elf Beauty Inc (ELF) Stock Analysis
Verdict: WATCH (do not buy)
Extreme P/E multiples and aggressive insider selling outweigh the robust 70% gross margins, signaling a 'priced for perfection' trap.
Investment score: 58/100
Analysis as of
Is elf Beauty Inc stock worth reviewing? The TradeMates thesis
The TradeMates model views ELF as fundamentally overextended despite its operational excellence. Avoid until the valuation aligns with normalized earnings growth.
7-factor investment score
- Valuation: 35/100 (weight 20%)
- Financial Health: 60/100 (weight 15%)
- Technical Momentum: 75/100 (weight 15%)
- Earnings Quality: 85/100 (weight 15%)
- Insider Sentiment: 20/100 (weight 10%)
- Analyst Consensus: 50/100 (weight 10%)
- Risk-Adjusted Return: 55/100 (weight 15%)
elf Beauty Inc opportunities and risks
What speaks for ELF
- Skincare Expansion Scale-up
What speaks against ELF
- Valuation Disconnect vs Peers
Peers and competitors
| Ticker | P/E | P/S | EV/EBITDA | Gross margin | Net margin | FCF yield |
|---|---|---|---|---|---|---|
| ELF | 165.7x | 2.8x | 32.2x | 70.7% | 1.6% | 4.2% |
| KVUE | 23.3x | 2.5x | 14.4x | 58.4% | 10.6% | 4.8% |
| EL | n/a | 2.0x | 27.2x | 73.4% | -1.7% | 4.2% |
| IPAR | 22.6x | 2.6x | 12.8x | 64.0% | 11.3% | 5.2% |
| BRBR | 10.6x | 0.7x | 8.9x | 28.9% | 6.8% | 11.6% |
| COTY | n/a | 0.3x | 52.9x | 60.7% | -9.2% | 15.3% |
| Peer median | 10.6x | 2.0x | 14.4x | 60.7% | 6.8% | 5.2% |
Frequently asked questions about elf Beauty Inc (ELF)
Is ELF stock a good investment?
The TradeMates model rates elf Beauty Inc as WATCH (do not buy) with an investment score of 58/100. The TradeMates model views ELF as fundamentally overextended despite its operational excellence. Avoid until the valuation aligns with normalized earnings growth. This is algorithmic model output, not personal investment advice.
Is ELF stock a buy?
The TradeMates model verdict for ELF is WATCH (do not buy) with an investment score of 58/100. Treat this as a model signal to review, not a personal buy recommendation.