ELF Beauty Inc ELF
Scale in mass beauty distribution creates durable cost advantages that keep quality cosmetics accessible across economic cycles.
Valuation holds this up; Optionality is the soft spot.
| Moat | 5.0 |
| Management | 7.0 |
| Valuation | 8.0 |
| Risk · 10 = lowest | 5.0 |
| Business model | 6.0 |
| Optionality | 5.0 |
The price needs 5.5% growth a year for ten years. The AI thinks 12.0% is achievable, at a 15.5% margin.
At today's price the market is asking for roughly 10% annual growth forever at current margins. e.l.f. has already shown it can grow faster than that while keeping strong gross margins. If it sustains mid-teens growth and squeezes out another point or two of FCF margin through scale, the stock is modestly cheap for a quality consumer compounder. The main risk is that social-media copycats erode its brand edge faster than expected.
e.l.f. Beauty, Inc., a beauty company, provides cosmetics and skin care products worldwide. The company offers eye, lip, face, and skin care products. It offers products under the e.l.f. Cosmetics, e.l.f. Skin, Well People, Naturium, and Rhode brand names. The company sells its products through national and international retailers and direct-to-consumer through its e-commerce channel. The company was formerly known as J.A. Cosmetics Holdings, Inc. and changed its name to e.l.f. Beauty, Inc. in April 2016. e.l.f. Beauty, Inc. was founded in 2004 and is headquartered in Oakland, California.
Write why this business works, set your own fair value, and let the briefing speak only when a rule you wrote is crossed.
Start the thirty days · no card