Overall ELF gets a fundamental rating of 6 out of 10. We evaluated ELF against 36 industry peers in the Personal Care Products industry. While ELF belongs to the best of the industry regarding profitability, there are some minor concerns on its financial health. ELF is quite expensive at the moment. It does show a decent growth rate.

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1. Profitability

2. Health

3. Growth

4. Valuation

5. Dividend

1. Profitability

1.1 Basic Checks

ELF had positive earnings in the past year.
ELF had a positive operating cash flow in the past year.
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

ELF has a Return On Assets of 3.53%. This is in the better half of the industry: ELF outperforms 61.11% of its industry peers.
ELF has a Return On Equity of 7.18%. This is in the better half of the industry: ELF outperforms 69.44% of its industry peers.
With a decent Return On Invested Capital value of 5.53%, ELF is doing good in the industry, outperforming 63.89% of the companies in the same industry.
The Average Return On Invested Capital over the past 3 years for ELF is in line with the industry average of 11.85%.
The 3 year average ROIC (13.06%) for ELF is well above the current ROIC(5.53%). The reason for the recent decline needs to be investigated.

		Industry Rank	Sector Rank
ROA	3.53%
ROE	7.18%
ROIC	5.53%

ROA(3y)10.2%

ROA(5y)7.26%

ROE(3y)16.52%

ROE(5y)11.77%

ROIC(3y)13.06%

ROIC(5y)9.49%

1.3 Margins

With a decent Profit Margin value of 5.90%, ELF is doing good in the industry, outperforming 69.44% of the companies in the same industry.
ELF's Profit Margin has improved in the last couple of years.
ELF has a Operating Margin of 9.80%. This is in the better half of the industry: ELF outperforms 75.00% of its industry peers.
ELF's Operating Margin has improved in the last couple of years.
With a decent Gross Margin value of 70.27%, ELF is doing good in the industry, outperforming 61.11% of the companies in the same industry.
In the last couple of years the Gross Margin of ELF has grown nicely.

		Industry Rank	Sector Rank
OM	9.8%
PM (TTM)	5.9%
GM	70.27%

OM growth 3Y16.55%

OM growth 5Y7.24%

PM growth 3Y15.36%

PM growth 5Y6.17%

GM growth 3Y3.54%

GM growth 5Y2.16%

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ROA

ROE

ROIC

Operating and Profit Margin

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2. Health

2.1 Basic Checks

ELF has a Return on Invested Capital (ROIC), which is just above the Cost of Capital (WACC), which means it is creating some value.
The number of shares outstanding for ELF has been increased compared to 1 year ago.
Compared to 5 years ago, ELF has more shares outstanding
ELF has a better debt/assets ratio than last year.

2.2 Solvency

An Altman-Z score of 3.76 indicates that ELF is not in any danger for bankruptcy at the moment.
The Altman-Z score of ELF (3.76) is better than 69.44% of its industry peers.
The Debt to FCF ratio of ELF is 6.02, which is on the high side as it means it would take ELF, 6.02 years of fcf income to pay off all of its debts.
Looking at the Debt to FCF ratio, with a value of 6.02, ELF is in the better half of the industry, outperforming 69.44% of the companies in the same industry.
A Debt/Equity ratio of 0.73 indicates that ELF is somewhat dependend on debt financing.
Looking at the Debt to Equity ratio, with a value of 0.73, ELF is in line with its industry, outperforming 50.00% of the companies in the same industry.

		Industry Rank	Sector Rank
Debt/Equity	0.73
Debt/FCF	6.02
Altman-Z	3.76

ROIC/WACC0.64

WACC8.71%

2.3 Liquidity

A Current Ratio of 2.70 indicates that ELF has no problem at all paying its short term obligations.
ELF has a better Current ratio (2.70) than 66.67% of its industry peers.
A Quick Ratio of 1.76 indicates that ELF should not have too much problems paying its short term obligations.
Looking at the Quick ratio, with a value of 1.76, ELF is in the better half of the industry, outperforming 63.89% of the companies in the same industry.

