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e.l.f. Beauty
(NYSE:ELF)
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Rating:69Neutral
Price Target:
$95.00
▲(22.80% Upside)
Action:Reiterated
Date:08/06/26
Score is driven primarily by solid financial fundamentals led by strong free cash flow, plus a very constructive earnings update with raised full-year guidance and continued brand/international momentum. Technicals are supportive with clear trend strength. The main offsets are extremely rich valuation and a financial profile showing recent margin compression and higher leverage, alongside call-out risks that some recent profitability benefited from a one-time tariff refund and that organic/unit trends need to improve.
Positive Factors
Free Cash Flow Strength
Consistently strong operating and free cash flow provides durable financial flexibility: it funds marketing, DTC expansion, bolt-on M&A and share repurchases without relying solely on new debt. Strong cash conversion also cushions the business against cyclical retail swings and funds supply‑chain diversification.
Negative Factors
Compressed Net Margins
A sharp fall in net margin from prior double-digits to ~3% materially reduces earnings power and return on capital. This makes earnings more sensitive to cost increases or sales volatility, limits reinvestment capacity, and raises the bar for sustaining the company's growth trajectory without further margin recovery.
Read all positive and negative factors
Positive Factors
Negative Factors
Free Cash Flow Strength
Consistently strong operating and free cash flow provides durable financial flexibility: it funds marketing, DTC expansion, bolt-on M&A and share repurchases without relying solely on new debt. Strong cash conversion also cushions the business against cyclical retail swings and funds supply‑chain diversification.
Read all positive factors
e.l.f. Beauty Key Performance Indicators (KPIs)
Any
Revenue by Geography
Breaks down revenue across different regions, revealing where the company is strongest and where it may face risk or growth potential due to local economic conditions or market share shifts.
Breaks down revenue across different regions, revealing where the company is strongest and where it may face risk or growth potential due to local economic conditions or market share shifts.
Data provided by:
The Fly
The Flye.l.f. Beauty (ELF) vs. SPDR S&P 500 ETF (SPY)
Market Cap
$5.47B
Dividend YieldN/A
Average Volume (3M)2.92M
Price to Earnings (P/E)91.9
Beta (1Y)2.05
Revenue Growth31.23%
EPS Growth-42.14%
CountryUS
Employees849
SectorConsumer Defensive
Sector Strength42
IndustryHousehold & Personal Products
Share Statistics
EPS (TTM)1.00
Shares Outstanding59,007,996
10 Day Avg. Volume2,183,442
30 Day Avg. Volume2,922,069
Financial Highlights & Ratios
PEG Ratio-1.74
Price to Book (P/B)3.12
Price to Sales (P/S)2.16
P/FCF Ratio18.58
Enterprise Value/Market Cap<0.01
Enterprise Value/Revenue<0.01
Enterprise Value/Gross Profit<0.01
Enterprise Value/Ebitda<0.01
Forecast
1Y Price Target
$95.94Price Target Upside24.01% Upside
Rating ConsensusModerate Buy
Number of Analyst Covering17
EPS Forecast (FY)3.61
Revenue Forecast (FY)$1.96B
e.l.f. Beauty Business Overview & Revenue Model
Company Description
e.l.f. Beauty, Inc., a beauty company, provides cosmetics and skin care products worldwide. The company offers eye, lip, face, paw, and skin care products. It offers products under the e.l.f. Cosmetics, e.l.f. Skin, Well People, Naturium, and Keys...
How the Company Makes Money
e.l.f. Beauty makes money primarily by selling branded beauty and skincare products to consumers through two main channels: (1) wholesale/retail distribution and (2) direct-to-consumer (DTC) e-commerce.
1) Wholesale/retail distribution (primary r...
e.l.f. Beauty Earnings Call Summary
Earnings Call Date:Aug 05, 2026
(Q1-2027)
| % Change Since: |
Next Earnings Date:Nov 04, 2026
Earnings Call Sentiment Positive
The call presents a strongly positive operational and financial picture: robust revenue growth (36% YoY), substantial international expansion (61% international growth), a meaningful contribution from the rhode acquisition (~$160M in Q1 with a $27M single-day DTC launch), and raised full-year guidance for sales and EBITDA. Profitability expanded materially in Q1, though a sizable portion of margin and net income improvement was driven by a one-time $50M tariff refund that management intends to reinvest across pricing and marketing over the rest of the year. Management is investing heavily in marketing, supply chain diversification and brand expansion (including international rollouts and a new haircare category), which increased SG&A and will pressure near-term operating leverage but is intended to drive long-term growth. On balance, the positive drivers (strong top-line beats, raised guidance, brand momentum, cash strength and supply-chain progress) outweigh the transitory headwinds (one-time tariff benefit, unit declines, temporary higher spending and certain market lapping effects).Positive Updates
Robust Top-Line Growth and Durable Momentum
Net sales grew 36% year-over-year in Q1; company delivered its 30th consecutive quarter of net sales growth. U.S. net sales grew 29% and international net sales grew 61%.
