ELF BEAUTY INC (ELF) Stock Fundamental Analysis
NYSE:ELF - New York Stock Exchange, Inc. - US26856L1035 - Common Stock - Currency: USD
ELF gets a fundamental rating of 6 out of 10. The analysis compared the fundamentals against 37 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 not overvalued while it is showing excellent growth. This is an interesting combination.
1. Profitability
1.1 Basic Checks
In the past year ELF was profitable.
ELF had a positive operating cash flow in the past year.
ELF had positive earnings in each of the past 5 years.
Each year in the past 5 years ELF had a positive operating cash flow.
1.2 Ratios
ELF has a Return On Assets of 7.78%. This is in the better half of the industry: ELF outperforms 72.97% of its industry peers.
ELF's Return On Equity of 12.82% is amongst the best of the industry. ELF outperforms 81.08% of its industry peers.
The Return On Invested Capital of ELF (10.64%) is better than 78.38% of its industry peers.
Measured over the past 3 years, the Average Return On Invested Capital for ELF is below the industry average of 13.75%.
The 3 year average ROIC (10.26%) for ELF is below the current ROIC(10.64%), indicating increased profibility in the last year.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 7.78% | ||
| ROE | 12.82% | ||
| ROIC | 10.64% |
ROA(3y)8.68%
ROA(5y)6.25%
ROE(3y)13.94%
ROE(5y)10.3%
ROIC(3y)10.26%
ROIC(5y)7.56%
1.3 Margins
With a decent Profit Margin value of 7.55%, ELF is doing good in the industry, outperforming 78.38% of the companies in the same industry.
ELF's Profit Margin has improved in the last couple of years.
The Operating Margin of ELF (10.04%) is better than 70.27% of its industry peers.
ELF's Operating Margin has improved in the last couple of years.
ELF has a better Gross Margin (71.11%) than 67.57% of its industry peers.
In the last couple of years the Gross Margin of ELF has grown nicely.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 10.04% | ||
| PM (TTM) | 7.55% | ||
| GM | 71.11% |
OM growth 3Y57.07%
OM growth 5Y8.33%
PM growth 3Y85.63%
PM growth 5Y16.55%
GM growth 3Y2.94%
GM growth 5Y3.05%
2. Health
2.1 Basic Checks
The Return on Invested Capital (ROIC) is just above the Cost of Capital (WACC), so ELF is still creating some value.
Compared to 1 year ago, ELF has more shares outstanding
ELF has more shares outstanding than it did 5 years ago.
ELF has a worse debt/assets ratio than last year.
2.2 Solvency
ELF has an Altman-Z score of 6.20. This indicates that ELF is financially healthy and has little risk of bankruptcy at the moment.
ELF's Altman-Z score of 6.20 is amongst the best of the industry. ELF outperforms 81.08% of its industry peers.
The Debt to FCF ratio of ELF is 10.33, which is on the high side as it means it would take ELF, 10.33 years of fcf income to pay off all of its debts.
ELF has a Debt to FCF ratio (10.33) which is comparable to the rest of the industry.
A Debt/Equity ratio of 0.20 indicates that ELF is not too dependend on debt financing.
With a Debt to Equity ratio value of 0.20, ELF perfoms like the industry average, outperforming 54.05% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.2 | ||
| Debt/FCF | 10.33 | ||
| Altman-Z | 6.2 |
ROIC/WACC1.21
WACC8.82%
2.3 Liquidity
ELF has a Current Ratio of 1.90. This is a normal value and indicates that ELF is financially healthy and should not expect problems in meeting its short term obligations.
With a Current ratio value of 1.90, ELF perfoms like the industry average, outperforming 54.05% of the companies in the same industry.
ELF has a Quick Ratio of 1.17. This is a normal value and indicates that ELF is financially healthy and should not expect problems in meeting its short term obligations.
ELF has a Quick ratio (1.17) which is comparable to the rest of the industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.9 | ||
| Quick Ratio | 1.17 |
3. Growth
3.1 Past
The Earnings Per Share has been growing slightly by 1.95% over the past year.
