Ulta Beauty Inc ULTA

Morningstar Rating
$543.69 +5.96 (1.11%)
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Company Report

Ulta Beauty Overcomes Rivals With Advantages in Product Selection, Stores, and Consumer Loyalty

We think Ulta Beauty’s brand strength provides a narrow moat and has allowed the company to thrive despite economic conditions and other external challenges. Over the past decade, Ulta has become the largest specialty beauty retailer in the United States through store openings, product and brand introductions, improved marketing, and—with more than 47 million active members—an enhanced loyalty program. Annual revenue increased to more than $12 billion in 2025 from $912 million in 2007 as Ulta grew its US store base to more than 1,500 stores from fewer than 300, its shops became more productive, and online selling became a major part of its business. Ulta's success has made it a desirable partner for prestige, mass, and emerging beauty brands. While the firm faces intense competition and is affected by innovation and product cycles in cosmetics, we think it has developed a following that has allowed it to take share from mall-based stores while competing effectively against wide-moat Amazon and other e-commerce. We believe that teen girls and women like to sample products in Ulta’s stores and that its salons, selection, promotions, and service encourage frequent visitation.

Price vs Fair Value

ULTA is trading at a LOCK|D$l!V! premium.
Price
$537.73
Fair Value
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Uncertainty
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1-Star Price
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5-Star Price
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Economic Moat
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Capital Allocation
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Bulls Say, Bears Say

Bulls

As the largest specialty beauty retailer in the US, Ulta has access to leading brands and exclusive products. Its merchandising encourages frequent store visitation and draws shoppers from department stores.

Bears

Beauty products are available through many retail channels, putting Ulta in competition with the largest retailers in the US. Retailers like Amazon, Kohl’s (through its Sephora partnership), and Target (Ulta’s former partner) have significantly increased their beauty offerings in recent years.

News

Trading Information

Previous Close Price
$537.73
Day Range
$535.77–548.16
52-Week Range
$443.60–714.97
Bid/Ask
$538.00 / $547.77
Shares Outstanding
42.76M
Market Cap
$23.25B
Volume/Avg
341,211 / 594,142

Key Statistics

Price/Earnings (Normalized)
19.41
Price/Sales
1.83
Dividend Yield (Trailing)
0.00%
Dividend Yield (Forward)
0.00%
Dividend Payment Schedule
—
Total Yield
5.34%

Company Profile

Ulta Beauty is the largest specialized beauty retailer in the US with more than 1,500 stores and e-commerce. The firm offers cosmetics (38% of 2025 sales), fragrances (13%), skin care (24%), and hair care products (19%). It also has salon services, including hair, makeup, skin, and brow, that account for 4% of its revenue and drive customer traffic. Outside of the US, Ulta operates premium beauty retailer Space NK (86 stores at year-end 2025 in the UK and Ireland), has franchised stores in Mexico, and a joint venture in the Middle East. Ulta was founded in 1990 and is based in Bolingbrook, Illinois.
Sector
Consumer Cyclical
Industry
Specialty Retail
Stock Style Box
Mid Core
Total Number of Employees
65,000

Competitors

Valuation

Metric
ULTA
EL
M
Price/Earnings (Normalized)
19.4135.939.07
Price/Book Value
8.748.571.21
Price/Sales
1.832.190.27
Price/Cash Flow
12.2827.813.10
Price/Earnings
ULTA
EL
M

Financial Strength

Metric
ULTA
EL
M
Quick Ratio
0.200.810.38
Current Ratio
1.351.221.59
Interest Coverage
165.072.288.10
Quick Ratio
ULTA
EL
M

Profitability

Metric
ULTA
EL
M
Return on Assets (Normalized)
18.32%5.88%4.26%
Return on Equity (Normalized)
47.64%29.51%14.72%
Return on Invested Capital (Normalized)
25.29%10.16%8.02%
Return on Assets
ULTA
EL
M

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