One-glance verdict
Overvalued
$46.49 our estimate vs market $78.75
Wall Street consensus: $71.88 (54.6% higher than our fair-value estimate)
69% above our estimate, beyond the bull case
Fundamentals snapshot
e.l.f. Beauty, Inc.
ELF · NYQ · Consumer Defensive · Household & Personal Products
Current price
$78.75
52-week range
$48.82 - $150.99
Market cap
$4.68B
Balance sheet
Stretched
3.22x Stretched
Net debt $627.21M. Interest coverage shows how many times profit covers the interest bill.
What stands out
2 Rewards
3 Risks
2 rewards · 3 risks
- Reward Revenue grew 24.6% last year.
- Reward Free cash flow was positive in 10/10 years.
- Risk Stock trades 114.8% above its 5-year average P/E.
- Risk Operating margin compressed from 11.8% to 1.7% over 3 years.
What this company does
e.l.f. Beauty, Inc.
e.l.f. Beauty sells affordable makeup and skincare products, like lipstick and face creams, under brand names including its popular e.l.f. line. The company makes money by selling its products both in major retail stores like Target and directly to shoppers through its own website. This wide availability is important because it allows them to reach a large audience looking for quality, budget-friendly beauty items.
How the company got here
e.l.f. Beauty, which stands for Eyes Lips Face, started in 2004 with a simple idea: to create quality makeup at affordable prices, initially selling products for just a few dollars online. A major turning point came in 2014 when private equity firm TPG Growth acquired a majority stake, bringing in new leadership that focused on innovation and digital marketing. The company went public in 2016 and has since grown by listening to consumers, quickly releasing products that match new trends, and expanding into major retail stores like Target and Walmart. More recently, e.l.f. has purchased other brands, like Naturium and Rhode, to build a larger family of beauty and skincare lines.
What it actually does
e.l.f. Beauty is a company that creates and sells a wide range of beauty products, focusing on being inclusive, affordable, and cruelty-free (meaning they don't test on animals). Everyday shoppers would recognize their products on the shelves of stores like Target, Walmart, and Ulta Beauty, as well as on their own websites. Their offerings include makeup for your eyes, lips, and face, a variety of skincare items like cleansers and moisturizers, and beauty tools such as makeup brushes. The company aims to provide high-quality products inspired by more expensive brands but at much lower prices.
e.l.f. Cosmetics
This is the company's original and largest brand, known for its affordable, on-trend makeup. It makes money by selling a wide variety of products like primers, foundations, eyeshadows, and lipsticks to shoppers at mass-market retailers and online. This part of the business is the main engine of the company, famous for creating popular alternatives to high-end products and gaining a large following on social media. It represents the core of the company's sales and market presence.
e.l.f. SKIN
This is the company's own skincare line, which offers a range of products like moisturizers and cleansers designed to be accessible and easy to use. It makes money by selling these dermatologist-developed skincare routines directly to consumers online and through the same major retailers that carry their cosmetics. While smaller than the cosmetics line, this segment is a key area of growth, tapping into the increasing consumer focus on skin health. The goal is to provide effective, ingredient-focused skincare without the high price tag.
Naturium
Acquired in 2023, Naturium is a skincare brand that focuses on using powerful, clinically-effective ingredients in its formulas. This brand generates revenue by selling products that appeal to customers who are knowledgeable about skincare ingredients and want targeted treatments. Naturium is a fast-growing part of e.l.f.'s business and significantly expanded the company's presence in the skincare market. It operates as a more premium, science-backed option within the company's portfolio.
Rhode
Founded by Hailey Bieber and acquired by e.l.f. in 2025, Rhode is a popular and fast-growing brand known for its curated skincare and hybrid makeup essentials. It makes money by selling its trendy, skin-focused products, often through direct online sales and exclusively at prestige retailers like Sephora. This acquisition was a major step for e.l.f. into the higher-priced prestige beauty market, adding a high-growth, culturally relevant brand to its portfolio. Rhode is a significant and rapidly expanding slice of the company's revenue.
Other Brands
This group includes smaller, distinct brands like Well People, which focuses on 'clean beauty' (products made with plant-based, cruelty-free ingredients). These brands make money by catering to specific consumer interests, such as the demand for natural and sustainable products. They are a smaller part of the company's overall business but help to broaden its reach and appeal to different types of customers. This multi-brand strategy allows e.l.f. to have a presence in various segments of the beauty industry.
What management is betting on now
The company is heavily focused on expanding its skincare lines, which it sees as a major growth opportunity, especially with the strong performance of its Naturium and Rhode brands. Another key priority is international expansion, aiming to grow its presence in countries like the U.K., Canada, and Germany and bring its portfolio of brands to a global audience. Management is also committed to its disruptive marketing strategy, using social media and digital channels to stay culturally relevant and attract younger consumers. By building a multi-brand portfolio, they are betting on diversifying the business to appeal to a wider range of customers, from those seeking value to those wanting prestige products.
