2024-01-24 14:16:38 ET
Summary
- e.l.f. specializes in affordable beauty products, offering a wide range of makeup and skincare items at budget-friendly prices.
- The company practically does not spend on traditional marketing and especially targets young generations through channels such as Tik Tok, Instagram or Snapchat.
- I think e.l.f. will be to Gen Z what Estée Lauder was to boomers or L'Oréal to millennials, making its seemingly expensive valuation to be justified in the future.
Investment Thesis
The performance that e.l.f. Beauty (ELF) has shown in the last three years is simply impressive. Although it has traded, on average, at 40x EV/EBITDA, it has considerably outperformed the index. This is because, in the last five years, the company has grown its Free Cash Flow per share at annual rates of almost 30%, a feat within the reach of few companies....
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For further details see:
e.l.f. Beauty: Positioning As The Cosmetics Leader For Future Generations