ELF e.l.f. Beauty Inc

e.l.f. Beauty is a fast-growing cosmetics and skincare brand known for accessible, cruelty-free products targeting younger consumers globally. Sector: Consumer Staples.

e.l.f. Beauty Inc (ELF) is an individual stock. The analysis below presents key financial metrics for the company, covering profitability, capital efficiency, valuation, margins, and growth.

On a capital return basis, ROIC is 7.78%, WACC is 12.47%, and the economic spread is -4.69%. On balance, returns on capital are currently insufficient to clear the funding cost hurdle, which historically correlates with pressure on long-term value creation. Supporting metrics show ROE at 10.99% and ROA at 6.12%, a combination that helps frame whether profitability strength is broad enough to hold through different market conditions. Taken together, the return profile suggests a company that likely needs operating improvement before returns quality can be considered durable.

On an earnings multiple basis, trailing P/E of 34.56, forward P/E of 17.62, PEG of 1.67. Forward P/E sits materially below trailing P/E, which supports the view that earnings expectations are improving and the company looks cheaper on forward numbers. The PEG ratio sits in a range that most investors would consider fair — neither cheap nor obviously stretched relative to anticipated earnings. A current ratio of 2.76 across the company reflects strong short-term liquidity. Combining multiples and liquidity, the company appears adequately priced for its current earnings trajectory, with balance sheet health providing a degree of downside resilience.

Stripping to unit economics, gross margin sits at 70.27%, operating margin at 11.31%, and free cash flow margin at 14.12%. Gross margins are exceptional, reflecting strong pricing power and a defensible cost structure. At this operating margin level, cost efficiency is present but limited — overhead is a visible drag on earnings conversion. At this FCF margin level, cash conversion is functional without being a standout feature of the company's quality profile. Read as a whole, the margin picture suggests a business with strengths in parts but no clear margin dominance end-to-end.

Revenue trends and analyst expectations together suggest: TTM revenue growth of 37.76% indicating strong organic momentum at the company level, while the estimated 12-month price change of 78.98%, where consensus targets imply substantial appreciation potential over the next 12 months. At 96.2%, the projected 12-month EPS growth rate is strong enough to be a primary driver of the forward investment case rather than a peripheral supporting detail. There is always distance between what is reported and what is priced; the question of whether that distance is closing or widening is what makes the setup interesting. In either direction, the fundamental driver of returns will be whether the company can sustain the trajectory that is already being priced. The estimated 12-month price change is based on analyst consensus price target estimates, sourced from publicly available data, and should not be interpreted as a reliable prediction of future performance.

Overall, the fundamentals support a constructive stance — execution remains the key driver of whether the forward case is fully validated.

The analysis above draws from quantitative data only and does not constitute personalized financial advice. Investors should conduct independent research and consider professional guidance before acting on any information presented here.