ELF BEAUTY INC (ELF) Stock Fundamental Analysis
NYSE:ELF - New York Stock Exchange, Inc. - US26856L1035 - Common Stock - Currency: USD
We assign a fundamental rating of 6 out of 10 to ELF. ELF was compared to 35 industry peers in the Personal Care Products industry. Both the health and profitability get an excellent rating, making ELF a very profitable company, without any liquidiy or solvency issues. ELF shows excellent growth, but is valued quite expensive already. These ratings could make ELF a good candidate for growth and quality investing.
1. Profitability
1.1 Basic Checks
In the past year ELF was profitable.
In the past year ELF had a positive cash flow from operations.
ELF had positive earnings in each of the past 5 years.
ELF had a positive operating cash flow in each of the past 5 years.
1.2 Ratios
ELF has a better Return On Assets (8.98%) than 74.29% of its industry peers.
With a decent Return On Equity value of 14.73%, ELF is doing good in the industry, outperforming 80.00% of the companies in the same industry.
ELF has a better Return On Invested Capital (12.36%) than 77.14% of its industry peers.
ELF had an Average Return On Invested Capital over the past 3 years of 13.06%. This is in line with the industry average of 13.78%.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 8.98% | ||
| ROE | 14.73% | ||
| ROIC | 12.36% |
ROA(3y)10.2%
ROA(5y)7.26%
ROE(3y)16.52%
ROE(5y)11.77%
ROIC(3y)13.06%
ROIC(5y)9.49%
1.3 Margins
ELF has a Profit Margin of 8.53%. This is in the better half of the industry: ELF outperforms 77.14% of its industry peers.
In the last couple of years the Profit Margin of ELF has grown nicely.
ELF's Operating Margin of 12.03% is fine compared to the rest of the industry. ELF outperforms 71.43% of its industry peers.
In the last couple of years the Operating Margin of ELF has grown nicely.
With a decent Gross Margin value of 71.24%, ELF is doing good in the industry, outperforming 68.57% of the companies in the same industry.
In the last couple of years the Gross Margin of ELF has grown nicely.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 12.03% | ||
| PM (TTM) | 8.53% | ||
| GM | 71.24% |
OM growth 3Y16.55%
OM growth 5Y7.24%
PM growth 3Y15.36%
PM growth 5Y6.17%
GM growth 3Y3.54%
GM growth 5Y2.16%
2. Health
2.1 Basic Checks
The Return on Invested Capital (ROIC) is just above the Cost of Capital (WACC), so ELF is still creating some value.
The number of shares outstanding for ELF has been increased compared to 1 year ago.
Compared to 5 years ago, ELF has more shares outstanding
ELF has a better debt/assets ratio than last year.
2.2 Solvency
ELF has an Altman-Z score of 9.42. This indicates that ELF is financially healthy and has little risk of bankruptcy at the moment.
The Altman-Z score of ELF (9.42) is better than 94.29% of its industry peers.
The Debt to FCF ratio of ELF is 2.23, which is a good value as it means it would take ELF, 2.23 years of fcf income to pay off all of its debts.
The Debt to FCF ratio of ELF (2.23) is better than 82.86% of its industry peers.
ELF has a Debt/Equity ratio of 0.34. This is a healthy value indicating a solid balance between debt and equity.
Looking at the Debt to Equity ratio, with a value of 0.34, ELF is in line with its industry, outperforming 48.57% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.34 | ||
| Debt/FCF | 2.23 | ||
| Altman-Z | 9.42 |
ROIC/WACC1.41
WACC8.76%
2.3 Liquidity
A Current Ratio of 3.05 indicates that ELF has no problem at all paying its short term obligations.
Looking at the Current ratio, with a value of 3.05, ELF is in the better half of the industry, outperforming 74.29% of the companies in the same industry.
A Quick Ratio of 2.00 indicates that ELF should not have too much problems paying its short term obligations.
Looking at the Quick ratio, with a value of 2.00, ELF is in the better half of the industry, outperforming 74.29% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 3.05 | ||
| Quick Ratio | 2 |
3. Growth
3.1 Past
The earnings per share for ELF have decreased by -0.31% in the last year.
