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e.l.f. Beauty
(NYSE:ELF)
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Rating:60Neutral
Price Target:
$86.00
▲(11.17% Upside)
Action:Reiterated
Date:06/30/26
The score is driven primarily by solid financial fundamentals (strong growth profile, high gross margins, and healthy cash generation) but is held back by the 2026 profitability decline and higher leverage. Earnings-call guidance supports continued growth and modest margin improvement, yet near-term execution risks (core brand moderation, higher spend, tariffs) remain. Valuation is a meaningful headwind due to the very high P/E, and technical analysis could not be meaningfully assessed because indicators were not provided.
Positive Factors
Sustained revenue growth
Consistent, multi-year top-line growth demonstrates durable demand and distribution strength. A long streak of quarterly growth supports scale benefits (buying power, retailer placement), funds continued innovation and international expansion, and reduces reliance on single-quarter results for operating leverage.
Negative Factors
Sharp increase in leverage
A rapid debt build following acquisitions materially increases financing and refinancing risk. Higher leverage reduces financial flexibility for marketing or innovation spend, increases interest expense sensitivity to rates, and raises the bar for earnings recovery to restore prior returns on equity.
Read all positive and negative factors
Positive Factors
Negative Factors
Sustained revenue growth
Consistent, multi-year top-line growth demonstrates durable demand and distribution strength. A long streak of quarterly growth supports scale benefits (buying power, retailer placement), funds continued innovation and international expansion, and reduces reliance on single-quarter results for operating leverage.
Read all positive factors
e.l.f. Beauty Key Performance Indicators (KPIs)
Any
Revenue by Geography
Breaks down revenue across different regions, revealing where the company is strongest and where it may face risk or growth potential due to local economic conditions or market share shifts.
Breaks down revenue across different regions, revealing where the company is strongest and where it may face risk or growth potential due to local economic conditions or market share shifts.
Data provided by:
The Fly
The Flye.l.f. Beauty (ELF) vs. SPDR S&P 500 ETF (SPY)
Market Cap
$4.85B
Dividend YieldN/A
Average Volume (3M)2.92M
Price to Earnings (P/E)179.7
Beta (1Y)1.99
Revenue Growth24.59%
EPS Growth-76.41%
CountryUS
Employees849
SectorConsumer Defensive
Sector Strength42
IndustryHousehold & Personal Products
Share Statistics
EPS (TTM)0.46
Shares Outstanding58,937,042
10 Day Avg. Volume2,183,442
30 Day Avg. Volume2,922,069
Financial Highlights & Ratios
PEG Ratio-1.74
Price to Book (P/B)3.12
Price to Sales (P/S)2.16
P/FCF Ratio18.58
Enterprise Value/Market Cap<0.01
Enterprise Value/Revenue<0.01
Enterprise Value/Gross Profit<0.01
Enterprise Value/Ebitda<0.01
Forecast
1Y Price Target
$79.07Price Target Upside2.21% Upside
Rating ConsensusModerate Buy
Number of Analyst Covering16
EPS Forecast (FY)3.3
Revenue Forecast (FY)$1.86B
e.l.f. Beauty Business Overview & Revenue Model
Company Description
e.l.f. Beauty, Inc., a beauty company, provides cosmetics and skin care products worldwide. The company offers eye, lip, face, paw, and skin care products. It offers products under the e.l.f. Cosmetics, e.l.f. Skin, Well People, Naturium, and Keys...
How the Company Makes Money
e.l.f. Beauty makes money primarily by selling branded beauty and skincare products to consumers through two main channels: (1) wholesale/retail distribution and (2) direct-to-consumer (DTC) e-commerce.
1) Wholesale/retail distribution (primary r...
e.l.f. Beauty Earnings Call Summary
Earnings Call Date:May 20, 2026
(Q4-2026)
| % Change Since: |
Next Earnings Date:Aug 05, 2026
Earnings Call Sentiment Positive
The call highlighted strong portfolio-led growth, successful acquisitions (Rhode, Naturium), healthy cash and margin performance for fiscal 2026, and significant international and skincare expansion—offset by moderation in core e.l.f. brand consumption, unit pressure after price increases, higher short-term marketing and SG&A investments, elevated tariffs and cost risks, and more moderate FY27 guidance. Management outlined concrete actions (pricing tests, accelerated innovation, leadership appointments, and international expansion) to address weaknesses, which could drive upside if successful.Positive Updates
Sustained Top-Line Growth
Fiscal 2026 net sales grew 25% year-over-year; Q4 net sales grew 35% YoY. Company reported its 29th consecutive quarter of net sales growth and 7th consecutive year of industry-leading results.
Negative Updates
Moderation in Core e.l.f. Brand Consumption
e.l.f. brand global consumption moderated from high single-digit growth in fiscal 2026 to low single digits in the most recent 12-week period. Spring 2026 innovation underperformed versus expectations, reducing the typical halo lift to core items.
