Why NYSE:ELF Is a Promising High-Growth Stock in the Midst of Consolidation.

For growth-minded investors, high revenue and EPS growth are key criteria. Today, we'll examine whether ELF BEAUTY INC (NYSE:ELF) fits the bill for growth investing, particularly as it forms a base and hints at a potential breakout. Remember, due diligence is essential, but ELF BEAUTY INC has caught our attention on our screen for growth with base formation. It may warrant additional investigation.

Understanding NYSE:ELF's Growth

ChartMill assigns a Growth Rating to every stock. This score ranges from 0 to 10 and evaluates the different growth aspects like EPS and Revenue, both in the past as in the future. NYSE:ELF scores 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.
• The Earnings Per Share has been growing by 10.62% on average over the past years. This is quite good.
• ELF shows a strong growth in Revenue. In the last year, the Revenue has grown by 79.28%.
• ELF shows quite a strong growth in Revenue. Measured over the last years, the Revenue has been growing by 16.48% yearly.
• Based on estimates for the next years, ELF will show a very strong growth in Earnings Per Share. The EPS will grow by 39.08% on average per year.
• The Revenue is expected to grow by 38.87% 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 Health Rating to every stock. This score ranges from 0 to 10 and evaluates the different health aspects like liquidity and solvency, both absolutely, but also relative to the industry peers. NYSE:ELF scores a 5 out of 10:

• An Altman-Z score of 14.48 indicates that ELF is not in any danger for bankruptcy at the moment.
• The Altman-Z score of ELF (14.48) is better than 94.44% of its industry peers.
• ELF has a Debt to FCF ratio of 4.34. This is in the better half of the industry: ELF outperforms 61.11% of its industry peers.
• ELF has a Debt/Equity ratio of 0.27. This is a healthy value indicating a solid balance between debt and equity.

A Closer Look at Profitability for NYSE:ELF

Discover ChartMill's exclusive Profitability Rating, a proprietary metric that assesses stocks on a scale of 0 to 10. It takes into consideration various profitability ratios and margins, both in absolute terms and relative to industry peers. Notably, NYSE:ELF has achieved a 7:

• Looking at the Return On Assets, with a value of 11.67%, ELF belongs to the top of the industry, outperforming 86.11% of the companies in the same industry.
• ELF has a Return On Equity of 21.07%. This is amongst the best in the industry. ELF outperforms 86.11% of its industry peers.
• With a decent Return On Invested Capital value of 15.85%, ELF is doing good in the industry, outperforming 77.78% of the companies in the same industry.
• The last Return On Invested Capital (15.85%) for ELF is above the 3 year average (7.21%), which is a sign of increasing profitability.
• ELF has a Profit Margin of 14.54%. This is amongst the best in the industry. ELF outperforms 97.22% of its industry peers.
• With a decent Operating Margin value of 15.80%, ELF is doing good in the industry, outperforming 77.78% of the companies in the same industry.
• ELF's Gross Margin of 70.33% is fine compared to the rest of the industry. ELF outperforms 72.22% of its industry peers.
• ELF's Gross Margin has improved in the last couple of years.

Why is NYSE:ELF a setup?

ChartMill takes into account not only the Technical Rating but also assigns a Setup Rating to each stock. This rating, on a scale of 0 to 10, reflects the degree of consolidation observed based on short-term technical indicators. Currently, NYSE:ELF exhibits a 7 setup rating, indicating its consolidation status in recent days and weeks.

Besides having an excellent technical rating, ELF also presents a decent setup pattern. Prices have been consolidating lately and the volatility has been reduced. There is very little resistance above the current price. There is a support zone below the current price at 191.47, a Stop Loss order could be placed below this zone.

Our Strong Growth screener lists more Strong Growth stocks and is updated daily.

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

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

Disclaimer

This article should in no way be interpreted as advice in any way. The article is based on the observed metrics at the time of writing, but you should always make your own analysis and trade or invest at your own responsibility.