e.l.f. Beauty, Inc. (ELF) Stock Recommendation | Score, Valuation, Technicals & Financial Trend

Score

Click here to find our call on this stock

Strong Sell

Sell

Hold

Buy

Strong Buy

Comparison

Company

Score

Quality

Valuation

Financial

Technical

Kenvue, Inc.

Colgate-Palmolive Co.

Inter Parfums, Inc.

Procter & Gamble Co.

Church & Dwight Co., Inc.

e.l.f. Beauty, Inc.

Kimberly-Clark Corp.

The Estée Lauder Companies, Inc.

Reynolds Consumer Products, Inc.

Coty, Inc.

The Clorox Co.

Why is e.l.f. Beauty, Inc. ?

ROCE(HY) Lowest at 12.97%
DEBTORS TURNOVER RATIO(HY) Lowest at 8.16 times
NET PROFIT(Q) Fallen at -30.54%

With ROE of 14.79%, it has a very expensive valuation with a 8.71 Price to Book Value

The stock is trading at a premium compared to its peers' average historical valuations
Over the past year, while the stock has generated a return of -43.68%, its profits have fallen by -15.1%

Below par performance in long term as well as near term

Along with generating -43.68% returns in the last 1 year, the stock has also underperformed S&P 500 in the last 3 years, 1 year and 3 months

Real-Time Research Report

Verdict Report

How much should you hold?

Overall Portfolio exposure to e.l.f. Beauty, Inc. should be less than 10%
Overall Portfolio exposure to FMCG should be less than 30%

(If sector exposure > 30%, please use optimiser tool to see which are the best stocks to hold in FMCG)

When to exit? - We will constantly monitor the company and suggest at the appropriate time to exit from the stock

Is e.l.f. Beauty, Inc. for you?

High Risk, Low Return

Absolute

Risk Adjusted

Volatility

e.l.f. Beauty, Inc.

-47.04%

-0.75

75.93%

S&P 500

20.78%

0.70

20.15%

Quality

Management Risk

Growth

Capital Structure

Quality grade scale :

Below Average, Average, Good, Excellent

Quality key factors

Factor

Value

Sales Growth (5y)

38.32%

EBIT Growth (5y)

69.43%

EBIT to Interest (avg)

15.88

Debt to EBITDA (avg)

0.87

Net Debt to Equity (avg)

0.15

Sales to Capital Employed (avg)

1.11

Tax Ratio

22.96%

Dividend Payout Ratio

Pledged Shares

Institutional Holding

100.00%

ROCE (avg)

13.49%

ROE (avg)

12.16%

Valuation

Valuation Scorecard

Valuation grade scale :

Very Risky, Risky, Very Expensive, Expensive, Fair, Attractive, Very Attractive

Valuation Key Factors

Factor

Value

P/E Ratio

Industry P/E

Price to Book Value

3.10

EV to EBIT

24.83

EV to EBITDA

17.92

EV to Capital Employed

2.34

EV to Sales

2.81

PEG Ratio

33.31

Dividend Yield

ROCE (Latest)

9.42%

ROE (Latest)

9.31%

Technicals

Technical key factors

Indicator

Weekly

Monthly

MACD

Bearish

RSI

No Signal

Bollinger Bands

Mildly Bearish

Moving Averages

Bearish (Daily)

KST

Bearish

Dow Theory

Mildly Bullish

No Trend

OBV

Mildly Bullish

Technical Indicator Scale: Bearish, Mildly Bearish, Sideways, Mildly Bullish, Bullish Turned

Technical Movement

Analyse All Technical Factors

Financial Trend

Financial Trend Scorecard

Financial Trend scale:

Very Negative, Negative, Flat, Positive, Very Positive, Outstanding

12What is working for the Company

OPERATING CASH FLOW(Y)

Highest at USD 212.51 MM

RAW MATERIAL COST(Y)

Fallen by 0.74% (YoY

CASH AND EQV(HY)

Highest at USD 486.51 MM

INVENTORY TURNOVER RATIO(HY)

Highest at 2.74 times

DEBTORS TURNOVER RATIO(HY)

Highest at 10.89 times

NET SALES(Q)

At USD 449.29 MM has Grown at 35.07%

-16What is not working for the Company

INTEREST(HY)

At USD 23.5 MM has Grown at 267.92%

PRE-TAX PROFIT(Q)

At USD 3.65 MM has Fallen at -91.7%

ROCE(HY)

Lowest at 2.78%

NET PROFIT(Q)

At USD 14.82 MM has Fallen at -47.56%

EPS(Q)

Lowest at USD -0.84

Here's what is working for e.l.f. Beauty, Inc.

Operating Cash Flow

Highest at USD 212.51 MM and Grown

In each year in the last three years

MOJO Watch

The company has generated higher cash revenues from business operations

Operating Cash Flows (USD MM)

Net Sales

At USD 449.29 MM has Grown at 35.07%

Year on Year (YoY)

MOJO Watch

Near term sales trend is positive

Net Sales (USD MM)

Cash and Eqv

Highest at USD 486.51 MM

in the last six Semi-Annual periods

MOJO Watch

Short Term liquidity is improving

Cash and Cash Equivalents

Inventory Turnover Ratio

Highest at 2.74 times

in the last five Semi-Annual periods

MOJO Watch

Company has been able to sell its inventory faster

Inventory Turnover Ratio

Debtors Turnover Ratio

Highest at 10.89 times

in the last five Semi-Annual periods

MOJO Watch

Company has been able to sell its Debtors faster

Debtors Turnover Ratio

Raw Material Cost

Fallen by 0.74% (YoY)

MOJO Watch

The company's ability to pass on the cost of raw materials to customers has improved; this may lead to a rise in profit margin

Raw Material Cost as a percentage of Sales

Depreciation

Highest at USD 26.33 MM

in the last five periods

MOJO Watch

The expenditure on assets done by the company may have gone into operation

Depreciation (USD MM)

Here's what is not working for e.l.f. Beauty, Inc.

Interest

At USD 23.5 MM has Grown at 267.92%

over previous Semi-Annual period

MOJO Watch

Rising interest cost signifies increased borrowings

Interest Paid (USD MM)

Pre-Tax Profit

At USD 3.65 MM has Fallen at -91.7%

Year on Year (YoY)

MOJO Watch

Near term Pre-Tax Profit trend is very negative

Pre-Tax Profit (USD MM)

Net Profit

At USD 14.82 MM has Fallen at -47.56%

Year on Year (YoY)

MOJO Watch

Near term Net Profit trend is very negative

Net Profit (USD MM)

EPS

Lowest at USD -0.84

in the last five periods

MOJO Watch

Declining profitability; company has created lower earnings for shareholders

EPS (USD)