Envela (ELA) AI Stock Analysis

• Market Cap: $302.21M
• Dividend Yield: N/A
• Average Volume (3M): 70.03K
• Price to Earnings (P/E): 29.6
• Beta (1Y): 0.70
• 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: 25,963,476
• 10 Day Avg. Volume: 57,343
• 30 Day Avg. Volume: 70,034
• 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: 0.67
• Enterprise Value/Revenue: 0.96
• Enterprise Value/Gross Profit: 4.15
• Enterprise Value/Ebitda: 13.12
• 1Y Price Target: $13.00
• Price Target Upside: 11.68% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 2
• EPS Forecast (FY): 0.38
• Revenue Forecast (FY): $209.90M

• Rating: 65 Neutral
• Price Target: $12.00 ▲(3.09% Upside)

Envela's overall stock score is driven primarily by its strong financial performance, which indicates stable growth and profitability. However, the technical analysis suggests caution due to overbought conditions, and the valuation appears high, which could limit upside potential. The absence of earnings call data and corporate events means these factors do not influence the score.

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 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 generates revenue through multiple key streams, primarily from the sale of refurbished electronics, which are sourced from its e-waste processing operations. The company collects used electronics, refurbishes them to meet quality standards, and sells them at competitive prices, catering to a growing market for affordable tech products. Additionally, Envela earns income through its recycling services, charging fees for the collection and processing of e-waste from various clients, including businesses and municipalities. Strategic partnerships with electronic manufacturers and retailers enhance its supply chain and broaden its market reach, further contributing to revenue growth. The increasing demand for sustainable and eco-friendly electronic solutions also supports the company's financial performance.

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	175.26M	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	16.32M	11.79M	7.82M
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	8.28M	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: 11.64
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Negative
• RSI: Negative
• STOCH: 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 11.64 is above the 20-day moving average (MA) of 10.50, above the 50-day MA of 8.99, and above the 200-day MA of 6.99, indicating a bullish trend. The MACD of 0.68 indicates Negative momentum. The RSI at 70.44 is Negative, neither overbought nor oversold. The STOCH value of 90.92 is Negative, 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	73 Outperform	$334.04M	21.86	4.40%	7.20%	0.63%	-7.37%
ELA	65 Neutral	$302.21M	29.65	18.19%	―	23.75%	59.66%
Sector *	61 Neutral	$18.38B	12.79	-2.54%	3.03%	1.52%	-15.83%
FOSL	55 Neutral	$166.65M	―	-48.62%	―	-12.89%	45.32%
REAL	54 Neutral	$1.69B	―	―	―	14.30%	23.73%
BRLT	51 Neutral	$119.58M	―	-2.88%	13.44%	1.32%	-175.81%
BGI	40 Underperform	$22.34M	-2.42	―	―	-7.08%	-162.35%