Sally Beauty Bonds

SBH -  USA Stock  

USD 20.22  1.78  8.09%

Sally Beauty's financial leverage is the degree to which the firm utilizes its fixed-income securities and uses equity to finance projects. Companies with high leverage are usually considered to be at financial risk. Sally Beauty's financial risk is the risk to Sally Beauty stockholders that is caused by an increase in debt. In other words, with a high degree of financial leverage come high-interest payments, which usually reduce Earnings Per Share (EPS).
Additionally, take a look at the analysis of Sally Beauty Fundamentals Over Time.

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The current Debt Current is estimated to increase to about 845.1 K, while Total Debt is projected to decrease to roughly 1.4 B.
Given the importance of Sally Beauty's capital structure, the first step in the capital decision process is for the management of Sally Beauty to decide how much external capital it will need to raise to operate in a sustainable way. Once the amount of financing is determined, management needs to examine the financial markets to determine the terms in which the company can boost capital. This move is crucial to the process because the market environment may reduce the ability of Sally Beauty Holdings to issue bonds at a reasonable cost.

Sally Beauty Bond Ratings

Sally Beauty Holdings bond ratings play a critical role in determining how much Sally Beauty have to pay to access credit markets, i.e., the amount of interest on their issued debt. The threshold between investment-grade and speculative-grade ratings has important market implications for Sally Beauty's borrowing costs.
Overall Bond Rating
Somewhat Erratic
Average S&P Rating
BB+
Piotroski F Score
5  Healthy
Beneish M Score

Sally Beauty Holdings Debt to Cash Allocation

As Sally Beauty Holdings follows its natural business cycle, the capital allocation decisions will not magically go away. Sally Beauty's decision-makers have to determine if most of the cash flows will be poured back into or reinvested in the business, reserved for other projects beyond operational needs, or paid back to stakeholders and investors. Many companies eventually find out that there is only so much market out there to be conquered, and adding the next product or service is only half as profitable per unit as their current endeavors. Eventually, the company will reach a point where cash flows are strong, and extra cash is available but not fully utilized. In this case, the company may start buying back its stock from the public or issue more dividends.
The company has 2.13 B in debt. Sally Beauty Holdings has a current ratio of 1.65, which is typical for the industry and considered as normal.

Sally Beauty Inventories Over Time

Sally Beauty Assets Financed by Debt

The debt-to-assets ratio shows the degree to which Sally Beauty uses debt to finance its assets. It includes both long-term and short-term borrowings maturing within one year. It also includes both tangible and intangible assets, such as goodwill.

Sally Beauty Debt Ratio

    
  64.11   
It seems as roughly 35% of Sally Beauty's assets are financed be debt. Typically, companies with high debt-to-asset ratios are said to be highly leveraged. The higher the ratio, the greater risk will be associated with the Sally Beauty's operation. In addition, a high debt-to-assets ratio may indicate a low borrowing capacity of Sally Beauty, which in turn will lower the firm's financial flexibility. Like all other financial ratios, a Sally Beauty debt ratio should be compared their industry average or other competing firms.
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Sally Beauty Corporate Bonds Issued

Sally Beauty issues bonds to finance its operations. Corporate bonds make up one of the most significant components of the U.S. bond market and are considered the world's largest securities market. Sally Beauty Holdings uses the proceeds from bond sales for a wide variety of purposes, including financing ongoing mergers and acquisitions, buying new equipment, investing in research and development, buying back their own stock, paying dividends to shareholders, and even refinancing existing debt. Most Sally bonds can be classified according to their maturity, which is the date when Sally Beauty Holdings has to pay back the principal to investors. Maturities can be short-term, medium-term, or long-term (more than ten years). Longer-term bonds usually offer higher interest rates but may entail additional risks.
Issue DateMaturityCouponRef Coupon  Rating
Sally 06012022 57505/18/201206/01/20225.752.0
BB+
Sally 11012023 5510/29/201311/01/20235.52.25
BB+

Sally Beauty Holdings Historical Liabilities

While analyzing the current debt level is an essential aspect of forecasting the current year budgeting needs of Sally Beauty, understanding its historical liability is critical in projecting Sally Beauty's future earnings, especially during periods of low and high inflation and deflation. Many analysts look at the trend in assets and liabilities and evaluate how Sally Beauty uses its financing power over time.

