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e.l.f. Beauty (ELF)
NYSE:ELF

e.l.f. Beauty (ELF) AI Stock Analysis

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EL

e.l.f. Beauty

(NYSE:ELF)

Rating:75Outperform
Price Target:
$133.00
▲(6.88%Upside)
e.l.f. Beauty's strong financial performance and positive earnings call insights drive the stock's appeal, while technical indicators and valuation present cautionary signs. The company's strategic acquisition of Rhode and ongoing market expansion are positive, but tariff-related uncertainties and overvaluation concerns temper the overall score.
Positive Factors
Acquisition Impact
The rhode acquisition is projected to be accretive to ELF’s top and bottom line, with further upside from the DTC business’ expansion into Sephora.
Market Performance
ELF has seen significant improvement in tracked channel sales, signaling strong market performance and growth potential.
Sales Growth
ELF US Nielsen scanner data showed a year-over-year sales growth of 25.3% in the latest two weeks and 26.3% in the latest week.
Negative Factors
Market Volatility
There is a cautious outlook due to recent base business volatility and limited long-term visibility on sustainability.
Production Risk
Management's plan to reduce products sourced from China by the end of FY26 is expected to ease cost pressures.
Tariff Costs
75% of ELF's global production comes from China, leading to significant tariff-related cost impacts.

e.l.f. Beauty (ELF) vs. SPDR S&P 500 ETF (SPY)

e.l.f. Beauty Business Overview & Revenue Model

Company Descriptione.l.f. Beauty, Inc. is a publicly traded company headquartered in Oakland, California. It operates in the cosmetics sector, focusing on providing high-quality, affordable makeup and skincare products. The company's core offerings include a wide range of beauty products such as foundations, lipsticks, and skincare items, which are primarily marketed under the e.l.f. Cosmetics brand. e.l.f. Beauty is known for its commitment to cruelty-free and vegan products, appealing to a broad demographic through both in-store and online retail channels.
How the Company Makes Moneye.l.f. Beauty generates revenue through the sale of its cosmetics and skincare products. The company's primary revenue streams include direct-to-consumer sales via its e-commerce platform and third-party retail partnerships with stores like Target, Walmart, and Ulta Beauty. e.l.f. Beauty leverages its strong digital presence and social media marketing to engage with customers and drive online sales. Additionally, the company's commitment to innovation and new product launches helps sustain consumer interest and maintain competitive positioning in the beauty industry. Significant factors contributing to its earnings include its broad market reach, cost-effective pricing strategy, and emphasis on ethical and sustainable product offerings.

e.l.f. Beauty Earnings Call Summary

Earnings Call Date:May 28, 2025
(Q4-2025)
|
% Change Since: 37.50%|
Next Earnings Date:Jul 30, 2025
Earnings Call Sentiment Neutral
The earnings call showcased strong fiscal 2025 results with consistent growth and successful international expansion. The acquisition of Rhode presents a promising opportunity for further growth. However, there are concerns about the impact of increased tariffs and the uncertainty it brings for fiscal 2026, along with the need for price increases.
Q4-2025 Updates
Positive Updates
Strong Fiscal 2025 Results
e.l.f. Beauty grew net sales by 28% and adjusted EBITDA by 26%, marking the 25th consecutive quarter of net sales growth and market share gains.
Market Share Gains
e.l.f. Beauty gained 190 basis points of market share in the U.S., 170 basis points in Canada, and 270 basis points in the UK.
International Expansion
International net sales grew by 60% in fiscal 2025, with significant growth in markets like Germany, Netherlands, Italy, and Mexico.
Acquisition of Rhode
e.l.f. Beauty announced the acquisition of Rhode, a high-growth beauty brand achieving $212 million in net sales over the last 12 months.
Innovation and Product Launches
Strong performance from new product launches like the Glow Reviver Melting Lip Balms and engagement campaigns such as the Mini-Trick Pony campaign.
Negative Updates
Tariff Impact
75% of e.l.f.'s global production comes from China, and increased tariffs may impact cost of goods sold by approximately $50 million annually.
Uncertain Fiscal 2026 Outlook
Due to uncertainty around tariffs, e.l.f. Beauty did not provide an initial full-year fiscal 2026 outlook.
Possible Price Increases
To mitigate tariff impacts, e.l.f. plans to increase prices by $1 globally on all products, which may affect consumer demand.
Company Guidance
During the call, e.l.f. Beauty reported a strong fiscal year 2025 with net sales growth of 28% and adjusted EBITDA growth of 26%. The company achieved market share gains of 190 basis points in the U.S., 170 basis points in Canada, and 270 basis points in the UK, marking its 25th consecutive quarter of net sales growth and market share gains. In fiscal Q4, net sales increased by 4% year-over-year, with international sales growing by 19%. e.l.f. also announced a $1 price increase across its entire product assortment globally, effective August 1, to mitigate tariff impacts which could affect costs by approximately $50 million annually. Moreover, e.l.f. has entered a definitive agreement to acquire the beauty brand Rhode for $1 billion, aiming to enhance its portfolio and leverage Rhode's strong community engagement and growth potential. The transaction is expected to be accretive to e.l.f.'s topline growth and earnings, with Rhode contributing $212 million in net sales over the last 12 months. Despite tariff uncertainties, the company remains optimistic about continued market share growth and innovation.

