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e.l.f. Beauty (ELF)
NYSE:ELF
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e.l.f. Beauty
(NYSE:ELF)62Neutral
Positive Factors
Innovation
E.l.f. is a disruptive beauty company with better growth opportunity than legacy brands.
Market Position
E.l.f. continues to resonate very well with consumers and take market share.
Negative Factors
Sales Performance
Near-term headwinds have persisted due to a tough comparison with a previous major launch and softer consumer sentiment.
e.l.f. Beauty (ELF) vs. S&P 500 (SPY)
Market Cap
$3.60B
Dividend YieldN/A
Average Volume (3M)3.78M
Price to Earnings (P/E)38.0
Beta (1Y)1.84
Revenue Growth46.27%
EPS Growth-26.45%
CountryUS
Employees475
SectorConsumer Cyclical
Sector Strength53
IndustryConsumer Products - Household & Personal
Share Statistics
EPS (TTM)1.68
Shares Outstanding56,398,610
10 Day Avg. Volume2,535,081
30 Day Avg. Volume3,779,178
Financial Highlights & Ratios
PEG RatioN/A
Price to Book (P/B)N/A
Price to Sales (P/S)2.76
Price to Cash Flow (P/CF)-61.20
P/FCF Ratio0.00
Enterprise Value/Market CapN/A
Enterprise Value/RevenueN/A
Enterprise Value/Gross ProfitN/A
Enterprise Value/EbitdaN/A
Forecast
1Y Price Target
$96.79Price Target Upside51.40% Upside
Rating ConsensusModerate Buy
Number of Analyst Covering16
e.l.f. Beauty Business Overview & Revenue Model
Company Descriptione.l.f. Beauty, Inc. is a holding company, which engages in the provision of cosmetic and skin-care product. It operates through the U.S and International geographical segments. The company focuses on the e-commerce, national retailers, and international business channels. Its product portfolio includes eyes, lips, face, kits, tools, and skin care categories. The company was founded in 2004 and is headquartered in Oakland, CA.
How the Company Makes Moneye.l.f. Beauty makes money through the sale of its diverse product line, which includes cosmetics, skincare items, and beauty tools. The company's primary revenue stream is derived from its direct-to-consumer sales through its official website and retail partnerships with major chains such as Target, Walmart, and Ulta Beauty. e.l.f. Beauty also leverages e-commerce platforms to reach a wider audience, optimizing online sales channels to enhance profitability. The company's focus on affordable, high-quality products allows it to capture a significant market share in the beauty industry, fostering customer loyalty and repeat purchases. Additionally, e.l.f. Beauty's strategic marketing initiatives, collaborations, and product innovations contribute to its revenue growth and brand expansion.
e.l.f. Beauty Financial Statement Overview
Summary
e.l.f. Beauty's financial statements show strong profitability with a gross profit margin of 71% and a net profit margin of 8.9%. The balance sheet is solid with a debt-to-equity ratio of 0.41 and a return on equity of 14.8%. However, cash flow shows some volatility, with a decrease in free cash flow. Overall, the company is on a solid growth trajectory but must monitor cash flow and debt levels.Income Statement
e.l.f. Beauty's TTM (Trailing-Twelve-Months) financials show a strong gross profit margin of approximately 71% and a healthy net profit margin of about 8.9%. The company has demonstrated impressive revenue growth, with revenues rising significantly from previous years. EBIT and EBITDA margins also reflect robust operational efficiency, with EBIT margin at 10.5% and EBITDA margin at 14.8% for TTM. Overall, the income statement highlights strong profitability and continued growth momentum.85
