Ulta BeautyFRA:34U +5.21%96 ROA % is 19.65% as of Apr. 2026, which is 3% below its 10-year median of 20.18. GuruFocus rates FRA:34U with a GF Score™ of 96/100 and a GF Value™ of €487.50 (Modestly Undervalued). The stock has 2 warning signs investors should review. Among 1,134 Retail - Cyclical companies, Ulta Beauty ranks better than 94.89% on this metric.
ROA % is calculated as Net Income divided by its average Total Assets over a certain period of time. Ulta Beauty's annualizedNet Income for the quarter that ended in Apr. 2026 was €1,164 Mil.
Ulta Beauty's average Total Assets over the quarter that ended in Apr. 2026 was €5,926 Mil. Therefore, Ulta Beauty's annualized ROA % for the quarter that ended in Apr. 2026 was 19.65%.
The historical rank and industry rank for Ulta Beauty's ROA % or its related term are showing as below:
FRA:34U'
s ROA % Range Over the Past 10 Years
Min: 3.53 Med: 20.18 Max: 24.52
Current: 17.73
During the past 13 years, Ulta Beauty's highest ROA % was 24.52%. The lowest was 3.53%. And the median was 20.18%.
FRA:34U's ROA % is ranked better than 94.89% of 1134
companies
in the Retail - Cyclical industry
Industry Median: 2.725
vs FRA:34U: 17.73
Ulta Beauty (FRA:34U) ROA % Explanation
ROA % measures the rate of return on the total assets (shareholder equity plus liabilities). It measures a firm's efficiency at generating profits from shareholders' equity plus its liabilities. ROA % shows how well a company uses what it has to generate earnings. ROA %s can vary drastically across industries. Therefore, ROA % should not be used to compare companies in different industries. For retailers, a ROA % of higher than 5% is expected. For example, Wal-Mart (WMT) has a ROA % of about 8% as of 2012. For banks, ROA % is close to their interest spread. A banks ROA % is typically well under 2%.
Similar to ROE, ROA % is affected by profit margins and asset turnover. This can be seen from the Du Pont Formula:
Note:
The Net Income data used here is four times the quarterly (Apr. 2026) net income data. The Revenue data used here is four times the quarterly (Apr. 2026) revenue data.
* 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.
Be Aware
Like ROE, ROA % is calculated with only 12 months data. Fluctuations in the company's earnings or business cycles can affect the ratio drastically. It is important to look at the ratio from a long term perspective. ROA % can be affected by events such as stock buyback or issuance, and by goodwill, a company's tax rate and its interest payment. ROA % may not reflect the true earning power of the assets. A more accurate measurement is ROC % (ROC).
Many analysts argue the higher return the better. Buffett states that really high ROA % may indicate vulnerability in the durability of the competitive advantage.
E.g. Raising $43b to take on KO is impossible, but $1.7b to take on Moody's is. Although Moody's ROA % and underlying economics is far superior to Coca Cola, the durability is far weaker because of lower entry cost.
Ulta Beauty ROA % Related Terms
Ulta Beauty ROA % Historical Data
* Premium members only.
The historical data trend for Ulta Beauty's ROA % 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, Ulta Beauty's ROA %, along with its competitors' market caps and ROA % 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.
Ulta Beauty ROA % vs Retail - Cyclical Industry
For the Retail - Cyclical industry and Consumer Cyclical sector, Ulta Beauty's ROA % distribution charts can be found below:
* The bar in red indicates where Ulta Beauty's ROA % 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 ROA %, the net income of the last fiscal year and the average total assets over the fiscal year are used. In calculating the quarterly data,
the Net Income data used here is four times the quarterly (Apr. 2026) net income data.
ROA % is displayed in the 30-year financial page.
Ulta Beauty (FRA:34U) has a ROA % of 19.65% as of Apr. 2026. Return on assets is the ratio of current-period net income to average two-period total assets. View historical data on Ulta Beauty and its competitors. This is near median its historical median of 20.18. Over the past decade, Ulta Beauty's ROA % has ranged from 3.53 to 24.52. According to the industry distribution chart, Ulta Beauty ranks #58 out of 1134 companies in the Retail - Cyclical industry, placing it in the top 5.1%.
