At the moment, the debt-to-equity of e.l.f. Beauty, Inc. (NYSE:ELF) is high, standing at 80.65, a figure that is higher than the 37.24 average recorded by the industry. This means that the company is currently holding a debt level at 150.38 M. ELF shares have a strong debt-to-equity ratio but their quick ratio which reads 2.00 is strong and might cause problems for them later in the future.
Even though there was a drop of -11.10% in revenue, the company failed to succeed in outperforming the industry average of 4.75%. For the most recent quarter, the net income has dropped by -33.25%. This weakness in their income has affected them and thus increased their earnings to $10.51 M. The -11.10% yoy growth of ELF’s revenue has gone down that of the industry average by -13.26%. For the past 12 months, e.l.f. Beauty, Inc. revenue has gone up by 2.16%. The sustained growth in their revenue has helped boost their earnings per share.
e.l.f. Beauty, Inc. (ELF) has seen their earnings per share increased to $0.08 during the last quarter in comparison to the same quarter last year. They have recorded a 215.63% growing earnings per share earnings. They have recorded a 215.63% growing earnings per share earnings. Analysts expect increase in earnings is also on the cards next quarter with an average estimate at $0.17.
The 12-month return on equity has significantly fallen to 8.25 in comparison to the same data for other companies in the same industry. This shows that there is a major weakness within the organization over the past one year. Comparing them to other companies in the industry and the overall Consumer Goods sector, the industry average is 12.56 while 14.10 is of the sector.
ELF total operating cash flow had jumped to $18.66 billion compared to $11.34 billion in the same quarter last year. Also, looking at the price to cash flow of the company and the industry average, the 13.99 ratio of the stock is higher than the industry’s 12.41.
e.l.f. Beauty, Inc. (NYSE:ELF) has a price-to-earnings ratio of 28.86 which is lower than the 39.91 industry average at the moment. In addition to their unfavorable P/E ratio, e.l.f. Beauty, Inc. has maintained a gross margin of 60.46. This shows whether the company has what it takes to effectively turn the revenue into profit.
The company’s ROA is 3.83 when compared to 6.23 for the stocks operating in the same industry. This can be attributed to the strength recorded in the net income produced by total assets. Comparing it to other companies in the sector, e.l.f. Beauty, Inc. ROE is above 14.10 that of both the sector average.
The operating profit margin for e.l.f. Beauty, Inc. (ELF) is 10.44%, a figure which is considered to be weak.
Added to that, this ratio has surpassed the industry net margin that stands at 3.96.
Analysts meanwhile rate e.l.f. Beauty, Inc. (NYSE:ELF) as a hold. Still some above discussed indicators of the $435.30M company show strength while others show weakness. There is little evidence at the moment to justify the expectation of the ELF shares to either perform positively or negatively when compared to other stocks. The primary strengths of e.l.f. Beauty, Inc. can be witnessed in its increased revenue, growing earnings per share, higher return on equity, increased operating cash and high net margin. Subsequently, financial analysis have also identified some weak areas that includes high debt, relatively high P/E ratio, lower return on assets and low net margin.