Very Positive
Balance Sheet
The company's balance sheet reveals a solid equity position with a debt-to-equity ratio of approximately 0.41, indicating prudent leverage. The return on equity is a respectable 14.8%, showcasing effective management of shareholder funds. The equity ratio stands at 58.8%, reflecting a stable asset base supported by equity. While the debt levels are manageable, close monitoring is advisable to maintain financial stability.78
Positive
Cash Flow
The cash flow statement indicates a decrease in operating cash flow compared to prior annual periods, which could reflect increased operational costs or changes in working capital. Free cash flow has also diminished, with a notable drop from the previous reporting period. Nevertheless, the operating cash flow to net income ratio remains positive, signifying that the firm converts a reasonable portion of its earnings into cash. While the company remains cash flow positive, volatility in free cash flow warrants attention.72
Positive
| Breakdown | |||||
| TTM | Mar 2024 | Mar 2023 | Mar 2022 | Mar 2021 | Mar 2020 |
|---|---|---|---|---|---|
| Income Statement | Total Revenue | ||||
| 1.22B | 1.02B | 578.84M | 392.15M | 318.11M | 282.85M | Gross Profit |
| 864.50M | 724.10M | 390.40M | 251.73M | 206.20M | 181.12M | EBIT |
| 127.49M | 149.68M | 68.14M | 29.77M | 9.40M | 29.95M | EBITDA |
| 180.00M | 188.31M | 89.88M | 54.63M | 32.12M | 53.34M | Net Income Common Stockholders |
| 107.99M | 127.66M | 61.53M | 21.77M | 6.23M | 17.88M |
| Balance Sheet | Cash, Cash Equivalents and Short-Term Investments | ||||
| 108.18M | 108.18M | 120.78M | 43.35M | 57.77M | 46.17M | Total Assets |
| 1.13B | 1.13B | 595.60M | 494.63M | 487.39M | 453.10M | Total Debt |
| 290.60M | 290.60M | 77.66M | 112.61M | 146.62M | 149.90M | Net Debt |
| 182.42M | 182.42M | -43.12M | 69.26M | 88.85M | 103.73M | Total Liabilities |
| 486.68M | 486.68M | 184.58M | 182.20M | 217.75M | 210.93M | Stockholders Equity |
| 642.57M | 642.57M | 411.02M | 312.43M | 269.65M | 242.17M |
| Cash Flow | Free Cash Flow | ||||
| 22.73M | 62.49M | 100.16M | 14.70M | 23.00M | 34.89M | Operating Cash Flow |
| 32.33M | 71.15M | 101.88M | 19.51M | 29.48M | 44.31M | Investing Cash Flow |
| -285.70M | -284.66M | -1.72M | -4.82M | -6.47M | -35.34M | Financing Cash Flow |
| 181.79M | 200.94M | -22.73M | -29.11M | -11.40M | -16.68M |
e.l.f. Beauty Technical Analysis
Negative
63.93
Price Trends
102.68
Negative
111.29
Negative
137.69
Negative
Market Momentum
-10.20
Negative
23.43
Positive
10.10
Positive
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For ELF, the sentiment is Negative. The current price of 63.93 is below the 20-day moving average (MA) of 74.42, below the 50-day MA of 102.68, and below the 200-day MA of 137.69, indicating a bearish trend. The MACD of -10.20 indicates Negative momentum. The RSI at 23.43 is Positive, neither overbought nor oversold. The STOCH value of 10.10 is Positive, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for ELF.
e.l.f. Beauty Risk Analysis
e.l.f. Beauty disclosed 14 risk factors in its most recent earnings report. e.l.f. Beauty reported the most risks in the “Finance & Corporate” category.
