One-glance verdict
Overvalued
$5.65 our estimate vs market $12.82
Wall Street consensus: $25.00 (342.6% higher than our fair-value estimate)
127% above our estimate, beyond the bull case
Fundamentals snapshot
Envela Corporation
ELA · ASE · Consumer Cyclical · Luxury Goods
Current price
$12.82
52-week range
$7.14 - $29.68
Market cap
$332.85M
Balance sheet
Healthy
44.53x Strong cushion
Net cash $24.04M. Interest coverage shows how many times profit covers the interest bill.
What stands out
3 Rewards
1 Risk
3 rewards · 1 risks
- Reward Revenue grew 21.6% last year.
- Reward Returns 32.4% on equity, ahead of 75% of its peers.
- Reward Free cash flow was positive in 6/10 years.
- Risk Forward P/E (36.6x) is higher than trailing (14.9x) - earnings are expected to drop.
What this company does
Envela Corporation
Envela is in the business of reselling valuable used items, focusing on luxury goods like watches and jewelry, and old electronics from other companies. The company makes its money from the spread (the difference between what it pays for an item and what it sells it for). This matters because Envela provides a marketplace for people who want to sell their valuables for cash and for buyers who are looking for a deal on authenticated, second-hand goods.
How the company got here
Envela started its life as a mining company called Canyon State Mining Corporation way back in 1965. It later shifted into selling precious metals and jewelry, eventually becoming known as DGSE Companies, Inc. After facing some financial difficulties and leadership changes, the company underwent a major transformation. In 2019, it was renamed Envela Corporation and expanded into electronics recycling, marking a new strategic direction focused on the 'recommerce' or resale market.
What it actually does
Think of Envela as a company that gives valuable items a second life, a practice known as recommerce (reselling pre-owned goods). They operate in two main areas: buying and reselling pre-owned luxury items and recycling used electronics. For individuals, this means you can buy authenticated, pre-owned fine jewelry, luxury watches, and gold or silver from their stores or online. For businesses, Envela helps manage and get value from old IT equipment, like computers and servers, by securely destroying data, fixing them up for resale, or recycling the parts.
Consumer
This is the larger part of Envela's business, making up the majority of its revenue (the total money it brings in from sales). Through retail stores like Dallas Gold & Silver Exchange and online platforms, this segment buys and sells high-end pre-owned goods directly to people. Customers can purchase items like authenticated diamond rings, luxury watches, and gold and silver bullion (bars or coins). Essentially, this division provides a marketplace for individuals to buy, sell, and trade valuable personal items.
Commercial
This is a smaller but important part of the company that serves other businesses and organizations. It focuses on what to do with electronics when they are no longer needed, a service called IT asset disposition (ITAD). Companies pay Envela to handle their old technology, which can involve securely wiping all the data, refurbishing the devices to be sold again, or responsibly recycling the materials. This helps other companies manage their old equipment in a secure and environmentally friendly way.
What management is betting on now
Envela's main focus is on growing its role in the 'circular economy,' which is all about reusing and recycling items instead of throwing them away. They are expanding their retail footprint by acquiring and opening new stores, sometimes in former bank buildings that already have good security. For their commercial side, they are shifting more towards a fee-for-service model, which can reduce risk and improve margins (the profit made on each dollar of sales). The company sees a big opportunity in helping both individuals and large businesses get value from their used assets in a sustainable way.
Price history
How the share price has moved
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Earnings history
Last 8 quarters — what happened
Click any quarter to read the call summary and what the numbers say.
