e.l.f. Beauty, Inc. Fundamental Analysis
e.l.f. Beauty, Inc. (ELF) shows weak financial fundamentals with a PE ratio of 53.06, profit margin of 3.34%, and ROE of 5.16%. The company generates $1.6B in annual revenue with strong year-over-year growth of 28.28%.
Key Strengths
Areas of Concern
The stock receives a Fundamental Health Score of 54.4/100 based on profitability, valuation, growth, and balance sheet metrics. The C grade reflects average fundamentals, with notable risks in certain areas.
Fundamental Health Score
We analyze ELF's fundamental strength across five key dimensions:
Efficiency Score
WeakELF struggles to generate sufficient returns from assets.
Valuation Score
ModerateELF shows balanced valuation metrics.
Growth Score
ModerateELF shows steady but slowing expansion.
Financial Health Score
ExcellentELF maintains a strong and stable balance sheet.
Profitability Score
WeakELF struggles to sustain strong margins.
Key Financial Metrics
Is ELF Expensive or Cheap?
P/E Ratio
ELF trades at 53.06 times earnings. This suggests a premium valuation.
PEG Ratio
When adjusting for growth, ELF's PEG of -0.69 indicates potential undervaluation.
Price to Book
The market values e.l.f. Beauty, Inc. at 2.56 times its book value. This may indicate undervaluation.
EV/EBITDA
Enterprise value stands at 14.25 times EBITDA. This signals the market has high growth expectations.
How Well Does ELF Make Money?
Net Profit Margin
For every $100 in sales, e.l.f. Beauty, Inc. keeps $3.34 as profit after all expenses.
Operating Margin
Core operations generate 8.02 in profit for every $100 in revenue, before interest and taxes.
ROE
Management delivers $5.16 in profit for every $100 of shareholder equity.
ROA
e.l.f. Beauty, Inc. generates $2.28 in profit for every $100 in assets, demonstrating efficient asset deployment.
Following the Money - Real Cash Generation
Operating Cash Flow
e.l.f. Beauty, Inc. produces operating cash flow of $213.86M, showing steady but balanced cash generation.
Free Cash Flow
e.l.f. Beauty, Inc. generates strong free cash flow of $191.27M, providing ample flexibility for dividends, buybacks, or growth.
FCF Per Share
Each share generates $3.22 in free cash annually.
FCF Yield
ELF converts 6.46% of its market value into free cash.
Financial Ratios Analysis
Valuation Ratios
P/E Ratio
Price to earnings ratio
53.06
vs 25 benchmark
PEG Ratio
Price/earnings to growth ratio
-0.69
vs 25 benchmark
P/B Ratio
Price to book value ratio
2.56
vs 25 benchmark
P/S Ratio
Price to sales ratio
1.78
vs 25 benchmark
Financial Health
Debt/Equity
Total debt to shareholders' equity
0.81
vs 25 benchmark
Current Ratio
Current assets to current liabilities
2.35
vs 25 benchmark
Efficiency Ratios
ROE
Return on equity percentage
0.05
vs 25 benchmark
ROA
Return on assets percentage
0.02
vs 25 benchmark
ROCE
Return on capital employed
0.06
vs 25 benchmark
How ELF Stacks Against Its Sector Peers
| Metric | ELF Value | Sector Average | Performance |
|---|---|---|---|
| P/E Ratio | 53.06 | 21.43 | Worse (Expensive) |
| ROE | 5.16% | 1134.00% | Weak |
| Net Margin | 3.34% | -2810.00% (disorted) | Weak |
| Debt/Equity | 0.81 | 0.81 | Neutral |
| Current Ratio | 2.35 | 2.39 | Strong Liquidity |
| ROA | 2.28% | -540348.00% (disorted) | Weak |
ELF outperforms its industry in 1 out of 6 key metrics, but lagging in P/E Ratio.
Historical Growth Performance
5-Year Growth Trajectory
This section reviews e.l.f. Beauty, Inc.'s 5-year compound annual growth rate (CAGR) and compares its performance against the typical investment style of its industry.
Revenue CAGR
300.68%
Industry Style: Defensive, Dividend, Low Volatility
High GrowthEPS CAGR
440.77%
Industry Style: Defensive, Dividend, Low Volatility
High GrowthFCF CAGR
160.60%
Industry Style: Defensive, Dividend, Low Volatility
High Growth