Sally Beauty HoldingsSBH +2.26%75 ROC (Joel Greenblatt) % is 18.09% as of Mar. 2026, which is 37% below its 10-year median of 28.52. 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 1,128 Retail - Cyclical companies, Sally Beauty Holdings ranks better than 64.1% on this metric.
Joel Greenblatt defined Return on Capital differently in his book The Little Book That Still Beats the Market (Little Books. Big Profits). He defines ROC (Joel Greenblatt) % as EBIT divided by the total of Property, Plant and Equipment and net working capital. Sally Beauty Holdings's annualized ROC (Joel Greenblatt) % for the quarter that ended in Mar. 2026 was 18.09%.
The historical rank and industry rank for Sally Beauty Holdings's ROC (Joel Greenblatt) % or its related term are showing as below:
SBH'
s ROC (Joel Greenblatt) % Range Over the Past 10 Years
Min: 18.57 Med: 28.52 Max: 59.85
Current: 19.43
During the past 13 years, Sally Beauty Holdings's highest ROC (Joel Greenblatt) % was 59.85%. The lowest was 18.57%. And the median was 28.52%.
SBH's ROC (Joel Greenblatt) % is ranked better than 64.1% of 1128
companies
in the Retail - Cyclical industry
Industry Median: 11.545
vs SBH: 19.43
Sally Beauty Holdings's 5-Year average Growth Rate of ROC (Joel Greenblatt) % was -6.30% per year.
The way Joel Greenblatt defines Return on Capital is a more accurate measure of how efficiently the company generates returns onthe capital actually invested in the business. EBIT is used instead of net income because the tax and interest payment may be affected by factors other than the core business operation. Intangible assets are not included in the calculation because they don't need to be replaced.
Sally Beauty Holdings ROC (Joel Greenblatt) % Related Terms
Sally Beauty Holdings ROC (Joel Greenblatt) % Historical Data
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The historical data trend for Sally Beauty Holdings's ROC (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.
SBH vs EYE, WINA, OLPX: ROC (Joel Greenblatt) % Comparison
For the Specialty Retail subindustry, Sally Beauty Holdings's ROC (Joel Greenblatt) %, along with its competitors' market caps and ROC (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 ROC (Joel Greenblatt) % vs Retail - Cyclical Industry
For the Retail - Cyclical industry and Consumer Cyclical sector, Sally Beauty Holdings's ROC (Joel Greenblatt) % distribution charts can be found below:
* The bar in red indicates where Sally Beauty Holdings's ROC (Joel Greenblatt) % falls into.
Joel Greenblatt defined Return on Capital differently in his book The Little Book That Still Beats the Market (Little Books. Big Profits) . He defines Return on Capital as follows:
EBIT stands for Earnings Before Interest and Taxes.
Fixed Assets are also known as non-current assets. They include the Property, Plant and Equipment that the firm needs in its operation.
GuruFocus calculates net working capital as: (Accounts Receivable + Total Inventories + Other Current Assets) - (Accounts Payable & Accrued Expense + Deferred Revenue + Other Current Liabilities). We're trying to account for OPERATING assets and liabilities (part of daily business) when calculating working capital. Cash and marketable securities are considered NON-OPERATING assets and are not included in calculation. We will also back out all interest bearing debt, short term debt and the portion of long term debt that is due in the current period from the current liabilities. This debt will be considered when computing cost of capital and it would be inappropriate to count it twice.
Note:
The EBIT data used here is four times the quarterly (Mar. 2026) EBIT 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.
What does a ROC (Joel Greenblatt) % of 18.09% mean?
Sally Beauty Holdings (SBH) has a ROC (Joel Greenblatt) % of 18.09% as of Mar. 2026. Joel Greenblatt's return on capital is the ratio of EBIT to average fixed assets and net working capital. View historical data on Sally Beauty Holdings and its competitors. This is 37% below median its historical median of 28.52. Over the past decade, Sally Beauty Holdings' ROC (Joel Greenblatt) % has ranged from 18.57 to 59.85. According to the industry distribution chart, Sally Beauty Holdings ranks #405 out of 1128 companies in the Retail - Cyclical industry, placing it in the top 35.9%.
Is Sally Beauty Holdings' ROC (Joel Greenblatt) % too high?
Sally Beauty Holdings' current ROC (Joel Greenblatt) % of 18.09% is 37% below median its 10-year median of 28.52. Over the past 10 years, this metric has ranged from a low of 18.57 to a high of 59.85. The Retail - Cyclical industry median ROC (Joel Greenblatt) % is 11.55. Sally Beauty Holdings' value of 18.09% is 56.7% above this industry median. Based on the distribution chart, Sally Beauty Holdings ranks #405 out of 1128 companies in the Retail - Cyclical industry, which is above the industry midpoint. 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' ROC (Joel Greenblatt) % compare to EYE and WINA?
According to the Retail - Cyclical industry distribution chart, Sally Beauty Holdings ranks #405 out of 1128 companies for ROC (Joel Greenblatt) %. This puts Sally Beauty Holdings in the upper half of its industry. The industry median ROC (Joel Greenblatt) % is 11.55. Sally Beauty Holdings' value of 18.09% is 56.7% above this benchmark. Historically, Sally Beauty Holdings' own ROC (Joel Greenblatt) % has ranged from 18.57 to 59.85 over the past decade. While the company's 10-year median is 28.52 vs. the industry median of 11.55, 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 ROC (Joel Greenblatt) % for a Retail - Cyclical company?
The median ROC (Joel Greenblatt) % among Retail - Cyclical companies is 11.55, based on 1,128 companies in the industry. Companies in the top quartile (top 25%) have a ROC (Joel Greenblatt) % significantly above this median, while those in the bottom quartile fall well below. However, ROC (Joel Greenblatt) % should not be evaluated in isolation — investors should consider it alongside profitability, growth, and financial strength metrics. Sally Beauty Holdings's current ROC (Joel Greenblatt) % of 18.09% is 56.7% 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 ROC (Joel Greenblatt) % mean?
A high ROC (Joel Greenblatt) % can signal that a stock is expensive relative to its fundamentals. Joel Greenblatt's return on capital is the ratio of EBIT to average fixed assets and net working capital. View historical data on Sally Beauty Holdings and its competitors. For the Retail - Cyclical industry, the median ROC (Joel Greenblatt) % is 11.55 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Sally Beauty Holdings's current ROC (Joel Greenblatt) % is 18.09%, which is 37% below median its own 10-year median of 28.52. 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 ROC (Joel Greenblatt) % is 18.09%, which is 37% below median its 10-year median of 28.52 and 56.7% above the Retail - Cyclical industry median of 11.55. 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 ROC (Joel Greenblatt) % calculated?
ROC (Joel Greenblatt) % is calculated from a company's financial statements. For Sally Beauty Holdings (SBH), the current ROC (Joel Greenblatt) % is 18.09% 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:
ROC (Joel Greenblatt) %: 18.09% (37% below median its 10-year median of 28.52)
GF Value™: $12.80 vs. price of $14.46 (13% above fair value)
Industry Position: 56.7% above the Retail - Cyclical median (#405 of 1128)
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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