Envela (ELA) AI Stock Analysis

• Market Cap: $253.68M
• Dividend Yield: N/A
• Average Volume (3M): 54.90K
• Price to Earnings (P/E): 26.2
• Beta (1Y): 0.76
• Revenue Growth: 23.75%
• EPS Growth: 59.66%
• Country: US
• Employees: 309
• Sector: Consumer Cyclical
• Sector Strength: 84
• Industry: Luxury Goods
• EPS (TTM): 0.13
• Shares Outstanding: 25,965,277
• 10 Day Avg. Volume: 82,243
• 30 Day Avg. Volume: 54,904
• 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: 0.79
• Enterprise Value/Revenue: 0.96
• Enterprise Value/Gross Profit: 4.15
• Enterprise Value/Ebitda: 13.12
• 1Y Price Target: $11.50
• Price Target Upside: 11.65% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 2
• EPS Forecast (FY): N/A
• Revenue Forecast (FY): N/A

• Rating: 67 Neutral
• Price Target: $10.00 ▼(-2.91% Downside)

Envela's strong financial performance and bullish technical indicators are the primary drivers of its stock score. However, the overbought technical conditions and high valuation relative to the industry average present potential risks. The absence of a dividend yield further impacts the stock's attractiveness.

Positive Factors

Revenue Growth

Consistent revenue growth indicates positive momentum in the luxury goods sector, supporting long-term business expansion and market presence.

Cash Flow Generation

Strong cash generation capabilities provide financial flexibility, enabling strategic investments and operational stability over the long term.

Balance Sheet Health

A stronger balance sheet with reduced leverage enhances financial stability, reducing risk and supporting sustainable growth.

Negative Factors

Operational Efficiency

Decreasing margins suggest challenges in operational efficiency, which could impact profitability and competitive positioning if not addressed.

Gross Profit Margin

A declining gross profit margin may indicate rising costs or pricing pressures, potentially affecting long-term profitability.

Earnings Call Data

The absence of earnings call insights limits transparency and investor understanding of strategic priorities and future outlook.

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 a strong financial performance across all verticals. The income statement reflects consistent revenue growth and profitability, while the balance sheet shows a stable financial position with manageable leverage. The cash flow statement highlights effective cash generation and management. The company is well-positioned for future growth, although careful monitoring of debt levels is advisable.

Income Statement

Envela's income statement shows a solid performance with a revenue growth rate of 5.29% in the TTM, indicating a positive trend. The gross profit margin is healthy at 23.25%, and the net profit margin is 4.89%, reflecting profitability. However, the EBIT margin of 4.36% suggests room for improvement in operational efficiency. Overall, the company demonstrates stable revenue growth and profitability.

Balance Sheet

The balance sheet reveals a moderate debt-to-equity ratio of 0.38, indicating manageable leverage. The return on equity is strong at 18.01%, showcasing effective use of equity to generate profits. The equity ratio stands at 67.16%, reflecting a solid equity base. While the company maintains a stable financial position, there is potential risk if debt levels increase.

Cash Flow

Cash flow analysis shows a robust free cash flow growth rate of 10.57% in the TTM, highlighting strong cash generation. The operating cash flow to net income ratio is 0.86, indicating efficient cash conversion. The free cash flow to net income ratio of 0.84 further supports the company's ability to generate cash relative to its earnings. Overall, Envela exhibits strong cash flow management.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	208.84M	180.38M	171.67M	182.69M	140.97M	113.92M
Gross Profit	48.57M	44.32M	41.66M	44.83M	31.22M	23.07M
EBITDA	15.34M	10.75M	10.85M	15.40M	10.42M	7.52M
Net Income	10.20M	6.76M	7.15M	15.69M	10.05M	6.38M
Balance Sheet
Total Assets	90.94M	77.87M	73.47M	71.28M	59.27M	40.58M
Cash, Cash Equivalents and Short-Term Investments	24.42M	20.61M	17.85M	17.17M	10.14M	9.22M
Total Debt	22.96M	18.37M	19.30M	22.03M	26.18M	20.22M
Total Liabilities	29.87M	25.22M	25.17M	27.96M	31.64M	23.00M
Stockholders Equity	61.07M	52.65M	48.31M	43.32M	27.63M	17.58M
Cash Flow
Free Cash Flow	8.33M	6.73M	3.60M	9.75M	-333.65K	1.03M
Operating Cash Flow	9.87M	10.19M	5.84M	10.02M	2.81M	6.90M
Investing Cash Flow	-1.59M	-3.76M	-1.76M	-229.34K	-4.88M	-7.96M
Financing Cash Flow	-1.61M	-3.68M	-3.40M	-2.76M	2.99M	5.77M

Envela Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 10.30
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Negative
• RSI: Negative
• 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 10.3 is above the 20-day moving average (MA) of 8.73, above the 50-day MA of 8.04, and above the 200-day MA of 6.71, indicating a bullish trend. The MACD of 0.60 indicates Negative momentum. The RSI at 73.97 is Negative, neither overbought nor oversold. The STOCH value of 75.96 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	67 Neutral	$253.68M	26.24	18.19%	―	23.75%	59.66%
MOV	65 Neutral	$292.94M	24.05	3.52%	7.77%	-0.65%	-51.59%
Sector *	61 Neutral	$18.38B	12.79	-2.54%	3.03%	1.52%	-15.83%
BRLT	56 Neutral	$241.40M	―	-2.88%	8.93%	1.32%	-175.81%
REAL	53 Neutral	$1.32B	―	―	―	12.68%	62.96%
FOSL	47 Neutral	$110.26M	―	-35.01%	―	-15.35%	61.40%
BGI	41 Neutral	$22.34M	-2.42	―	―	-7.08%	-162.35%