Stock Analysis on Net

e.l.f. Beauty, Inc. (NYSE:ELF)

This company has been moved to the archive! The financial data has not been updated since August 9, 2024.

Economic Value Added (EVA)

Microsoft Excel

EVA is registered trademark of Stern Stewart.

Economic value added or economic profit is the difference between revenues and costs,where costs include not only expenses, but also cost of capital.


Economic Profit

e.l.f. Beauty, Inc., economic profit calculation

US$ in thousands

Microsoft Excel
12 months ended: Mar 31, 2024 Mar 31, 2023 Mar 31, 2022 Mar 31, 2021 Mar 31, 2020
Net operating profit after taxes (NOPAT)1 132,182 57,046 20,327 618 26,428
Cost of capital2 18.40% 18.56% 17.36% 17.26% 16.25%
Invested capital3 936,268 496,463 439,123 434,062 418,026
 
Economic profit4 (40,126) (35,122) (55,895) (74,298) (41,500)

Based on: 10-K (reporting date: 2024-03-31), 10-K (reporting date: 2023-03-31), 10-K (reporting date: 2022-03-31), 10-K (reporting date: 2021-03-31), 10-K (reporting date: 2020-03-31).

1 NOPAT. See details »

2 Cost of capital. See details »

3 Invested capital. See details »

4 2024 Calculation
Economic profit = NOPAT – Cost of capital × Invested capital
= 132,18218.40% × 936,268 = -40,126

Item Description The company
Economic profit Economic profit is a measure of corporate performance computed by taking the spread between the return on invested capital and the cost of capital, and multiplying by the invested capital. e.l.f. Beauty, Inc. economic profit increased from 2022 to 2023 but then slightly decreased from 2023 to 2024.

Net Operating Profit after Taxes (NOPAT)

e.l.f. Beauty, Inc., NOPAT calculation

US$ in thousands

Microsoft Excel
12 months ended: Mar 31, 2024 Mar 31, 2023 Mar 31, 2022 Mar 31, 2021 Mar 31, 2020
Net income 127,663 61,530 21,770 6,232 17,884
Deferred income tax expense (benefit)1 (3,276) (6,401) (3,701) (8,584) 2,443
Increase (decrease) in allowance for doubtful accounts2 1,100 (100) (800) 700
Increase (decrease) in equity equivalents3 (2,176) (6,401) (3,801) (9,384) 3,143
Interest expense 11,840 3,990 2,444 4,095 7,170
Interest expense, operating lease liability4 1,452 408 544 683 530
Adjusted interest expense 13,292 4,398 2,988 4,778 7,700
Tax benefit of interest expense5 (2,791) (924) (627) (1,003) (1,617)
Adjusted interest expense, after taxes6 10,501 3,475 2,360 3,774 6,083
Interest income (4,817) (1,972) (3) (5) (863)
Investment income, before taxes (4,817) (1,972) (3) (5) (863)
Tax expense (benefit) of investment income7 1,012 414 1 1 181
Investment income, after taxes8 (3,805) (1,558) (2) (4) (682)
Net operating profit after taxes (NOPAT) 132,182 57,046 20,327 618 26,428

Based on: 10-K (reporting date: 2024-03-31), 10-K (reporting date: 2023-03-31), 10-K (reporting date: 2022-03-31), 10-K (reporting date: 2021-03-31), 10-K (reporting date: 2020-03-31).

1 Elimination of deferred tax expense. See details »

2 Addition of increase (decrease) in allowance for doubtful accounts.

3 Addition of increase (decrease) in equity equivalents to net income.

4 2024 Calculation
Interest expense on capitalized operating leases = Operating lease liability × Discount rate
= 28,475 × 5.10% = 1,452

5 2024 Calculation
Tax benefit of interest expense = Adjusted interest expense × Statutory income tax rate
= 13,292 × 21.00% = 2,791

6 Addition of after taxes interest expense to net income.

7 2024 Calculation
Tax expense (benefit) of investment income = Investment income, before tax × Statutory income tax rate
= 4,817 × 21.00% = 1,012

8 Elimination of after taxes investment income.

Item Description The company
NOPAT Net operating profit after taxes is income from operations, but after removement of taxes calculated on cash basis that are relevant to operating income. e.l.f. Beauty, Inc. NOPAT increased from 2022 to 2023 and from 2023 to 2024.

