Warren Buffett Just Bought This Stock!

Published first at https://www.3minutebreakdowns.com Ulta Beauty stock analysis. Ticker $ULTA Warren Buffett just bought this stock! Cosmetic company Ulta Beauty jumped 11% yesterday on news that Warren Buffett’s company Berkshire Hathaway had purchased almost 700,000 shares. So what does Warren Buffett see in the business? At the latest price, Ulta now has a market cap of 17.8 billion dollars. With 525 million of cash on the balance sheet and no debt the enterprise value is 17.3 billion. Revenue over the last 12 months comes to 11.3 billion with 1.26 billion of net income, 1.9 billion of adjusted ebitda and 914 million of free cash flow. So Ulta stock is now valued at 14 times earnings, 19 times free cash flow and 8.9 times EBITDA. That PE ratio is right at the bottom of the company’s historical range. And that low valuation is because Ulta is not performing as well as in the past. Same-store sales in the first quarter rose just 1.6% year-over-year. Ulta then cut its full-year outlook to just 2 to 3%, growth. That guidance requires a significant improvement in the second half of the year which isn’t guaranteed. #investing #stocks #3mb #warrenbuffett