NYSE:ELF, a strong growth stock, setting up for a breakout.

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.

What does the Growth looks like for NYSE:ELF

ChartMill assigns a proprietary Growth Rating to each stock. The score is computed by evaluating various growth aspects, like EPS and revenue growth. We take into account the history as well as the estimated future numbers. NYSE:ELF was assigned a score of 9 for growth:

• ELF shows a strong growth in Earnings Per Share. In the last year, the EPS has been growing by 93.33%, which is quite impressive.
• ELF shows a strong growth in Earnings Per Share. Measured over the last years, the EPS has been growing by 40.15% yearly.
• Looking at the last year, ELF shows a very strong growth in Revenue. The Revenue has grown by 76.90%.
• Measured over the past years, ELF shows a very strong growth in Revenue. The Revenue has been growing by 30.80% on average per year.
• The Earnings Per Share is expected to grow by 16.07% on average over the next years. This is quite good.
• Based on estimates for the next years, ELF will show a very strong growth in Revenue. The Revenue will grow by 22.05% on average per year.

Health Analysis for NYSE:ELF

A critical element of ChartMill's stock evaluation is the Health Rating, which spans from 0 to 10. This rating considers multiple health factors, including liquidity and solvency, both in absolute terms and relative to industry peers. NYSE:ELF has received a 5 out of 10:

• An Altman-Z score of 14.24 indicates that ELF is not in any danger for bankruptcy at the moment.
• ELF has a Altman-Z score of 14.24. This is amongst the best in the industry. ELF outperforms 97.30% of its industry peers.
• With a decent Debt to FCF ratio value of 4.19, ELF is doing good in the industry, outperforming 62.16% of the companies in the same industry.
• ELF has a Debt/Equity ratio of 0.25. This is a healthy value indicating a solid balance between debt and equity.

A Closer Look at Profitability 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:

• ELF has a better Return On Assets (11.31%) than 83.78% of its industry peers.
• The Return On Equity of ELF (19.88%) is better than 83.78% of its industry peers.
• With a decent Return On Invested Capital value of 14.24%, ELF is doing good in the industry, outperforming 75.68% of the companies in the same industry.
• The 3 year average ROIC (10.26%) for ELF is below the current ROIC(14.24%), indicating increased profibility in the last year.
• The Profit Margin of ELF (12.47%) is better than 91.89% of its industry peers.
• In the last couple of years the Profit Margin of ELF has grown nicely.
• ELF has a Operating Margin of 14.62%. This is in the better half of the industry: ELF outperforms 75.68% of its industry peers.
• ELF's Operating Margin has improved in the last couple of years.
• With a decent Gross Margin value of 70.73%, ELF is doing good in the industry, outperforming 70.27% of the companies in the same industry.
• ELF's Gross Margin has improved in the last couple of years.

How do we evaluate the setup for NYSE:ELF?

ChartMill also assign a Setup Rating to every stock. With this score it is determined to what extend the stock has been trading in a range in the recent days and weeks. This score also ranges from 0 to 10 and is updated daily. The setup score evaluates various short term technical indicators. NYSE:ELF scores a 7 out of 10:

ELF has an excellent technical rating and also presents a decent setup pattern. Prices have been consolidating lately. There is very little resistance above the current price. There is a support zone below the current price at 177.62, a Stop Loss order could be placed below this zone. Very recently a Pocket Pivot signal was observed. This is another positive sign.

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.

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

Keep in mind

Important Note: The content of this article is not intended as trading advice. It is essential to perform your own analysis and exercise caution when making trading decisions. The article presents observations created by automated analysis but does not guarantee any trading or investment outcomes. Always trade responsibly and make independent judgments.