Cash Operating Taxes

e.l.f. Beauty, Inc., cash operating taxes calculation

US$ in thousands

Microsoft Excel
12 months ended: Mar 31, 2024 Mar 31, 2023 Mar 31, 2022 Mar 31, 2021 Mar 31, 2020
Provision (benefit) for income taxes 13,327 2,544 3,661 (2,542) 6,185
Less: Deferred income tax expense (benefit) (3,276) (6,401) (3,701) (8,584) 2,443
Add: Tax savings from interest expense 2,791 924 627 1,003 1,617
Less: Tax imposed on investment income 1,012 414 1 1 181
Cash operating taxes 18,383 9,455 7,989 7,044 5,178

Based on: 10-K (reporting date: 2024-03-31), 10-K (reporting date: 2023-03-31), 10-K (reporting date: 2022-03-31), 10-K (reporting date: 2021-03-31), 10-K (reporting date: 2020-03-31).

Item Description The company
Cash operating taxes Cash operating taxes are estimated by adjusting income tax expense for changes in deferred taxes and tax benefit from the interest deduction. e.l.f. Beauty, Inc. cash operating taxes increased from 2022 to 2023 and from 2023 to 2024.

Invested Capital

e.l.f. Beauty, Inc., invested capital calculation (financing approach)

US$ in thousands

Microsoft Excel
Mar 31, 2024 Mar 31, 2023 Mar 31, 2022 Mar 31, 2021 Mar 31, 2020
Current portion of long-term debt and finance lease obligations 100,307 5,575 5,786 16,281 12,568
Long-term debt and finance lease obligations 161,819 60,881 91,080 110,255 126,088
Operating lease liability1 28,475 15,711 20,135 24,376 14,322
Total reported debt & leases 290,601 82,167 117,001 150,912 152,978
Stockholders’ equity 642,572 411,017 312,429 269,646 242,171
Net deferred tax (assets) liabilities2 1,845 3,179 9,593 13,304 21,877
Allowance for doubtful accounts3 1,200 100 100 200 1,000
Equity equivalents4 3,045 3,279 9,693 13,504 22,877
Accumulated other comprehensive (income) loss, net of tax5 50
Adjusted stockholders’ equity 645,667 414,296 322,122 283,150 265,048
Invested capital 936,268 496,463 439,123 434,062 418,026

Based on: 10-K (reporting date: 2024-03-31), 10-K (reporting date: 2023-03-31), 10-K (reporting date: 2022-03-31), 10-K (reporting date: 2021-03-31), 10-K (reporting date: 2020-03-31).

1 Addition of capitalized operating leases.

2 Elimination of deferred taxes from assets and liabilities. See details »

3 Addition of allowance for doubtful accounts receivable.

4 Addition of equity equivalents to stockholders’ equity.

5 Removal of accumulated other comprehensive income.

Item Description The company
Invested capital Capital is an approximation of the economic book value of all cash invested in going-concern business activities. e.l.f. Beauty, Inc. invested capital increased from 2022 to 2023 and from 2023 to 2024.

Cost of Capital

e.l.f. Beauty, Inc., cost of capital calculations

Capital (fair value)1 Weights Cost of capital
Equity2 10,335,864 10,335,864 ÷ 10,627,271 = 0.97 0.97 × 18.77% = 18.26%
Long-term debt, including current portion3 262,932 262,932 ÷ 10,627,271 = 0.02 0.02 × 6.83% × (1 – 21.00%) = 0.13%
Operating lease liability4 28,475 28,475 ÷ 10,627,271 = 0.00 0.00 × 5.10% × (1 – 21.00%) = 0.01%
Total: 10,627,271 1.00 18.40%

Based on: 10-K (reporting date: 2024-03-31).

1 US$ in thousands

2 Equity. See details »

3 Long-term debt, including current portion. See details »

4 Operating lease liability. See details »

Capital (fair value)1 Weights Cost of capital
Equity2 5,610,256 5,610,256 ÷ 5,692,850 = 0.99 0.99 × 18.77% = 18.50%
Long-term debt, including current portion3 66,883 66,883 ÷ 5,692,850 = 0.01 0.01 × 6.17% × (1 – 21.00%) = 0.06%
Operating lease liability4 15,711 15,711 ÷ 5,692,850 = 0.00 0.00 × 2.60% × (1 – 21.00%) = 0.01%
Total: 5,692,850 1.00 18.56%

Based on: 10-K (reporting date: 2023-03-31).

1 US$ in thousands

2 Equity. See details »

3 Long-term debt, including current portion. See details »

4 Operating lease liability. See details »

Capital (fair value)1 Weights Cost of capital
Equity2 1,287,478 1,287,478 ÷ 1,405,282 = 0.92 0.92 × 18.77% = 17.20%
Long-term debt, including current portion3 97,669 97,669 ÷ 1,405,282 = 0.07 0.07 × 2.31% × (1 – 21.00%) = 0.13%
Operating lease liability4 20,135 20,135 ÷ 1,405,282 = 0.01 0.01 × 2.70% × (1 – 21.00%) = 0.03%
Total: 1,405,282 1.00 17.36%

Based on: 10-K (reporting date: 2022-03-31).

