Envela (ELA) AI Stock Analysis

• Market Cap: $428.92M
• Dividend Yield: N/A
• Average Volume (3M): 71.09K
• Price to Earnings (P/E): 23.8
• Beta (1Y): 0.50
• Revenue Growth: 23.75%
• EPS Growth: 59.66%
• Country: US
• Employees: 309
• Sector: Consumer Cyclical
• Sector Strength: 84
• Industry: Luxury Goods
• EPS (TTM): N/A
• Shares Outstanding: 25,963,476
• 10 Day Avg. Volume: 90,815
• 30 Day Avg. Volume: 71,088
• PEG Ratio: 0.21
• Price to Book (P/B): 5.18
• Price to Sales (P/S): 1.44
• P/FCF Ratio: 251.84
• Enterprise Value/Market Cap: 1.00
• Enterprise Value/Revenue: 1.79
• Enterprise Value/Gross Profit: 7.99
• Enterprise Value/Ebitda: 21.56
• 1Y Price Target: $16.50
• Price Target Upside: -0.12% Downside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 2
• EPS Forecast (FY): N/A
• Revenue Forecast (FY): N/A

• Rating: 62 Neutral
• Price Target: $17.50 ▲(5.93% Upside)
• Action: Reiterated Date: 03/21/26
• Date: Action: Reiterated 03/21/26

The score is primarily held back by weak 2025 cash generation and poor cash conversion versus earnings despite improving revenue growth and a de-risked balance sheet. Technicals are supportive with the stock trading above major moving averages, but mixed momentum (slightly negative MACD) and a mid-to-higher P/E limit the upside in the composite score.

Positive Factors

Business model / Recommerce

Envela's core recommerce and asset-disposition model extracts value from physical goods and precious metals, creating multiple revenue streams (consumer buys, institutional programs, service fees). This secular circular-economy exposure supports durable demand and repeatable flows of inventory and fee income.

De-risked balance sheet

Material leverage reduction and equity expansion materially lower solvency risk and increase financial flexibility. A conservative capital structure supports capital allocation for working capital, M&A or investments, and helps the company withstand commodity and inventory cycles over the medium term.

Revenue re-acceleration and margin recovery

Re-accelerating top-line growth paired with improving net margin indicates operational leverage and pricing or mix improvement. Sustained revenue momentum and margin recovery enhance ability to generate profits and create optionality for reinvestment or deleveraging if cash conversion trends can normalize.

Negative Factors

Sharp cash-flow deterioration

A large year-over-year decline in operating and free cash flow weakens the company's ability to self-fund operations and growth. Persistent cash weakness increases reliance on external financing, raises liquidity risk during downturns, and makes sustaining investments or dividends more challenging.

Poor cash conversion

Very low cash-to-earnings conversion signals earnings quality and working-capital issues; reported profits may not translate into spendable cash. This gap increases vulnerability to inventory swings, receivable timing, or commodity-driven adjustments and undermines free cash flow predictability.

Margin volatility and inconsistent profitability

Historic margin swings and a track record of peak years imply earnings are sensitive to inventory mix, precious-metal prices and recommerce dynamics. This volatility complicates forecasting and may compress sustainable returns unless the company further stabilizes operations and pricing consistency.

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 makes money primarily by acquiring goods (from consumers and from institutional/enterprise sources) and generating revenue through their resale after sorting, testing, refurbishing (when applicable), and pricing. A key revenue stream is the sale of precious-metal-bearing items and jewelry-related products, where earnings come from the spread between the company’s acquisition cost and the resale value (which can be influenced by commodity prices for gold, silver, and other metals). The company also generates revenue from recommerce of general merchandise (i.e., selling recovered or sourced products through appropriate resale channels). Where Envela provides services to enterprise clients—such as programs to manage, process, and disposition surplus, returned, or end-of-life assets—revenue can include service fees and/or revenue share arrangements tied to the proceeds from disposition. Specific material partnerships, customer concentration details, or segment-level revenue breakdowns are null.

