Today’s Stock: e.l.f. Beauty, Inc. (ELF)Today’s Stock: e.l.f. Beauty, Inc. (ELF)

e.l.f. Beauty, Inc., a beauty company, provides cosmetics and skin care products worldwide. The company offers eye, lip, face, paw, and skin care products.

It offers products under the e.l.f. Cosmetics, e.l.f. Skin, Well People, Naturium, and Keys Soulcare brand names. The company sells its products through national and international retailer and direct-to-consumer through its e-commerce channel.

My Thoughts 💭My Thoughts 💭

This company is part of this [experiment] that I am running along side the Motely Fool Stock advisor one. I don't know much about ELF. I never purchased a product from them nor do I know any females who do. This stock has made Jeremy a lot of fiat over the years and he continues to be bullish on it. Let's see how this company fares when valuing it from a bitcoin perspective.

At 107.6k sats per share ($78,944), and no dividend. An investor can see a return only if the company continues to grow and grow faster than bitcoin or it starts to pay a dividend.

The company trades at a PE 61 which means investors are paying $61 to access $1 of earnings. Super expensive stock. Let’s review some key fundamentals to determine if this stock is worth this high valuation.

PE:PE:

Expected Growth:Expected Growth:

Revenues and expenses:Revenues and expenses:

Balance Sheet:Balance Sheet:

Dividend:Dividend:

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Bitcoin per share:Bitcoin per share:

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Ownership breakdown :Ownership breakdown :

Leadership:Leadership:

The fundamentals of this company are bad. The balance sheet debt exploded to the upside, the operational costs rose right along with revenue, the valuation is really rich for somehting with a very low profit margin (sub 10%). Even with 40% projected growth the value I get for dumping +100k sats for one share of this makeup company doesn't make sense when thinking about a ten year time horizon.

Here is my performance since I started this experiment with this company:

Here is the performance according to Simply Wall Street

At this high valuation, decent governance, high float concentration with Wall Street ,no dividend and relying on international markets for growth is a strong no for me. But yet Jeremy’s is super bullish on this stock. Can’t understand why from a fundamental analysis standpoint. Maybe they are a major player in cosmetics and thus have strong growth but no way makeup is more essential than money. Keep the sats and skip this company

But I will continue to DCA as part of my experiment.