ELF BEAUTY INC (ELF)
US26856L1035 - Common Stock
We assign a fundamental rating of 6 out of 10 to ELF. ELF was compared to 37 industry peers in the Personal Care Products industry. ELF scores excellent on profitability, but there are some minor concerns on its financial health. ELF is not overvalued while it is showing excellent growth. This is an interesting combination. These ratings could make ELF a good candidate for growth investing.
1. Profitability
1.1 Basic Checks
In the past year ELF was profitable.
In the past year ELF had a positive cash flow from operations.
In the past 5 years ELF has always been profitable.
ELF had a positive operating cash flow in each of the past 5 years.
1.2 Ratios
Looking at the Return On Assets, with a value of 11.67%, ELF belongs to the top of the industry, outperforming 86.49% of the companies in the same industry.
ELF has a Return On Equity of 21.07%. This is amongst the best in the industry. ELF outperforms 89.19% of its industry peers.
ELF has a better Return On Invested Capital (15.85%) than 81.08% of its industry peers.
ELF had an Average Return On Invested Capital over the past 3 years of 7.21%. This is significantly below the industry average of 13.62%.
The last Return On Invested Capital (15.85%) for ELF is above the 3 year average (7.21%), which is a sign of increasing profitability.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 11.67% | ||
| ROE | 21.07% | ||
| ROIC | 15.85% |
ROA(3y)5.34%
ROA(5y)4.7%
ROE(3y)8.08%
ROE(5y)7.68%
ROIC(3y)7.21%
ROIC(5y)6.62%
1.3 Margins
The Profit Margin of ELF (14.54%) is better than 97.30% of its industry peers.
In the last couple of years the Profit Margin of ELF has declined.
ELF has a better Operating Margin (15.80%) than 78.38% of its industry peers.
ELF's Operating Margin has been stable in the last couple of years.
The Gross Margin of ELF (70.33%) is better than 70.27% of its industry peers.
In the last couple of years the Gross Margin of ELF has grown nicely.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 15.8% | ||
| PM (TTM) | 14.54% | ||
| GM | 70.33% |
OM growth 3Y11.57%
OM growth 5Y-0.92%
PM growth 3Y18.86%
PM growth 5Y-3.06%
GM growth 3Y1.76%
GM growth 5Y2.02%
2. Health
2.1 Basic Checks
With a Return on Invested Capital (ROIC) just above the Cost of Capital (WACC), ELF is creating some value.
ELF has more shares outstanding than it did 1 year ago.
The number of shares outstanding for ELF has been increased compared to 5 years ago.
Compared to 1 year ago, ELF has an improved debt to assets ratio.
2.2 Solvency
ELF has an Altman-Z score of 11.68. This indicates that ELF is financially healthy and has little risk of bankruptcy at the moment.
ELF's Altman-Z score of 11.68 is amongst the best of the industry. ELF outperforms 91.89% of its industry peers.
ELF has a debt to FCF ratio of 4.34. This is a neutral value as ELF would need 4.34 years to pay back of all of its debts.
With a decent Debt to FCF ratio value of 4.34, ELF is doing good in the industry, outperforming 64.86% of the companies in the same industry.
ELF has a Debt/Equity ratio of 0.27. This is a healthy value indicating a solid balance between debt and equity.
ELF's Debt to Equity ratio of 0.27 is in line compared to the rest of the industry. ELF outperforms 45.95% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.27 | ||
| Debt/FCF | 4.34 | ||
| Altman-Z | 11.68 |
ROIC/WACC1.77
WACC8.97%
2.3 Liquidity
A Current Ratio of 1.50 indicates that ELF should not have too much problems paying its short term obligations.
ELF's Current ratio of 1.50 is on the low side compared to the rest of the industry. ELF is outperformed by 64.86% of its industry peers.
ELF has a Quick Ratio of 1.50. This is a bad value and indicates that ELF is not financially healthy enough and could expect problems in meeting its short term obligations.
ELF has a worse Quick ratio (0.83) than 62.16% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.5 | ||
| Quick Ratio | 0.83 |
3. Growth
3.1 Past
The Earnings Per Share has grown by an impressive 126.47% over the past year.
Measured over the past years, ELF shows a quite strong growth in Earnings Per Share. The EPS has been growing by 10.62% on average per year.
Looking at the last year, ELF shows a very strong growth in Revenue. The Revenue has grown by 79.28%.
ELF shows quite a strong growth in Revenue. Measured over the last years, the Revenue has been growing by 16.48% yearly.
EPS 1Y (TTM)126.47%
EPS 3Y37.84%
EPS 5Y10.62%
EPS growth Q2Q54.17%
Revenue 1Y (TTM)79.28%
Revenue growth 3Y26.95%
Revenue growth 5Y16.48%
Revenue growth Q2Q84.94%
3.2 Future
ELF is expected to show a strong growth in Earnings Per Share. In the coming years, the EPS will grow by 37.88% yearly.
Based on estimates for the next years, ELF will show a very strong growth in Revenue. The Revenue will grow by 38.80% on average per year.
