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Why Quality Investors Should Delve into ELF BEAUTY INC (NYSE:ELF) for Investment Opportunities.

By Mill Chart

Last update: Jun 4, 2024

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

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Looking into the quality metrics of ELF BEAUTY INC

  • Over the past 5 years, ELF BEAUTY INC has experienced impressive revenue growth, with 30.8% increase. This demonstrates the company's ability to effectively expand its top line and suggests a positive outlook for future revenue generation.
  • ELF BEAUTY INC exhibits a strong ROIC excluding cash and goodwill, indicating efficient capital utilization and profitable operations. The 75.67% reflects the company's ability to generate returns on invested capital and underscores its commitment to delivering value to shareholders.
  • With a favorable Debt/Free Cash Flow Ratio of 4.19, ELF BEAUTY INC showcases its sound financial discipline and cash flow management. This ratio indicates the company's ability to service its debt obligations while maintaining sufficient free cash flow for future investments or operational needs.
  • The Profit Quality (5-year) of ELF BEAUTY INC stands at 169.0%, highlighting its ability to consistently generate reliable profits. This metric underscores the company's strong business fundamentals and reinforces its position as a financially stable entity.
  • With a robust 5-year EBIT growth of 41.7%, ELF BEAUTY INC showcases its ability to consistently expand its operating profitability. This trend indicates the company's effective cost management and revenue generation strategies.
  • ELF BEAUTY INC has achieved superior EBIT 5-year growth compared to its Revenue 5-year growth. This demonstrates the company's ability to maximize its profitability through effective cost management and operational strategies.

A complete fundamental analysis of NYSE:ELF

ChartMill assigns a Fundamental Rating to every stock. This score, ranging from 0 to 10, is updated daily and is determined by evaluating multiple fundamental indicators and properties.

We assign a fundamental rating of 6 out of 10 to ELF. ELF was compared to 37 industry peers in the Personal Care Products industry. ELF scores excellent on profitability, but there are some minor concerns on its financial health. ELF is valued quite expensive, but it does show an excellent growth. These ratings would make ELF suitable for growth investing!

Check the latest full fundamental report of ELF for a complete fundamental analysis.

More ideas for quality investing can be found on ChartMill in our Caviar Cruise screen.


This is not investing advice! The article highlights some of the observations at the time of writing, but you should always make your own analysis and invest based on your own insights.