Envela Corporation Common Stock (ELA)

FairStock Score: 65/100 — STEADY

Key Financials

AI Analysis

AI-generated, general educational analysis — not personal investment advice.

I look for businesses that earn high returns on capital, generate cash, and carry little debt. Envela, at the 2026-10-13 close of $11.83, is a $307.1M market-cap reseller of authenticated luxury goods and an IT asset disposition recycler. The filed numbers show momentum: in fiscal year 2025, the year ended 2025-12-31, revenue was $241.0M and net income $14.6M, or diluted EPS $0.56, versus fiscal year 2024, the year ended 2024-12-31, revenue $180.4M and net income $6.8M, or $0.26. In fiscal Q2 2026, the quarter ended 2026-06-30, revenue was $56.8M and net income $4.2M, or $0.16 per diluted share. FairStock's calculations show ROE 32.45%, ROCE 18.38%, D/E 0.24, TTM FCF $24.0M, FCF yield 7.8%, Altman Z 8.51, and Piotroski 7/9. That is a sturdy financial profile. FairStock also labels it a stalwart, with 18.0% annual profit growth and 16.2% revenue growth over five years. The moat is modest: authentication expertise, supplier relationships, and ITAD compliance may help, but resale and recycling are competitive. The catch is price. At the close, FairStock's Graham Number is $7.72, so the margin of safety is -53.24%; P/B is 3.84. The P/E of 13.76 and PEG of 0.05 suggest the market may be underrating growth if it persists, but the business is small and exposed to discretionary spending. I see quality and momentum, but not an asset-value bargain. Continued cash generation and consistent margins are what I would watch.

In plain English: Envela sells authenticated pre-owned luxury goods like watches and jewelry and also recycles business technology equipment. Its recent sales and profits have grown, debt is low, and it earns a strong return on shareholders' money. At the recent price, the shares look more expensive than a simple asset-value check would suggest, even though they do not look wildly expensive compared with recent profit.

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Data as of 2026-10-13 close · note generated 2026-10-15 · model deepseek-flash

Sources (SEC EDGAR): fiscal Q2 2026 10-Q (period ended 2026-06-30) · fiscal Q1 2026 10-Q (period ended 2026-03-31) · fiscal Q3 2025 10-Q (period ended 2025-09-30) · fiscal Q2 2025 10-Q (period ended 2025-06-30) · FY2025 10-K (period ended 2025-12-31) · FY2024 10-K (period ended 2024-12-31) · FY2023 10-K (period ended 2023-12-31)

Fundamentals from company filings and market-data providers; prices are end-of-day, not real-time. AI-generated analysis is general and educational — not personal investment advice. Scoring methodology · Score test · Disclaimer