ELF stock HLStocks highlights: Elf Beauty (ELF)
Intrinsic value(DCF, operating CF) : 146USD
TA: Base formed and a strong up break post earnings and very strong growth stock with 40%+ revenue growth
rec to put max 10% into portfolio
AI Earnings report summary:
Based on the financial report, the key growth drivers for e.l.f. Beauty are:
1. Consistent category-leading growth: The company has delivered 40% net sales growth in Q2, fueled by 195 basis points of market share gains in the U.S. and 91% net sales growth internationally.
2. Strength in both retailer and e-commerce channels: The company has seen strength in both its retailer and e-commerce channels, driving growth in net sales.
3. International expansion: The company has seen significant growth in international markets, with 91% net sales growth in Q2.
The area of concern is:
1. Increased SG&A expenses: The company's SG&A expenses increased by $74.0 million to $186.1 million, or 62% of net sales, primarily due to an increase in marketing and digital spend, compensation, and other expenses. This increase may put pressure on the company's profitability.