Is ELF BEAUTY INC (NYSE:ELF) a Strong Candidate for Quality Investing?

Quality investors are looking for the best of the best. Companies which are growing steadily and consistently, but are also in excellent financial condition. We will have a look here to see if ELF BEAUTY INC (NYSE:ELF) is suited for quality investing. Investors should of course do their own research, but we spotted ELF BEAUTY INC showing up in our Caviar Cruise quality screen, so it may be worth spending some more time on it.

Looking into the quality metrics of ELF BEAUTY INC

• Over the past 5 years, ELF BEAUTY INC has experienced impressive revenue growth, with 30.8% increase. This demonstrates the company's ability to effectively expand its top line and suggests a positive outlook for future revenue generation.
• With a robust ROIC excluding cash and goodwill at 75.67%, ELF BEAUTY INC showcases its effective allocation of capital and operational excellence. This metric signifies the company's ability to generate attractive returns and supports its long-term financial performance.
• ELF BEAUTY INC demonstrates a well-balanced Debt/Free Cash Flow Ratio of 4.19, indicating effective debt management and strong cash flow generation. This ratio suggests the company has a sustainable financial position and the capacity to allocate capital efficiently.
• ELF BEAUTY INC exhibits impressive Profit Quality (5-year) with a 169.0% ratio, reflecting its consistent ability to generate high-quality profits. This metric underscores the company's strong financial performance and commitment to delivering sustainable earnings.
• ELF BEAUTY INC has consistently achieved strong EBIT growth over the past 5 years, with a 41.7% increase. This underscores the company's effective management of its operating income and suggests a positive outlook for future profitability.
• ELF BEAUTY INC demonstrates a remarkable trend where its EBIT 5-year growth exceeds its Revenue 5-year growth. This indicates the company's ability to enhance its profitability through improved cost control and operational efficiency.

What is the full fundamental picture of NYSE:ELF telling us.

ChartMill assigns a Fundamental Rating to every stock. This score ranges from 0 to 10 and is updated daily. The score is determined by evaluating multiple fundamental indicators and properties.

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 valued quite expensive, but it does show an excellent growth. With these ratings, ELF could be worth investigating further for growth investing!.

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

More quality stocks can be found in our Caviar Cruise screen.

Keep in mind

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.