Price to Operating Profit (P/OP)
since 2008
Calculation
Ulta Beauty Inc., P/OP, long-term trends, calculation
| P/OP | = | Share price1, 2, 3 | ÷ | Operating profit per share1 | Operating profit per share1 | = | Operating income1 (in thousands) |
÷ | No. shares of common stock outstanding2 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|
| Mar 24, 2023 | 15.74 | = | 513.98 | ÷ | 32.64 | 32.64 | = | 1,638,610 | ÷ | 50,195,089 | |
| Mar 25, 2022 | 15.93 | = | 395.07 | ÷ | 24.80 | 24.80 | = | 1,297,492 | ÷ | 52,327,263 | |
| Mar 26, 2021 | 71.91 | = | 303.00 | ÷ | 4.21 | 4.21 | = | 236,820 | ÷ | 56,205,592 | |
| Mar 27, 2020 | 10.90 | = | 174.45 | ÷ | 16.00 | 16.00 | = | 901,094 | ÷ | 56,309,476 | |
| Apr 2, 2019 | 23.91 | = | 347.30 | ÷ | 14.52 | 14.52 | = | 854,080 | ÷ | 58,803,744 | |
| Apr 3, 2018 | 15.77 | = | 204.38 | ÷ | 12.96 | 12.96 | = | 785,291 | ÷ | 60,611,334 | |
| Mar 28, 2017 | 26.84 | = | 282.86 | ÷ | 10.54 | 10.54 | = | 654,824 | ÷ | 62,132,265 | |
| Mar 30, 2016 | 24.01 | = | 194.11 | ÷ | 8.09 | 8.09 | = | 506,297 | ÷ | 62,618,206 | |
| Apr 1, 2015 | 23.63 | = | 150.98 | ÷ | 6.39 | 6.39 | = | 410,415 | ÷ | 64,230,316 | |
| Apr 2, 2014 | 19.65 | = | 100.11 | ÷ | 5.10 | 5.10 | = | 327,588 | ÷ | 64,295,291 | |
| Apr 3, 2013 | 18.65 | = | 82.00 | ÷ | 4.40 | 4.40 | = | 279,978 | ÷ | 63,670,003 | |
| Mar 28, 2012 | 29.80 | = | 93.59 | ÷ | 3.14 | 3.14 | = | 196,195 | ÷ | 62,474,444 | |
| Mar 30, 2011 | 24.85 | = | 48.71 | ÷ | 1.96 | 1.96 | = | 118,884 | ÷ | 60,654,795 | |
| Mar 31, 2010 | 19.35 | = | 22.62 | ÷ | 1.17 | 1.17 | = | 68,153 | ÷ | 58,293,399 | |
| Apr 2, 2009 | 8.27 | = | 6.63 | ÷ | 0.80 | 0.80 | = | 46,301 | ÷ | 57,744,488 | |
| Apr 16, 2008 | 17.23 | = | 14.12 | ÷ | 0.82 | 0.82 | = | 46,721 | ÷ | 56,995,738 |
Based on: 10-K (reporting date: 2023-01-28), 10-K (reporting date: 2022-01-29), 10-K (reporting date: 2021-01-30), 10-K (reporting date: 2020-02-01), 10-K (reporting date: 2019-02-02), 10-K (reporting date: 2018-02-03), 10-K (reporting date: 2017-01-28), 10-K (reporting date: 2016-01-30), 10-K (reporting date: 2015-01-31), 10-K (reporting date: 2014-02-01), 10-K (reporting date: 2013-02-02), 10-K (reporting date: 2012-01-28), 10-K (reporting date: 2011-01-29), 10-K (reporting date: 2010-01-30), 10-K (reporting date: 2009-01-31), 10-K (reporting date: 2008-02-02).
1 US$
2 Data adjusted for splits and stock dividends.
3 Closing price as at the filing date of Ulta Beauty Inc. Annual Report.
- Share Price Trend
- The share price exhibited significant volatility over the analyzed period. Initially, it decreased sharply from $14.12 in 2008 to a low of $6.63 in 2009, likely reflecting broader market conditions. Subsequently, the price experienced a strong upward trajectory, reaching as high as $395.07 in 2022 and continuing to rise to $513.98 by 2023. Despite some fluctuations, including notable dips in 2018 and 2020, the overall long-term trend was one of substantial growth.
