ELF Beauty Inc Rated Highly by Guru Growth Strategy

A report indicates that ELF Beauty Inc has received a 66% score from the P/B Growth Investor model, suggesting strong potential for future growth despite some areas of concern. Investors may want to consider this rating in their stock evaluation.

Date: 15-10-2024

AI Rating: 6

In a recent report, ELF Beauty Inc. (ELF) has been analyzed using the P/B Growth Investor model developed by Partha Mohanram. The stock achieved a score of 66%, which, while not indicative of overwhelming interest, suggests that the company has solid fundamentals.

The report offers insights into several key financial metrics critical to evaluating a company's investment potential:

Book/Market Ratio: PASS - This indicates a favorable valuation of the company's book value relative to its market price, which may attract value-conscious investors.
Return on Assets: PASS - A solid return on assets suggests efficient management in generating profits from its asset base, a positive sign for investors.
Cash Flow from Operations to Assets: PASS - This metric indicates strong operational cash flow management, further enhancing investor confidence.
Cash Flow from Operations to Assets vs. Return on Assets: PASS - A favorable comparison indicates robust performance in both areas.
Return on Assets Variance: PASS - Consistent returns on assets highlight stability in the company's efficiency in asset utilization.
Sales Variance: FAIL - This could be concerning as it suggests fluctuations or declines in sales, which may indicate operational challenges or market pressures.
Advertising to Assets: PASS - A positive metric here suggests effective marketing efforts relative to the company's asset base.
Capital Expenditures to Assets: FAIL - High capital expenditures might concern investors as it may detract from free cash flow.
Research and Development to Assets: FAIL - Low investment in R&D could imply limited future growth prospects in developing innovative products.

Overall, while ELF has demonstrated strong efficiencies in various financial metrics, the failures in sales variance, capital expenditures, and research and development indicate some areas of concern. These factors could affect investor sentiment and the stock's future performance.

Stocks: ELF