EPS Next Y81.88%
EPS Next 2Y47.56%
EPS Next 3Y37.88%
EPS Next 5YN/A
Revenue Next Year81.42%
Revenue Next 2Y52.08%
Revenue Next 3Y38.8%
Revenue Next 5YN/A
3.3 Evolution
The EPS growth rate is accelerating: in the next years the growth will be better than in the last years.
When comparing the Revenue growth rate of the last years to the growth rate of the upcoming years, we see that the growth is accelerating.
4. Valuation
4.1 Price/Earnings Ratio
A Price/Earnings ratio of 51.44 indicates a quite expensive valuation of ELF.
The rest of the industry has a similar Price/Earnings ratio as ELF.
When comparing the Price/Earnings ratio of ELF to the average of the S&P500 Index (28.60), we can say ELF is valued expensively.
ELF is valuated quite expensively with a Price/Forward Earnings ratio of 44.10.
ELF's Price/Forward Earnings is on the same level as the industry average.
When comparing the Price/Forward Earnings ratio of ELF to the average of the S&P500 Index (20.15), we can say ELF is valued expensively.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 51.44 | ||
| Fwd PE | 44.1 |
4.2 Price Multiples
ELF's Enterprise Value to EBITDA ratio is in line with the industry average.
ELF's Price/Free Cash Flow is on the same level as the industry average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 144.3 | ||
| EV/EBITDA | 52.69 |
4.3 Compensation for Growth
The low PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates a rather cheap valuation of the company.
ELF has an outstanding profitability rating, which may justify a higher PE ratio.
A more expensive valuation may be justified as ELF's earnings are expected to grow with 37.88% in the coming years.
PEG (NY)0.63
PEG (5Y)4.84
EPS Next 2Y47.56%
EPS Next 3Y37.88%
5. Dividend
5.1 Amount
No dividends for ELF!.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | N/A |
ELF BEAUTY INC
NYSE:ELF (5/17/2024, 7:04:00 PM)
After market: 158.7 +0.25 (+0.16%)158.45
-3.81 (-2.35%)
Chartmill FA Rating
GICS SectorConsumer Staples
GICS IndustryGroupHousehold & Personal Products
GICS IndustryPersonal Care Products
Earnings (Last)
Earnings (Next)
Inst Owners
Inst Owner Change
Ins Owners
Ins Owner Change
Market Cap8.80B
Analysts
Price Target
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | N/A |
Dividend Growth(5Y)
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Div Incr Years
Div Non Decr Years
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Surprises & Revisions
EPS beat(2)
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EPS beat(8)
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EPS beat(16)
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PT rev (1m)
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EPS NQ rev (1m)
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Revenue NQ rev (1m)
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Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 51.44 | ||
| Fwd PE | 44.1 | ||
| P/S | |||
| P/FCF | |||
| P/OCF | |||
| P/B | |||
| P/tB | |||
| EV/EBITDA |
EPS(TTM)
EY
EPS(NY)
Fwd EY
FCF(TTM)
FCFY
OCF(TTM)
OCFY
SpS
BVpS
TBVpS
PEG (NY)0.63
PEG (5Y)4.84
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 11.67% | ||
| ROE | 21.07% | ||
| ROCE | |||
| ROIC | |||
| ROICexc | |||
| ROICexgc | |||
| OM | 15.8% | ||
| PM (TTM) | 14.54% | ||
| GM | 70.33% | ||
| FCFM |
ROA(3y)
ROA(5y)
ROE(3y)
ROE(5y)
ROIC(3y)
ROIC(5y)
ROICexc(3y)
ROICexc(5y)
ROICexgc(3y)
ROICexgc(5y)
ROCE(3y)
ROCE(5y)
ROICexcg growth 3Y
ROICexcg growth 5Y
ROICexc growth 3Y
ROICexc growth 5Y
OM growth 3Y
OM growth 5Y
PM growth 3Y
PM growth 5Y
GM growth 3Y
GM growth 5Y
F-Score
Asset Turnover0.8
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.27 | ||
| Debt/FCF | |||
| Debt/EBITDA | |||
| Cap/Depr | |||
| Cap/Sales | |||
| Interest Coverage | |||
| Cash Conversion | |||
| Profit Quality | |||
| Current Ratio | 1.5 | ||
| Quick Ratio | 0.83 | ||
| Altman-Z |
F-Score
WACC
ROIC/WACC
Cap/Depr(3y)
Cap/Depr(5y)
Cap/Sales(3y)
Cap/Sales(5y)
Profit Quality(3y)
Profit Quality(5y)
Growth
EPS 1Y (TTM)126.47%
EPS 3Y37.84%
EPS 5Y
EPS growth Q2Q
EPS Next Y81.88%
EPS Next 2Y
EPS Next 3Y
EPS Next 5Y
Revenue 1Y (TTM)79.28%
Revenue growth 3Y26.95%
Revenue growth 5Y
Revenue growth Q2Q
Revenue Next Year
Revenue Next 2Y
Revenue Next 3Y
Revenue Next 5Y
EBIT growth 1Y
EBIT growth 3Y
EBIT growth 5Y
EBIT Next Year
EBIT Next 3Y
EBIT Next 5Y
FCF growth 1Y
FCF growth 3Y
FCF growth 5Y
OCF growth 1Y
OCF growth 3Y
OCF growth 5Y