Understaning Sally Beauty Use of Financial Leverage

Sally Beauty financial leverage ratio helps in determining the effect of debt on the overall profitability of the company. It measures Sally Beauty's total debt position, including all of outstanding debt obligations, and compares it with the equity. In simple terms, the high financial leverage means the cost of production, together with running the business day-to-day, is high, whereas, lower financial leverage implies lower fixed cost investment in the business and generally considered by investors to be a good sign. So if creditors own a majority of Sally Beauty assets, the company is considered highly leveraged. Understanding the composition and structure of overall Sally Beauty debt and outstanding corporate bonds gives a good idea of how risky the capital structure of a business and if it is worth investing in it.
Please read more on our technical analysis page.
Last ReportedProjected for 2021
Total Debt1.6 B1.4 B
Debt Current823.4 K845.1 K
Debt Non Current1.6 B1.4 B
Issuance Repayment of Debt Securities-45.2 M-46.4 M
Long Term Debt to Equity 104.72  104.11 
Debt to Equity Ratio 104.73  104.12 
Sally Beauty Holdings, Inc. operates as a specialty retailer and distributor of professional beauty supplies. Sally Beauty Holdings, Inc. was founded in 1964 and is headquartered in Denton, Texas. Sally Beauty operates under Specialty Retail classification in the United States and is traded on New York Stock Exchange. It employs 30000 people.

Sally Beauty Investors Sentiment

The influence of Sally Beauty's investor sentiment on the probability of its price appreciation or decline could be a good factor in your decision-making process regarding taking a position in Sally. The overall investor sentiment generally increases the direction of a stock movement in a one-year investment horizon. However, the impact of investor sentiment on the entire stock markets does not have a solid backing from leading economists and market statisticians.

Current Sentiment - SBH

Sally Beauty Holdings Investor Sentiment

Greater number of Macroaxis users are at this time bullish on Sally Beauty Holdings. What is your outlook on investing in Sally Beauty Holdings? Are you bullish or bearish?
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98% Bullish
2% Bearish
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Additionally, take a look at the analysis of Sally Beauty Fundamentals Over Time. Note that the Sally Beauty Holdings information on this page should be used as a complementary analysis to other Sally Beauty's statistical models used to find the right mix of equity instruments to add to your existing portfolios or create a brand new portfolio. You can also try Equity Analysis module to research over 250,000 global equities including funds, stocks and ETFs to find investment opportunities.

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When running Sally Beauty Holdings price analysis, check to measure Sally Beauty's market volatility, profitability, liquidity, solvency, efficiency, growth potential, financial leverage, and other vital indicators. We have many different tools that can be utilized to determine how healthy Sally Beauty is operating at the current time. Most of Sally Beauty's value examination focuses on studying past and present price action to predict the probability of Sally Beauty's future price movements. You can analyze the entity against its peers and financial market as a whole to determine factors that move Sally Beauty's price. Additionally, you may evaluate how the addition of Sally Beauty to your portfolios can decrease your overall portfolio volatility.
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The market value of Sally Beauty Holdings is measured differently than its book value, which is the value of Sally that is recorded on the company's balance sheet. Investors also form their own opinion of Sally Beauty's value that differs from its market value or its book value, called intrinsic value, which is Sally Beauty's true underlying value. Investors use various methods to calculate intrinsic value and buy a stock when its market value falls below its intrinsic value. Because Sally Beauty's market value can be influenced by many factors that don't directly affect Sally Beauty Holdings underlying business (such as pandemic or basic market pessimism), market value can vary widely from intrinsic value.
Please note, there is a significant difference between Sally Beauty's value and its price as these two are different measures arrived at by different means. Investors typically determine Sally Beauty value by looking at such factors as earnings, sales, fundamental and technical indicators, competition as well as analyst projections. However, Sally Beauty's price is the amount at which it trades on the open market and represents the number that a seller and buyer find agreeable to each party.