📊 ELF Key Takeaways
Is ELF a Good Investment? Thesis Analysis
e.l.f. Beauty demonstrates solid operational performance with strong gross margins (70%) and healthy free cash flow generation ($89.5M), indicating efficient operations and sustainable profitability. The company maintains good financial health with a 2.76x current ratio and manageable leverage (0.73x D/E), though modest net margins (6.4%) and ROE (6.5%) suggest room for operational improvement and capital efficiency gains.
Why Buy ELF? Key Strengths
- Exceptional gross margin of 70% demonstrates pricing power and efficient cost of goods sold management
- Robust free cash flow of $89.5M (7.5% FCF margin) exceeds net income, indicating high-quality earnings and strong cash generation relative to revenue
- Solid balance sheet with 2.76x current ratio and low leverage (0.73x D/E) providing financial flexibility and low immediate solvency risk
ELF Investment Risks to Consider
- Net margin of only 6.4% and ROE of 6.5% reveal suboptimal profitability and capital efficiency relative to asset base of $2.3B
- High long-term debt of $849.2M represents 71% of stockholders equity, concentrating financial risk and potentially limiting strategic options
- Limited visibility on growth trajectory with no YoY comparisons provided, making it difficult to assess revenue and earnings momentum
Key Metrics to Watch
- Year-over-year revenue growth rate to assess market demand and market share trajectory
- Net margin expansion to 8-10% range through operating leverage improvements
- Debt reduction trajectory to strengthen balance sheet and improve leverage ratios below 0.6x
ELF Financial Metrics
💡 AI Analyst Insight
Strong liquidity with a 2.76x current ratio provides a solid financial cushion.
ELF Profitability Ratios
ELF vs Energy Sector
How e.l.f. Beauty, Inc. compares to Energy sector averages
Sector benchmarks are approximate industry averages. Actual sector performance may vary.
Is ELF Overvalued or Undervalued?
Based on fundamental analysis, e.l.f. Beauty, Inc. shows some fundamental concerns relative to the Energy sector in 2026.
Note: This is a fundamental analysis based on SEC filings. For P/E ratio, price targets, and market-based valuation, consult financial data providers. This is not investment advice.
ELF Balance Sheet & Liquidity
ELF 5-Year Financial Trend & Growth Analysis
5-Year Trend Summary: e.l.f. Beauty, Inc.'s revenue has grown significantly by 313% over the 5-year period, indicating strong business expansion. The most recent EPS of $0.27 reflects profitable operations.
ELF Growth Metrics (YoY)
ELF Quarterly Performance
| Quarter | Revenue | Net Income | EPS |
|---|---|---|---|
| Q3 2026 | $355.3M | $3.0M | $0.30 |
| Q2 2026 | $301.1M | $3.0M | $0.05 |
| Q1 2026 | $324.5M | $33.3M | $0.58 |
| Q3 2025 | $270.9M | $17.3M | $0.30 |
| Q2 2025 | $215.5M | $19.0M | $0.33 |
| Q1 2025 | $216.3M | $47.6M | $0.81 |
| Q3 2024 | $146.5M | $11.7M | $0.34 |
| Q2 2024 | $122.3M | $11.7M | $0.21 |
Data sourced from SEC EDGAR 10-Q quarterly filings. Figures may represent quarterly or cumulative values.
ELF Capital Allocation
ELF SEC 10-K & 10-Q Filing Analysis
Access official SEC EDGAR filings for e.l.f. Beauty, Inc. (CIK: 0001600033)
📋 Recent SEC Filings
❓ Frequently Asked Questions about ELF
What is the AI rating for ELF?
e.l.f. Beauty, Inc. (ELF) has an AI rating of BUY with 72% confidence, based on fundamental analysis of SEC EDGAR filings.
What are ELF's key strengths?
Claude: Exceptional gross margin of 70% demonstrates pricing power and efficient cost of goods sold management. Robust free cash flow of $89.5M (7.5% FCF margin) exceeds net income, indicating high-quality earnings and strong cash generation relative to revenue.
What are the risks of investing in ELF?
Claude: Net margin of only 6.4% and ROE of 6.5% reveal suboptimal profitability and capital efficiency relative to asset base of $2.3B. High long-term debt of $849.2M represents 71% of stockholders equity, concentrating financial risk and potentially limiting strategic options.
What is ELF's revenue and growth?
e.l.f. Beauty, Inc. reported revenue of $1.2B.
Does ELF pay dividends?
e.l.f. Beauty, Inc. pays dividends, with $68.0M distributed to shareholders in the trailing twelve months.
Where can I find ELF SEC filings?
Official SEC filings for e.l.f. Beauty, Inc. (CIK: 0001600033) including 10-K, 10-Q, and 8-K reports are available on SEC EDGAR.
What is ELF's EPS?
e.l.f. Beauty, Inc. has a diluted EPS of $1.28.
How is the AI analysis conducted?
Two independent AI systems — Claude (Anthropic) and ChatGPT (OpenAI) — analyze SEC EDGAR filings including 10-K annual reports and 10-Q quarterly reports. Each AI evaluates financial health, profitability ratios, balance sheet strength, and growth metrics. The combined rating reflects both perspectives for balanced insights.
Is ELF a good stock to buy right now?
Based on our AI fundamental analysis in March 2026, e.l.f. Beauty, Inc. has a BUY rating with 72% confidence. The AI analysis suggests favorable fundamentals based on SEC filings. This is not investment advice.
Is ELF stock overvalued or undervalued?
Valuation metrics for ELF: ROE of 6.5% (sector avg: 14%), net margin of 6.4% (sector avg: 12%). Compare these metrics with sector averages to assess valuation.
Should I buy ELF stock in 2026?
Our dual AI analysis gives e.l.f. Beauty, Inc. a combined BUY rating for 2026. Revenue is data pending, with profitability at or below sector average. Always conduct your own research.
What is ELF's free cash flow?
e.l.f. Beauty, Inc.'s operating cash flow is $110.1M, with capital expenditures of $20.6M. FCF margin is 7.5%.
How does ELF compare to other Energy stocks?
Vs Energy sector averages: Net margin 6.4% (avg: 12%), ROE 6.5% (avg: 14%), current ratio 2.76 (avg: 1.3).