The Earnings Per Share has been growing by 40.15% on average over the past years. This is a very strong growth
Looking at the last year, ELF shows a very strong growth in Revenue. The Revenue has grown by 46.27%.
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.
EPS 1Y (TTM)1.95%
EPS 3Y65.01%
EPS 5Y40.15%
EPS Q2Q%0%
Revenue 1Y (TTM)46.27%
Revenue growth 3Y47.65%
Revenue growth 5Y30.8%
Sales Q2Q%31.14%
3.2 Future
ELF is expected to show quite a strong growth in Earnings Per Share. In the coming years, the EPS will grow by 9.50% yearly.
The Revenue is expected to grow by 15.64% on average over the next years. This is quite good.
EPS Next Y5.53%
EPS Next 2Y7.08%
EPS Next 3Y9.5%
EPS Next 5YN/A
Revenue Next Year31.54%
Revenue Next 2Y20.74%
Revenue Next 3Y17.52%
Revenue Next 5Y15.64%
3.3 Evolution
The EPS growth rate is decreasing: in the next years the growth will be less than in the last years.
The estimated forward Revenue growth is still strong, although it is decreasing when compared to the stronger growth in the past years.
4. Valuation
4.1 Price/Earnings Ratio
A Price/Earnings ratio of 22.51 indicates a rather expensive valuation of ELF.
Based on the Price/Earnings ratio, ELF is valued a bit cheaper than the industry average as 67.57% of the companies are valued more expensively.
When comparing the Price/Earnings ratio of ELF to the average of the S&P500 Index (29.35), we can say ELF is valued slightly cheaper.
ELF is valuated rather expensively with a Price/Forward Earnings ratio of 19.32.
Compared to the rest of the industry, the Price/Forward Earnings ratio of ELF indicates a somewhat cheap valuation: ELF is cheaper than 70.27% of the companies listed in the same industry.
Compared to an average S&P500 Price/Forward Earnings ratio of 22.10, ELF is valued at the same level.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 22.51 | ||
| Fwd PE | 19.32 |
4.2 Price Multiples
The rest of the industry has a similar Enterprise Value to EBITDA ratio as ELF.
ELF's Price/Free Cash Flow ratio is in line with the industry average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 161.92 | ||
| EV/EBITDA | 24.04 |
4.3 Compensation for Growth
The high PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates an expensive valuation of the company.
ELF has an outstanding profitability rating, which may justify a higher PE ratio.
PEG (NY)4.07
PEG (5Y)0.56
EPS Next 2Y7.08%
EPS Next 3Y9.5%
5. Dividend
5.1 Amount
ELF does not give a dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | N/A |
70.68
+6.26 (+9.72%)
Chartmill FA Rating
GICS SectorConsumer Staples
GICS IndustryGroupHousehold & Personal Products
GICS IndustryPersonal Care Products
Earnings (Last)
Earnings (Next)
Inst Owners110.9%
Inst Owner Change5.85%
Ins Owners2.61%
Ins Owner Change-0.08%
Market Cap3.99B
Analysts78.18
Price Target95.12 (34.58%)
Short Float %13.59%
Short Ratio2.74
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | N/A |
Yearly Dividend0
