Stock Analysis on Net

Ulta Beauty Inc. (NASDAQ:ULTA)

$22.49

This company has been moved to the archive! The financial data has not been updated since August 24, 2023.

Price to FCFE (P/FCFE)

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Free Cash Flow to Equity (FCFE)

Ulta Beauty Inc., FCFE calculation

US$ in thousands

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12 months ended: Jan 28, 2023 Jan 29, 2022 Jan 30, 2021 Feb 1, 2020 Feb 2, 2019 Feb 3, 2018
Net income
Net noncash charges
Change in operating assets and liabilities
Net cash provided by operating activities
Capital expenditures
Proceeds from long-term debt
Payments on long-term debt
Debt issuance costs
Free cash flow to equity (FCFE)

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).


Net Cash Provided by Operating Activities
The net cash provided by operating activities displayed a generally upward trend over the observed periods, starting at approximately 779 million US dollars in early 2018 and reaching a peak of about 1.48 billion US dollars in early 2023. There was a notable increase from 2018 to 2020, rising steadily from 779 million to over 1.1 billion. In 2021, a decline to around 810 million was observed, which represents a significant drop compared to the previous year. However, this decline was followed by a recovery in 2022 and a substantial increase in 2023, indicating a strong rebound and growth in operating cash flow towards the end of the period.
Free Cash Flow to Equity (FCFE)
The free cash flow to equity exhibited a consistent growth trajectory throughout the years under review. Starting from approximately 338 million US dollars in early 2018, FCFE showed a marked rise each year, reaching close to 1.17 billion US dollars by early 2023. This progression suggests improving financial health and increasing cash availability to equity shareholders over time. Similar to the operating cash flow, the FCFE experienced a slight dip in 2021 compared to 2020, but this was followed by a recovery and continued growth in subsequent years.
Overall Observations
Both key cash flow metrics indicate a positive long-term trend despite a temporary setback in 2021. The rebound and growth in 2022 and 2023 imply enhanced operational efficiency and stronger cash generation capabilities. The increase in free cash flow to equity further suggests that the company has been increasingly able to generate cash that can be returned to shareholders, signaling improved financial stability and capacity for shareholder distributions or reinvestment.

Price to FCFE Ratio, Current

Ulta Beauty Inc., current P/FCFE calculation, comparison to benchmarks

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No. shares of common stock outstanding
Selected Financial Data (US$)
Free cash flow to equity (FCFE) (in thousands)
FCFE per share
Current share price (P)
Valuation Ratio
P/FCFE
Benchmarks
P/FCFE, Competitors1
Amazon.com Inc.
Home Depot Inc.
Lowe’s Cos. Inc.
TJX Cos. Inc.
P/FCFE, Sector
Consumer Discretionary Distribution & Retail
P/FCFE, Industry
Consumer Discretionary

Based on: 10-K (reporting date: 2023-01-28).

1 Click competitor name to see calculations.

If the company P/FCFE is lower then the P/FCFE of benchmark then company is relatively undervalued.
Otherwise, if the company P/FCFE is higher then the P/FCFE of benchmark then company is relatively overvalued.


Price to FCFE Ratio, Historical

Ulta Beauty Inc., historical P/FCFE calculation, comparison to benchmarks

Microsoft Excel
Jan 28, 2023 Jan 29, 2022 Jan 30, 2021 Feb 1, 2020 Feb 2, 2019 Feb 3, 2018
No. shares of common stock outstanding1
Selected Financial Data (US$)
Free cash flow to equity (FCFE) (in thousands)2
FCFE per share3
Share price1, 4
Valuation Ratio
P/FCFE5
Benchmarks
P/FCFE, Competitors6
Amazon.com Inc.
Home Depot Inc.
Lowe’s Cos. Inc.
TJX Cos. Inc.
P/FCFE, Sector
Consumer Discretionary Distribution & Retail
P/FCFE, Industry
Consumer Discretionary

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).

1 Data adjusted for splits and stock dividends.

2 See details »

3 2023 Calculation
FCFE per share = FCFE ÷ No. shares of common stock outstanding
= ÷ =

4 Closing price as at the filing date of Ulta Beauty Inc. Annual Report.

5 2023 Calculation
P/FCFE = Share price ÷ FCFE per share
= ÷ =

6 Click competitor name to see calculations.


Share Price Trend
The share price exhibited significant volatility over the examined period. After an initial increase from $204.38 in early 2018 to $347.30 in early 2019, it declined sharply to $174.45 by early 2020. Subsequently, the price recovered robustly, reaching $303 in early 2021, continuing upward to $395.07 in early 2022, and further appreciating to $513.98 by early 2023. Overall, the share price more than doubled from 2018 to 2023, despite the interposed downturn.
Free Cash Flow to Equity (FCFE) per Share
FCFE per share showed a consistent upward trajectory throughout the period, starting at $5.58 in 2018 and increasing steadily each year, with a minor dip only from 2020 to 2021. It grew to $10.83 in 2019, $14.26 in 2020, slightly decreased to $11.68 in 2021, then surged to $16.95 in 2022, and reached $23.30 by 2023. This upward trend indicates improving cash generation available to equity shareholders.
Price to FCFE (P/FCFE) Ratio
The P/FCFE ratio exhibited considerable fluctuations. Starting at 36.64 in 2018, it declined to 32.07 in 2019, then dropped substantially to 12.24 in 2020, suggesting an undervaluation or increased cash flow relative to price during that year. However, the ratio rebounded to 25.94 in 2021, followed by a gradual decrease to 23.30 in 2022 and further to 22.05 in 2023. This pattern reflects varying investor sentiment and valuation multiples over time, with a notable compression in 2020 and more moderate valuations post-2020.
Overall Insights
The data indicates a general pattern of strong fundamental cash flow growth for the company, as represented by FCFE per share. The share price走势 displays volatility but aligns with improvements in cash flow toward the end of the period. The P/FCFE ratio's variability points to shifting market perceptions and valuation metrics. The sharp drop in share price and P/FCFE ratio in 2020 could be attributed to external market factors or company-specific challenges, while subsequent recovery underscores regained investor confidence and sustained cash flow growth.