ELFe.l.f. Beauty, Inc.
Is the business good?
The checks split: earnings fully cash-backed (3.3×), but 3 of 9 health tests passed and margins compressing.
Weak, deteriorating fundamentals. Nine pass/fail tests of year-over-year health from the filings.
Operating profit is fully backed by cash. Conversion is improving vs a year ago.
Operating profit is falling even as sales grow, costs are outrunning the top line.
A balanced mix of margins, efficiency, and leverage. ROE 6% = margin × turnover × leverage.
Unless marked, from derived.
Against the whole market›
Percentile against every name Ryufin tracks. Higher is better; the tick marks the middle of the market. Context, not one of the checks above.
Where this answer is blind. The F-score rewards improvement, so an already-elite company can score mid-pack.
How good a business is ELF?
e.l.f. Beauty, Inc. earns 6.1% on the capital it employs against a 9.0% cost of capital, so growth costs more than it returns.
Return on invested capital · cost of capital 9.0% · 2.9 points below what the capital costs: growth destroys value
- Operating margin
- 7.2%
Operating margin · Household & Personal Products median 11% · 12 months to Q1 2027
- Cash conversion
- 3.27×
Cash conversion · 1.56× a year ago · operating cash flow covers the operating profit after tax
- Share count, year on year
- +3.6%
Share count, year on year · shareholders own a smaller slice than a year ago
| Year | Operating margin |
|---|---|
| FY2021 | 2.9% |
| FY2022 | 7.6% |
| FY2023 | 12% |
| FY2024 | 15% |
| FY2025 | 12% |
| FY2026 | 4.5% |
Details›
- Gross margin12 months to Q1 2027
- 74%
- Operating margin12 months to Q1 2027
- 7.2%
- Net margin12 months to Q1 2027
- 3.4%
- Free cash flow margin
- 16%
- Revenue, trailing twelve months
- $1.76B
- Free cash flow, trailing twelve months
- $280M
- Net income, trailing twelve months
- $60M
- Return on invested capitaloperating profit after tax ÷ debt + equity − cash
- 6.1%
Margins, capital and share counts from the statements as filed with the SEC; cash conversion is operating cash flow over operating profit after tax.
Household & Personal Products
Ranks #3 of 11 by RyuScore