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

• Market Cap: $7.31B
• Dividend Yield: N/A
• Average Volume (3M): 1.88M
• Price to Earnings (P/E): 76.4
• Beta (1Y): 1.82
• Revenue Growth: 18.61%
• EPS Growth: -21.36%
• Country: US
• Employees: 633
• Sector: Consumer Defensive
• Sector Strength: 42
• Industry: Household & Personal Products
• EPS (TTM): 0.89
• Shares Outstanding: 56,734,900
• 10 Day Avg. Volume: 1,733,188
• 30 Day Avg. Volume: 1,876,740
• PEG Ratio: -2.16
• Price to Book (P/B): 4.64
• Price to Sales (P/S): 2.69
• P/FCF Ratio: 30.61
• Enterprise Value/Market Cap: 1.00
• Enterprise Value/Revenue: 5.45
• Enterprise Value/Gross Profit: 7.72
• Enterprise Value/Ebitda: 34.96
• 1Y Price Target: $140.71
• Price Target Upside: 7.66% Upside
• Rating Consensus: Strong Buy
• Number of Analyst Covering: 16

• Rating: 77 Outperform
• Price Target: $134.00 ▲(2.52% Upside)

e.l.f. Beauty's strong financial performance and strategic acquisitions are key strengths, supporting a positive outlook. However, the high P/E ratio suggests potential overvaluation, and technical indicators show mixed signals. The company's ability to navigate tariff challenges and maintain growth will be crucial.

Positive Factors

Consistent Revenue Growth

Consistent revenue growth over 26 quarters indicates strong market demand and effective sales strategies, supporting long-term business expansion.

Strategic Acquisitions

Acquisitions like Rhode expand product offerings and market reach, strengthening competitive positioning and supporting future growth.

International Expansion

Strong international sales growth and market entry into new regions diversify revenue streams and reduce reliance on domestic markets.

Negative Factors

Tariff Impact on Margins

Tariff-related costs negatively impact gross margins, potentially affecting profitability and pricing strategies if not mitigated.

Moderated U.S. Growth

Slower growth in the U.S. market may indicate saturation or increased competition, challenging domestic revenue expansion.

Potential Tariff Uncertainty

Uncertainty in tariff negotiations poses risks to cost structures, potentially affecting long-term financial planning and stability.

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 exhibits strong financial health with consistent revenue growth and robust profitability metrics. The balance sheet reflects a stable financial position with manageable debt levels and strong equity returns. Cash flow generation is solid, supporting ongoing operations and potential growth initiatives. While operational efficiency could be improved, the overall financial outlook is positive.

Income Statement

e.l.f. Beauty demonstrates strong revenue growth with a TTM (Trailing-Twelve-Months) revenue increase of 2.23%. The gross profit margin remains robust at over 70%, indicating efficient cost management. However, the EBIT margin is notably low at 0.23%, suggesting potential inefficiencies in operational expenses. The net profit margin has improved to 12.26%, reflecting enhanced profitability.

Balance Sheet

The company maintains a healthy debt-to-equity ratio of 0.39, indicating prudent leverage management. Return on equity is strong at 21.52%, showcasing effective use of shareholder funds. The equity ratio stands at 61.18%, reflecting a solid capital structure. However, the increase in total debt over the periods warrants monitoring.

Cash Flow

Operating cash flow has grown significantly, with a TTM increase of 19.38%. The free cash flow growth rate is impressive at 17.03%, indicating strong cash generation capabilities. The operating cash flow to net income ratio is 0.87, suggesting efficient conversion of income to cash. The free cash flow to net income ratio is high at 0.84, further supporting cash flow strength.

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	209.44M	206.25M	182.57M	85.31M	54.63M	32.12M
Net Income	115.88M	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: Neutral
• Last Price: 130.70
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Positive
• RSI: Neutral
• STOCH: Positive

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For ELF, the sentiment is Neutral. The current price of 130.7 is below the 20-day moving average (MA) of 135.78, above the 50-day MA of 124.18, and above the 200-day MA of 101.39, indicating a neutral trend. The MACD of 3.44 indicates Positive momentum. The RSI at 48.53 is Neutral, neither overbought nor oversold. The STOCH value of 11.94 is Positive, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Neutral sentiment for ELF.

e.l.f. Beauty Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
ELF	77 Outperform	$7.31B	76.41	12.97%	―	18.61%	-21.36%
IPAR	65 Neutral	3.24B	20.16	27.41%	3.15%	7.04%	13.52%
EPC	58 Neutral	917.67M	14.59	4.13%	3.09%	-2.92%	-43.06%
SKIN	50 Neutral	259.99M	-6.89	-56.17%	―	-15.33%	75.52%
EL	50 Neutral	30.71B	-26.69	-29.31%	1.67%	-8.14%	-389.12%
COTY	47 Neutral	3.45B	-8.98	-9.98%	―	-3.68%	-631.67%
Sector *	62 Neutral	$20.33B	14.63	-3.31%	3.23%	1.93%	-12.26%

e.l.f. Beauty Corporate Events

e.l.f. Beauty Stockholders Approve Key Proposals

On August 21, 2025, e.l.f. Beauty, Inc. held its annual meeting of stockholders where three key proposals were voted upon. The election of Class III directors saw all nominees elected, the executive compensation was approved on an advisory basis, and the appointment of Deloitte & Touche LLP as the independent registered public accounting firm for the fiscal year ending March 31, 2026, was ratified. These decisions reflect the company’s ongoing governance and operational strategies, potentially impacting its financial oversight and leadership structure.

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.