EVI Industries (EVI) AI Stock Analysis

• Market Cap: $256.09M
• Dividend Yield: N/A
• Average Volume (3M): 21.49K
• Price to Earnings (P/E): 33.2
• Beta (1Y): 1.05
• Revenue Growth: 12.63%
• EPS Growth: -21.23%
• Country: US
• Employees: 750
• Sector: Industrials
• Sector Strength: 72
• Industry: Industrial - Distribution
• EPS (TTM): 0.15
• Shares Outstanding: 12,862,149
• 10 Day Avg. Volume: 17,138
• 30 Day Avg. Volume: 21,490
• PEG Ratio: 1.58
• Price to Book (P/B): 2.33
• Price to Sales (P/S): 0.86
• P/FCF Ratio: 20.36
• Enterprise Value/Market Cap: 1.29
• Enterprise Value/Revenue: 0.78
• Enterprise Value/Gross Profit: 2.56
• Enterprise Value/Ebitda: 16.78
• 1Y Price Target: $35.00
• Price Target Upside: 75.79% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 1
• EPS Forecast (FY): 0.65
• Revenue Forecast (FY): $445.93M

• Rating: 57 Neutral
• Price Target: $19.50 ▼(-2.06% Downside)
• Action: Reiterated Date: 02/10/26
• Date: Action: Reiterated 02/10/26

The score is mainly supported by steady revenue growth and currently strong cash generation, tempered by very thin/volatile profitability and increased leverage versus prior periods. Technical indicators are bearish and the high P/E valuation further drags the overall score.

Positive Factors

Free Cash Flow Generation

Consistent positive free cash flow (TTM $17.8M, +7.4%) and strong operating cash (TTM $24.2M) provide durable internal funding for maintenance capex, service network investments, and debt servicing. Good cash conversion (FCF ~0.75x net income) underpins financial flexibility if sustained.

Stable Revenue and Gross Margin

Mid-single-digit recurring revenue growth (TTM +5.6%) and a steady ~30% gross margin reflect durable distributor pricing discipline and product mix. Steady top-line expansion plus stable gross margins support predictable aftermarket demand and underpin longer-term operating scale.

Installed-base & Multi-subsidiary Model

Operating via regional subsidiaries and an installed base creates recurring aftermarket revenue (parts, consumables, service) and local service advantages. This model supports customer retention, cross-sell, and geographic reach, producing durable recurring revenue streams beyond one-time equipment sales.

Negative Factors

Thin Profitability

Very low net and operating margins (TTM ~1.4% and ~3.1%) leave minimal buffer against cost inflation, higher interest, or revenue softness. Thin profitability constrains reinvestment, reduces ability to scale SG&A for growth initiatives, and increases sensitivity to cyclical swings in equipment demand.

Increased Leverage

Debt has risen versus prior years (D/E ~0.46), reducing balance-sheet flexibility when margins are thin. Higher leverage increases fixed financial obligations and limits capacity for opportunistic M&A or capex, raising risk if cash flow weakens or working capital needs spike.

Historical Cash-flow and Earnings Volatility

Past episodes of negative or highly variable free cash flow and volatile net income reflect lumpy project-based equipment sales and service cycles. Such variability complicates forecasting, makes sustaining current cash conversion uncertain, and can stress liquidity or capital allocation during downturns.

EVI Industries Business Overview & Revenue Model

Company Description

EVI Industries, Inc., through its subsidiaries, distributes, sells, rents, and leases commercial, industrial, and vended laundry and dry cleaning equipment, and steam and hot water boilers in the United States, Canada, the Caribbean, Latin America, and Asia. The company sells and/or leases its customers commercial laundry equipment specializing in washing, drying, finishing, material handling, water heating, power generation, and water reuse applications. It also supplies related replacement parts and accessories; and provides installation, maintenance, and repair services to government, institutional, industrial, commercial, and retail customers. The company was formerly known as EnviroStar, Inc. and changed its name to EVI Industries, Inc. in December 2018. EVI Industries, Inc. was founded in 1959 and is based in Miami, Florida.

How the Company Makes Money

EVI primarily makes money by distributing commercial laundry and related cleaning equipment and by providing recurring aftermarket and service support around that installed base. Key revenue streams typically include: 1) Equipment and systems sales: Revenue is generated from selling commercial and industrial laundry machinery and integrated systems to business and institutional customers. These transactions are often larger, project-based purchases and can include new builds, replacements, and upgrades. 2) Parts and supplies: EVI earns revenue by selling replacement parts, chemicals, consumables, and other supplies needed to operate and maintain laundry equipment. This tends to be more recurring in nature because customers regularly reorder consumables and require parts over the equipment’s life. 3) Service, installation, and maintenance: The company generates service revenue from installing equipment, performing preventive maintenance, and providing repair services (often via field service technicians). Service and maintenance can produce repeat business and customer retention because equipment requires ongoing support. 4) Value-added lifecycle support: EVI’s subsidiaries may provide additional services tied to equipment deployment and operation (e.g., system design, project management, training, and related support). Specific service line items beyond installation/maintenance are not consistently disclosed at a uniform level of detail across all subsidiaries; if not explicitly broken out in company reporting, they are included within broader service/other revenue categories. Important factors that contribute to earnings include: - A multi-subsidiary distribution model: EVI operates through a group of regional distributors/service providers, which can expand geographic coverage and customer reach. - Installed-base economics: As more equipment is sold and installed, it can drive follow-on demand for parts, supplies, and service. - Supplier relationships: EVI’s ability to source, distribute, and service third-party equipment depends on manufacturer/supplier relationships; specific named partnerships are null if not explicitly identified in the requested context. Significant partnerships: null

