e.l.f. Beauty, Inc. (ELF) stock analysis

P/E above its 5-year median

e.l.f. Beauty's P/E of 81.7 is above its own 5-year median of 73.4.

P/E above the industry

e.l.f. Beauty's P/E of 81.7 is above the Soap, Detergents, and Cleaning Preparations; Perfumes, Cosmetics, and Other Toilet Preparations median of 29.9.

EV/EBITDA below its 5-year median

e.l.f. Beauty's EV/EBITDA of 27.6 is below its 5-year median of 35.2.

P/B above the industry

e.l.f. Beauty's price-to-book of 5.70 is above the Soap, Detergents, and Cleaning Preparations; Perfumes, Cosmetics, and Other Toilet Preparations median of 4.86.

Trading above fair value

The share price of $118.46 is above our fair value estimate of $93.52.

Margin of safety under 20%

The price is 26.7% above fair value, so there is no margin of safety.

Revenue growing 10%+ a year

Revenue grew 41.4% a year over the last three fiscal years.

EPS growing under 10% a year

Diluted EPS grew -26.5% a year over the last three fiscal years.

Earnings growth not accelerating

Net income grew 5.9% over the last twelve months, against a 5-year average of 33.4% a year.

Growing faster than the industry

Revenue grew 39.9% over the last twelve months; the Soap, Detergents, and Cleaning Preparations; Perfumes, Cosmetics, and Other Toilet Preparations median is 5.9%.

Guidance raised

e.l.f. Beauty raised its fiscal 2027 net sales growth outlook on Aug 5, 2026.

Gross margin improving

Gross margin was 74.4% over the last twelve months, against 70.3% a year earlier.

Return on equity under 15%

Return on equity was 7.3% over the last twelve months and averaged 13.5% over five years; we look for 15% on both.

Return on capital under 10%

Return on invested capital was 6.5%, below the 10% that usually covers the cost of capital.

Return on equity above the industry

e.l.f. Beauty's return on equity of 7.3% is above the Soap, Detergents, and Cleaning Preparations; Perfumes, Cosmetics, and Other Toilet Preparations median of -1.2%.

Earnings grew over 5 years

Net income grew 33.4% a year on average over the last five fiscal years.

Net margin below its 5-year average

Net margin was 4.5% over the last twelve months, against a 5-year average of 7.8%.

Net margin above the industry

e.l.f. Beauty's net margin of 4.5% is above the Soap, Detergents, and Cleaning Preparations; Perfumes, Cosmetics, and Other Toilet Preparations median of 0.2%.

High debt

Debt is 67.3% of shareholders' equity, above the 40% we consider low.

Debt rising against equity

Debt to equity rose from 46.9% five years ago to 67.3%.

Debt covered by cash flow

Operating cash flow over the last twelve months equals 34.9% of total debt.

Interest coverage

Interest expense is not reported separately.

Short-term assets cover short-term debts

Current assets are 2.57 times current liabilities.

Low bankruptcy risk

The Altman Z-score is 4.35; above 3 is the safe zone and below 1.8 the distress zone.

No dividend

e.l.f. Beauty has not paid a dividend in the last twelve months.

Yield against Treasuries

No dividend.

Yield against the market

No dividend.

Dividend stability

No dividend.

Earnings cover

No dividend.

Cash-flow cover

No dividend.