ULTA FCF Yield Analysis
Updated 57h ago·SEC filings & market data
Key Takeaway
A FCF yield of 4.8% means that for every $100 of market value, ULTA generates roughly $4.80 in free cash flow — the cash left after operating expenses and capital investments.
Sector Performance
58th percentileULTA
4.8%
Sector Median
4.2%
Sector Avg
9.2%
Prior Period
4.6%(Aug 2026)
Deep Analysis
A FCF yield of 4.8% means that for every $100 of market value, ULTA generates roughly $4.80 in free cash flow — the cash left after operating expenses and capital investments.
That is above the sector median of 4.2%, placing ULTA at the 59th percentile among sector peers. The trend is decreasing over the last 8 quarters, with a year-over-year decline of 7.7%, though it ticked up 2.1% quarter over quarter. The combination of a yield above the peer median but trending lower suggests the company still converts value into cash at a decent rate, yet the erosion in that conversion is a potential risk. The recent quarterly improvement softens that risk but does not reverse the broader downward path. This metric supports the NEUTRAL verdict: the above-median yield offers support, while the declining trend prevents a more positive stance.
Frequently Asked Questions
What does the FCF Yield tell investors about ULTA?
One of the purest measures of value. High FCF yield means the company generates a lot of cash relative to its price — favoured by value investors.
How is the FCF Yield calculated?
FCF Yield is calculated as: Free Cash Flow / Market Cap.
Who are ULTA's closest peers by FCF Yield?
The closest peers by FCF Yield include: JACK (23.5%), BBWI (23.7%), YELP (25.7%), MET (27.9%), WIX (29.2%).
Learn More About FCF Yield
Understanding Free Cash Flow
Free cash flow is the lifeblood of any business. In this post, we explore why it matters more than net income for long-term investors.
Free Cash Flow Yield: Why It Matters More Than Earnings Per Share
EPS is accounting. FCF is reality. Here's how to calculate free cash flow yield, why Warren Buffett prioritizes it, and how to use it to spot genuinely profitable companies.
The Formula
Free Cash Flow / Market Cap
Why It Matters
One of the purest measures of value. High FCF yield means the company generates a lot of cash relative to its price — favoured by value investors.
Master ULTA's Valuation
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4.8%
Sector Median
4.2%
Sector Avg
9.2%
How ULTA's FCF Yield compares to sector peers.
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Not financial advice. Research tool only. Data may be delayed.