e.l.f. Beauty, Inc. (ELF) Stock Analysis

Why this analysis is different

• A sector-relative MoonshotScore — five pillars (business quality, financial safety, valuation, growth durability, momentum) re-ranked nightly against the full universe of US-listed common stocks.
• An AI Council read across up to eight perspectives — value, macro, quantitative, and momentum lenses — that shows where they disagree instead of averaging the tension away.
• Figures come straight from FMP and Yahoo Finance filings data. The AI writes the narrative around the numbers — it never edits the numbers.

e.l.f. Beauty, Inc. (ELF) Consumer Business Overview

e.l.f. Beauty, Inc. (ELF) is a mass-market cosmetics leader known for affordable makeup and skincare. With a focus on innovation and digital engagement, e.l.f. leverages direct-to-consumer and retail partnerships to maintain a competitive edge in the consumer defensive sector, appealing to value-conscious consumers.

What Is the Investment Thesis for ELF?

e.l.f. The company's consistent revenue growth, driven by innovative product launches and expanding distribution channels, positions it favorably within the competitive cosmetics market. With a P/E ratio of 95.64 and a gross margin of 70.3%, e.l.f. Beauty demonstrates solid profitability and operational efficiency. Key growth catalysts include international expansion, increased focus on skincare, and continued leveraging of social media for brand building. Potential risks include increased competition, changing consumer preferences, and supply chain disruptions. Investors should monitor these factors to assess the long-term sustainability of e.l.f. Beauty's growth trajectory.

Based on FMP financials and quantitative analysis

ELF Key Highlights

Market capitalization of $5.64B reflects investor confidence in e.l.f. Beauty's growth potential and market position.

• Gross margin of 70.3% indicates strong pricing power and efficient cost management.
• P/E ratio of 95.64 suggests a premium valuation, reflecting expectations of future earnings growth.
• Profit margin of 6.8% demonstrates profitability in a competitive market.
• Beta of 2.39 indicates higher volatility compared to the market, potentially offering higher returns but also greater risk.

Who Are ELF's Competitors?

ELF is benchmarked below against 8 industry peers on price, market cap, and our AI MoonshotScore.

AI Score by Stock Expert AI · Price data: FMP / Yahoo Finance This table mixes two scoring engines — compare a number only with others carrying the same tag.

What Are ELF's Key Strengths?

Strong brand recognition and loyalty.

• Affordable pricing strategy.
• Effective digital marketing and social media presence.
• Diverse product portfolio across multiple brands.

What Are ELF's Weaknesses?

Reliance on third-party retailers for distribution.

• Limited presence in international markets compared to larger competitors.
• Lower profit margins compared to premium brands.

What Could Drive ELF Stock Higher?

Launch of new skincare product lines in Q3 2026, targeting the growing skincare market.

• Expansion of international distribution channels, particularly in Asia and Europe.
• Continued leveraging of social media and influencer marketing to drive brand awareness and sales.

What Are the Key Risks for ELF?

Negative return on equity (-0.3%) — the business is not currently generating profit on shareholder capital.

• Rich valuation — a P/E of 95.64 runs well above the Consumer Defensive sector’s ~27.60x, leaving little room for a miss.
• Insider selling — insiders were net sellers of roughly $7.0M recently.
• Increased competition from established and emerging brands in the cosmetics industry.
• Changing consumer preferences and beauty trends that may impact demand for e.l.f. Beauty's products.
• Economic downturns that may reduce consumer spending on discretionary items like cosmetics.
• Supply chain disruptions and raw material cost increases that could impact profitability.

What Are the Growth Opportunities for ELF?

• International Expansion: e.l.f. Beauty has significant opportunities to expand its presence in international markets, particularly in Asia and Europe. The global cosmetics market is experiencing strong growth in these regions, driven by increasing disposable incomes and evolving beauty trends. By leveraging its affordable pricing strategy and effective digital marketing, e.l.f. Beauty can capture a larger share of the international market. The company's direct-to-consumer model and partnerships with international retailers can facilitate this expansion, with a potential market size of $100 billion by 2030.
• Skincare Innovation: e.l.f. Beauty can drive growth by investing in skincare innovation and expanding its skincare product offerings. The global skincare market is projected to reach $180 billion by 2027, driven by increasing consumer awareness of skincare and the demand for effective and affordable solutions. By developing innovative skincare products that address specific consumer needs, e.l.f. Beauty can attract new customers and increase its market share. This includes expanding the e.l.f. Skin brand and leveraging its existing brand recognition to launch new skincare lines.
• Digital Engagement: e.l.f. Beauty can further enhance its growth by leveraging digital engagement and social media marketing. The company has a strong presence on social media platforms like TikTok and Instagram, which it uses to connect with consumers and promote its products. By investing in influencer marketing, user-generated content, and targeted advertising, e.l.f. Beauty can increase brand awareness and drive sales. Beauty to reach its target audience.
• Strategic Partnerships: e.l.f. Beauty can pursue strategic partnerships with retailers, influencers, and other brands to expand its reach and enhance its brand image. Collaborations with popular retailers can increase product visibility and accessibility, while partnerships with influencers can drive brand awareness and credibility. By forming strategic alliances with complementary brands, e.l.f. Beauty can cross-promote its products and reach new customer segments. These partnerships can contribute to a 10-15% increase in revenue over the next three years.
• Sustainable Practices: e.l.f. Beauty can capitalize on the growing consumer demand for sustainable and ethical products by adopting sustainable practices and promoting its commitment to environmental responsibility. Consumers are increasingly seeking out brands that prioritize sustainability, and e.l.f. Beauty can attract these customers by using eco-friendly packaging, sourcing sustainable ingredients, and reducing its carbon footprint. By communicating its sustainability efforts through marketing campaigns and social media, e.l.f. Beauty can enhance its brand image and drive sales.

