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

• Market Cap: $6.69B
• Dividend Yield: N/A
• Average Volume (3M): 1.47M
• Price to Earnings (P/E): 54.3
• Beta (1Y): 1.99
• Revenue Growth: 13.80%
• EPS Growth: -25.02%
• Country: US
• Employees: 633
• Sector: Consumer Defensive
• Sector Strength: 42
• Industry: Household & Personal Products
• EPS (TTM): 0.68
• Shares Outstanding: 56,734,900
• 10 Day Avg. Volume: 1,597,568
• 30 Day Avg. Volume: 1,474,341
• 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: 0.00
• Enterprise Value/Revenue: 0.00
• Enterprise Value/Gross Profit: 0.00
• Enterprise Value/Ebitda: 0.00
• 1Y Price Target: $125.17
• Price Target Upside: 63.54% Upside
• Rating Consensus: Strong Buy
• Number of Analyst Covering: 16
• EPS Forecast (FY): N/A
• Revenue Forecast (FY): N/A

• Rating: 65 Neutral
• Price Target: $127.00 ▲(65.93% Upside)

e.l.f. Beauty's strong financial performance and strategic growth initiatives, including the acquisition of Rhode, are positive factors. However, technical indicators show bearish momentum, and the stock appears overvalued with a high P/E ratio. The earnings call provided mixed insights, with notable market share gains but challenges in organic growth and international expansion.

Positive Factors

Market Share Gains

Consistent market share gains indicate strong brand positioning and competitive advantage, supporting long-term growth potential.

Successful Acquisition

The successful acquisition of Rhode enhances product offerings and market reach, contributing significantly to revenue growth.

Strong Cash Flow Generation

Robust cash flow generation supports ongoing operations and future growth initiatives, ensuring financial stability.

Negative Factors

Organic Sales Decline

Declining organic sales suggest challenges in maintaining growth without acquisitions, potentially impacting long-term revenue stability.

International Sales Growth Slows

Slowed international growth indicates potential saturation or competitive challenges abroad, limiting global expansion opportunities.

Gross Margin Decline

Decreased gross margins due to tariff costs may pressure profitability, affecting long-term financial performance.

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 shows 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. However, operational efficiency could be improved.

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: Negative
• Last Price: 76.54
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Negative
• MACD: Positive
• RSI: Positive
• STOCH: Positive

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For ELF, the sentiment is Negative. The current price of 76.54 is below the 20-day moving average (MA) of 121.78, below the 50-day MA of 130.39, and below the 200-day MA of 100.95, indicating a bearish trend. The MACD of -10.03 indicates Positive momentum. The RSI at 16.68 is Positive, neither overbought nor oversold. The STOCH value of 8.45 is Positive, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative 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	68 Neutral	$2.93B	17.83	19.95%	3.59%	3.12%	9.01%
ELF	65 Neutral	$6.69B	54.26	8.77%	―	13.80%	-25.02%
EPC	63 Neutral	$891.18M	14.17	4.12%	3.21%	-2.92%	-43.06%
Sector *	62 Neutral	$20.33B	14.63	-3.31%	3.23%	1.93%	-12.26%
EL	61 Neutral	$32.83B	―	-20.73%	1.43%	-6.36%	-554.84%
COTY	45 Neutral	$3.30B	―	-9.96%	―	-5.68%	-358.36%
SKIN	45 Neutral	$175.02M	-4.90	-26.54%	―	-15.33%	75.52%

e.l.f. Beauty Corporate Events

e.l.f. Beauty’s Earnings Call: Growth Amid Challenges

e.l.f. Beauty’s recent earnings call painted a picture of both triumph and challenges. The company celebrated significant market share gains and a successful acquisition of Rhode, yet faced hurdles with declining organic sales and slowed international growth. Despite a dip in gross margins due to tariff costs, the consumer response to price increases was notably positive, reflecting a resilient brand image.

e.l.f. Beauty Reports Continued Sales Growth in Q2 2026

e.l.f. Beauty, Inc. is a prominent player in the beauty industry, known for its commitment to inclusivity and accessibility, offering clean and vegan products across its diverse brand portfolio.

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.

The most recent analyst rating on (ELF) stock is a Buy with a $134.00 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’s Earnings Call: Growth Amid Challenges

The recent earnings call for e.l.f. Beauty, Inc. presented a mixed sentiment, highlighting robust growth in net sales, international expansion, and market share gains, driven by strategic acquisitions and successful innovation. However, the company faces financial challenges with pressures on gross margins due to tariffs and a decline in net income.

e.l.f. Beauty Reports Strong Q1 2026 Results

e.l.f. Beauty, Inc. is a prominent player in the beauty industry, known for its commitment to making high-quality, cruelty-free beauty products accessible to all. The company operates through various brands including e.l.f. Cosmetics, e.l.f. SKIN, and others, with a focus on innovation and inclusivity.