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Envela (ELA)
:ELA
US Market

Envela (ELA) AI Stock Analysis

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EL

Envela

(NYSE MKT:ELA)

Rating:71Outperform
Price Target:
$7.00
▲(15.13%Upside)
Envela's overall score reflects strong financial performance, particularly in revenue growth and cost management. Technical analysis and valuation indicate an average outlook with no clear momentum, and the lack of significant earnings call insights or corporate events leaves the score driven mainly by the company's financial health.
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 (ELA) vs. SPDR S&P 500 ETF (SPY)

Envela Business Overview & Revenue Model

Company DescriptionEnvela 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 MoneyEnvela 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, but attention to rising operational challenges and liabilities is advisable.
Income Statement
78
Positive
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
73
Positive
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
75
Positive
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.
BreakdownTTMDec 2024Dec 2023Dec 2022Dec 2021Dec 2020
Income Statement
Total Revenue188.77M180.38M171.67M182.69M140.97M113.92M
Gross Profit45.60M44.32M41.66M44.83M31.22M23.07M
EBITDA9.71M10.75M10.85M15.40M10.42M7.52M
Net Income7.34M6.76M7.15M15.69M10.05M6.38M
Balance Sheet
Total Assets79.66M77.87M73.47M71.28M59.27M40.58M
Cash, Cash Equivalents and Short-Term Investments21.03M20.61M17.85M17.17M10.14M9.22M
Total Debt17.98M18.37M19.30M22.03M26.18M20.22M
Total Liabilities24.52M25.22M25.17M27.96M31.64M23.00M
Stockholders Equity55.14M52.65M48.31M43.32M27.63M17.58M
Cash Flow
Free Cash Flow4.03M6.73M3.60M9.75M-333.65K1.03M
Operating Cash Flow7.53M10.19M5.84M10.02M2.81M6.90M
Investing Cash Flow-3.50M-3.76M-1.76M-229.34K-4.88M-7.96M
Financing Cash Flow-2.79M-3.68M-3.40M-2.76M2.99M5.77M

Envela Technical Analysis

Technical Analysis Sentiment
Positive
Last Price6.08
Price Trends
50DMA
6.17
Negative
100DMA
6.16
Negative
200DMA
6.25
Negative
Market Momentum
MACD
>-0.01
Negative
RSI
53.47
Neutral
STOCH
84.37
Negative
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 6.08 is above the 20-day moving average (MA) of 5.88, below the 50-day MA of 6.17, and below the 200-day MA of 6.25, indicating a neutral trend. The MACD of >-0.01 indicates Negative momentum. The RSI at 53.47 is Neutral, neither overbought nor oversold. The STOCH value of 84.37 is Negative, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for ELA.

Envela Risk Analysis

Envela disclosed 19 risk factors in its most recent earnings report. Envela reported the most risks in the "Finance & Corporate" category.
Finance & Corporate - Financial and accounting risks. Risks related to the execution of corporate activity and strategy
Latest Risks Added 0 New Risks

Envela Peers Comparison

Overall Rating
UnderperformOutperform
Sector (62)
Financial Indicators
Name
Overall Rating
Market Cap
P/E Ratio
ROE
Dividend Yield
Revenue Growth
EPS Growth
ELELA
71
Outperform
$160.39M21.9114.06%15.71%15.03%
MOMOV
63
Neutral
$260.19M20.393.67%8.65%-1.36%-54.97%
62
Neutral
$16.85B11.50-7.38%2.96%1.59%-23.36%
53
Neutral
$89.57M-51.93%-16.31%32.30%
48
Neutral
$2.99M
47
Neutral
$142.02M-0.45%-6.12%-105.56%
BGBGI
40
Underperform
$18.35M89.94%3.11%11.94%
* Consumer Cyclical Sector Average
Performance Comparison
Ticker
Company Name
Price
Change
% Change
ELA
Envela
6.08
0.89
17.15%
BGI
Birks & Mayors
0.98
-1.62
-62.31%
CTHR
Charles & Colvard
0.22
-1.48
-87.06%
FOSL
Fossil Group
1.63
0.28
20.74%
MOV
Movado Group
16.49
-6.21
-27.36%
BRLT
Brilliant Earth Group
1.43
-0.91
-38.89%

Envela Corporate Events

Executive/Board ChangesShareholder Meetings
Envela Approves Key Proposals at Annual Meeting
Neutral
Jul 1, 2025

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.

Glossary
BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.

Disclaimer

This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.Date of analysis: Jul 01, 2025