A Business at a Glance
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ITEM 1. BUSINESS Envela is a leading provider of recycling and recommerce services at the forefront of the circular economy. Motivated by building long-lasting relationships rooted in trust and transparency, Envela’s brands address a broad range of sustainability and value-driven initiatives that impact consumers and businesses alike. Our core business lines focus extending the lifespan of products through buying and selling goods in the secondary market. The company is comprised primarily of two key operating and reportable segments: consumer and commercial. The consumer segment focuses on selling authenticated high-end luxury goods, including pre-owned and repurposed fine jewelry, diamonds, gemstones, luxury watches, and secondary market bullion. At the same time, the commercial segment provides solutions for de-manufacturing end-of-life electronic assets, reclaiming base and precious metals, and other saleable materials, while also expanding our presence in the ITAD industry.
| Metric | TTM | FY2024 | FY2023 | FY2022 | FY2021 | FY2020 |
|---|---|---|---|---|---|---|
| Revenue | 209M | 180M | 175M | 183M | 141M | 114M |
| Net Income | 10M | 6.8M | 7.1M | 16M | 10M | 6.4M |
| EPS | $0.39 | $0.26 | $0.27 | $0.58 | $0.37 | $0.24 |
| Free Cash Flow | 8.3M | 6.7M | 3.8M | 9.7M | -334K | 1.0M |
| ROIC | 18.6% | 12.5% | 13.6% | 43.2% | 35.3% | 58.4% |
| Gross Margin | 23.3% | 24.6% | 23.8% | 24.5% | 22.1% | 20.2% |
| Debt/Equity | 0.25 | 0.42 | 0.43 | 0.54 | 0.70 | 0.70 |
| Dividends/Share | $0.00 | - | - | - | - | - |
| Operating Income | 12M | 8.2M | 8.8M | 14M | 9.5M | 6.8M |
| Operating Margin | 6.0% | 4.5% | 5.0% | 7.6% | 6.7% | 6.0% |
| ROE | 16.7% | 13.4% | 14.8% | 36.2% | 36.4% | 36.3% |
| Shares Outstanding | 26M | 26M | 26M | 27M | 27M | 27M |
Envela Corp passes 6 of 9 quality checks, suggesting mixed fundamentals.
Envela Corp trades at 45.0x trailing earnings, compared to its 15-year median P/E of 14.0x, suggesting it is currently Expensive relative to its historical range. On a free-cash-flow basis, the stock trades at 54.7x vs a median of 27.6x. The company's 5-year average ROIC is 32.6% with a gross margin of 23.1%. At current prices, the estimated annualized return to fair value is +61.9%.
Envela Corp (ELA) has a current P/E ratio of 45.0, compared to its historical median P/E of 14.0. The stock is currently considered Expensive based on its historical valuation range.
Envela Corp (ELA) has a 5-year average return on invested capital (ROIC) of 32.6%. This indicates strong capital allocation and a potential competitive advantage.
Envela Corp (ELA) has a market capitalization of $456M. It is classified as a small-cap stock.
Envela Corp (ELA) does not currently pay a regular dividend. However, the company returns capital to shareholders through share buybacks, with a buyback yield of 0.06%.
Based on historical P/E analysis, Envela Corp (ELA) appears expensive. The current P/E of 45.0 is 221% above its historical median of 14.0. The estimated fair value CAGR (P/E method) is 22.2%.
Envela Corp (ELA) operates in the Retail-Jewelry Stores industry, within the Consumer Cyclical sector.
Envela Corp (ELA) reported annual revenue of $180 million in its most recent fiscal year, based on SEC EDGAR filings.
Envela Corp (ELA) has a net profit margin of 3.7%. This is a modest margin.
Envela Corp (ELA) generated $7 million in free cash flow in its most recent fiscal year. Positive free cash flow supports dividends, buybacks, and debt reduction.
Envela Corp (ELA) has a debt-to-equity ratio of 0.42. This indicates a conservatively financed balance sheet.
Envela Corp (ELA) reported earnings per share (EPS) of $0.26 in its most recent fiscal year.
Envela Corp (ELA) has a return on equity (ROE) of 13.4%. This indicates moderate shareholder returns.
Envela Corp (ELA) has a 5-year average gross margin of 23.1%. This lower margin is typical of capital-intensive or commodity businesses.
The Ledger Terminal provides 15 years of financial data for Envela Corp (ELA), sourced directly from SEC EDGAR filings. This includes income statements, balance sheets, cash flow statements, and key financial ratios.
Envela Corp (ELA) has a book value per share of $2.03, based on its most recent annual SEC filing.