EVI Industries Financial Statement Overview

Summary

Revenue growth is solid (TTM $427.1M, +5.6%) and gross margin is steady (~30%), while cash generation is a relative strength (TTM OCF $24.2M; FCF $17.8M, +7.4%). Offsetting this, profitability is thin and has softened versus FY2025 (TTM net margin ~1.4%, operating margin ~3.1%) with historical earnings/cash-flow variability and somewhat higher debt versus prior years.

Income Statement

TTM (Trailing-Twelve-Months) revenue is $427.1M with solid mid-single-digit growth (5.6%), and gross margin is steady around 30%, indicating decent pricing/discipline for a distributor. However, profitability is modest: TTM net margin is about 1.4% and operating margin is ~3.1%, and both are down versus FY2025 (annual) as earnings have not scaled with revenue. Net income has also been volatile across years (notably higher in FY2023), suggesting sensitivity to demand/mix and cost pressures.

Balance Sheet

Leverage looks manageable with debt-to-equity around 0.46 in TTM (Trailing-Twelve-Months), supported by a sizable equity base (~$144.0M). That said, debt has stepped up versus prior years (particularly compared with FY2024), which reduces balance-sheet flexibility if margins stay thin. Returns on equity are moderate (TTM ~4.1%), consistent with the company’s low-margin profile and recent profitability compression.

Cash Flow

Cash generation is a relative strength: TTM (Trailing-Twelve-Months) operating cash flow is $24.2M and free cash flow is $17.8M, with free cash flow up ~7.4%. Free cash flow is well supported by earnings (about 0.75x of net income), indicating good cash conversion recently. The key risk is variability—historically cash flow has been choppy (including weak/negative free cash flow in FY2022 and FY2023), so sustaining current conversion is important.

Breakdown	TTM	Jun 2025	Jun 2024	Sep 2023	Jun 2022	Jun 2021
Income Statement
Total Revenue	427.06M	389.83M	353.56M	354.17M	267.32M	242.00M
Gross Profit	129.44M	118.35M	105.25M	103.68M	73.71M	59.84M
EBITDA	19.73M	20.76M	17.61M	22.63M	11.60M	15.17M
Net Income	7.07M	7.50M	5.65M	9.72M	4.09M	8.38M
Balance Sheet
Total Assets	315.63M	313.58M	230.66M	257.54M	233.51M	179.62M
Cash, Cash Equivalents and Short-Term Investments	4.25M	8.85M	4.56M	5.92M	3.97M	6.06M
Total Debt	71.22M	64.78M	21.86M	44.45M	36.09M	19.57M
Total Liabilities	171.66M	170.10M	94.05M	126.58M	115.83M	72.88M
Stockholders Equity	143.97M	143.48M	136.61M	130.96M	117.68M	106.74M
Cash Flow
Free Cash Flow	17.79M	16.40M	27.79M	-2.77M	-5.88M	10.87M
Operating Cash Flow	24.15M	21.27M	32.65M	940.00K	-1.90M	13.69M
Investing Cash Flow	-47.47M	-51.79M	-6.82M	-5.99M	-15.93M	-7.64M
Financing Cash Flow	23.67M	34.81M	-27.20M	6.99M	15.75M	-9.78M

EVI Industries Technical Analysis

• Technical Analysis Sentiment: Neutral
• Last Price: 19.91
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Negative
• MACD: Negative
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For EVI, the sentiment is Neutral. The current price of 19.91 is above the 20-day moving average (MA) of 19.64, below the 50-day MA of 22.69, and below the 200-day MA of 24.06, indicating a neutral trend. The MACD of -0.79 indicates Negative momentum. The RSI at 49.65 is Neutral, neither overbought nor oversold. The STOCH value of 43.92 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Neutral sentiment for EVI.

EVI Industries Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
GIC	76 Outperform	$1.18B	15.56	23.59%	3.48%	0.16%	2.99%
DXPE	75 Outperform	$2.04B	19.31	18.67%	―	12.76%	36.11%
AIT	72 Outperform	$9.58B	25.36	21.74%	0.70%	4.03%	5.93%
Sector *	63 Neutral	$10.79B	15.43	7.44%	2.01%	2.89%	-14.66%
EVI	57 Neutral	$256.09M	33.19	3.77%	―	12.63%	-21.23%
DSGR	56 Neutral	$1.20B	152.18	-1.68%	―	14.46%	-588.82%
TITN	51 Neutral	$381.87M	77.81	-10.12%	―	-8.92%	-304.76%