Why NYSE:ELF Is a Standout High-Growth Stock in a Consolidation Phase.

Last update: Feb 22, 2024

In this article we will dive into ELF BEAUTY INC (NYSE:ELF) as a possible candidate for growth investing. Investors should always do their own research, but we noticed ELF BEAUTY INC showing up in our strong growth, ready to breakout screen, which makes it worth to investigate a bit more.

Evaluating Growth: NYSE:ELF

Every stock receives a Growth Rating from ChartMill, ranging from 0 to 10. This rating assesses various growth aspects, including historical and projected EPS and revenue growth. NYSE:ELF boasts a 9 out of 10:

ELF shows a strong growth in Earnings Per Share. In the last year, the EPS has been growing by 126.47%, which is quite impressive.
Measured over the past years, ELF shows a quite strong growth in Earnings Per Share. The EPS has been growing by 10.62% on average per year.
Looking at the last year, ELF shows a very strong growth in Revenue. The Revenue has grown by 79.28%.
The Revenue has been growing by 16.48% on average over the past years. This is quite good.
ELF is expected to show a strong growth in Earnings Per Share. In the coming years, the EPS will grow by 33.65% yearly.
The Revenue is expected to grow by 34.05% on average over the next years. This is a very strong growth
When comparing the EPS growth rate of the last years to the growth rate of the upcoming years, we see that the growth is accelerating.
When comparing the Revenue growth rate of the last years to the growth rate of the upcoming years, we see that the growth is accelerating.

What does the Health looks like for NYSE:ELF

ChartMill assigns a proprietary Health Rating to each stock. The score is computed by evaluating various liquidity and solvency ratios and ranges from 0 to 10. NYSE:ELF was assigned a score of 5 for health:

ELF has an Altman-Z score of 12.55. This indicates that ELF is financially healthy and has little risk of bankruptcy at the moment.
Looking at the Altman-Z score, with a value of 12.55, ELF belongs to the top of the industry, outperforming 94.59% of the companies in the same industry.
With a decent Debt to FCF ratio value of 4.34, ELF is doing good in the industry, outperforming 72.97% of the companies in the same industry.
A Debt/Equity ratio of 0.27 indicates that ELF is not too dependend on debt financing.

Profitability Analysis for NYSE:ELF

ChartMill employs its own Profitability Rating system for stock evaluation. This score, ranging from 0 to 10, is derived from an analysis of diverse profitability metrics and margins. In the case of NYSE:ELF, the assigned 8 is noteworthy for profitability:

With an excellent Return On Assets value of 11.67%, ELF belongs to the best of the industry, outperforming 89.19% of the companies in the same industry.
Looking at the Return On Equity, with a value of 21.07%, ELF belongs to the top of the industry, outperforming 89.19% of the companies in the same industry.
ELF has a Return On Invested Capital of 16.04%. This is amongst the best in the industry. ELF outperforms 81.08% of its industry peers.
The 3 year average ROIC (7.21%) for ELF is below the current ROIC(16.04%), indicating increased profibility in the last year.
ELF has a Profit Margin of 14.54%. This is amongst the best in the industry. ELF outperforms 94.59% of its industry peers.
The Operating Margin of ELF (15.99%) is better than 78.38% of its industry peers.
The Gross Margin of ELF (70.33%) is better than 81.08% of its industry peers.
In the last couple of years the Gross Margin of ELF has grown nicely.

Looking at the Setup

In addition to the Technical Rating, ChartMill provides a Setup Rating for each stock. This rating, ranging from 0 to 10, assesses the level of consolidation in the stock based on multiple short-term technical indicators. Currently, NYSE:ELF has a 7 as its setup rating, indicating its current consolidation status.

ELF has an excellent technical rating and also presents a decent setup pattern. We see reduced volatility while prices have been consolidating in the most recent period.

Every day, new Strong Growth stocks can be found on ChartMill in our Strong Growth screener.

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

For an up to date full technical analysis you can check the technical report of ELF

Keep in mind

Important Note: The content of this article is not intended as trading advice. It is essential to perform your own analysis and exercise caution when making trading decisions. The article presents observations created by automated analysis but does not guarantee any trading or investment outcomes. Always trade responsibly and make independent judgments.