ULTANEUTRAL

Return on Equity (ROE)

47.4%

Updated 78h ago

Sector Performance

91th percentile

ULTA

47.4%

Sector Median

13.8%

Sector Avg

31.4%

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Deep Analysis

ULTA's Return on Equity (ROE) of 47.4% means that for every dollar of shareholders' equity, the company generated $0.474 in net profit over the past year — a measure of how efficiently it uses investor capital.

This level far exceeds the sector median of 13.7% and places ULTA in the 90th percentile among its sector peers, indicating superior profitability relative to competitors. However, trend data is not available: the year-over-year change, quarter-over-quarter change, and trailing eight-quarter trend are all listed as N/A, so no direction can be assessed. The combination of an exceptionally high ROE with no trend information leaves uncertainty about whether this performance is sustainable or improving. For investment risk, the strong current level suggests low operational risk, but the lack of trend makes it unclear if the metric is deteriorating. This high ROE generally supports a positive outlook, but given the absence of trend data, it does not contradict the overall NEUTRAL verdict — the stock's high current efficiency is balanced by unknown forward momentum.

Frequently Asked Questions

What does the Return on Equity (ROE) tell investors about ULTA?

ROE measures how effectively management turns equity into profit. Consistently above 15% is typically considered strong. Negative equity distorts this metric.

How is the Return on Equity (ROE) calculated?

Return on Equity (ROE) is calculated as: Net Income / Shareholders' Equity.

Who are ULTA's closest peers by Return on Equity (ROE)?

The closest peers by Return on Equity (ROE) include: MRNA (-36.6%), FICO (-37.3%), XRAY (-37.7%), VRSN (-38.3%), MSCI (-45.3%).

The Formula

Net Income / Shareholders' Equity

Why It Matters

ROE measures how effectively management turns equity into profit. Consistently above 15% is typically considered strong. Negative equity distorts this metric.