Envela (ELA) AI Stock Analysis

• Market Cap: $203.57M
• Dividend Yield: N/A
• Average Volume (3M): 63.43K
• Price to Earnings (P/E): 23.9
• Beta (1Y): 0.71
• Revenue Growth: 25.43%
• EPS Growth: 33.93%
• Country: US
• Employees: 309
• Sector: Consumer Cyclical
• Sector Strength: 84
• Industry: Luxury Goods
• EPS (TTM): 0.11
• Shares Outstanding: 25,965,277
• 10 Day Avg. Volume: 83,001
• 30 Day Avg. Volume: 63,429
• PEG Ratio: -7.51
• Price to Book (P/B): 3.57
• Price to Sales (P/S): 1.04
• P/FCF Ratio: 27.93
• Enterprise Value/Market Cap: 0.76
• Enterprise Value/Revenue: 0.78
• Enterprise Value/Gross Profit: 3.28
• Enterprise Value/Ebitda: 11.66
• 1Y Price Target: $9.17
• Price Target Upside: 22.59% Upside
• Rating Consensus: Strong Buy
• Number of Analyst Covering: 3

• Rating: 73 Outperform
• Price Target: $7.50 ▲(0.27% Upside)

Envela's overall stock score is driven by strong financial performance and positive technical indicators. The company's robust balance sheet and cash flow generation are significant strengths. However, the valuation is moderate, with a P/E ratio indicating fair pricing. The absence of a dividend yield and lack of recent earnings call data limit further insights.

Positive Factors

Revenue Growth

Consistent revenue growth in the luxury goods sector highlights Envela's ability to expand its market presence and sustain demand for its products.

Cash Generation

Strong cash generation capabilities provide Envela with the financial flexibility to invest in strategic initiatives and support operational needs.

Balance Sheet Health

A stronger balance sheet with reduced leverage enhances Envela's financial stability and reduces risk, supporting long-term growth.

Negative Factors

Operational Efficiency

Declining EBIT and EBITDA margins suggest challenges in operational efficiency, which could impact profitability if not addressed.

Profit Margin Pressure

A slight decline in gross profit margin indicates potential cost pressures, which may affect overall profitability if persistent.

Management Changes

Delayed start of new board members could impact strategic direction and decision-making processes, affecting long-term planning.

Envela Business Overview & Revenue Model

Company Description

Envela (ELA) is a leading provider of sustainable solutions in the electronics recycling and refurbishment sector. The company specializes in the collection, processing, and resale of end-of-life electronics, offering services that cater to both consumers and businesses. Envela's core products include refurbished electronics, components, and raw materials extracted from discarded devices, promoting a circular economy while reducing electronic waste.

How the Company Makes Money

Envela generates revenue primarily through the sale of refurbished electronics and components obtained from their recycling processes. The company has established a robust revenue model that includes multiple streams: direct sales of refurbished products to consumers, bulk sales to retailers and wholesalers, and partnerships with corporations for e-waste recycling services. Additionally, Envela benefits from contracts with manufacturers and retailers for the collection and processing of their end-of-life electronics, providing a steady stream of income. Strategic partnerships with various technology companies and environmental organizations also enhance their market reach and credibility, contributing significantly to their earnings.

Envela Financial Statement Overview

Summary

Envela demonstrates strong financial health with consistent revenue growth and improved profitability margins. The balance sheet is solid with reduced leverage and high return on equity, indicating efficient capital use. Cash flow generation is robust, supporting the company's operational and strategic initiatives. However, there are areas for improvement in operational efficiency as reflected in the declining EBIT and EBITDA margins.

Income Statement

Envela shows a solid revenue growth rate of 5.08% TTM, indicating positive momentum in the luxury goods sector. The gross profit margin of 23.68% is healthy, though slightly below the previous year's 24.57%. Net profit margin improved to 4.30% TTM, reflecting better cost management. However, EBIT and EBITDA margins have decreased, suggesting potential operational efficiency challenges.

