📊 ULTA Key Takeaways
Is Ulta Beauty, Inc. (ULTA) a Good Investment?
Ulta Beauty demonstrates solid profitability with strong margins (39.6% gross, 12.4% operating) and excellent returns on equity (30.3%), indicating efficient capital deployment. However, revenue growth has stalled at 0.8% YoY while net income remains flat, coupled with concerning cash flow generation (78.9M FCF on 8.5B revenue = 0.9% FCF margin), suggesting operational challenges that warrant caution despite fundamental strength.
Ulta Beauty remains fundamentally profitable, with strong gross margins, double-digit operating margins, and high returns on equity and assets that indicate a durable retail model. However, growth quality has weakened as revenue is nearly flat, net income is stagnant, diluted EPS is declining, and free cash flow conversion is currently very thin. The balance sheet is still healthy enough to support operations, but the combination of slowing growth and compressed cash generation argues for a neutral fundamental view.
Why Buy Ulta Beauty, Inc. Stock? ULTA Key Strengths
- Exceptional profitability metrics with 39.6% gross margin and 12.4% operating margin indicating pricing power and operational efficiency
- Outstanding returns on equity (30.3%) and ROA (11.4%) demonstrate superior capital allocation and asset utilization
- Strong interest coverage ratio (5708.4x) with conservative leverage (0.30x debt-to-equity) indicates financial stability
- Strong profitability profile with 39.6% gross margin, 12.4% operating margin, and 9.4% net margin
- High capital efficiency, with ROE of 30.3% and ROA of 11.4%
- Manageable leverage and solid financial stability, supported by 1.33x current ratio and low debt/equity of 0.30x
ULTA Stock Risks: Ulta Beauty, Inc. Investment Risks
- Revenue growth has essentially stalled at 0.8% YoY in mature market, suggesting limited organic growth prospects and potential market saturation
- Severely weak free cash flow conversion (0.9% FCF margin) relative to net income indicates cash generation issues despite accounting profitability
- Quick ratio of 0.25x signals potential liquidity constraints with limited ability to meet short-term obligations without inventory conversion
- Diluted EPS declined 2.7% YoY despite flat net income, suggesting shareholder dilution from equity issuance
- Revenue growth has slowed sharply to 0.8% YoY, signaling weaker top-line momentum
- Net income is flat and diluted EPS declined 2.7% YoY, indicating limited earnings expansion
- Free cash flow is weak at just $78.92M and a 0.9% FCF margin, reducing financial flexibility
Key Metrics to Watch
- Organic revenue growth trajectory and comparable store sales trends
- Free cash flow margin expansion and operating cash flow sustainability
- Quick ratio and working capital management efficiency
- Free cash flow and operating cash flow conversion
- Comparable sales or revenue growth alongside operating margin stability
Ulta Beauty, Inc. (ULTA) Financial Metrics & Key Ratios
💡 AI Analyst Insight
The relatively thin 0.9% FCF margin may limit capital allocation flexibility.
ULTA Profit Margin, ROE & Profitability Analysis
ULTA vs Consumer Sector: How Ulta Beauty, Inc. Compares
How Ulta Beauty, Inc. compares to Consumer sector averages
Sector benchmarks are approximate industry averages. Actual sector performance may vary.
Is Ulta Beauty, Inc. Stock Overvalued? ULTA Valuation Analysis 2026
Based on fundamental analysis, Ulta Beauty, Inc. appears fundamentally strong relative to the Consumer sector in 2026.
Note: This is a fundamental analysis based on SEC filings. For P/E ratio, price targets, and market-based valuation, consult financial data providers. This is not investment advice.
Ulta Beauty, Inc. Balance Sheet: ULTA Debt, Cash & Liquidity
ULTA Revenue & Earnings Growth: 5-Year Financial Trend
5-Year Trend Summary: Ulta Beauty, Inc.'s revenue has grown significantly by 44% over the 5-year period, indicating strong business expansion. The most recent EPS of $26.03 reflects profitable operations.
