Sally Beauty Holdings, Inc. (Na — Earnings Quality Grade F
SBH · Consumer Cyclical
Major red flags
Screening Summary
Management Signals
Financial Trends
Revenue & Net Income ($B)
Margins (%)
18-Point Screening
Revenue Quality
DSO 3 days, change -0 days YoY
AR growth -5.4% vs revenue growth -0.4%
Revenue -0.4%, CFFO 11.5%. Cash follows revenue
Expense Quality
Inventory -4.7% vs COGS -2.0%. Normal
CapEx growth 1.0% vs revenue -0.4%. Normal
SG&A/Gross Profit = 82.8%, exceeds 70%
Gross margin 51.6%, change +0.8pp. Stable
Cash Flow Quality
CFFO/NI = 1.40. Profits backed by cash
FCF $0.2B, FCF/NI = 0.88
Accruals ratio = -2.7%. Low accruals
Cash $0.1B covers only 10% of debt $1.6B
Balance Sheet Health
Goodwill+Intangibles $0.6B = 75% of equity. Over 50%
Debt/EBITDA = 3.7x. Healthy
Other assets grew 21.8% vs revenue -0.4%
No write-off data
Acquisition Risk
FCF after acquisitions positive
Goodwill+Intangibles change -1% YoY. Normal
Manipulation Score
M-Score = -2.62 (< -2.22). Unlikely manipulator
Portfolio monitoring
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Beneish M-Score
Altman Z-Score
Generated from public financial data using forensic accounting frameworks. Not investment advice. Data: Yahoo Finance · 2026-04-25