		Industry Rank	Sector Rank
Current Ratio	2.7
Quick Ratio	1.76

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WACC

Debt/Equity

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Altman-Z score

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3. Growth

3.1 Past

ELF shows a slight negative growth in Earnings Per Share. In the last year, the EPS has decreased by -1.59%.
Measured over the past years, ELF shows a very strong growth in Earnings Per Share. The EPS has been growing by 40.01% on average per year.
Looking at the last year, ELF shows a quite strong growth in Revenue. The Revenue has grown by 13.80% in the last year.
The Revenue has been growing by 35.94% on average over the past years. This is a very strong growth!

EPS 1Y (TTM)-1.59%

EPS 3Y58.58%

EPS 5Y40.01%

EPS Q2Q%-11.69%

Revenue 1Y (TTM)13.8%

Revenue growth 3Y49.62%

Revenue growth 5Y35.94%

Sales Q2Q%14.24%

3.2 Future

The Earnings Per Share is expected to grow by 9.20% on average over the next years. This is quite good.
The Revenue is expected to grow by 11.18% on average over the next years. This is quite good.

EPS Next Y-15.16%

EPS Next 2Y2.5%

EPS Next 3Y9.21%

EPS Next 5Y9.2%

Revenue Next Year19.91%

Revenue Next 2Y18.31%

Revenue Next 3Y16.86%

Revenue Next 5Y11.18%

3.3 Evolution

The EPS growth rate is decreasing: in the next years the growth will be less than in the last years.
Although the future Revenue growth is still strong, it is not able to hold up the even more excellent growth rate of the past years.

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4. Valuation

4.1 Price/Earnings Ratio

ELF is valuated quite expensively with a Price/Earnings ratio of 30.47.
The rest of the industry has a similar Price/Earnings ratio as ELF.
ELF's Price/Earnings ratio indicates a similar valuation than the S&P500 average which is at 27.21.
ELF is valuated quite expensively with a Price/Forward Earnings ratio of 26.44.
Compared to the rest of the industry, the Price/Forward Earnings ratio of ELF is on the same level as its industry peers.
ELF is valuated at similar levels of the S&P average when we compare the Price/Forward Earnings ratio to 24.26, which is the current average of the S&P500 Index.

		Industry Rank	Sector Rank
PE	30.47
Fwd PE	26.44

4.2 Price Multiples

ELF's Enterprise Value to EBITDA ratio is in line with the industry average.
ELF's Price/Free Cash Flow ratio is in line with the industry average.

		Industry Rank	Sector Rank
P/FCF	39.41
EV/EBITDA	33.17

4.3 Compensation for Growth

ELF has an outstanding profitability rating, which may justify a higher PE ratio.

PEG (NY)N/A

PEG (5Y)0.76

EPS Next 2Y2.5%

EPS Next 3Y9.21%

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5. Dividend

5.1 Amount

ELF does not give a dividend.

		Industry Rank	Sector Rank
Dividend Yield	0%

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ELF BEAUTY INC / ELF FAQ

What is the fundamental rating for ELF stock?

ChartMill assigns a fundamental rating of 6 / 10 to ELF.

What is the valuation status of ELF BEAUTY INC (ELF) stock?

ChartMill assigns a valuation rating of 3 / 10 to ELF BEAUTY INC (ELF). This can be considered as Overvalued.

What is the profitability of ELF stock?

ELF BEAUTY INC (ELF) has a profitability rating of 8 / 10.

What are the PE and PB ratios of ELF BEAUTY INC (ELF) stock?

The Price/Earnings (PE) ratio for ELF BEAUTY INC (ELF) is 30.47 and the Price/Book (PB) ratio is 4.91.

Can you provide the expected EPS growth for ELF stock?

The Earnings per Share (EPS) of ELF BEAUTY INC (ELF) is expected to decline by -15.16% in the next year.