FY2024 Q3
$1.45M
FY2024 Q4
$3.24M
FY2025 Q1
$746.61K
FY2025 Q2
$2.09M
FY2025 Q3
$2.20M
FY2025 Q4
$-3.71M
FY2026 Q1
$20.59M
FY2026 Q2
$4.95M
Revenue
$56.77M
Net income
$4.17M
Diluted EPS
0.16
Operating cash flow
$5.92M
Free cash flow
$4.95M
Fetching…
Sources
Revenue
$98.38M
Net income
$8.84M
Diluted EPS
0.34
Operating cash flow
$21.16M
Free cash flow
$20.59M
Fetching…
Sources
Revenue
$80.50M
Net income
$5.99M
Diluted EPS
0.22
Operating cash flow
$-3.55M
Free cash flow
$-3.71M
Fetching…
Sources
Revenue
$57.39M
Net income
$3.36M
Diluted EPS
0.13
Operating cash flow
$2.40M
Free cash flow
$2.20M
Fetching…
Sources
Revenue
$54.88M
Net income
$2.75M
Diluted EPS
0.11
Operating cash flow
$2.59M
Free cash flow
$2.09M
Fetching…
Sources
Revenue
$48.26M
Net income
$2.49M
Diluted EPS
0.10
Operating cash flow
$1.13M
Free cash flow
$746.61K
Fetching…
Sources
Revenue
$48.32M
Net income
$1.60M
Diluted EPS
0.07
Operating cash flow
$3.74M
Free cash flow
$3.24M
Fetching…
Sources
Revenue
$46.90M
Net income
$1.69M
Diluted EPS
0.06
Operating cash flow
$3.45M
Free cash flow
$1.45M
Fetching…
Sources
Is it cheap or expensive?
Fair value $5.65 vs current price $12.82
Wall Street consensus is the average analyst price target: $25.00 (342.6% higher than our fair-value estimate).
Our most-likely fair value is $5.65 a share — about 55.9% below today's price of $12.82, so the stock currently looks expensive (overvalued).
Is it drowning in debt?
Healthy
Net cash $24.0M - more cash than debt. Interest coverage 44.5x.
Net debt
$-24.04M
Interest coverage
44.53x
Envela Corporation's profit covers its interest bill about 44.5 times over. which is stronger than every peer shown here and 3 peers sit below 1x, which is the danger zone where profit does not fully cover the interest bill.
Healthy
Worse cushion
Baseline
Better cushion
ELA
BASELINE
Envela Corporation
Total debt $19.40M Interest coverage 44.53x This is the baseline the peer rows are being compared against.
Total debt $463.31M Interest coverage -0.86x -100% vs ELA This peer has almost no interest-payment cushion compared with ELA.
Total debt $62.73M Interest coverage 22.31x -50% vs ELA Carries about 2.0x less debt cushion than ELA.
Total debt $50.61M Interest coverage -11.33x -100% vs ELA This peer has almost no interest-payment cushion compared with ELA.
Total debt $41.92M Interest coverage -2.36x -100% vs ELA This peer has almost no interest-payment cushion compared with ELA.
Total debt $583.91M Interest coverage 5.29x -88% vs ELA Carries about 8.4x less debt cushion than ELA.
What you should know
The case for and against ELA
3 Rewards
1 Risk
Rewards
-
Revenue grew 21.6% last year.
-
Returns 32.4% on equity, ahead of 75% of its peers.
-
Free cash flow was positive in 6/10 years.
Risks
-
Forward P/E (36.6x) is higher than trailing (14.9x) - earnings are expected to drop.
The numbers
All the key metrics, grouped by purpose
Tap any ? icon to learn what it means.
Valuation
How expensive the stock looks
P/E (TTM)
14.91x
Forward P/E
36.63x
P/B
4.16x
P/S
1.14x
EV/EBITDA
10.45x
PEG ratio
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Profitability
How much profit each dollar creates
Gross margin
21.7%
Operating margin
9.0%
Net margin
7.6%
ROE
32.4%
ROA
18.4%
Health
Liquidity and balance-sheet strength
Debt / equity
0.24x
Current ratio
4.24x
Quick ratio
2.55x
Total debt
$19.40M
Total cash
$43.44M
Growth
How the business has been compounding
Revenue TTM
$293.04M
Revenue 5Y CAGR
20.6%
EPS TTM
0.86
EPS 5Y CAGR
-1.2%
Cash flow
How much cash the business throws off
Operating CF TTM
$25.93M
Free CF TTM
$1.38M
FCF margin
0.5%
Dividend
Shareholder payout
Yield
—
Payout ratio
0.0%
Last ex-div date
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