e.l.f. Beauty, Inc. develops, markets, and sells cosmetic products under the e.l.f. brand name. The company offers beauty products for eyes, lips, face, and skin care, as well as kits and beauty tools. Its eye makeup products comprise eyeshadows, eyeliners, mascara and eyelashes, and eyebrow grooming products; lip care products include lipsticks, glosses, and liners; and face makeup products consist of foundation products, primers, blushes, powders, concealers, bronzers, tinted moisturizers, shimmers, and luminizers. The company was formerly known as J.A. Cosmetics Holdings, Inc. and changed its name to e.l.f. Beauty, Inc. in April 2016. The company was founded in 2004 and is based in Oakland, California.
ELF Price Forecast Based on DCF Valuation
DCF Fair Value Target:
Below please find a table outlining a discounted cash flow forecast for ELF, in which we model out valuation assuming a variety of terminal growth rates. To summarize, we found that elf Beauty Inc ranked in the 72th percentile in terms of potential gain offered. Moreover, under all the scenarios we modelled, the output consistently forecasted positive returns. The most interesting components of our discounted cash flow analysis for elf Beauty Inc ended up being:
The company's balance sheet shows it gets 88% of its capital from equity, and 12% of its capital from debt. Its equity weight surpasses that of 69.26% of free cash flow generating stocks in the Consumer Defensive sector.
Its compound free cash flow growth rate, as measured over the past 2.68 years, is 0.82% -- higher than 87.84% of stocks in our DCF forecasting set.
Terminal Growth Rate in Free Cash Flow
Return Relative to Current Share Price
BGS, PRMW, STKL, ABEV, and DIT can be thought of as valuation peers to ELF, in the sense that they are in the Consumer Defensive sector and have a similar price forecast based on DCF valuation.
Investment Thesis Ulta (ULTA) has all the momentum and just needs to set itself up for the future. They have the right assortment of products, but they need to be in the right locations. With restructuring going on at Ulta to maximize current locations and expand into better areas, they...
Ishwarya Prasanna on Seeking Alpha | September 21, 2020
Editor's note: Seeking Alpha is proud to welcome Diego Aransaenz as a new contributor. It's easy to become a Seeking Alpha contributor and earn money for your best investment ideas. Active contributors also get free access to SA Premium. Click here to find out more »Investment thesis I do not...
Diego Aransaenz on Seeking Alpha | September 8, 2020
e.l.f. Beauty (NYSE: ELF) (the "Company") today announced that it will hold a webcast to discuss the results from its first quarter fiscal 2021 ended June 30, 2020. The webcast will take place on Wednesday, August 5, 2020, at 4:30 p.m. Eastern Time. A press release detailing the Company’s results will be issued prior to the webcast, which will be hosted by Tarang Amin, Chairman and Chief Executive Officer, and Mandy Fields, Senior Vice President and Chief Financial Officer.
In the past few months, our lives have mostly centered around our homes. Many consumers have initially limited shopping to basic consumer essentials, such as food and hygiene products. As economies begin to open up around the world, consumer discretionary products, such as cosmetics, are likely to go back on shopping lists. Therefore, today I'll discuss three cosmetics stocks to freshen up your holdings.The Federal Food, Drug, and Cosmetic Act defines cosmetics by as "articles intended to be rubbed, poured, sprinkled, or sprayed on, introduced into, or otherwise applied to the human body … for cleansing, beautifying, promoting attractiveness, or altering the appearance." Different countries have similar legal definitions that also highlight intended use. Most consumers may...