ELF BEAUTY INC (ELF) Stock Fundamental Analysis
NYSE:ELF - New York Stock Exchange, Inc. - US26856L1035 - Common Stock - Currency: USD
Taking everything into account, ELF scores 5 out of 10 in our fundamental rating. ELF was compared to 35 industry peers in the Personal Care Products industry. While ELF has a great profitability rating, there are some minor concerns on its financial health. ELF is not priced too expensively while it is growing strongly. Keep and eye on this one!
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.
Each year in the past 5 years ELF had a positive operating cash flow.
1.2 Ratios
ELF has a better Return On Assets (7.78%) than 74.29% of its industry peers.
ELF has a better Return On Equity (12.82%) than 77.14% of its industry peers.
With a decent Return On Invested Capital value of 10.64%, ELF is doing good in the industry, outperforming 74.29% of the companies in the same industry.
Measured over the past 3 years, the Average Return On Invested Capital for ELF is significantly below the industry average of 15.96%.
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
Looking at the Profit Margin, with a value of 7.55%, ELF is in the better half of the industry, outperforming 80.00% of the companies in the same industry.
In the last couple of years the Profit Margin of ELF has grown nicely.
Looking at the Operating Margin, with a value of 10.04%, ELF is in the better half of the industry, outperforming 68.57% of the companies in the same industry.
In the last couple of years the Operating Margin of ELF has grown nicely.
ELF's Gross Margin of 71.11% is fine compared to the rest of the industry. ELF outperforms 65.71% of its industry peers.
ELF's Gross Margin has improved in the last couple of years.
| 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
ELF has a Return on Invested Capital (ROIC), which is just above the Cost of Capital (WACC), which means it is creating some value.
ELF has more shares outstanding than it did 1 year ago.
The number of shares outstanding for ELF has been increased compared to 5 years ago.
Compared to 1 year ago, ELF has a worse debt to assets ratio.
2.2 Solvency
ELF has an Altman-Z score of 4.97. This indicates that ELF is financially healthy and has little risk of bankruptcy at the moment.
ELF has a better Altman-Z score (4.97) than 77.14% of its industry peers.
ELF has a debt to FCF ratio of 10.33. This is a negative value and a sign of low solvency as ELF would need 10.33 years to pay back of all of its debts.
ELF's Debt to FCF ratio of 10.33 is in line compared to the rest of the industry. ELF outperforms 54.29% of its industry peers.
ELF has a Debt/Equity ratio of 0.20. This is a healthy value indicating a solid balance between debt and equity.
ELF has a Debt to Equity ratio of 0.20. This is comparable to the rest of the industry: ELF outperforms 54.29% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.2 | ||
| Debt/FCF | 10.33 | ||
| Altman-Z | 4.97 |
ROIC/WACC1.21
WACC8.79%
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 57.14% 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.
ELF shows a strong growth in Earnings Per Share. Measured over the last years, the EPS has been growing by 40.15% yearly.
ELF shows a strong growth in Revenue. In the last year, the Revenue has grown by 46.27%.
ELF shows a strong growth in Revenue. Measured over the last years, the Revenue has been growing by 30.80% yearly.
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 9.86% yearly.
The Revenue is expected to grow by 13.05% on average over the next years. This is quite good.
EPS Next Y5.59%
EPS Next 2Y7.6%
EPS Next 3Y9.86%
EPS Next 5YN/A
Revenue Next Year31.54%
Revenue Next 2Y20.45%
Revenue Next 3Y17.06%
Revenue Next 5Y13.05%
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
Based on the Price/Earnings ratio of 16.77, the valuation of ELF can be described as correct.
Based on the Price/Earnings ratio, ELF is valued a bit cheaper than 71.43% of the companies in the same industry.
When comparing the Price/Earnings ratio of ELF to the average of the S&P500 Index (28.29), we can say ELF is valued slightly cheaper.
A Price/Forward Earnings ratio of 14.26 indicates a correct valuation of ELF.
Based on the Price/Forward Earnings ratio, ELF is valued a bit cheaper than the industry average as 74.29% of the companies are valued more expensively.
ELF's Price/Forward Earnings ratio indicates a valuation a bit cheaper than the S&P500 average which is at 21.08.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 16.77 | ||
| Fwd PE | 14.26 |
4.2 Price Multiples
The rest of the industry has a similar Enterprise Value to EBITDA ratio as ELF.
Compared to the rest of the industry, the Price/Free Cash Flow ratio of ELF is on the same level as its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 120.62 | ||
| EV/EBITDA | 18.18 |
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 a very decent profitability rating, which may justify a higher PE ratio.
PEG (NY)3
PEG (5Y)0.42
EPS Next 2Y7.6%
EPS Next 3Y9.86%
5. Dividend
5.1 Amount
No dividends for ELF!.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | N/A |
52.65
+2.7 (+5.41%)
Chartmill FA Rating
GICS SectorConsumer Staples
GICS IndustryGroupHousehold & Personal Products
GICS IndustryPersonal Care Products
Earnings (Last)
Earnings (Next)
Inst Owners110.9%
Inst Owner Change0%
Ins Owners2.61%
Ins Owner Change-0.07%
Market Cap2.97B
Analysts78.26
Price Target93.79 (78.14%)
Short Float %14.02%
Short Ratio2.5
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | N/A |
Yearly DividendN/A
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)-1.41%
PT rev (3m)-41.79%
EPS NQ rev (1m)-0.3%
EPS NQ rev (3m)-24.73%
EPS NY rev (1m)0.06%
EPS NY rev (3m)-7.18%
Revenue NQ rev (1m)-0.03%
Revenue NQ rev (3m)-13.73%
Revenue NY rev (1m)0%
Revenue NY rev (3m)-2%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 16.77 | ||
| Fwd PE | 14.26 | ||
| P/S | 2.28 | ||
| P/FCF | 120.62 | ||
| P/OCF | 85.44 | ||
| P/B | 3.87 | ||
| P/tB | 13.83 | ||
| EV/EBITDA | 18.18 |
EPS(TTM)3.14
EY5.96%
EPS(NY)3.69
Fwd EY7.02%
FCF(TTM)0.44
FCFY0.83%
OCF(TTM)0.62
OCFY1.17%
SpS23.09
BVpS13.61
TBVpS3.81
PEG (NY)3
PEG (5Y)0.42
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 | 4.97 |
F-Score7
WACC8.79%
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 Y5.59%
EPS Next 2Y7.6%
EPS Next 3Y9.86%
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 2Y20.45%
Revenue Next 3Y17.06%
Revenue Next 5Y13.05%
EBIT growth 1Y-7.07%
EBIT growth 3Y131.91%
EBIT growth 5Y41.7%
EBIT Next Year48.2%
EBIT Next 3Y22.71%
EBIT Next 5Y13.84%
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%