuruFocus calculates Wal-Mart Stores Inc (WMT)'s revenue growth rate. You can apply the same method to get the Operating Income growth rate using Operating Income per share data.


Be Aware

Compared with a company's EBITDA margin, Operating Margin can be manipulated by adjusting the rate of depreciation, depletion and amortization (DDA).

If a company is facing competition, its Operating Margin may decline. Often the Operating Margin declines well before the company's revenue or even profit decline. Therefore, Operating Margin is a very important indicator of whether the company is facing problems.

For instance, by 2012, Nokia (NOK)'s problems were well known and its stock had lost more than 90% of its market value since 2007. But Nokia's Operating Margin had already been in decline since 2002, although its earnings per share were still rising. Investors who paid attention to Operating Margin would have avoided this huge loss. The same can be said for Research-in-Motion (RIMM).

Therefore, Operating Margin is a very important screening filter for GuruFocus. GuruFocus's Buffett-Munger screener requires that the profit margin is either consistent or expanding. The Model Portfolio of the Buffett-Munger screener has outperformed the market every year since inception in 2009.


Sally Beauty Holdings Operating Income Related Terms


Sally Beauty Holdings Operating Income Historical Data

* Premium members only.

The historical data trend for Sally Beauty Holdings's Operating Income 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.

Sally Beauty Holdings Operating Income Chart

Sally Beauty Holdings Annual Data
Trend Sep16 Sep17 Sep18 Sep19 Sep20 Sep21 Sep22 Sep23 Sep24 Sep25
Operating Income
Get a 7-Day Free Trial Premium Member Only Premium Member Only 423.05 365.22 342.23 282.66 327.81

Sally Beauty Holdings Quarterly Data
Jun21 Sep21 Dec21 Mar22 Jun22 Sep22 Dec22 Mar23 Jun23 Sep23 Dec23 Mar24 Jun24 Sep24 Dec24 Mar25 Jun25 Sep25 Dec25 Mar26
Operating Income Get a 7-Day Free Trial 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 69.37 78.17 79.94 75.94 71.93
SBH
75GF Score
Sally Beauty Holdings Inc SBH
Operating Income is just one metric. See GF Score™, valuation, warning signs, and more.
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Sally Beauty Holdings Operating Income Calculation

Operating Income, is the profit a company earned through operations. All expenses, including cash expenses such as cost of goods sold (COGS), research & development, wages, and non-cash expenses, such as depreciation, depletion and amortization, have been deducted from the sales.

Operating Income for the trailing twelve months (TTM) ended in Mar. 2026 adds up the quarterly data reported by the company within the most recent 12 months, which was $306 Mil.

* 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.

Frequently Asked Questions Learn more about Operating Income →
What does a Operating Income of $306 Mil mean?
Sally Beauty Holdings (SBH) has a Operating Income of $306 Mil as of Mar. 2026. Operating Income equals sales less all operating expenses. It is linked to EBIT. View historical data on Sally Beauty Holdings and its competitors.
Is Sally Beauty Holdings' Operating Income too high?
Sally Beauty Holdings' current Operating Income is $306 Mil. 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' Operating Income compare to OLPX and SVV?
Sally Beauty Holdings' Operating Income of $306 Mil can be compared against companies in the Retail - Cyclical industry. See the competitive comparison table and distribution chart on this page for a detailed peer-by-peer breakdown.
What is a good Operating Income for a Retail - Cyclical company?
A good Operating Income depends on the Retail - Cyclical industry context. However, Operating Income should not be evaluated in isolation — investors should consider it alongside profitability, growth, and financial strength metrics. Use the industry distribution chart on this page to see where any company falls relative to its peers.
What does a high Operating Income mean?
A high Operating Income can signal that a stock is expensive relative to its fundamentals. Operating Income equals sales less all operating expenses. It is linked to EBIT. View historical data on Sally Beauty Holdings and its competitors. Sally Beauty Holdings's current Operating Income is $306 Mil. 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 $12.86, compared to a current price of $14.97 — trading 16.4% above its estimated fair value. The current Operating Income is $306 Mil. Sally Beauty Holdings' overall GF Score™ is 75/100 with 4 warning signs to review. Investors should evaluate multiple metrics — including profitability, growth, and financial strength — before making a decision.
How is Operating Income calculated?
Operating Income is calculated from a company's financial statements. For Sally Beauty Holdings (SBH), the current Operating Income is $306 Mil 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 $14.97 is trading 16.4% above its estimated GF Value™ of $12.86. GuruFocus considers Sally Beauty Holdings to be Modestly Overvalued.

Key valuation signals for SBH:

  • Operating Income: $306 Mil
  • GF Value™: $12.86 vs. price of $14.97 (16.4% above fair value)
  • GF Score™: 75/100 with 4 warning signs

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 Business Description

Other Exchanges S7V:Germany
Address 3001 Colorado Boulevard, Denton, TX, USA, 76210
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

Get the complete analysis for SBH

Operating Income is just one metric. See GF Value™, 30-year financials, guru trades, warning signs, and more.

$14.97
Price
$12.86
GF Value