Ulta Beauty’s Return on Capital Employed (ROCE) is a crucial metric that measures the yearly pre-tax profit in relation to the capital employed by a business. A higher ROCE is generally indicative of a company’s successful growth and is a positive sign of higher earnings per share in the future. As of May 26, 2023, Ulta Beauty posted an ROCE of 0.17%, which is a positive return on capital employed ratio. This suggests that the management is allocating their capital effectively, which is a good indication that the company will achieve more durable success and favorable long-term returns.
Ulta Beauty has operated at a median return on invested capital of 27.0% from fiscal years ending February 2019 to 2023. The returns generated on capital employed have grown considerably to 44% in the last five years. This is a testament to the company’s efficient use of capital, which has contributed to its growth and overall success.
While ROCE is a good measure of a company’s recent performance, it is not a highly reliable predictor of a company’s earnings or sales in the near future. However, a relatively high ROCE shows that Ulta Beauty is potentially operating at a higher level of efficiency than other companies in its industry. If the company continues to generate high profits with its current level of capital, some of that money can be reinvested in more capital, which will generally lead to higher returns and, ultimately, earnings per share (EPS) growth.
ULTA Stock Drops on May 26, 2023, but Steady Revenue Growth Suggests Long-Term Investment Opportunity
On May 26, 2023, ULTA stock opened at $436.38, a significant drop from its previous close of $485.22. Throughout the day, its range fluctuated between $424.55 and $438.38, with a total volume of 175,646 shares traded.
ULTA’s market capitalization currently stands at $24.6B, and its earnings growth over the past year was an impressive +33.58%. However, its earnings growth for this year is only +5.37%, and the projected earnings growth for the next five years is +8.04%. ULTA’s revenue growth over the past year was +18.28%.
The P/E ratio for ULTA stock is 17.7, which is relatively low for a company in the retail trade sector. The price/sales ratio is 2.56, while the price/book ratio is 12.62.
As of the last reporting date, there were no executives to display for ULTA. The company’s corporate headquarters are located in Bolingbrook, Illinois.
Looking ahead, ULTA is expected to report earnings per share of $5.86 for this quarter. Its annual revenue for the past year was $10.2B, with an annual profit of $1.2B. The net profit margin for ULTA is 12.17%.
ULTA operates in the specialty stores industry, which is highly competitive. However, the company has managed to maintain a strong position in the market due to its focus on beauty products and services. Despite the drop in stock price on May 26, 2023, ULTA’s steady revenue growth and profitability suggest that it may be a good long-term investment opportunity.
Ulta Beauty Incs Stock Performance Soars with a Median Target of $549.00 in 2023
On May 26, 2023, Ulta Beauty Inc’s stock performance was on the rise, with a median target of $549.00, representing a +29.26% increase from the last price of $424.71. The high estimate was $640.00, and the low estimate was $350.00.
Discussion about this post