Finance & Corporate - Financial and accounting risks. Risks related to the execution of corporate activity and strategy
Latest Risks Added 0 New Risks
e.l.f. Beauty Peers Comparison
Overall Rating
UnderperformOutperform
Sector (60)
Financial Indicators
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
79 Outperform | $4.99B | 14.97 | 7.53% | 0.16% | ― | ― | |
76 Outperform | $16.18B | 13.74 | 51.62% | ― | 4.44% | 1.31% | |
63 Neutral | $393.80M | ― | -22.50% | 3.13% | -12.04% | -1796.38% | |
62 Neutral | $3.60B | 38.02 | 15.17% | ― | 46.27% | -26.45% | |
60 Neutral | $13.01B | 10.45 | 0.79% | 3.53% | 1.60% | -22.47% | |
57 Neutral | $4.81B | 40.12 | 0.33% | ― | 1.35% | -99.94% | |
50 Neutral | $24.49B | 147.29 | -16.79% | 2.88% | 0.07% | -249.21% |
* Consumer Cyclical Sector Average
Performance Comparison
ELF
e.l.f. Beauty
63.93
-137.69
-68.29%
EL
The Estée Lauder Companies
68.09
-75.98
-52.74%
NUS
Nu Skin
7.66
-4.58
-37.42%
ULTA
Ulta Beauty
343.45
-206.01
-37.49%
COTY
Coty
5.52
-7.06
-56.12%
LB
LandBridge Company LLC Class A
65.23
42.30
184.47%
e.l.f. Beauty Earnings Call Summary
Earnings Call Date: Feb 6, 2025 | % Change Since: -27.75% | Next Earnings Date: May 21, 2025
Earnings Call Sentiment Neutral
The earnings call highlighted strong growth in net sales, market share, digital channels, and international markets. However, the company faced challenges with a softer start to 2025, slower-than-expected new product launches, and foreign currency losses impacting financials. Despite these challenges, e.l.f. Beauty, Inc. remains confident in its growth strategy and market position.Highlights
Consistent Growth in Net Sales
e.l.f. Beauty, Inc. reported a 31% increase in net sales for Q3, marking the 24th consecutive quarter of net sales growth and market share gains. The company also reported a year-to-date net sales growth of 40%.
Market Share Expansion
The company increased its US market share by 220 basis points and became the number one unit brand at Target with over 20% share.
Strong International Performance
International net sales grew by 66% in Q3, with international sales accounting for 20% of total net sales, up from 15% the previous year.
Growth in Digital Channels
Digital consumption trends were up nearly 30% year-over-year, with digital channels driving 24% of consumption in Q3.
Skincare Category Performance
e.l.f. Skin continued to outperform the category, becoming a top ten skincare brand, and the acquisition of Naturium doubled their skincare penetration to 18% of retail sales.
Lowlights
Soft Start to Calendar 2025
Consumption trends in early 2025 were softer than expected, attributed to a declining category, lower social conversations around beauty, and the impact of external events like LA wildfires and TikTok uncertainties.
New Product Launch Challenges
Initial reads for new product launches for Spring 2025 started slower than expected, impacting sales projections.
Adjusted Sales Outlook
The company lowered its net sales outlook for the final quarter of the fiscal year to between minus 1% and plus 2%.
Foreign Currency Loss
Adjusted EBITDA and net income were impacted by an unanticipated foreign currency loss of approximately $7 million.
Company Guidance
In the recent earnings call, e.l.f. Beauty, Inc. reported strong Q3 fiscal 2025 results, with net sales growing by 31% and adjusted EBITDA reaching $69 million. The company increased its US market share by 220 basis points, marking its 24th consecutive quarter of growth and market share gains. Despite a soft start to calendar 2025, e.l.f. remains optimistic, expecting 14% to 16% net sales growth in the second half of the fiscal year, although they revised Q4 sales outlook to a range of -1% to +2%. The company highlighted robust digital growth with digital consumption up nearly 30% year-over-year and international net sales rising by 66%, driven by expansion in markets like Germany and Mexico. e.l.f. Beauty, Inc. continues to focus on digital, color cosmetics, skincare, and international growth as key areas of opportunity.Glossary
OutperformA stock rated as "Outperform" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests that the stock is likely to deliver higher returns compared to the average returns of other stocks in the same sector or market index. Investors might consider this stock a good buying opportunity.
NeutralA stock rated as "Neutral" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly attractive nor unattractive for investment. Investors may consider holding onto the stock, as it is not expected to either significantly outperform or underperform the market.
UnderperformA stock rated as "Underperform" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests that the stock may deliver lower returns compared to the average returns of other stocks in the same sector or market index. Investors might consider selling the stock or avoiding it as an investment.
Disclaimer
This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.