Negative Updates
Organic Q1 Weakness Excluding rhode
Organic net sales excluding rhode were largely in line with a high single-digit decline in Q1, driven by lapping a busy shipping period tied to an ERP cutover and cycling the prior launch of Glow Reviver Melting Lip Balm.
Read all updates
Q1-2027 Updates
Positive
Negative
Robust Top-Line Growth and Durable Momentum
Net sales grew 36% year-over-year in Q1; company delivered its 30th consecutive quarter of net sales growth. U.S. net sales grew 29% and international net sales grew 61%.
Read all positive updates
Company Guidance
e.l.f. Beauty raised its fiscal 2027 guidance, now expecting net sales growth of approximately 18%–20% (up from 12%–14%), adjusted EBITDA of $401M–$407M (implying roughly a 21% margin, up ~20 bps year-over-year), adjusted net income of $212M–$215M and adjusted EPS of $3.50–$3.55 (vs. prior $3.27–$3.32), with an adjusted tax rate of ~25%–26% and a fully diluted share count of ~60.5M. Management expects rhode to contribute ~13 percentage points to net sales growth (vs. 9 ppt previously) and to drive organic net sales growth of ~6%–7% for the year (10%–12% organic for the balance of the year); Q2 total net sales are expected in the mid‑30s. They forecast full‑year gross margin up ~200 basis points (excluding the one‑time $50M IEEPA tariff refund benefit gross margin is expected to be ~flat year-over-year), plan marketing & digital at the high end of a 23%–25% range (tracking ahead in the back half), will fully reinvest the $50M tariff refund Q2–Q4 (net 0 EBITDA impact on the year), and maintain a strong balance sheet (cash ~$344M at quarter end and net debt <1.5x adjusted EBITDA).e.l.f. Beauty Financial Statement Overview
Summary
Income Statement
62
Positive
Balance Sheet
54
Neutral
Cash Flow
78
Positive
| Breakdown | TTM | Mar 2026 | Mar 2025 | Mar 2024 | Mar 2023 | Mar 2022 |
|---|---|---|---|---|---|---|
Income Statement | ||||||
| Total Revenue | 1.76B | 1.64B | 1.31B | 1.02B | 578.84M | 392.15M |
| Gross Profit | 1.31B | 1.16B | 935.69M | 724.10M | 390.40M | 251.73M |
| EBITDA | 221.87M | 160.60M | 206.25M | 182.57M | 85.31M | 54.63M |
| Net Income | 59.61M | 26.32M | 112.09M | 127.66M | 61.53M | 21.77M |
Balance Sheet | ||||||
| Total Assets | 2.46B | 2.39B | 1.25B | 1.13B | 595.60M | 494.63M |
| Cash, Cash Equivalents and Short-Term Investments | 344.24M | 289.69M | 148.69M | 108.18M | 120.78M | 43.35M |
| Total Debt | 921.65M | 916.90M | 313.02M | 290.60M | 82.17M | 117.00M |
| Total Liabilities | 1.29B | 1.26B | 487.32M | 486.68M | 184.58M | 182.20M |
| Stockholders Equity | 1.17B | 1.13B | 760.86M | 642.57M | 411.02M | 312.43M |
Cash Flow | ||||||
| Free Cash Flow | 280.16M | 190.06M | 115.32M | 62.49M | 100.16M | 14.70M |
| Operating Cash Flow | 296.94M | 212.51M | 133.84M | 71.15M | 101.88M | 19.51M |
| Investing Cash Flow | -599.36M | -605.25M | -19.10M | -284.66M | -1.72M | -4.82M |
| Financing Cash Flow | 478.34M | 533.92M | -74.45M | 200.94M | -22.73M | -29.11M |
e.l.f. Beauty Risk Analysis
e.l.f. Beauty disclosed 15 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
UnderperformOutperform
Sector (62)
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
81 Outperform | $3.78B | 22.08 | 19.15% | 2.61% | 2.93% | 4.24% | |
69 Neutral | $5.47B | 91.93 | 5.18% | ― | 31.23% | -42.14% | |
62 Neutral | $20.33B | 14.63 | -3.31% | 3.23% | 1.93% | -12.26% | |
58 Neutral | $1.32B | -14.24 | -5.14% | 2.17% | -7.00% | -246.78% | |
56 Neutral | $2.43B | -4.44 | -15.12% | ― | -3.57% | -32.30% | |
54 Neutral | $31.72B | -128.41 | -6.29% | 1.74% | 0.71% | 71.47% | |
47 Neutral | $84.18M | -2.93 | -47.84% | ― | -6.45% | -44.06% |
* Consumer Defensive Sector Average
ELF
e.l.f. Beauty
92.05
-27.55
-23.04%
EL
The Estée Lauder Companies
87.32
-0.89
-1.00%
IPAR
Inter Parfums
115.48
4.29
3.86%
COTY
Coty
2.75
-2.24
-44.89%
EPC
Edgewell Personal Care
28.47
5.88
26.04%
SKIN
Beauty Health
0.66
-1.51
-69.59%
Glossary
BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
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.