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

• Market Cap: $6.62B
• Dividend Yield: N/A
• Average Volume (3M): 2.15M
• Price to Earnings (P/E): 72.9
• Beta (1Y): 1.88
• Revenue Growth: 18.61%
• EPS Growth: -21.36%
• Country: US
• Employees: 633
• Sector: Consumer Defensive
• Sector Strength: 64
• Industry: Household & Personal Products
• EPS (TTM): 0.89
• Shares Outstanding: 56,734,900
• 10 Day Avg. Volume: 3,078,142
• 30 Day Avg. Volume: 2,153,833
• PEG Ratio: N/A
• Price to Book (P/B): N/A
• Price to Sales (P/S): N/A
• P/FCF Ratio: N/A
• Enterprise Value/Market Cap: 1.11
• Enterprise Value/Revenue: 5.45
• Enterprise Value/Gross Profit: 7.72
• Enterprise Value/Ebitda: 47.99
• 1Y Price Target: $131.69
• Price Target Upside: 10.11% Upside
• Rating Consensus: Strong Buy
• Number of Analyst Covering: 18

• Rating: 73 Outperform
• Price Target: $137.00 ▲(14.55% Upside)

e.l.f. Beauty's overall stock score is driven by its strong financial performance and strategic acquisitions, which bolster its market position and growth potential. However, the high P/E ratio and technical indicators suggest caution, as the stock may be overvalued and facing potential bearish trends. The company's ability to navigate tariff impacts and maintain profitability will be crucial for future performance.

Positive Factors

Growth Potential

The price target for ELF has been set at $134.00, indicating confidence in its growth potential.

Market Share Gain

The company gained 210bps of market share, outpacing category trends in FQ1.

Stock Rating Upgrade

The stock rating for ELF has been upgraded from Equal-weight to Overweight.

Negative Factors

Guidance Concerns

Vague but disconcerting ELF FQ2 guidance with temporary pressure points.

Stock Volatility

Pronounced ELF stock volatility after an unexpectedly large US topline slowdown in the last couple of quarters.

Tariff Impact

2Q margins are expected to be pressured due to tariffs and higher SG&A costs around marketing and from the rhode acquisition.

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

Company Description

e.l.f. Beauty, Inc. (ELF) is a cosmetics company based in the United States, known for its commitment to providing high-quality beauty products at affordable prices. Founded in 2004, the company operates primarily in the beauty and personal care sector and offers a diverse range of products, including makeup, skincare, and beauty tools. ELF has established itself as a leader in the accessible beauty market, with a focus on innovation, inclusivity, and sustainability.

How the Company Makes Money

e.l.f. Beauty generates revenue primarily through the sale of its cosmetics and skincare products, which are distributed through various channels, including retail stores, e-commerce platforms, and direct-to-consumer sales. Key revenue streams include product sales from major retailers such as Target, Walmart, and Ulta Beauty, as well as online sales through its website and platforms like Amazon. The company also benefits from its strong online presence and marketing strategies, leveraging social media and influencer partnerships to reach a broader audience. Additionally, e.l.f. invests in product innovation and limited-edition collections to drive sales and maintain customer interest.

e.l.f. Beauty Financial Statement Overview

Summary

e.l.f. Beauty demonstrates solid financial health with strong revenue growth, robust profitability, and effective cash flow management. While there is slight pressure on net profit margins, the overall financial position remains healthy with prudent leverage and strong equity backing.

Income Statement

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

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

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.

Breakdown	TTM	Dec 2025	Dec 2024	Dec 2023	Dec 2022	Dec 2021
Income Statement
Total Revenue	1.34B	1.31B	1.02B	578.84M	392.15M	318.11M
Gross Profit	948.94M	935.69M	724.10M	390.40M	251.73M	206.20M
EBITDA	152.56M	158.03M	188.31M	89.88M	54.63M	32.12M
Net Income	164.66M	112.09M	127.66M	61.53M	21.77M	6.23M
Balance Sheet
Total Assets	1.31B	1.25B	1.13B	595.60M	494.63M	487.39M
Cash, Cash Equivalents and Short-Term Investments	170.03M	148.69M	108.18M	120.78M	43.35M	57.77M
Total Debt	314.79M	313.02M	290.60M	77.66M	112.61M	146.62M
Total Liabilities	510.04M	487.32M	486.68M	184.58M	182.20M	217.75M
Stockholders Equity	804.85M	760.86M	642.57M	411.02M	312.43M	269.65M
Cash Flow
Free Cash Flow	134.96M	115.32M	62.49M	100.16M	14.70M	23.00M
Operating Cash Flow	159.79M	133.84M	71.15M	101.88M	19.51M	29.48M
Investing Cash Flow	-25.78M	-19.10M	-284.66M	-1.72M	-4.82M	-6.47M
Financing Cash Flow	-74.74M	-74.45M	200.94M	-22.73M	-29.11M	-11.40M

e.l.f. Beauty Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 119.60
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Negative
• RSI: Neutral
• STOCH: Negative

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 119.6 is above the 20-day moving average (MA) of 115.70, above the 50-day MA of 118.38, and above the 200-day MA of 99.89, indicating a bullish trend. The MACD of -0.05 indicates Negative momentum. The RSI at 54.65 is Neutral, neither overbought nor oversold. The STOCH value of 86.84 is Negative, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for ELF.

e.l.f. Beauty Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
NUS	74 Outperform	$551.90M	5.56	13.68%	2.10%	-11.79%	―
ELF	73 Outperform	$6.62B	72.91	12.97%	―	18.61%	-21.36%
IPAR	69 Neutral	$3.69B	23.01	20.68%	2.70%	7.04%	13.52%
Sector *	63 Neutral	$20.97B	14.56	-8.07%	3.13%	2.79%	-9.84%
EL	61 Neutral	$32.99B	147.29	-17.27%	1.91%	-3.70%	-235.59%
COTY	61 Neutral	$4.35B	40.12	-10.58%	―	-1.68%	-302.11%
EPC	57 Neutral	$1.05B	16.63	4.12%	2.58%	-2.92%	-43.06%

e.l.f. Beauty Corporate Events

e.l.f. Beauty Completes Acquisition of HRBeauty LLC

On August 5, 2025, e.l.f. Beauty completed the acquisition of HRBeauty LLC, known as rhode, for $800 million, with $600 million funded through a new term loan facility. This acquisition is part of e.l.f. Beauty’s strategy to expand its market presence and leverage rhode’s growth potential. Additionally, e.l.f. Beauty reported a 9% increase in net sales to $353.7 million for the quarter ending June 30, 2025, marking its 26th consecutive quarter of growth. The company also experienced a decrease in gross margin due to tariffs but achieved a net income of $33.3 million, reflecting its strong market position and operational strategy.

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.

e.l.f. Beauty Acquires Rhode for $1 Billion

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.