e.l.f. Beauty Inc. Common Stock (ELF)
Fast GrowerFairStock Score: 45/100 — MIXED
Key Financials
| Current Price | $56.43 |
| Market Cap | $4.0B |
| P/E Ratio | 128.25 |
| ROE | -0.29% |
| Dividend Yield | —% |
| Sector | Consumer Defensive |
Strengths
- Generates $84 million in annual free cash flow (2.1% yield on market cap)
- Strong Piotroski F-Score of 8/9 indicating robust financial health across profitability, leverage, and efficiency metrics
- Healthy net profit margin of 14.7% showing consistent profitability
- Revenue growth of 37.8% demonstrates strong top-line momentum
Concerns
- Trades significantly above Graham Number ($28) with negative 141% margin of safety—limited downside protection
AI Analysis
e.l.f. Beauty Inc. Common Stock is a small-cap consumer defensive company valued at $4.0 billion. The business generates $268 million in annual revenue with a 14.7% net margin and $84 million in free cash flow. From a quality standpoint, e.l.f. shows near-perfect Piotroski F-Score of 8/9 indicating exceptional financial health and Altman Z-Score of 2.5 in the grey zone. On valuation, the stock is trading at a premium 37.4x earnings, with trades far above its Graham Number ($28) with no margin of safety. Growth dynamics show revenue growing at 37.8% and profit growth of 128.1%. Our composite FairStock Score of 45/100 reflects mixed fundamentals overall. Investors should weigh the business quality against the current price and their own margin of safety requirements.
Bull Case
e.l.f.'s 38% revenue growth trajectory could accelerate as it captures additional market share in the consumer defensive sector. With $84 million in annual free cash flow (2.1% yield), management has ample capital for buybacks, dividends, or accretive acquisitions.
Bear Case
At 37x earnings, any growth disappointment triggers rapid multiple compression—a 20% earnings miss plus multiple contraction to 20x implies 40%+ downside. Regulatory changes, input cost inflation, or demand normalization represent underappreciated risks that could materially impact forward estimates.
Data from SEC filings. AI analysis is for educational purposes only — not investment advice. Scoring methodology · Disclaimer