e.l.f. Beauty, Inc. (ELF) Stock Analysis and Metrics

Sector: Consumer Defensive Industry: Household & Personal Products CIK: 0001600033

Market Cap 4.44 Bn

P/B 3.82

P/E 42.70

P/S 2.92

ROIC (Qtr) 5.96

Div Yield % 0.00

Rev 1y % (Qtr) 37.76

Total Debt (Qtr) 914.18 Mn

Debt/Equity (Qtr) 0.79

About

e.l.f. Beauty, Inc., commonly referred to as e.l.f. Beauty, operates in the beauty industry and is listed on the New York Stock Exchange (NYSE) under the ticker symbol ELF. The company's main business activities involve the development, manufacturing, and distribution of a wide range of beauty products, including cosmetics, skin care products, and hair care products. e.l.f. Beauty's operations are centered on four main brands: e.l.f. Cosmetics, e.l.f. SKIN, Naturium, and Keys Soulcare. These brands offer an array of products, such as eyeshadows,...

e.l.f. Beauty, Inc., commonly referred to as e.l.f. Beauty, operates in the beauty industry and is listed on the New York Stock Exchange (NYSE) under the ticker symbol ELF. The company's main business activities involve the development, manufacturing, and distribution of a wide range of beauty products, including cosmetics, skin care products, and hair care products. e.l.f. Beauty's operations are centered on four main brands: e.l.f. Cosmetics, e.l.f. SKIN, Naturium, and Keys Soulcare. These brands offer an array of products, such as eyeshadows, lipsticks, mascaras, skin care products, and hair care products.

e.l.f. Beauty generates revenue through the sale of its products to both online and in-store retailers, as well as through its own e-commerce platform. The company boasts a robust distribution network, with its products available in major retailers such as Target, Walmart, and Ulta Beauty, among others. e.l.f. Beauty's ability to deliver high-quality products at affordable prices, coupled with its strong distribution network, sets it apart from its competitors.

e.l.f. Cosmetics is one of the company's flagship brands, known for its "holy grail" innovation, which entails delivering premium-quality cosmetics at extraordinary prices. The brand's products are available in various shades and finishes, making them accessible to a diverse range of consumers.

e.l.f. SKIN is a skin care brand that offers a range of products designed to address specific skin concerns, such as acne, aging, and hyperpigmentation. This brand is known for its clean and effective formulas, which are free from harsh chemicals and artificial fragrances.

Naturium is a skin care brand that offers an array of products designed to work in harmony with the skin's natural processes. The brand is renowned for its use of natural ingredients and its commitment to sustainability.

Keys Soulcare is a hair care brand that offers a range of products designed to nourish and protect the hair. This brand is known for its use of natural ingredients and its dedication to empowering individuals to take care of their hair and overall well-being.

In terms of its customers, e.l.f. Beauty has strong relationships with major retailers, such as Target, Walmart, and Ulta Beauty, as well as with online retailers like Amazon. The company's products are also available in various smaller retailers and specialty stores.

e.l.f. Beauty's commitment to sustainability and social responsibility is a significant competitive advantage. The company's products are widely available in major retailers and online, making it easy for consumers to access its products. e.l.f. Beauty is dedicated to ensuring compliance with various regulations and laws, including FDA regulations, FTC regulations, and E.U. regulations. The company strives to maintain the highest standards of quality and safety for its products.

Price action

Investment thesis

Bull case

Healthy cash reserves of 196.82M provide 6.56x coverage of short-term debt 30M, demonstrating strong liquidity position and minimal refinancing risk.
Robust free cash flow of 214.53M exceeds capital expenditure of 31.62M by 6.78x, indicating strong organic growth funding capability.
Operating cash flow of 246.15M provides solid 0.97x coverage of current liabilities 254.30M, showing strong operational health.
Operating cash flow of 246.15M fully covers other non-current liabilities 23.40M by 10.52x, showing strong long-term stability.
Tangible assets of 906.71M provide robust 6.03x coverage of other current liabilities 150.32M, indicating strong asset backing.

Bear case

Operating cash flow of 246.15M barely covers its investment activities of (614.31M), with a coverage ratio of -0.40, indicating heavy reliance on external financing for growth which may not be sustainable in a tighter credit environment.
Cash reserves of 196.82M provide limited coverage of acquisition spending of (581.68M), which is -0.34x, suggesting aggressive expansion might strain liquidity if market conditions deteriorate.
The company's operating cash flow of 246.15M shows concerning coverage of stock compensation expenses of 84.05M, with a 2.93 ratio indicating potential earnings quality issues.
Operating earnings of 172.02M show weak coverage of depreciation charges of 77.23M, with a 2.23 ratio indicating high capital intensity and potential reinvestment needs.
High financing cash flow of 490.75M relative to working capital of 447.29M, which is 1.10x suggests concerning dependence on external funding for operational needs.