e.l.f. Beauty Financial Statement Overview

Summary
e.l.f. Beauty showcases strong revenue growth, robust profitability, and effective cash flow management. The company maintains a healthy balance sheet with prudent leverage and strong equity backing, although the slight decline in net profit margin and increased debt require attention.
Income Statement
88
Very Positive
e.l.f. Beauty shows impressive revenue growth, with a consistent upward trajectory over the years. The gross profit margin stands strong at approximately 71.2% for the latest year, indicating effective cost management. However, a slight decline in net profit margin from 12.5% to 8.5% suggests increased operational costs or other expenses impacting net income. The EBIT and EBITDA margins remain stable, reflecting robust operational efficiency.
Balance Sheet
75
Positive
The company's balance sheet highlights a favorable equity ratio of 61% and a manageable debt-to-equity ratio of 0.40, suggesting prudent leverage levels. Return on equity, at 14.7%, is commendable, showcasing effective utilization of equity to generate profits. Nevertheless, the increase in total debt warrants careful monitoring to avoid potential risk exposure.
Cash Flow
82
Very Positive
e.l.f. Beauty exhibits strong cash flow management, with a significant increase in operating cash flow. Free cash flow growth is notable, enhancing the company's flexibility in capital allocation. The operating cash flow to net income ratio of 1.19 highlights efficient conversion of income into cash. However, a careful watch on capital expenditures is necessary to maintain positive free cash flow.
BreakdownMar 2025Mar 2024Mar 2023Mar 2022Mar 2021
Income Statement
Total Revenue1.31B1.02B578.84M392.15M318.11M
Gross Profit935.69M724.10M390.40M251.73M206.20M
EBITDA158.03M188.31M89.88M54.63M32.12M
Net Income112.09M127.66M61.53M21.77M6.23M
Balance Sheet
Total Assets1.25B1.13B595.60M494.63M487.39M
Cash, Cash Equivalents and Short-Term Investments148.69M108.18M120.78M43.35M57.77M
Total Debt305.40M290.60M77.66M112.61M146.62M
Total Liabilities487.32M486.68M184.58M182.20M217.75M
Stockholders Equity760.86M642.57M411.02M312.43M269.65M
Cash Flow
Free Cash Flow115.32M62.49M100.16M14.70M23.00M
Operating Cash Flow133.84M71.15M101.88M19.51M29.48M
Investing Cash Flow-19.10M-284.66M-1.72M-4.82M-6.47M
Financing Cash Flow-74.45M200.94M-22.73M-29.11M-11.40M

e.l.f. Beauty Technical Analysis

Technical Analysis Sentiment
Positive
Last Price124.44
Price Trends
50DMA
92.51
Positive
100DMA
79.40
Positive
200DMA
98.86
Positive
Market Momentum
MACD
8.92
Positive
RSI
68.00
Neutral
STOCH
72.94
Neutral
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For ELF, the sentiment is Positive. The current price of 124.44 is above the 20-day moving average (MA) of 121.60, above the 50-day MA of 92.51, and above the 200-day MA of 98.86, indicating a bullish trend. The MACD of 8.92 indicates Positive momentum. The RSI at 68.00 is Neutral, neither overbought nor oversold. The STOCH value of 72.94 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for ELF.

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

Overall Rating
UnderperformOutperform
Sector (56)
Financial Indicators
Name
Overall Rating
Market Cap
P/E Ratio
ROE
Dividend Yield
Revenue Growth
EPS Growth
82
Outperform
$4.24B25.6422.16%2.42%10.32%18.55%
ELELF
75
Outperform
$7.12B64.8015.97%28.28%-14.79%
EPEPC
65
Neutral
$1.09B13.575.53%2.58%-2.11%-28.79%
NUNUS
62
Neutral
$399.75M-4.93%2.97%-11.85%-1080.00%
ELEL
57
Neutral
$28.81B147.29-17.27%1.73%-3.70%-235.59%
56
Neutral
HK$23.98B4.09-1.57%6.81%0.06%-64.88%
56
Neutral
$4.02B40.12-10.58%-1.68%-302.11%
* Consumer Cyclical Sector Average
Performance Comparison
Ticker
Company Name
Price
Change
% Change
ELF
e.l.f. Beauty
126.67
-77.56
-37.98%
EL
The Estée Lauder Companies
85.11
-18.46
-17.82%
IPAR
Inter Parfums
134.40
22.24
19.83%
NUS
Nu Skin
8.86
-1.53
-14.73%
COTY
Coty
4.91
-4.85
-49.69%
EPC
Edgewell Personal Care
23.41
-15.85
-40.37%

e.l.f. Beauty Corporate Events

M&A TransactionsBusiness Operations and Strategy
e.l.f. Beauty Acquires Rhode for $1 Billion
Positive
May 28, 2025

On May 28, 2025, e.l.f. Beauty announced a definitive agreement to acquire rhode, a lifestyle beauty brand founded by Hailey Bieber, for $1 billion. The acquisition, expected to close in the second quarter of fiscal year 2026, aims to diversify e.l.f. Beauty’s portfolio and expand its presence in the prestige beauty channel. The deal includes $800 million payable at closing and a potential earnout of $200 million based on rhode’s future growth. This strategic move is set to enhance e.l.f. Beauty’s market positioning by leveraging rhode’s innovative products and strong consumer base, which has seen significant growth, doubling its consumer base and generating $212 million in net sales over the past year.

The most recent analyst rating on (ELF) stock is a Buy with a $130.00 price target. To see the full list of analyst forecasts on e.l.f. Beauty stock, see the ELF Stock Forecast page.

Executive/Board Changes
e.l.f. Beauty Appoints Charles Bergh to Board
Neutral
Apr 3, 2025

On March 31, 2025, Beth Pritchard resigned from e.l.f. Beauty’s Board of Directors after seven years of service, with no disagreements cited. The Board expressed gratitude for her contributions. Concurrently, Charles Victor Bergh was appointed as a Class III director, effective April 1, 2025, with a term expiring at the 2025 annual meeting of stockholders. Bergh, a Senior Lecturer at Harvard Business School and former President and CEO of Levi Strauss & Co., brings extensive leadership experience to the role.

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.Date of analysis: Jun 11, 2025