1 US$ in thousands

2 Equity. See details »

3 Long-term debt, including current portion. See details »

4 Operating lease liability. See details »

Capital (fair value)1 Weights Cost of capital
Equity2 1,473,056 1,473,056 ÷ 1,624,221 = 0.91 0.91 × 18.77% = 17.03%
Long-term debt, including current portion3 126,789 126,789 ÷ 1,624,221 = 0.08 0.08 × 3.23% × (1 – 21.00%) = 0.20%
Operating lease liability4 24,376 24,376 ÷ 1,624,221 = 0.02 0.02 × 2.80% × (1 – 21.00%) = 0.03%
Total: 1,624,221 1.00 17.26%

Based on: 10-K (reporting date: 2021-03-31).

1 US$ in thousands

2 Equity. See details »

3 Long-term debt, including current portion. See details »

4 Operating lease liability. See details »

Capital (fair value)1 Weights Cost of capital
Equity2 828,650 828,650 ÷ 981,837 = 0.84 0.84 × 18.77% = 15.85%
Long-term debt, including current portion3 138,865 138,865 ÷ 981,837 = 0.14 0.14 × 3.24% × (1 – 21.00%) = 0.36%
Operating lease liability4 14,322 14,322 ÷ 981,837 = 0.01 0.01 × 3.70% × (1 – 21.00%) = 0.04%
Total: 981,837 1.00 16.25%

Based on: 10-K (reporting date: 2020-03-31).

1 US$ in thousands

2 Equity. See details »

3 Long-term debt, including current portion. See details »

4 Operating lease liability. See details »


Economic Spread Ratio

e.l.f. Beauty, Inc., economic spread ratio calculation, comparison to benchmarks

Microsoft Excel
Mar 31, 2024 Mar 31, 2023 Mar 31, 2022 Mar 31, 2021 Mar 31, 2020
Selected Financial Data (US$ in thousands)
Economic profit1 (40,126) (35,122) (55,895) (74,298) (41,500)
Invested capital2 936,268 496,463 439,123 434,062 418,026
Performance Ratio
Economic spread ratio3 -4.29% -7.07% -12.73% -17.12% -9.93%
Benchmarks
Economic Spread Ratio, Competitors4
Procter & Gamble Co. 7.65% 7.45% 7.85% 7.42% 5.11%

Based on: 10-K (reporting date: 2024-03-31), 10-K (reporting date: 2023-03-31), 10-K (reporting date: 2022-03-31), 10-K (reporting date: 2021-03-31), 10-K (reporting date: 2020-03-31).

1 Economic profit. See details »

2 Invested capital. See details »

3 2024 Calculation
Economic spread ratio = 100 × Economic profit ÷ Invested capital
= 100 × -40,126 ÷ 936,268 = -4.29%

4 Click competitor name to see calculations.

Performance ratio Description The company
Economic spread ratio The ratio of economic profit to invested capital, also equal to the difference between return on invested capital (ROIC) and cost of capital. e.l.f. Beauty, Inc. economic spread ratio improved from 2022 to 2023 and from 2023 to 2024.

Economic Profit Margin

e.l.f. Beauty, Inc., economic profit margin calculation, comparison to benchmarks

Microsoft Excel
Mar 31, 2024 Mar 31, 2023 Mar 31, 2022 Mar 31, 2021 Mar 31, 2020
Selected Financial Data (US$ in thousands)
Economic profit1 (40,126) (35,122) (55,895) (74,298) (41,500)
Net sales 1,023,932 578,844 392,155 318,110 282,851
Performance Ratio
Economic profit margin2 -3.92% -6.07% -14.25% -23.36% -14.67%
Benchmarks
Economic Profit Margin, Competitors3
Procter & Gamble Co. 8.89% 8.77% 9.19% 9.27% 7.28%

Based on: 10-K (reporting date: 2024-03-31), 10-K (reporting date: 2023-03-31), 10-K (reporting date: 2022-03-31), 10-K (reporting date: 2021-03-31), 10-K (reporting date: 2020-03-31).

1 Economic profit. See details »

2 2024 Calculation
Economic profit margin = 100 × Economic profit ÷ Net sales
= 100 × -40,126 ÷ 1,023,932 = -3.92%

3 Click competitor name to see calculations.

Performance ratio Description The company
Economic profit margin The ratio of economic profit to sales. It is the company profit margin covering income efficiency and asset management. Economic profit margin is not biased in favor of capital-intensive business models, because any added capital is a cost to the economic profit margin. e.l.f. Beauty, Inc. economic profit margin improved from 2022 to 2023 and from 2023 to 2024.