Envela Financial Statement Overview

Summary

Income statement and balance sheet are solid (re-accelerating 2025 revenue growth and improving leverage), but cash flow is a major drag: 2025 operating cash flow and free cash flow fell sharply, and cash conversion versus earnings weakened materially, raising near-term earnings-quality concerns.

Income Statement

Revenue growth re-accelerated in 2025 (annual revenue up ~15% vs. near-flat in 2024), and profitability improved materially with net margin rising to ~6.1% from ~3.7% in 2024. That said, margins are still below the stronger 2021–2022 levels (net margin ~7–9%), and the profitability profile has shown some volatility across the cycle (notably the 2022 peak). Overall, the income statement reflects solid growth and good profitability, but with a less consistent margin track record than top-tier peers.

Balance Sheet

Leverage looks conservative and improving: debt-to-equity declined to ~0.30 in 2025 from ~0.95 in 2021 and ~1.15 in 2020, indicating meaningful balance-sheet de-risking. Equity has also expanded (roughly $67M in 2025 vs. $53M in 2024), supporting a stronger capital base. Returns on equity are healthy (~21.8% in 2025), though they have come down from unusually high levels in 2020–2022. Key risk is less about solvency and more about sustaining returns as the business scales.

Cash Flow

Cash generation weakened sharply in 2025: operating cash flow fell to ~$2.6M from ~$10.2M in 2024, and free cash flow dropped to ~$1.4M (down ~83% year over year). Cash conversion also looks soft versus earnings, with operating cash flow covering only ~14% of net income in 2025 (vs. ~81% in 2024), even though free cash flow is still positive. While the company has shown the ability to generate strong free cash flow in prior years (notably 2022 and 2024), the 2025 step-down raises near-term quality-of-earnings and working-capital/volatility concerns.

Breakdown	Dec 2025	Dec 2024	Dec 2023	Dec 2022	Dec 2021
Income Statement
Total Revenue	241.02M	180.38M	175.26M	182.69M	140.97M
Gross Profit	53.92M	44.32M	41.66M	44.83M	31.22M
EBITDA	19.98M	10.75M	10.85M	16.32M	11.79M
Net Income	14.60M	6.76M	7.15M	15.69M	10.05M
Balance Sheet
Total Assets	96.02M	77.87M	73.47M	71.28M	59.27M
Cash, Cash Equivalents and Short-Term Investments	18.15M	20.61M	17.85M	17.17M	10.14M
Total Debt	19.86M	18.37M	19.30M	22.03M	26.18M
Total Liabilities	28.96M	25.22M	25.17M	27.96M	31.64M
Stockholders Equity	67.06M	52.65M	48.31M	43.32M	27.63M
Cash Flow
Free Cash Flow	1.38M	6.73M	3.60M	9.75M	-333.65K
Operating Cash Flow	2.58M	10.19M	5.84M	10.02M	2.81M
Investing Cash Flow	-1.25M	-3.76M	-1.76M	-229.34K	-4.88M
Financing Cash Flow	-3.79M	-3.68M	-3.40M	-2.76M	2.99M

Envela Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 16.52
• 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 16.52 is above the 20-day moving average (MA) of 13.25, above the 50-day MA of 13.37, and above the 200-day MA of 9.62, indicating a bullish trend. The MACD of 0.20 indicates Negative momentum. The RSI at 69.52 is Neutral, neither overbought nor oversold. The STOCH value of 49.97 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
MOV	70 Outperform	$376.69M	19.42	5.37%	6.79%	0.63%	-7.37%
ELA	62 Neutral	$428.92M	23.81	18.01%	―	23.75%	59.66%
Sector *	61 Neutral	$18.38B	12.79	-2.54%	3.03%	1.52%	-15.83%
FOSL	54 Neutral	$232.84M	-2.64	-48.62%	―	-12.89%	45.32%
REAL	46 Neutral	$1.03B	―	11.34%	―	14.30%	23.73%
BRLT	44 Neutral	$85.52M	2.00	-15.32%	14.29%	1.32%	-175.81%
BGI	41 Neutral	$12.71M	-2.90	63.94%	―	4.49%	-87.94%