Dividend Growth(5Y)N/A
DP0%
Div Incr Years0
Div Non Decr Years0
Ex-DateN/A
Surprises & Revisions
EPS beat(2)1
Avg EPS beat(2)38.74%
Min EPS beat(2)-1.78%
Max EPS beat(2)79.25%
EPS beat(4)3
Avg EPS beat(4)42.62%
Min EPS beat(4)-1.78%
Max EPS beat(4)79.25%
EPS beat(8)7
Avg EPS beat(8)57.61%
EPS beat(12)11
Avg EPS beat(12)71.57%
EPS beat(16)15
Avg EPS beat(16)70.18%
Revenue beat(2)2
Avg Revenue beat(2)5.51%
Min Revenue beat(2)4.32%
Max Revenue beat(2)6.71%
Revenue beat(4)4
Avg Revenue beat(4)6.29%
Min Revenue beat(4)4.32%
Max Revenue beat(4)8.68%
Revenue beat(8)8
Avg Revenue beat(8)10.11%
Revenue beat(12)12
Avg Revenue beat(12)11.79%
Revenue beat(16)16
Avg Revenue beat(16)11.55%
PT rev (1m)-41.5%
PT rev (3m)-40.71%
EPS NQ rev (1m)-24.63%
EPS NQ rev (3m)-24.5%
EPS NY rev (1m)-7.34%
EPS NY rev (3m)-7.2%
Revenue NQ rev (1m)-13.79%
Revenue NQ rev (3m)-13.7%
Revenue NY rev (1m)-2.15%
Revenue NY rev (3m)-1.93%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 22.51 | ||
| Fwd PE | 19.32 | ||
| P/S | 3.06 | ||
| P/FCF | 161.92 | ||
| P/OCF | 114.7 | ||
| P/B | 5.19 | ||
| P/tB | 18.56 | ||
| EV/EBITDA | 24.04 |
EPS(TTM)3.14
EY4.44%
EPS(NY)3.66
Fwd EY5.17%
FCF(TTM)0.44
FCFY0.62%
OCF(TTM)0.62
OCFY0.87%
SpS23.09
BVpS13.61
TBVpS3.81
PEG (NY)4.07
PEG (5Y)0.56
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 7.78% | ||
| ROE | 12.82% | ||
| ROCE | 13.47% | ||
| ROIC | 10.64% | ||
| ROICexc | 11.51% | ||
| ROICexgc | 29.99% | ||
| OM | 10.04% | ||
| PM (TTM) | 7.55% | ||
| GM | 71.11% | ||
| FCFM | 1.89% |
ROA(3y)8.68%
ROA(5y)6.25%
ROE(3y)13.94%
ROE(5y)10.3%
ROIC(3y)10.26%
ROIC(5y)7.56%
ROICexc(3y)12.39%
ROICexc(5y)9.03%
ROICexgc(3y)46.66%
ROICexgc(5y)34.71%
ROCE(3y)12.98%
ROCE(5y)9.56%
ROICexcg growth 3Y93.24%
ROICexcg growth 5Y25.63%
ROICexc growth 3Y83.27%
ROICexc growth 5Y22.01%
OM growth 3Y57.07%
OM growth 5Y8.33%
PM growth 3Y85.63%
PM growth 5Y16.55%
GM growth 3Y2.94%
GM growth 5Y3.05%
F-Score7
Asset Turnover1.03
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.2 | ||
| Debt/FCF | 10.33 | ||
| Debt/EBITDA | 0.89 | ||
| Cap/Depr | 23.81% | ||
| Cap/Sales | 0.78% | ||
| Interest Coverage | 250 | ||
| Cash Conversion | 20.05% | ||
| Profit Quality | 25.03% | ||
| Current Ratio | 1.9 | ||
| Quick Ratio | 1.17 | ||
| Altman-Z | 6.2 |
F-Score7
WACC8.82%
ROIC/WACC1.21
Cap/Depr(3y)16.49%
Cap/Depr(5y)23.3%
Cap/Sales(3y)0.79%
Cap/Sales(5y)1.55%
Profit Quality(3y)93.1%
Profit Quality(5y)169.05%
High Growth Momentum
Growth
EPS 1Y (TTM)1.95%
EPS 3Y65.01%
EPS 5Y40.15%
EPS Q2Q%0%
EPS Next Y5.53%
EPS Next 2Y7.08%
EPS Next 3Y9.5%
EPS Next 5YN/A
Revenue 1Y (TTM)46.27%
Revenue growth 3Y47.65%
Revenue growth 5Y30.8%
Sales Q2Q%31.14%
Revenue Next Year31.54%
Revenue Next 2Y20.74%
Revenue Next 3Y17.52%
Revenue Next 5Y15.64%
EBIT growth 1Y-7.07%
EBIT growth 3Y131.91%
EBIT growth 5Y41.7%
EBIT Next Year58.49%
EBIT Next 3Y30.6%
EBIT Next 5Y22.82%
FCF growth 1Y-68.77%
FCF growth 3Y39.54%
FCF growth 5Y6%
OCF growth 1Y-56.93%
OCF growth 3Y34.11%
OCF growth 5Y5.06%