ULTA Revenue Growth, EPS Growth & YoY Performance
ULTA Quarterly Earnings & Performance
| Quarter | Revenue | Net Income | EPS |
|---|---|---|---|
| Q3 2025 | $2.5B | $230.9M | $5.14 |
| Q2 2025 | $2.6B | $252.6M | $5.30 |
| Q1 2025 | $2.7B | $305.1M | $6.47 |
| Q3 2024 | $2.5B | $242.2M | $5.07 |
| Q2 2024 | $2.5B | $252.6M | $5.30 |
| Q1 2024 | $2.6B | $313.1M | $6.47 |
| Q3 2023 | $2.3B | $249.5M | $5.07 |
| Q2 2023 | $2.3B | $295.7M | $5.70 |
Data sourced from SEC EDGAR 10-Q quarterly filings. Figures may represent quarterly or cumulative values.
Ulta Beauty, Inc. Dividends, Buybacks & Capital Allocation
ULTA SEC Filings: Latest 10-K & 10-Q Analysis
Access official SEC EDGAR filings for Ulta Beauty, Inc. (CIK: 0001403568)
📋 Recent SEC Filings
❓ Frequently Asked Questions about ULTA
What is the AI rating for ULTA?
Ulta Beauty, Inc. (ULTA) has a Combined AI Rating of HOLD from Claude (HOLD) and ChatGPT (HOLD) with 72% combined confidence, based on fundamental analysis of SEC EDGAR filings.
What are ULTA's key strengths?
Claude: Exceptional profitability metrics with 39.6% gross margin and 12.4% operating margin indicating pricing power and operational efficiency. Outstanding returns on equity (30.3%) and ROA (11.4%) demonstrate superior capital allocation and asset utilization. ChatGPT: Strong profitability profile with 39.6% gross margin, 12.4% operating margin, and 9.4% net margin. High capital efficiency, with ROE of 30.3% and ROA of 11.4%.
What are the risks of investing in ULTA?
Claude: Revenue growth has essentially stalled at 0.8% YoY in mature market, suggesting limited organic growth prospects and potential market saturation. Severely weak free cash flow conversion (0.9% FCF margin) relative to net income indicates cash generation issues despite accounting profitability. ChatGPT: Revenue growth has slowed sharply to 0.8% YoY, signaling weaker top-line momentum. Net income is flat and diluted EPS declined 2.7% YoY, indicating limited earnings expansion.
What is ULTA's revenue and growth?
Ulta Beauty, Inc. reported revenue of $8.5B.
Does ULTA pay dividends?
Ulta Beauty, Inc. pays dividends, with $62.5M distributed to shareholders in the trailing twelve months.
Where can I find ULTA SEC filings?
Official SEC filings for Ulta Beauty, Inc. (CIK: 0001403568) including 10-K, 10-Q, and 8-K reports are available on SEC EDGAR.
What is ULTA's EPS?
Ulta Beauty, Inc. has a diluted EPS of $17.65.
How is the AI analysis conducted?
Two independent AI systems — Claude (Anthropic) and ChatGPT (OpenAI) — analyze SEC EDGAR filings including 10-K annual reports and 10-Q quarterly reports. Each AI evaluates financial health, profitability ratios, balance sheet strength, and growth metrics. The combined rating reflects both perspectives for balanced insights.
Is ULTA a good stock to buy right now?
Based on our AI fundamental analysis in April 2026, Ulta Beauty, Inc. has a HOLD rating with 72% confidence. Review the strengths and risks sections above before making a decision. This is not investment advice.
Is ULTA stock overvalued or undervalued?
Valuation metrics for ULTA: ROE of 30.3% (sector avg: 18%), net margin of 9.4% (sector avg: 8%). Higher ROE suggests strong returns relative to peers.
Should I buy ULTA stock in 2026?
Our dual AI analysis gives Ulta Beauty, Inc. a combined HOLD rating for 2026. Revenue is data pending, with profitability above sector average. Always conduct your own research.
What is ULTA's free cash flow?
Ulta Beauty, Inc.'s operating cash flow is $322.2M, with capital expenditures of $243.3M. FCF margin is 0.9%.
How does ULTA compare to other Consumer stocks?
Vs Consumer sector averages: Net margin 9.4% (avg: 8%), ROE 30.3% (avg: 18%), current ratio 1.33 (avg: 1.5).
Why is ULTA's return on equity (ROE) so high?
Ulta Beauty, Inc. has a return on equity of 30.3%, significantly above the Consumer sector average of 18%. A high ROE indicates the company is efficient at generating profits from shareholder equity. This is supported by a 9.4% net margin.