e.l.f. Beauty, Inc. (ELF) Fundamental Checkup
e.l.f. Beauty, Inc. fundamental checkup using revenue growth, EPS growth, free cash flow, margins, ROIC, debt-to-equity, and TGMCharts chart exhibits as of August 28, 2026.
By TGMCharts Research · Data as of · Updated
e.l.f. Beauty, Inc. gets a balanced fundamental read when revenue growth of 38.12%, EPS growth of 28.19%, free-cash-flow growth of 74.16%, net margin of 3.38%, and ROIC of 6.12% support the same story.
The checkup weighs operating growth, shareholder conversion, cash conversion, reinvestment quality, and balance-sheet flexibility. Current ratio is 2.55x and debt-to-equity is 0.79x, so the balance-sheet read is part of the final view rather than a footnote.
- e.l.f. Beauty, Inc. has market cap of $6.43B and closed at $104 on August 28, 2026.
- Five-year revenue CAGR is 38.12% and five-year EPS CAGR is 28.19%.
- Five-year free-cash-flow CAGR is 74.16%.
- Net margin is 3.38% and ROIC is 6.12%.
- Current ratio is 2.55x and debt-to-equity is 0.79x.
Fundamental snapshot
The valuation, growth, profitability, and balance-sheet facts behind the checkup.
Operational Expansion vs Shareholder Value Realization
Analyzing e.l.f. Beauty, Inc. requires a systematic evaluation of whether its operational growth matches its financial quality, cash generation, and balance sheet structure. Trading at $104 as of August 28, 2026, the business shows a distinct pattern where long-term compounding trends are clear, yet short-term trailing dynamics reveal a divergence between operational expansion and profit translation.
The core analytical task is to reconcile a five-year revenue CAGR of 38.12% and a five-year EPS CAGR of 28.19% with a five-year free-cash-flow CAGR of 74.16%. This multi-dimensional review ensures that top-line performance is verified by cash generation and balance sheet durability rather than relying on a single growth metric.
Current compounder snapshot · ELF
Live supporting context; not part of the article's frozen 2026-08-28 evidence snapshot.
- Score
- 42/100
- 10Y CAGR
- 23.3%
- Median YoY
- 15.9%
- YoY volatility
- σ 24.8pp· choppy
- Quarters ≥ 20%
- 19 of 40
- Negative quarters
- 2
- Valuation vs own 10Y history
- P/S 3.5x · 10Y median 4.3x · 37th percentile · as of Aug 28, 2026
How this score is computed
- Quarters at or above 20%: 19 of 40 → 19 of 40 pts
- Steadiness (typical swing 24.8pp) → 7.3 of 25 pts
- Pace (median 15.9% YoY) → 1.2 of 20 pts
- Latest quarter (35.5% YoY) → 15 of 15 pts
- Score: 42 of 100
Annualized revenue (TTM) · by quarter, last 40
Quarterly YoY revenue growth vs the 20% line
P/S multiple vs its 10Y median
Consumer Defensive Sector Financial Profile
As a participant in the Consumer Defensive sector, the company must be evaluated as an operating entity through its concrete financial metrics rather than speculative narratives. This profile integrates market capitalization, valuation multiples, historical growth, and capital efficiency into a unified baseline before examining specific operational charts.
Fundamental evidence table
A compact cross-check of valuation, growth, quality, and financial flexibility.
ELF revenue
Revenue history shows whether the business has been expanding before margins and per-share metrics are considered.
Five-year revenue CAGR: 38.12%. This is endpoint-to-endpoint from the fiscal years shown — a depressed start year can inflate it, so read it against the recent bars.
Five-year revenue CAGR of 38.12% is the top-line test. A fundamental checkup becomes more durable when revenue growth is paired with earnings growth instead of depending only on margin expansion.
Top Line Expansion and Trailing Earnings Pressures
Top-line expansion does not automatically translate into proportional bottom-line returns for equity holders. While the five-year revenue CAGR stands at 38.12%, the five-year EPS CAGR of 28.19% shows that long-term earnings translation has lagged sales growth. Furthermore, recent trailing twelve-month results show a rising revenue trend that diverges from falling trailing net income and falling trailing EPS, indicating that near-term operating expenses are growing faster than sales.
ELF EPS
EPS history shows how much of the business growth has reached shareholders.
Five-year EPS CAGR: 28.19%. This is endpoint-to-endpoint from the fiscal years shown — a depressed or negative start year can inflate it, so read it against the recent bars.
Five-year EPS CAGR of 28.19% is the shareholder conversion check. If EPS grows faster than revenue, the note should ask whether that came from margin quality, buybacks, or a temporary base effect.
Cash Generation Outpacing Net Profit Trends
Free cash flow provides a critical reality check on accounting profits, showing a highly positive divergence from recent trailing net income trends. The company has achieved a five-year free-cash-flow CAGR of 74.16%, which significantly outpaces its long-term earnings growth. This strong cash generation trend is further supported by rising trailing twelve-month free cash flow, which contrasts with the falling trailing net income and suggests that working capital dynamics or non-cash adjustments are supporting liquidity even as accounting profits face pressure.
ELF free cash flow
Free cash flow checks whether earnings are converting into owner cash.
Five-year free-cash-flow CAGR: 74.16%. This is endpoint-to-endpoint from the fiscal years shown — a depressed or negative start year can inflate it, so read it against the recent bars.
Free-cash-flow CAGR of 74.16% is the counterweight to the EPS story. If cash flow lags earnings, the quality of the fundamental setup deserves a more cautious reading.