The Earnings Per Share has been growing by 40.01% on average over the past years. This is a very strong growth
Looking at the last year, ELF shows a very strong growth in Revenue. The Revenue has grown by 28.28%.
ELF shows a strong growth in Revenue. Measured over the last years, the Revenue has been growing by 35.94% yearly.
EPS 1Y (TTM)-0.31%
EPS 3Y58.58%
EPS 5Y40.01%
EPS Q2Q%-19.09%
Revenue 1Y (TTM)28.28%
Revenue growth 3Y49.62%
Revenue growth 5Y35.94%
Sales Q2Q%9.02%
3.2 Future
The Earnings Per Share is expected to grow by 16.73% on average over the next years. This is quite good.
Based on estimates for the next years, ELF will show a quite strong growth in Revenue. The Revenue will grow by 13.47% on average per year.
EPS Next Y8.56%
EPS Next 2Y13.66%
EPS Next 3Y16.12%
EPS Next 5Y16.73%
Revenue Next Year21.5%
Revenue Next 2Y18.6%
Revenue Next 3Y16.47%
Revenue Next 5Y13.47%
3.3 Evolution
Although the future EPS growth is still strong, it is not able to hold up the even more excellent growth rate of the past 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
The Price/Earnings ratio is 35.12, which means the current valuation is very expensive for ELF.
ELF's Price/Earnings ratio is in line with the industry average.
When comparing the Price/Earnings ratio of ELF to the average of the S&P500 Index (26.41), we can say ELF is valued slightly more expensively.
A Price/Forward Earnings ratio of 25.50 indicates a quite expensive valuation of ELF.
ELF's Price/Forward Earnings is on the same level as the industry average.
Compared to an average S&P500 Price/Forward Earnings ratio of 33.87, ELF is valued a bit cheaper.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 35.12 | ||
| Fwd PE | 25.5 |
4.2 Price Multiples
Compared to the rest of the industry, the Enterprise Value to EBITDA ratio of ELF is on the same level as its industry peers.
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 | 54.93 | ||
| EV/EBITDA | 31.87 |
4.3 Compensation for Growth
The high PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates an expensive valuation of the company.
The decent profitability rating of ELF may justify a higher PE ratio.
A more expensive valuation may be justified as ELF's earnings are expected to grow with 16.12% in the coming years.
PEG (NY)4.1
PEG (5Y)0.88
EPS Next 2Y13.66%
EPS Next 3Y16.12%
5. Dividend
5.1 Amount
ELF does not give a dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | N/A |
111.67
+9.9 (+9.73%)
Chartmill FA Rating
GICS SectorConsumer Staples
GICS IndustryGroupHousehold & Personal Products
GICS IndustryPersonal Care Products
Earnings (Last)
Earnings (Next)
Inst Owners104.2%
Inst Owner Change-6.12%
Ins Owners2.61%
Ins Owner Change0.18%
Market Cap6.34B
Analysts81
Price Target132.72 (18.85%)
Short Float %9.07%
Short Ratio2.05
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)2.78%