Balance Sheet

The company's debt-to-equity ratio has improved to 0.31 TTM, indicating a stronger balance sheet with reduced leverage. Return on equity is robust at 15.75%, showcasing effective use of equity to generate profits. The equity ratio of 69.84% TTM suggests a stable financial structure with a solid equity base.

Cash Flow

Free cash flow growth is impressive at 86.99% TTM, highlighting strong cash generation capabilities. The operating cash flow to net income ratio of 0.88 TTM indicates good cash conversion, though slightly below the previous year's 0.81. The free cash flow to net income ratio of 0.69 TTM suggests a healthy cash flow relative to earnings.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	198.35M	180.38M	171.67M	182.69M	140.97M	113.92M
Gross Profit	46.96M	44.32M	41.66M	44.83M	31.22M	23.07M
EBITDA	13.21M	10.75M	10.85M	15.40M	10.42M	7.52M
Net Income	8.53M	6.76M	7.15M	15.69M	10.05M	6.38M
Balance Sheet
Total Assets	82.72M	77.87M	73.47M	71.28M	59.27M	40.58M
Cash, Cash Equivalents and Short-Term Investments	22.85M	20.61M	17.85M	17.17M	10.14M	9.22M
Total Debt	17.77M	18.37M	19.30M	22.03M	26.18M	20.22M
Total Liabilities	24.94M	25.22M	25.17M	27.96M	31.64M	23.00M
Stockholders Equity	57.78M	52.65M	48.31M	43.32M	27.63M	17.58M
Cash Flow
Free Cash Flow	7.53M	6.73M	3.60M	9.75M	-333.65K	1.03M
Operating Cash Flow	10.91M	10.19M	5.84M	10.02M	2.81M	6.90M
Investing Cash Flow	-3.38M	-3.76M	-1.76M	-229.34K	-4.88M	-7.96M
Financing Cash Flow	-2.03M	-3.68M	-3.40M	-2.76M	2.99M	5.77M

Envela Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 7.48
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Negative
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For ELA, the sentiment is Positive. The current price of 7.48 is below the 20-day moving average (MA) of 7.52, above the 50-day MA of 6.81, and above the 200-day MA of 6.54, indicating a bullish trend. The MACD of 0.27 indicates Negative momentum. The RSI at 61.93 is Neutral, neither overbought nor oversold. The STOCH value of 70.83 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for ELA.

Envela Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
ELA	73 Outperform	$203.57M	23.90	15.81%	―	25.43%	33.93%
MOV	71 Outperform	302.35M	24.83	3.30%	7.46%	-0.65%	-51.59%
BRLT	66 Neutral	218.46M	-7.59	8941.84%	23.36%	-4.32%	-144.96%
FOSL	56 Neutral	159.20M	-2.58	-14.73%	―	-15.35%	61.40%
CTHR	45 Neutral	2.35M	-0.14	―	―	-33.51%	36.29%
BGI	41 Neutral	22.34M	-2.42	71.17%	―	-7.08%	-162.35%
Sector *	61 Neutral	$18.38B	12.79	-2.54%	3.03%	1.52%	-15.83%

Envela Corporate Events

Envela Approves Key Proposals at Annual Meeting

On June 25, 2025, Envela held its Annual Meeting of Stockholders at its Corporate Head Office, where stockholders representing 92.75% of the shares voted on several key proposals. These included the election of six board members, the ratification of Whitley Penn LLP as the independent accounting firm for 2025, approval of executive compensation, determination of the frequency for future compensation votes, and the adoption of the 2025 Plan. All proposals were approved, with board members John R. Loftus, Jim R. Ruth, Alexandra C. Griffin, Richard D. Schepp, Vicky C. Teherani, and Vince A. Ackerson elected, though Ackerson and Teherani deferred their start dates.

The most recent analyst rating on (ELA) stock is a Buy with a $9.00 price target. To see the full list of analyst forecasts on Envela stock, see the ELA Stock Forecast page.