Is Ulta Beauty's ROA % too high?
Ulta Beauty's current ROA % of 19.65% is near median its 10-year median of 20.18. Over the past 10 years, this metric has ranged from a low of 3.53 to a high of 24.52. The Retail - Cyclical industry median ROA % is 2.73. Ulta Beauty's value of 19.65% is 621.1% above this industry median. Based on the distribution chart, Ulta Beauty ranks #58 out of 1134 companies in the Retail - Cyclical industry, which is in the top quartile — a strong position relative to peers. Overall, Ulta Beauty has a GF Score™ of 96/100 and is considered Modestly Undervalued, reflecting its overall financial health beyond just this single metric.
How does Ulta Beauty's ROA % compare to WSM and DKS?
According to the Retail - Cyclical industry distribution chart, Ulta Beauty ranks #58 out of 1134 companies for ROA %. This places Ulta Beauty in the top 5% of its industry — outperforming the majority of peers. The industry median ROA % is 2.73. Ulta Beauty's value of 19.65% is 621.1% above this benchmark. Historically, Ulta Beauty's own ROA % has ranged from 3.53 to 24.52 over the past decade. While the company's 10-year median is 20.18 vs. the industry median of 2.73, Ulta Beauty 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 ROA % for a Retail - Cyclical company?
The median ROA % among Retail - Cyclical companies is 2.73, based on 1,134 companies in the industry. Companies in the top quartile (top 25%) have a ROA % significantly above this median, while those in the bottom quartile fall well below. However, ROA % should not be evaluated in isolation — investors should consider it alongside profitability, growth, and financial strength metrics. Ulta Beauty's current ROA % of 19.65% is 621.1% 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 ROA % mean?
A high ROA % can signal that a stock is expensive relative to its fundamentals. Return on assets is the ratio of current-period net income to average two-period total assets. View historical data on Ulta Beauty and its competitors. For the Retail - Cyclical industry, the median ROA % is 2.73 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Ulta Beauty's current ROA % is 19.65%, which is near median its own 10-year median of 20.18. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Ulta Beauty stock overvalued right now?
Based on GuruFocus' analysis, Ulta Beauty (FRA:34U) is currently considered Modestly Undervalued. The stock's GF Value™ is €487.50, compared to a current price of €424.40 — trading 12.9% below its estimated fair value. The current ROA % is 19.65%, which is near median its 10-year median of 20.18 and 621.1% above the Retail - Cyclical industry median of 2.73. Ulta Beauty's overall GF Score™ is 96/100 with 2 warning signs to review. Investors should evaluate multiple metrics — including profitability, growth, and financial strength — before making a decision.
How is ROA % calculated?
ROA % is calculated from a company's financial statements. For Ulta Beauty (FRA:34U), the current ROA % is 19.65% as of Apr. 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 Ulta Beauty (FRA:34U) Overvalued in 2026?
Based on GuruFocus' analysis, Ulta Beauty stock appears to be undervalued.
The current stock price of €424.40 is trading 12.9% below its estimated GF Value™ of €487.50.
GuruFocus considers Ulta Beauty to be Modestly Undervalued.
Key valuation signals for FRA:34U:
ROA %: 19.65% (near median its 10-year median of 20.18)
GF Value™: €487.50 vs. price of €424.40 (12.9% below fair value)
Industry Position: 621.1% above the Retail - Cyclical median (#58 of 1134)
No single metric tells the full story. See the FRA:34U stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
Ulta Beauty is the largest specialized beauty retailer in the US with more than 1,500 freestanding stores. The firm offers cosmetics (38% of 2025 sales), fragrances (13%), skin care (24%), and hair care products (19%). It also has salon services, including hair, makeup, skin, and brow, that account for 4% of its revenue and drive customer traffic. Outside of the US, Ulta operates premium beauty retailer Space NK (86 stores at year-end 2025 in the UK and Ireland) and has franchised stores in Mexico, and a joint venture in the Middle East. Ulta was founded in 1990 and is based in Bolingbrook, Illinois.
96GF Score
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