Min EPS beat(2)-1.78%
Max EPS beat(2)7.34%
EPS beat(4)3
Avg EPS beat(4)28.63%
Min EPS beat(4)-1.78%
Max EPS beat(4)79.25%
EPS beat(8)7
Avg EPS beat(8)44.59%
EPS beat(12)11
Avg EPS beat(12)63.36%
EPS beat(16)15
Avg EPS beat(16)66.49%
Revenue beat(2)2
Avg Revenue beat(2)3.64%
Min Revenue beat(2)0.57%
Max Revenue beat(2)6.71%
Revenue beat(4)4
Avg Revenue beat(4)4.26%
Min Revenue beat(4)0.57%
Max Revenue beat(4)6.71%
Revenue beat(8)8
Avg Revenue beat(8)7.83%
Revenue beat(12)12
Avg Revenue beat(12)10.65%
Revenue beat(16)16
Avg Revenue beat(16)10.88%
PT rev (1m)4.12%
PT rev (3m)53.83%
EPS NQ rev (1m)-3.18%
EPS NQ rev (3m)-15.37%
EPS NY rev (1m)0%
EPS NY rev (3m)3.32%
Revenue NQ rev (1m)-0.01%
Revenue NQ rev (3m)-1.34%
Revenue NY rev (1m)-0.12%
Revenue NY rev (3m)9.78%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 35.12 | ||
| Fwd PE | 25.5 | ||
| P/S | 4.82 | ||
| P/FCF | 54.93 | ||
| P/OCF | 47.33 | ||
| P/B | 8.33 | ||
| P/tB | 29.8 | ||
| EV/EBITDA | 31.87 |
EPS(TTM)3.18
EY2.85%
EPS(NY)4.38
Fwd EY3.92%
FCF(TTM)2.03
FCFY1.82%
OCF(TTM)2.36
OCFY2.11%
SpS23.15
BVpS13.41
TBVpS3.75
PEG (NY)4.1
PEG (5Y)0.88
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 8.98% | ||
| ROE | 14.73% | ||
| ROCE | 14.75% | ||
| ROIC | 12.36% | ||
| ROICexc | 14.36% | ||
| ROICexgc | 35.39% | ||
| OM | 12.03% | ||
| PM (TTM) | 8.53% | ||
| GM | 71.24% | ||
| FCFM | 8.78% |
ROA(3y)10.2%
ROA(5y)7.26%
ROE(3y)16.52%
ROE(5y)11.77%
ROIC(3y)13.06%
ROIC(5y)9.49%
ROICexc(3y)15.77%
ROICexc(5y)11.32%
ROICexgc(3y)54.81%
ROICexgc(5y)39%
ROCE(3y)15.59%
ROCE(5y)11.32%
ROICexcg growth 3Y22.09%
ROICexcg growth 5Y7.64%
ROICexc growth 3Y30.46%
ROICexc growth 5Y20.49%
OM growth 3Y16.55%
OM growth 5Y7.24%
PM growth 3Y15.36%
PM growth 5Y6.17%
GM growth 3Y3.54%
GM growth 5Y2.16%
F-Score7
Asset Turnover1.05
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.34 | ||
| Debt/FCF | 2.23 | ||
| Debt/EBITDA | 1.27 | ||
| Cap/Depr | 41.98% | ||
| Cap/Sales | 1.41% | ||
| Interest Coverage | 10.09 | ||
| Cash Conversion | 66.21% | ||
| Profit Quality | 102.88% | ||
| Current Ratio | 3.05 | ||
| Quick Ratio | 2 | ||
| Altman-Z | 9.42 |
F-Score7
WACC8.76%
ROIC/WACC1.41
Cap/Depr(3y)24.58%
Cap/Depr(5y)23.45%
Cap/Sales(3y)0.85%
Cap/Sales(5y)1.16%
Profit Quality(3y)104.92%
Profit Quality(5y)150.63%
High Growth Momentum
Growth
EPS 1Y (TTM)-0.31%
EPS 3Y58.58%
EPS 5Y40.01%
EPS Q2Q%-19.09%
EPS Next Y8.56%
EPS Next 2Y13.66%
EPS Next 3Y16.12%
EPS Next 5Y16.73%
Revenue 1Y (TTM)28.28%
Revenue growth 3Y49.62%
Revenue growth 5Y35.94%
Sales Q2Q%9.02%
Revenue Next Year21.5%
Revenue Next 2Y18.6%
Revenue Next 3Y16.47%
Revenue Next 5Y13.47%
EBIT growth 1Y5.58%
EBIT growth 3Y74.38%
EBIT growth 5Y45.78%
EBIT Next Year40.01%
EBIT Next 3Y23.13%
EBIT Next 5Y21.48%
FCF growth 1Y84.53%
FCF growth 3Y98.7%
FCF growth 5Y27%
OCF growth 1Y88.1%
OCF growth 3Y90.04%
OCF growth 5Y24.75%