Envela (ELA) AI Stock Analysis

• Market Cap: $154.93M
• Dividend Yield: N/A
• Average Volume (3M): 55.34K
• Price to Earnings (P/E): 21.2
• Beta (1Y): 0.71
• Revenue Growth: 15.71%
• EPS Growth: 15.03%
• Country: US
• Employees: 309
• Sector: Consumer Cyclical
• Sector Strength: 71
• Industry: Luxury Goods
• EPS (TTM): 0.10
• Shares Outstanding: 25,995,201
• 10 Day Avg. Volume: 36,650
• 30 Day Avg. Volume: 55,340
• PEG Ratio: 2.78
• Price to Book (P/B): 2.84
• Price to Sales (P/S): 0.00
• P/FCF Ratio: 38.91
• Enterprise Value/Market Cap: 0.99
• Enterprise Value/Revenue: 0.22
• Enterprise Value/Gross Profit: 3.37
• Enterprise Value/Ebitda: 3.91
• 1Y Price Target: $9.50
• Price Target Upside: 59.40% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 2

• Rating: 66 Neutral
• Price Target: $6.50 ▲(9.06%Upside)

Envela's strong financial performance is the most significant factor, reflecting solid revenue growth and effective cost management. Technical analysis indicates mixed signals with potential for downside momentum. Valuation is reasonable but reflects growth expectations without a dividend yield. Overall, the stock is well-positioned but should be monitored for operational and liability challenges.

Positive Factors

Business Expansion

An increased installed base of retail stores, ending the year at 12, should help build more predictability into the model and, with it, a higher valuation over time.

Financial Performance

Envela Corp reported strong financial results with a 27.2% increase in revenue, surpassing estimates.

Growth Prospects

Analyst has increased the price target for Envela Corp from $6 to $7, indicating confidence in the company's growth prospects.

Negative Factors

Product Sales

Gross margins decreased due to a greater proportion of lower-margin product sales, impacting overall profitability.

Profit Margins

Gross margins were negatively impacted by a higher mix of lower-margin scrap-grade precious metal sales and increased store opening expenses.

Envela Business Overview & Revenue Model

Company Description

Envela Corporation, together with its subsidiaries, primarily buys and sells jewelry and bullion products to individual consumers, dealers, Fortune 500 companies, municipalities, school districts, and other organizations in the United States. It offers jewelry and fine-watch products, including bridal jewelry, fashion jewelry, custom-made jewelry, diamonds, and other gemstones, as well as watches and jewelry components. The company also buys and sells various forms of gold, silver, platinum, and palladium products, including United States and other government coins, private mint medallions, art bars, and trade unit bars; and numismatic items, such as rare coins, currency, medals, tokens, and other collectibles, as well as provides jewelry and watches repair services. In addition, it offers end-of-life electronics recycling services; disposal transportation and product tracking services; IT-asset disposition services, including compliance and data sanitization services; and services to companies in the areas of software upgrades, and hardware or networking capabilities, as well as moving to cloud services. As of December 31, 2021, Envela Corporation marketed its products and services through six retail locations under the Dallas Gold & Silver Exchange name; and one retail location under the Charleston Gold & Diamond Exchange name, as well as through cgdeinc.com, dgse.com, echoenvironmental.com, ITADUSA.com, availrecovery.com, and teladvance.com e-commerce sites. The company was formerly known as DGSE Companies, Inc. and changed its name to Envela Corporation in December 2019. Envela Corporation was incorporated in 1965 and is headquartered in Irving, Texas.

How the Company Makes Money

Envela Corporation generates revenue through a diversified model comprising its retail and recycling operations. The retail division earns money by purchasing jewelry, precious metals, and coins from individuals and then reselling them at a profit. This includes both physical retail locations and online sales channels. The recycling division contributes to Envela's income by acquiring electronic waste and other precious materials, which are then processed and refined to extract valuable components. These components are sold to manufacturers and other entities, creating a revenue stream from the recycling process. The company's focus on sustainability and responsible sourcing enhances its appeal to environmentally-conscious consumers and partners, further driving sales and profitability.

Envela Financial Statement Overview

Summary

Envela demonstrates strong financial health with consistent revenue growth and effective cost management. The balance sheet is solid with low leverage and high equity. Cash flows are stable, though there is a need to monitor capital expenditures closely. Operational challenges and rising liabilities require attention to maintain financial strength.

Income Statement

Envela's income statement shows a strong performance with a consistent revenue growth trend, as seen in the 4.6% increase in revenue from 2023 to TTM (Trailing-Twelve-Months). The gross profit margin stands at around 24.2% for TTM, indicating effective cost management. Net profit margin is solid at 3.9% for TTM, reflecting efficient operations despite a competitive industry. However, a decline in EBIT margin from 7.8% in 2022 to 4.7% in TTM suggests rising operational challenges.

Balance Sheet

The balance sheet of Envela shows a robust equity position with a healthy equity ratio of 69.2% as of TTM, indicating strong financial stability. The debt-to-equity ratio is favorable at 0.33, suggesting a conservative leverage approach. Return on Equity (ROE) is a respectable 13.3% for TTM, demonstrating effective use of equity. However, the increasing liabilities over the years may pose a potential risk if not managed carefully.

Cash Flow

Envela's cash flow statement reflects a stable position with a positive free cash flow of approximately $4 million in TTM, despite a decrease from the previous year. The operating cash flow to net income ratio of 1.03 indicates good cash generation ability relative to profits. However, the reduction in free cash flow growth rate over the years highlights potential challenges in capital expenditure management.

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

Envela Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 5.96
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Negative
• MACD: Positive
• 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 5.96 is below the 20-day moving average (MA) of 6.07, below the 50-day MA of 6.04, and below the 200-day MA of 6.29, indicating a neutral trend. The MACD of 0.02 indicates Positive momentum. The RSI at 52.42 is Neutral, neither overbought nor oversold. The STOCH value of 40.40 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	66 Neutral	$154.93M	21.16	14.06%	―	15.71%	15.03%
MOV	63 Neutral	$260.19M	21.11	3.67%	8.49%	-1.36%	-54.97%
Sector *	63 Neutral	$17.10B	10.79	-8.01%	2.94%	1.62%	-25.73%
FOSL	52 Neutral	$94.93M	―	-51.93%	―	-16.31%	32.30%
BRLT	50 Neutral	$156.91M	―	-0.45%	―	-6.12%	-105.56%
CTHR	44 Neutral	$935.48K	―		―	―	―
BGI	40 Underperform	$17.57M	―	89.94%	―	3.11%	11.94%

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.