Operating Efficiency and Reinvestment Returns
The sustainability of historical growth depends heavily on operating efficiency and the returns generated on reinvested capital. Currently, the company maintains a net margin of 3.38%, showing the portion of sales converted to net income. Meanwhile, the return on invested capital of 6.12% indicates the efficiency with which the firm deploys its debt and equity capital to generate operational profits, serving as a key baseline for future compounding potential.
ELF net margin
Net margin is the operating-quality check behind the growth record.
Net margin (TTM): 3.38%. The bars below are annual fiscal years.
Net margin of 3.38% shows how much revenue becomes profit. The checkup is stronger when margin quality supports EPS growth rather than simply flattering one recent period.
ELF ROIC
ROIC tests whether the business earns enough on reinvested capital to deserve attention.
Latest ROIC: 6.12%.
ROIC of 6.12% is the reinvestment-quality check. A business with stronger returns can support a better long-term read even when the valuation is not obviously cheap.
Liquidity Position and Debt Obligations
A strong balance sheet acts as a vital buffer against operational volatility and funding constraints. The company maintains a current ratio of 2.55x, indicating its short-term liquidity position relative to upcoming obligations. This is paired with a debt-to-equity ratio of 0.79x, which outlines the leverage profile and financial flexibility available to support ongoing operations without relying on dilutive equity issuance.
ELF debt-to-equity Chart
Debt-to-equity keeps the checkup honest about balance-sheet flexibility.
Latest debt-to-equity ratio: 0.79x.
Debt-to-equity of 0.79x and current ratio of 2.55x are the balance-sheet checks. They matter because growth and margins are less valuable if financial flexibility is narrowing.
Market Multiples and Premium Valuation Context
Market pricing determines the hurdle rate that the business must clear to justify its valuation. The equity currently trades at a trailing price-to-earnings multiple of 104.07x, which corresponds to an earnings yield of 0.96%. This valuation is above the third-party analyst DCF (FMP) reference estimate, indicating that the market is pricing in a continuation of high growth, leaving a negative margin of safety if operational execution falters.
ELF Price Chart
Latest close: $104 as of August 28, 2026.
The close at $104 is not the conclusion, but it is the market reference point. The fundamental read has to explain whether growth, margins, and balance-sheet support justify the price investors are paying.
Operational Risks and Reinvestment Challenges
The positive fundamental thesis relies on robust historical revenue growth and strong cash flow conversion. However, the primary risk to this outlook is the divergence between rising trailing revenues and falling trailing net income, which highlights the pressure of rising operational costs. If free cash flow growth begins to slow or if the return on invested capital falls below historical averages, the premium valuation multiple will become increasingly difficult to defend.
Bull and bear case
Fundamental support
- Five-year revenue CAGR of 38.12% and five-year EPS CAGR of 28.19% support the business case.
- Net margin of 3.38% and ROIC of 6.12% are the quality checks behind the thesis.
Fundamental pressure
- Free-cash-flow CAGR of 74.16% can weaken the read if it falls away from EPS growth.
- Debt-to-equity of 0.79x and current ratio of 2.55x are the balance-sheet checks that can change the view.
Analytical Refresh Parameters
This fundamental evaluation is based on the financial facts available as of August 28, 2026. A future reassessment of this thesis would be triggered by significant shifts in the five-year revenue CAGR, changes in cash conversion efficiency, or a material deterioration in the debt-to-equity ratio, and does not constitute personalized investment advice.
FAQ
What is the fundamental read on ELF?
e.l.f. Beauty, Inc. is judged through revenue growth of 38.12%, EPS growth of 28.19%, free-cash-flow growth of 74.16%, net margin of 3.38%, and ROIC of 6.12%.
Which ELF fundamental metric matters most?
No single metric carries the article. The checkup requires growth, cash conversion, profitability quality, balance-sheet flexibility, and valuation to be read together.
When should this ELF checkup refresh?
Its figures are as of August 28, 2026, the note's dated snapshot; a note whose figures stop verifying against reported data is corrected or unpublished.
What would change our mind
- Revenue growth moving away from the current five-year CAGR of 38.12%.
- Free-cash-flow growth drifting away from five-year EPS CAGR of 28.19%.
- ROIC or balance-sheet flexibility weakening from ROIC of 6.12% and debt-to-equity of 0.79x.
The bottom line
e.l.f. Beauty, Inc. fundamental research note from TGMCharts Research, grounded in a dated fundamentals snapshot, chart exhibits, and linked source facts.
Read next: ELF fundamentalsContinue with e.l.f. Beauty, Inc.'s full stock page.How we checked this researchShowHide
Data snapshot · By TGMCharts Research.
Every number in this note comes from data we compute and store ourselves from the company's reported figures, plus verbatim excerpts from its SEC filings. When a value isn't available we say so — we never fill gaps with estimates.
Latest filing excerpt
10-Q · filed 2026-08-06 · period 2026-06-30 · SEC EDGAR source
- “As of June 30, 2026, the liability for contingent consideration relating to the potential earnout was remeasured to $80.8 million, driven by the outperformance of rhode's revenue results since the acquisition date, and a revised upward forecast for the remainder of the performance periods.”
- “Further, achieving these objectives will require investments which may result in short-term cost increases with net sales materializing on a longer-term horizon and, therefore, may be dilutive to our earnings.”
- “In future periods, our revenue could decline or grow more slowly than we expect.”
- “Since then, the US administration has increased, reduced or temporarily paused some of the increased tariffs.”
Source pages
Exhibit sources
Research trail
Every number, checked
Every numeric or dated claim in this note was checked against our stored company data before publishing — each figure below links to the page it comes from.