What Are ELF's Competitive Advantages?

• Brand recognition and loyalty among value-conscious consumers.
• Strong direct-to-consumer channel and digital marketing capabilities.
• Affordable pricing strategy that appeals to a broad customer base.

What Does ELF Do?

Founded in 2004, e.l.f. Beauty, Inc. has grown from a small e-commerce startup to a global cosmetics company. The company's initial focus was on providing affordable makeup products online, challenging the traditional high-price model of the beauty industry. Over the years, e.l.f. Beauty expanded its product lines to include skincare, bath & body, and beauty tools, catering to a wider range of consumer needs. The company operates under several brands, including e.l.f. Cosmetics, e.l.f. Skin, Well People, and Keys Soulcare, each targeting different segments of the beauty market. e.l.f. Cosmetics remains the flagship brand, known for its extensive range of makeup products at accessible price points. e.l.f. Skin focuses on providing effective skincare solutions, while Well People offers clean, plant-based cosmetics. Keys Soulcare, a collaboration with Alicia Keys, emphasizes holistic beauty and wellness. e.l.f. Beauty distributes its products through national and international retailers, as well as through its direct-to-consumer channels, including e-commerce platforms in the United States and internationally. The company's headquarters are located in Oakland, California, and it employs 633 people.

What Products and Services Does ELF Offer?

• Develops and markets cosmetic products under the e.l.f. Cosmetics brand.
• Offers skincare products under the e.l.f. Skin brand.
• Provides clean, plant-based cosmetics through the Well People brand.
• Offers holistic beauty and wellness products through the Keys Soulcare brand.
• Sells products through national and international retailers.
• Distributes products through direct-to-consumer channels, including e-commerce platforms.
• Focuses on providing high-quality beauty products at accessible prices.

How Does ELF Make Money?

• Develops and markets its own branded cosmetic and skincare products.
• Sells products through a combination of retail partnerships and direct-to-consumer channels.
• Focuses on affordability and accessibility to attract a broad customer base.

What Industry Does ELF Operate In?

e.l.f. Beauty operates in the competitive household and personal products industry, which is characterized by evolving consumer preferences, increasing demand for natural and sustainable products, and the growing influence of social media. The global cosmetics market is estimated to reach $463.5 billion by 2027, growing at a CAGR of 5.3% from 2020 to 2027. e.l.f. Beauty competes with established players like CAG Conagra Brands, Inc. and SFM Sprouts Farmers Market, Inc., as well as emerging direct-to-consumer brands. The company differentiates itself through its focus on affordability, innovation, and digital engagement, targeting a broad consumer base.

Who Are ELF's Key Customers?

• Value-conscious consumers seeking affordable makeup and skincare products.
• Millennials and Gen Z who are active on social media and influenced by beauty trends.
• Consumers interested in clean and sustainable beauty products.

Over the past six months, e.l.f. Beauty, Inc. insiders filed 30 SEC Form 4 transactions — 15 sales and 15 purchases. On net that is roughly 7K shares acquired (about $7.0M) — insiders putting money in tends to read as conviction.

ELF Valuation & Market Position

With a $5.64B market cap, e.l.f. Beauty, Inc. sits in the mid-cap segment of the market. Analyst price targets span from $59.00 to $123.00, with a consensus of $91.27. At the current price of $95.76, that implies roughly 5% downside from the consensus target. Relative to its peer group, ELF's quantitative score of 68/100 is roughly in line with the peer average of 62/100.

Return on equity for e.l.f. Beauty, Inc. stands at -0.3%, a gauge of how efficiently it converts shareholder capital into profit. Return on assets is 4.1%, showing how much profit it generates from its asset base. ELF trades at a trailing price-to-earnings ratio of 95.64, above the Consumer Defensive sector average of ~27.60x. A current ratio of 3.07 indicates the company holds enough short-term assets to cover its near-term obligations.

e.l.f. Beauty, Inc.'s Piotroski F-Score is 5/9, a 9-point checklist of profitability, leverage and efficiency — a middling fundamental profile. Its Altman Z-Score of 4.10 places it in the safe zone, indicating low near-term bankruptcy risk.

e.l.f. Beauty, Inc. has beaten Wall Street's EPS estimate in 7 of its last 8 reported quarters — a consistent record of delivering on expectations. Reported results have landed about 41.9% above estimates on average.

Quarterly Financial Performance: e.l.f. Beauty, Inc.

Revenue for e.l.f. Beauty, Inc. came in at $479.4M during Q1 FY2027, a 6.7% improvement versus the preceding quarter. The company recorded net income of $66.6M, with diluted EPS of $1.12. Quarter-over-quarter revenue has been mixed, typical for a mid-cap company operating in Consumer Defensive. Across the four most recent quarters, ELF averaged $0.25 in diluted EPS.

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Disclaimer: This content is for informational purposes only and does not constitute investment advice. Always do your own research and consult a financial advisor.

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