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

• Market Cap: $6.67B
• Dividend Yield: N/A
• Average Volume (3M): 1.89M
• Price to Earnings (P/E): 58.1
• Beta (1Y): 1.87
• Revenue Growth: 28.28%
• EPS Growth: -14.79%
• Country: US
• Employees: 633
• Sector: Consumer Cyclical
• Sector Strength: 68
• Industry: Household & Personal Products
• EPS (TTM): 0.78
• Shares Outstanding: 56,734,894
• 10 Day Avg. Volume: 2,156,495
• 30 Day Avg. Volume: 1,894,350
• PEG Ratio: -7.89
• Price to Book (P/B): 8.03
• Price to Sales (P/S): 0.00
• P/FCF Ratio: 51.79
• Enterprise Value/Market Cap: 0.92
• Enterprise Value/Revenue: 1.23
• Enterprise Value/Gross Profit: 6.55
• Enterprise Value/Ebitda: 8.98
• 1Y Price Target: $127.47
• Price Target Upside: 14.21% Upside
• Rating Consensus: Strong Buy
• Number of Analyst Covering: 16

• Rating: 72 Outperform
• Price Target: $122.00 ▲(9.31%Upside)

e.l.f. Beauty's strong financial performance and promising growth prospects from the Rhode acquisition are key strengths. However, high valuation and potential risks from tariffs and price increases temper the outlook. Technical indicators show mixed signals, with short-term bearish momentum but potential for a rebound.

Positive Factors

Brand Momentum

ELF's acquisition of Rhode is expected to enhance brand momentum with the rollout at Sephora and new product launches.

Earnings

The base case could call for ~10% EPS accretion and upside will largely depend on consumer demand and the execution of the Sephora launch.

Market Performance

ELF has seen significant improvement in tracked channel sales, signaling strong market performance and growth potential.

Negative Factors

Demand and Market Health

Rhode's ability to meet demand for the Sephora launch initially, maintain current brand health and relevance, execute on new product launches and category expansion, and increase distribution footprint are key risk factors.

Revenue Recognition

One of the many unknowns is whether ELF could recognize the initial sell-in revenue for the Sephora launch.

Velocity and Sales Growth

There is a sequential slowdown in ELF's scanner data growth in the latest Nielsen period.

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

Company Description

e.l.f. Beauty, Inc., together with its subsidiaries, provides cosmetic and skin care products under the e.l.f. Cosmetics, e.l.f. Skin, Well People, and Keys Soulcare brand names worldwide. The company offers eye, lip, face, face, paw, and skin care products. It sells its products through national and international retailers and direct-to-consumer channels, which include e-commerce platforms in the United States, and internationally primarily through distributors. The company was formerly known as J.A. Cosmetics Holdings, Inc. and changed its name to e.l.f. Beauty, Inc. in April 2016. e.l.f. Beauty, Inc. was founded in 2004 and is headquartered in Oakland, California.

How the Company Makes Money

e.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 Financial Statement Overview

Summary

e.l.f. Beauty demonstrates solid financial health with strong revenue growth, robust profitability, and effective cash flow management. However, a slight decline in net profit margin and rising debt levels warrant monitoring.

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	Mar 2025	Mar 2024	Mar 2023	Mar 2022	Mar 2021
Income Statement
Total Revenue	1.31B	1.02B	578.84M	392.15M	318.11M
Gross Profit	935.69M	724.10M	390.40M	251.73M	206.20M
EBITDA	158.03M	188.31M	89.88M	54.63M	32.12M
Net Income	112.09M	127.66M	61.53M	21.77M	6.23M
Balance Sheet
Total Assets	1.25B	1.13B	595.60M	494.63M	487.39M
Cash, Cash Equivalents and Short-Term Investments	148.69M	108.18M	120.78M	43.35M	57.77M
Total Debt	305.40M	290.60M	77.66M	112.61M	146.62M
Total Liabilities	487.32M	486.68M	184.58M	182.20M	217.75M
Stockholders Equity	760.86M	642.57M	411.02M	312.43M	269.65M
Cash Flow
Free Cash Flow	115.32M	62.49M	100.16M	14.70M	23.00M
Operating Cash Flow	133.84M	71.15M	101.88M	19.51M	29.48M
Investing Cash Flow	-19.10M	-284.66M	-1.72M	-4.82M	-6.47M
Financing Cash Flow	-74.45M	200.94M	-22.73M	-29.11M	-11.40M

e.l.f. Beauty Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 111.61
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Positive
• RSI: Neutral
• STOCH: 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 111.61 is below the 20-day moving average (MA) of 118.85, above the 50-day MA of 107.96, and above the 200-day MA of 99.12, indicating a neutral trend. The MACD of -0.13 indicates Positive momentum. The RSI at 46.98 is Neutral, neither overbought nor oversold. The STOCH value of 47.78 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 Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
IPAR	82 Outperform	$4.16B	25.17	22.16%	2.98%	10.32%	18.55%
ELF	72 Outperform	$6.67B	58.12	15.97%	―	28.28%	-14.79%
EPC	69 Neutral	$1.20B	14.92	5.53%	2.36%	-2.11%	-28.79%
Sector *	62 Neutral	$16.95B	11.10	-7.23%	3.24%	1.71%	-24.93%
EL	61 Neutral	$31.37B	147.29	-17.27%	2.75%	-3.70%	-235.59%
NUS	61 Neutral	$412.10M	―	-4.93%	3.50%	-11.85%	-1080.00%
COTY	60 Neutral	$4.29B	40.12	-10.58%	―	-1.68%	-302.11%

e.l.f. Beauty Corporate Events

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.