ELA

Envela

Fundamental data last updated:April 13, 2026

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company profile

SECTOR

Consumer Cyclical

industry

Luxury Goods

Exchange

NYSE

County of HQ

United States

Next Earnings Date

05/06/26

Business Summary

Envela operates in the high-margin recommerce and luxury resale ecosystem, monetizing spread capture between sourced inventory and resale pricing. The company generates cash by acquiring luxury goods, precious metals, and other high-value items, then leveraging distribution channels and pricing discipline to resell at attractive margins. Its moat comes from sourcing networks, authentication expertise, and operational efficiency that allow it to maintain a 21.80% operating margin in a cyclical industry. Strong returns on capital suggest it turns inventory efficiently while protecting spreads, which is the core economic engine of the business.

 


VALUATION

P/E

31

Market Cap ($M USD)

$435

Forward P/E

25.9

PEG

-

PRICE TO SALES

1.9

PRICE TO BOOK

6.7

EV / EBITDA

20.8

5-Year Average P/E

Free Cash Flow Yield

DCF Value

Graham Number

Price to FCF

EV to FCF

Earnings Yield

FCF Yield

DIVIDEND

Yield

-

Annual Payout

-

Payout Ratio

-

Consecutive Years of Dividend Growth

0

5-Year Dividend Growth Rate

-

Financial Health & Profitability

Earnings Per Share

$0.56

Next Year EPS Growth Estimate

$0.67

Next Year Revenue Growth Estimate

22.70%

Return on Equity (ROE)

21.80%

FREE CASH FLOW

Operating Margin

7.50%

Debt-to-Equity

0.3

Piotroski F-Score

6

Altman Z-Score

13.2

Return on Invested Capital (ROIC)

18.90%

Current Ratio

3.5

Quick Ratio

Net Debt to EBITDA

Interest Coverage

Gross Profit margin

FCF PER SHARE

REVENUE PER SHARE

Gainseekers Quantitative Analysis

Summary

At 31x earnings and 25.9x forward earnings, the market is not pricing ELA as distressed, but it also is not assigning it premium growth status. The multiple compression from 31 to 25.9 suggests forward earnings expansion, yet the absence of a PEG ratio clouds visibility into growth-adjusted value. The real story is the balance sheet: an Altman Z-Score of 13.2 signals extremely low bankruptcy risk, while a 3.5 current ratio reinforces strong liquidity. This is a financially stable operator trading at a mid-tier multiple with above-average profitability metrics, implying the market sees it as steady but not transformative—arguably conservative given the strength of its capital structure and returns profile.

AI Exposure / Tech Reliance

As a Luxury Goods company within Consumer Cyclical, ELA operates in a segment increasingly influenced by digital resale platforms, authentication tech, and data-driven inventory optimization. AI-enabled pricing models and demand forecasting can structurally enhance margins in recommerce-style businesses. Companies in this niche that integrate technology into sourcing and resale cycles tend to widen spreads and improve capital turnover resilience.

The Bull Case

A GARP investor will focus on the 18.90% ROIC and 22.70% ROE—these are not average numbers; they indicate disciplined capital allocation and strong profit extraction from equity. An operating margin of 21.80% in Consumer Cyclical is impressive and signals real pricing power or operational efficiency. The Piotroski F-Score of 6 suggests fundamentally stable conditions without distress signals, while the Altman Z-Score of 13.2 makes solvency concerns almost irrelevant. With a Price/Sales ratio of 1.9 and forward P/E of 25.9, you’re paying a reasonable multiple for a company generating high-teens returns on capital and maintaining solid liquidity. Institutional ownership at 16.50% leaves room for incremental sponsorship if execution continues, potentially creating a rerating catalyst.

The Bear Case

The red flag is leverage: Debt/Equity at 7.50% is low in absolute terms, but given the equity base implied by a Price/Book of 6.7, valuation is already embedding optimism. The lack of a PEG ratio and missing short interest data reduce visibility into how the market is underwriting growth risk. Sales Growth Next Year listed at $0.67 and EPS Next Year at $0.56 create ambiguity around growth quality, especially with no dividend support and a minimal 0.3 yield. A 31x trailing P/E in a cyclical luxury segment leaves little margin for error if discretionary demand weakens.

Market Sentiment & Smart Money

Short Interest %

2.30%

Analyst Consensus

1.67

Average Analyst Price Target

$16.50

Institutional Ownership %

18.40%

1-Year Beta

1.05

Insider Buying % (6 Mo)

74.20%%

Distance to 52-Week High

94.70%

Distance to 52-Week Low

325.00%

EARNINGS SURPRISE %

50-DAY SMA

200-DAY SMA

⚠️ Financial Disclaimer:
This content is for informational purposes only and is not financial advice. Information may be delayed or inaccurate. We may earn a commission from partner links.