Segments Breakdown of Revenue (2025)

Geographical Breakdown of Revenue (2025)

Peer comparison

Companies in the Household & Personal Products

S.No.	Ticker	Company	Market Cap	P/E	P/S	Total Debt (Qtr)
1	PG	PROCTER & GAMBLE Co	401.54 Bn	29.00	5.43	36.64 Bn
2	UL	Unilever Plc	182.31 Bn	22.43	2.85	-
3	CL	Colgate Palmolive Co	78.47 Bn	52.42	4.20	8.42 Bn
4	KMB	Kimberly Clark Corp	35.97 Bn	19.97	1.96	7.30 Bn
5	EL	Estee Lauder Companies Inc	34.41 Bn	-193.32	2.35	9.39 Bn
6	KVUE	Kenvue Inc.	34.07 Bn	23.78	2.27	8.97 Bn
7	CHD	Church & Dwight Co Inc /De/	25.66 Bn	58.49	7.25	2.20 Bn
8	CLX	Clorox Co /De/	14.46 Bn	19.15	2.14	3.22 Bn

Industry comparisons

Current Valuation	Value	Ind Avg
EV to Assets EV to Assets	2.22	1.51
EV to Cash from Ops. EV/CFO	20.94	11.18
EV to Debt EV to Debt	5.64	4.46
EV to EBIT EV/EBIT	29.96	22.50
EV to EBITDA EV/EBITDA	20.99	5.19
EV to Free Cash Flow [EV/FCF] EV/FCF	24.02	29.65
EV to Market Cap EV to Market Cap	1.16	-1.73
EV to Revenue EV/Rev	3.39	2.27
Price to Book Value [P/B] P/B	3.82	-46.60
Price to Earnings [P/E] P/E	42.70	15.50

Dividend Metrics	Value	Ind Avg
Dividend Coverage Ratio Dividend Coverage Ratio	0.00	8.97
Dividend Payout Ratio % Div Payout % (Qtr)	0.00	5.07
Dividend per Basic Share Div per Share (Qtr)	0.00	0.95
FCF Dividend Payout Ratio % FCF Div Payout % (Qtr)	0.00	10.73
Interest Coverage Int. cover (Qtr)	6.37	2.60

Growth Metrics	Value	Ind Avg
Capex Growth (1y) % Capex 1y % (Qtr)	-211.99	-97.30
Cash and Equivalents Growth (1y) % Cash & Equiv 1y % (Qtr)	166.53	5.93
Dividend Growth (1y) % Dividend Growth (1y) %	0.00	-0.27
EBIAT Growth (1y) % EBIAT 1y % (Qtr)	10.64	-154.67
EBITDA Growth (1y) % EBITDA 1y % (Qtr)	36.16	-119.65
EBIT Growth (1y) % EBIT 1y % (Qtr)	34.82	-149.91
EBT Growth (1y) % EBT 1y % (Qtr)	28.75	-226.50
EPS Growth (1y) % EPS 1y % (Qtr)	2.86	-132.37
FCF Growth (1y) % FCF 1y % (Qtr)	771.40	27.80
Gross Profit Growth (1y) % Gross Profit 1y % (Qtr)	15.35	-2.04

Liquidity Ratios	Value	Ind Avg
Asset Utilization Ratio Asset Util Ratio (Qtr)	0.65	0.82
Cash Payout Ratio Cash Payout (Qtr)	0.00	0.19
Cash Ratio Cash Ratio (Qtr)	0.77	0.75
Current Ratio Curr Ratio (Qtr)	2.76	2.30
Debt to Equity Ratio Debt/Equity (Qtr)	0.79	1.13
Interest Cover Ratio Int Coverage (Qtr)	6.37	2.60
Times Interest Earned Times Interest Earned (Qtr)	6.37	2.60

Profitability	Value	Ind Avg
EBITDA Margin % EBITDA Margin % (Qtr)	16.40	-32.80
EBIT Margin % EBIT Margin % (Qtr)	11.32	-37.22
EBT Margin % EBT Margin % (Qtr)	9.54	-40.91
Gross Margin % Gross Margin % (Qtr)	70.30	50.08
Net Profit Margin % Net Margin % (Qtr)	6.80	-43.08

Research Tools

e.l.f. Beauty, Inc. (NYSE: ELF)