Sally Beauty HoldingsSBH +2.26%75 Return-on-Tangible-Equity is 71.60% as of Mar. 2026, which is 58% below its 10-year median of 169.72. 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 1,063 Retail - Cyclical companies, Sally Beauty Holdings ranks better than 92.47% on this metric.
Return-on-Tangible-Equity is calculated as Net Income divided by its average total shareholder tangible equity. Total shareholder tangible equity equals to Total Stockholders Equity minus Intangible Assets. Sally Beauty Holdings's annualized net income for the quarter that ended in Mar. 2026 was $171 Mil. Sally Beauty Holdings's average shareholder tangible equity for the quarter that ended in Mar. 2026 was $239 Mil. Therefore, Sally Beauty Holdings's annualized Return-on-Tangible-Equity for the quarter that ended in Mar. 2026 was 71.60%.
The historical rank and industry rank for Sally Beauty Holdings's Return-on-Tangible-Equity or its related term are showing as below:
SBH'
s Return-on-Tangible-Equity Range Over the Past 10 Years
Min: 96.47 Med: 169.72 Max: 169.72
Current: 96.47
During the past 13 years, Sally Beauty Holdings's highest Return-on-Tangible-Equity was 169.72%. The lowest was 96.47%. And the median was 169.72%.
SBH's Return-on-Tangible-Equity is ranked better than 92.47% of 1063
companies
in the Retail - Cyclical industry
Industry Median: 8.27
vs SBH: 96.47
Return-on-Tangible-Equity measures the rate of return on the ownership interest (shareholder's tangible equity) of the common stock owners. It measures a firm's efficiency at generating profits from every unit of shareholders' tangible equity (shareholders equity minus intangibles). Return-on-Tangible-Equity shows how well a company uses investment funds to generate earnings growth. Return-on-Tangible-Equitys between 15% and 20% are considered desirable.
Be Aware
Net Income is used.
Because a company can increase its Return-on-Tangible-Equity by having more financial leverage, it is important to watch the leverage ratio when investing in high Return-on-Tangible-Equity companies. Like Return-on-Tangible-Asset, Return-on-Tangible-Equity is calculated with only 12 months data. Fluctuations in company's earnings or business cycles can affect the ratio drastically. It is important to look at the ratio from a long term perspective.
Asset light businesses require very few assets to generate very high earnings. Their Return-on-Tangible-Equitys can be extremely high.
Sally Beauty Holdings Return-on-Tangible-Equity Related Terms
Sally Beauty Holdings Return-on-Tangible-Equity Historical Data
* Premium members only.
The historical data trend for Sally Beauty Holdings's Return-on-Tangible-Equity 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.
SBH vs EYE, WINA, OLPX: Return-on-Tangible-Equity Comparison
For the Specialty Retail subindustry, Sally Beauty Holdings's Return-on-Tangible-Equity, along with its competitors' market caps and Return-on-Tangible-Equity 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 Return-on-Tangible-Equity vs Retail - Cyclical Industry
For the Retail - Cyclical industry and Consumer Cyclical sector, Sally Beauty Holdings's Return-on-Tangible-Equity distribution charts can be found below:
* The bar in red indicates where Sally Beauty Holdings's Return-on-Tangible-Equity 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.
In the calculation of annual Return-on-Tangible-Equity, the net income of the last fiscal year and the average total shareholder tangible equity over the fiscal year are used. In calculating the quarterly data,
the net income data used here is four times the quarterly (Mar. 2026) net income data.
Return-on-Tangible-Equity is displayed in the 10-year financial page.
What does a Return-on-Tangible-Equity of 71.60% mean?
Sally Beauty Holdings (SBH) has a Return-on-Tangible-Equity of 71.60% as of Mar. 2026. Return on tangible equity is the ratio of current-period net income to average two-period tangible equity. View historical data on Sally Beauty Holdings and its competitors. This is 58% below median its historical median of 169.72. Over the past decade, Sally Beauty Holdings' Return-on-Tangible-Equity has ranged from 96.47 to 169.72. According to the industry distribution chart, Sally Beauty Holdings ranks #80 out of 1063 companies in the Retail - Cyclical industry, placing it in the top 7.5%.
Is Sally Beauty Holdings' Return-on-Tangible-Equity too high?
Sally Beauty Holdings' current Return-on-Tangible-Equity of 71.60% is 58% below median its 10-year median of 169.72. Over the past 10 years, this metric has ranged from a low of 96.47 to a high of 169.72. The Retail - Cyclical industry median Return-on-Tangible-Equity is 8.27. Sally Beauty Holdings' value of 71.60% is 765.8% above this industry median. Based on the distribution chart, Sally Beauty Holdings ranks #80 out of 1063 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' Return-on-Tangible-Equity compare to EYE and WINA?
According to the Retail - Cyclical industry distribution chart, Sally Beauty Holdings ranks #80 out of 1063 companies for Return-on-Tangible-Equity. This places Sally Beauty Holdings in the top 8% of its industry — outperforming the majority of peers. The industry median Return-on-Tangible-Equity is 8.27. Sally Beauty Holdings' value of 71.60% is 765.8% above this benchmark. Historically, Sally Beauty Holdings' own Return-on-Tangible-Equity has ranged from 96.47 to 169.72 over the past decade. While the company's 10-year median is 169.72 vs. the industry median of 8.27, 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 Return-on-Tangible-Equity for a Retail - Cyclical company?
The median Return-on-Tangible-Equity among Retail - Cyclical companies is 8.27, based on 1,063 companies in the industry. Companies in the top quartile (top 25%) have a Return-on-Tangible-Equity significantly above this median, while those in the bottom quartile fall well below. However, Return-on-Tangible-Equity should not be evaluated in isolation — investors should consider it alongside profitability, growth, and financial strength metrics. Sally Beauty Holdings's current Return-on-Tangible-Equity of 71.60% is 765.8% 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 Return-on-Tangible-Equity mean?
A high Return-on-Tangible-Equity can signal that a stock is expensive relative to its fundamentals. Return on tangible equity is the ratio of current-period net income to average two-period tangible equity. View historical data on Sally Beauty Holdings and its competitors. For the Retail - Cyclical industry, the median Return-on-Tangible-Equity is 8.27 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Sally Beauty Holdings's current Return-on-Tangible-Equity is 71.60%, which is 58% below median its own 10-year median of 169.72. 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 Return-on-Tangible-Equity is 71.60%, which is 58% below median its 10-year median of 169.72 and 765.8% above the Retail - Cyclical industry median of 8.27. 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 Return-on-Tangible-Equity calculated?
Return-on-Tangible-Equity is calculated from a company's financial statements. For Sally Beauty Holdings (SBH), the current Return-on-Tangible-Equity is 71.60% 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:
Return-on-Tangible-Equity: 71.60% (58% below median its 10-year median of 169.72)
GF Value™: $12.80 vs. price of $14.46 (13% above fair value)
Industry Position: 765.8% above the Retail - Cyclical median (#80 of 1063)
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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