NYSE:ELF qualifies as a high growth stock and is consolidating.

For growth-minded investors, high revenue and EPS growth are key criteria. Today, we'll examine whether ELF BEAUTY INC (NYSE:ELF) fits the bill for growth investing, particularly as it forms a base and hints at a potential breakout. Remember, due diligence is essential, but ELF BEAUTY INC has caught our attention on our screen for growth with base formation. It may warrant additional investigation.

Exploring NYSE:ELF's Growth

Every stock receives a Growth Rating from ChartMill, ranging from 0 to 10. This rating assesses various growth aspects, including historical and projected EPS and revenue growth. NYSE:ELF boasts a 9 out of 10:

• The Earnings Per Share has grown by an impressive 151.79% over the past year.
• The Earnings Per Share has been growing by 10.62% on average over the past years. This is quite good.
• Looking at the last year, ELF shows a very strong growth in Revenue. The Revenue has grown by 70.88%.
• The Revenue has been growing by 16.48% on average over the past years. This is quite good.
• The Earnings Per Share is expected to grow by 33.65% on average over the next years. This is a very strong growth
• The Revenue is expected to grow by 32.06% on average over the next years. This is a very strong growth
• The EPS growth rate is accelerating: in the next years the growth will be better than in the last years.
• The Revenue growth rate is accelerating: in the next years the growth will be better than in the last years.

What does the Health looks like for NYSE:ELF

ChartMill utilizes a Health Rating to assess stocks, scoring them on a scale of 0 to 10. This rating takes into account a variety of liquidity and solvency ratios, both in absolute terms and in comparison to industry peers. NYSE:ELF has earned a 8 out of 10:

• An Altman-Z score of 24.36 indicates that ELF is not in any danger for bankruptcy at the moment.
• The Altman-Z score of ELF (24.36) is better than 100.00% of its industry peers.
• The Debt to FCF ratio of ELF is 0.58, which is an excellent value as it means it would take ELF, only 0.58 years of fcf income to pay off all of its debts.
• The Debt to FCF ratio of ELF (0.58) is better than 86.84% of its industry peers.
• A Debt/Equity ratio of 0.11 indicates that ELF is not too dependend on debt financing.
• ELF has a better Debt to Equity ratio (0.11) than 60.53% of its industry peers.
• A Current Ratio of 2.86 indicates that ELF has no problem at all paying its short term obligations.
• ELF's Current ratio of 2.86 is fine compared to the rest of the industry. ELF outperforms 76.32% of its industry peers.
• With a decent Quick ratio value of 1.89, ELF is doing good in the industry, outperforming 76.32% of the companies in the same industry.

What does the Profitability looks like for NYSE:ELF

ChartMill's Profitability Rating offers a unique perspective on stock analysis, providing scores from 0 to 10. These ratings consider a wide range of profitability metrics and margins, both in comparison to industry peers and on their own merits. For NYSE:ELF, the assigned 8 is a significant indicator of profitability:

• The Return On Assets of ELF (16.28%) is better than 92.11% of its industry peers.
• ELF has a Return On Equity of 23.55%. This is amongst the best in the industry. ELF outperforms 86.84% of its industry peers.
• Looking at the Return On Invested Capital, with a value of 20.17%, ELF belongs to the top of the industry, outperforming 86.84% of the companies in the same industry.
• The 3 year average ROIC (7.21%) for ELF is below the current ROIC(20.17%), indicating increased profibility in the last year.
• With an excellent Profit Margin value of 15.88%, ELF belongs to the best of the industry, outperforming 94.74% of the companies in the same industry.
• The Operating Margin of ELF (17.25%) is better than 81.58% of its industry peers.
• ELF has a Gross Margin of 69.58%. This is in the better half of the industry: ELF outperforms 73.68% of its industry peers.
• In the last couple of years the Gross Margin of ELF has grown nicely.

How does the Setup look for NYSE:ELF

Besides the Technical Rating, ChartMill assigns a Setup Rating to every stock to determine the degree of consolidation. This rating, ranging from 0 to 10, is updated daily and evaluates various short-term technical indicators. NYSE:ELF currently holds a 8 as its setup rating, suggesting a particular level of consolidation in the stock.

ELF has an excellent technical rating and also presents a decent setup pattern. We see reduced volatility while prices have been consolidating in the most recent period. There is very little resistance above the current price. There is a support zone below the current price at 154.21, a Stop Loss order could be placed below this zone.

More Strong Growth stocks can be found in our Strong Growth screener.

Check the latest full fundamental report of ELF for a complete fundamental analysis.

Our latest full technical report of ELF contains the most current technical analsysis.

Disclaimer

This is not investing advice! The article highlights some of the observations at the time of writing, but you should always make your own analysis and invest based on your own insights.