Read all updates
Q4-2026 Updates
Positive
Negative
Sustained Top-Line Growth
Fiscal 2026 net sales grew 25% year-over-year; Q4 net sales grew 35% YoY. Company reported its 29th consecutive quarter of net sales growth and 7th consecutive year of industry-leading results.
Read all positive updates
Company Guidance
Management guided fiscal 2027 net sales growth of approximately 12%–14%, with Rhode’s annualization contributing ~9 percentage points (about $140M of net sales in the first four months) and organic net sales of ~4%–5% for the year (Q1 organic down high-single-digits; Q2 rebound to mid-teens); gross margin is expected to be roughly flat year-over-year (outlook assumes tariffs at ~35%), adjusted EBITDA $379M–$385M (implying ~13%–15% EBITDA growth) and ~21% adjusted EBITDA margin (up ~20 bps YoY; high‑teens margin in H1), adjusted net income $198M–$201M, adjusted EPS $3.27–$3.32 (diluted), an adjusted tax rate of ~25%–26%, and a fully diluted share count of ~60.5M; marketing and digital spend is planned at ~23%–25% of net sales, the company noted potential $15M–$20M oil‑price headwind if oil averages ~$100/barrel, and did not bake in a potential ~$58.5M tariff refund.e.l.f. Beauty Financial Statement Overview
Summary
Income Statement
72
Positive
Balance Sheet
58
Neutral
Cash Flow
66
Positive
| Breakdown | Mar 2026 | Mar 2025 | Mar 2024 | Mar 2023 | Mar 2022 |
|---|---|---|---|---|---|
Income Statement | |||||
| Total Revenue | 1.64B | 1.31B | 1.02B | 578.84M | 392.15M |
| Gross Profit | 1.16B | 935.69M | 724.10M | 390.40M | 251.73M |
| EBITDA | 160.60M | 206.25M | 182.57M | 85.31M | 54.63M |
| Net Income | 26.32M | 112.09M | 127.66M | 61.53M | 21.77M |
Balance Sheet | |||||
| Total Assets | 2.39B | 1.25B | 1.13B | 595.60M | 494.63M |
| Cash, Cash Equivalents and Short-Term Investments | 289.69M | 148.69M | 108.18M | 120.78M | 43.35M |
| Total Debt | 916.90M | 313.02M | 290.60M | 82.17M | 117.00M |
| Total Liabilities | 1.26B | 487.32M | 486.68M | 184.58M | 182.20M |
| Stockholders Equity | 1.13B | 760.86M | 642.57M | 411.02M | 312.43M |
Cash Flow | |||||
| Free Cash Flow | 190.06M | 115.32M | 62.49M | 100.16M | 14.70M |
| Operating Cash Flow | 212.51M | 133.84M | 71.15M | 101.88M | 19.51M |
| Investing Cash Flow | -605.25M | -19.10M | -284.66M | -1.72M | -4.82M |
| Financing Cash Flow | 533.92M | -74.45M | 200.94M | -22.73M | -29.11M |
e.l.f. Beauty Risk Analysis
e.l.f. Beauty disclosed 15 risk factors in its most recent earnings report. e.l.f. Beauty reported the most risks in the "Finance & Corporate" category.
Finance & Corporate - Financial and accounting risks. Risks related to the execution of corporate activity and strategy
Latest Risks Added 0 New Risks
e.l.f. Beauty Peers Comparison
UnderperformOutperform
Sector (62)
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
79 Outperform | $4.02B | 23.59 | 19.50% | 2.61% | 1.87% | 2.00% | |
62 Neutral | $20.33B | 14.63 | -3.31% | 3.23% | 1.93% | -12.26% | |
60 Neutral | $4.85B | 179.69 | 2.48% | ― | 24.59% | -76.41% | |
56 Neutral | $1.26B | -16.09 | -5.14% | 2.17% | -5.30% | -196.78% | |
54 Neutral | $30.71B | -123.38 | -6.29% | 1.74% | 0.71% | 71.47% | |
52 Neutral | $2.37B | -4.44 | -15.12% | ― | -3.57% | -32.30% | |
47 Neutral | $87.60M | -12.35 | -9.41% | ― | -8.16% | 85.14% |
* Consumer Defensive Sector Average
ELF
e.l.f. Beauty
82.89
-33.53
-28.80%
EL
The Estée Lauder Companies
83.90
-5.82
-6.49%
IPAR
Inter Parfums
124.55
10.16
8.88%
COTY
Coty
2.75
-1.98
-41.86%
EPC
Edgewell Personal Care
27.19
2.76
11.28%
SKIN
Beauty Health
0.69
-0.85
-55.23%
Glossary
BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
Disclaimer
This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.