Price history
How the share price has moved
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Earnings history
Last 8 quarters — what happened
Click any quarter to read the call summary and what the numbers say.
FY2025 Q1
$495.00K
FY2025 Q2
$9.54M
FY2025 Q3
$-19.76M
FY2025 Q4
$125.04M
FY2026 Q1
$20.14M
FY2026 Q2
$16.57M
FY2026 Q3
$52.78M
FY2026 Q4
$100.57M
Revenue
$449.29M
Net income
$-49.37M
Diluted EPS
-0.82
Operating cash flow
$102.46M
Free cash flow
$100.57M
Fetching…
Sources
Revenue
$489.50M
Net income
$39.38M
Diluted EPS
0.65
Operating cash flow
$59.41M
Free cash flow
$52.78M
Fetching…
Sources
Revenue
$343.94M
Net income
$3.00M
Diluted EPS
0.05
Operating cash flow
$23.41M
Free cash flow
$16.57M
Fetching…
Sources
Revenue
$353.74M
Net income
$33.31M
Diluted EPS
0.58
Operating cash flow
$27.23M
Free cash flow
$20.14M
Fetching…
Sources
Revenue
$332.64M
Net income
$28.25M
Diluted EPS
0.49
Operating cash flow
$136.10M
Free cash flow
$125.04M
Fetching…
Sources
Revenue
$355.32M
Net income
$17.26M
Diluted EPS
0.30
Operating cash flow
$-14.71M
Free cash flow
$-19.76M
Fetching…
Sources
Revenue
$301.07M
Net income
$19.02M
Diluted EPS
0.33
Operating cash flow
$11.17M
Free cash flow
$9.54M
Fetching…
Sources
Revenue
$324.48M
Net income
$47.55M
Diluted EPS
0.81
Operating cash flow
$1.28M
Free cash flow
$495.00K
Fetching…
Sources
Is it cheap or expensive?
Fair value $46.49 vs current price $78.75
Wall Street consensus is the average analyst price target: $71.88 (54.6% higher than our fair-value estimate).
Our most-likely fair value is $46.49 a share — about 41.0% below today's price of $78.75, so the stock currently looks expensive (overvalued).
Is it drowning in debt?
Stretched
Net debt $627.2M. Interest coverage 3.2x.
Net debt
$627.21M
Interest coverage
3.22x
e.l.f. Beauty, Inc.'s profit covers its interest bill about 3.2 times over. which is stronger than most peers shown here and 1 peers sit below 1x, which is the danger zone where profit does not fully cover the interest bill.
Stretched
Worse cushion
Baseline
Better cushion
ELF
BASELINE
e.l.f. Beauty, Inc.
Total debt $916.90M Interest coverage 3.22x This is the baseline the peer rows are being compared against.
Total debt $3.42B Interest coverage 2.34x -27% vs ELF Carries about 1.4x less debt cushion than ELF.
Total debt $609.02M Interest coverage 7.01x +118% vs ELF Carries about 2.2x more debt cushion than ELF.
Total debt $2.30B Interest coverage 866.71x +26,823% vs ELF Carries about 269.2x more debt cushion than ELF.
Total debt $9.30B Interest coverage 3.20x -1% vs ELF Has roughly the same debt cushion as ELF.
Total debt $149.01M Interest coverage -2.59x -100% vs ELF This peer has almost no interest-payment cushion compared with ELF.
What you should know
The case for and against ELF
2 Rewards
3 Risks
Rewards
-
Revenue grew 24.6% last year.
-
Free cash flow was positive in 10/10 years.
Risks
-
Stock trades 114.8% above its 5-year average P/E.
-
Operating margin compressed from 11.8% to 1.7% over 3 years.
-
Insider ownership is only 2.6% (peer median: 6.8%).
The numbers
All the key metrics, grouped by purpose
Tap any ? icon to learn what it means.
Valuation
How expensive the stock looks
P/E (TTM)
178.98x
Forward P/E
21.55x
P/B
17.69x
P/S
17.44x
EV/EBITDA
71.42x
PEG ratio
1.37x
Profitability
How much profit each dollar creates
Gross margin
61.0%
Operating margin
1.7%
Net margin
-0.2%
ROE
-0.3%
ROA
4.1%
Health
Liquidity and balance-sheet strength
Debt / equity
0.81x
Current ratio
3.07x
Quick ratio
1.81x
Total debt
$916.90M
Total cash
$289.68M
Growth
How the business has been compounding
Revenue TTM
$1.64B
Revenue 5Y CAGR
82.8%
EPS TTM
0.44
EPS 5Y CAGR
-26.5%
Cash flow
How much cash the business throws off
Operating CF TTM
$212.51M
Free CF TTM
$190.06M
FCF margin
11.6%
Dividend
Shareholder payout
Yield
—
Payout ratio
0.0%
Last ex-div date
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