- Operating Profit Per Share Trend
- Operating profit per share showed an increasing trend throughout most of the period, rising from $0.82 in 2008 to a peak of $32.64 in 2023. There were steady and consistent improvements from 2008 to 2020. However, a pronounced anomaly occurred in 2021 when operating profit per share dropped sharply to $4.21 before recovering strongly again in subsequent years, suggesting an extraordinary event or operational disruption during that year.
- Price to Operating Profit Ratio (P/OP) Analysis
- The P/OP ratio displayed considerable fluctuations, reflecting changing market valuations relative to operating profits. It started high at 17.23 in 2008, fell to 8.27 in 2009 amid share price decline, then generally moved within a range of approximately 15 to 30 in most years, suggesting relatively stable market expectations relative to profits for much of the period. Notably, there was a spike to 71.91 in 2021 correlating with the operating profit drop, indicating the share price remained elevated despite the profit decline, which may imply investor optimism or other valuation factors. After 2021, the ratio normalized to levels similar to previous years, around 15 to 16.
- Overall Insights
- The data reveal a company with strong growth in operating performance and significant appreciation in market valuation over the long term. The share price and operating profit per share are generally positively correlated, except for the notable disruption in 2021. The high P/OP ratio in 2021 merits further investigation as it signals a divergence between market valuation and earnings performance during that year. The recovery after this period indicates resilience and restoration of market confidence.
Comparison to Competitors
Ulta Beauty Inc., P/OP, long-term trends, comparison to competitors
| Ulta Beauty Inc. | Amazon.com Inc. | Home Depot Inc. | Lowe’s Cos. Inc. | |
|---|---|---|---|---|
| Mar 24, 2023 | 15.74 | 48.43 | 12.16 | 11.18 |
| Mar 25, 2022 | 15.93 | 86.50 | 14.22 | 12.45 |
| Mar 26, 2021 | 71.91 | 64.48 | 17.25 | 13.52 |
| Mar 27, 2020 | 10.90 | 72.85 | 12.33 | 8.11 |
| Apr 2, 2019 | 23.91 | 68.77 | 13.51 | 21.77 |
| Apr 3, 2018 | 15.77 | 64.31 | 13.82 | 10.61 |
| Mar 28, 2017 | 26.84 | 168.60 | 13.26 | 11.97 |
| Mar 30, 2016 | 24.01 | 94.32 | 13.88 | 13.66 |
| Apr 1, 2015 | 23.63 | 123.77 | 14.03 | 14.77 |
| Apr 2, 2014 | 19.65 | 925.12 | 11.86 | — |
| Apr 3, 2013 | 18.65 | 221.06 | 13.35 | — |
| Mar 28, 2012 | 29.80 | 183.43 | 11.36 | — |
| Mar 30, 2011 | 24.85 | 94.71 | 10.38 | — |
| Mar 31, 2010 | 19.35 | 54.92 | 11.50 | — |
| Apr 2, 2009 | 8.27 | 49.38 | 9.64 | — |
| Apr 16, 2008 | 17.23 | 29.93 | 6.82 | — |
Based on: 10-K (reporting date: 2023-01-28), 10-K (reporting date: 2022-01-29), 10-K (reporting date: 2021-01-30), 10-K (reporting date: 2020-02-01), 10-K (reporting date: 2019-02-02), 10-K (reporting date: 2018-02-03), 10-K (reporting date: 2017-01-28), 10-K (reporting date: 2016-01-30), 10-K (reporting date: 2015-01-31), 10-K (reporting date: 2014-02-01), 10-K (reporting date: 2013-02-02), 10-K (reporting date: 2012-01-28), 10-K (reporting date: 2011-01-29), 10-K (reporting date: 2010-01-30), 10-K (reporting date: 2009-01-31), 10-K (reporting date: 2008-02-02).