AMEX:ELA

Stock Analysis Report

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Executive Summary

Envela Corporation, together with its subsidiaries, primarily buys and sells jewelry and bullion products to individual consumers, dealers, and institutions in the United States. More Details


Snowflake Analysis

Outstanding track record with adequate balance sheet.

Share Price & News

How has Envela's share price performed over time and what events caused price changes?


Latest Share Price and Events

Stable Share Price: ELA's share price has been volatile over the past 3 months.


Market Performance


7 Day Return

-7.0%

ELA

-2.5%

US Specialty Retail

-1.1%

US Market


1 Year Return

238.9%

ELA

19.0%

US Specialty Retail

15.6%

US Market

Return vs Industry: ELA exceeded the US Specialty Retail industry which returned 19% over the past year.

Return vs Market: ELA exceeded the US Market which returned 15.6% over the past year.


Shareholder returns

ELAIndustryMarket
7 Day-7.0%-2.5%-1.1%
30 Day1.2%4.8%4.2%
90 Day-5.9%11.0%6.3%
1 Year238.9%238.9%20.2%19.0%18.2%15.6%
3 Year374.4%374.4%83.6%75.5%39.6%30.4%
5 Year1,120.0%1,120.0%61.9%49.4%79.5%59.2%

Price Volatility Vs. Market

How volatile is Envela's share price compared to the market and industry in the last 5 years?


Simply Wall St News

Valuation

Is Envela undervalued compared to its fair value and its price relative to the market?

9.9%

Undervalued compared to fair value


Share Price vs. Fair Value

Below Fair Value: ELA ($4.27) is trading below our estimate of fair value ($4.74)

Significantly Below Fair Value: ELA is trading below fair value, but not by a significant amount.


Price To Earnings Ratio

PE vs Industry: ELA is poor value based on its PE Ratio (32.1x) compared to the US Specialty Retail industry average (20.6x).

PE vs Market: ELA is poor value based on its PE Ratio (32.1x) compared to the US market (18.9x).


Price to Earnings Growth Ratio

PEG Ratio: Insufficient data to calculate ELA's PEG Ratio to determine if it is good value.


Price to Book Ratio

PB vs Industry: ELA is overvalued based on its PB Ratio (8.9x) compared to the US Specialty Retail industry average (1.9x).


Next Steps

Future Growth

How is Envela forecast to perform in the next 1 to 3 years based on estimates from 1 analyst?

14.2%

Forecasted annual revenue growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: Insufficient data to determine if ELA's forecast earnings growth is above the savings rate (2.2%).

Earnings vs Market: Insufficient data to determine if ELA's earnings are forecast to grow faster than the US market

High Growth Earnings: Insufficient data to determine if earnings are expected to grow significantly over the next 3 years.

Revenue vs Market: ELA's revenue (14.2% per year) is forecast to grow faster than the US market (10% per year).

High Growth Revenue: ELA's revenue (14.2% per year) is forecast to grow slower than 20% per year.


Earnings per Share Growth Forecasts


Future Return on Equity

Future ROE: Insufficient data to determine if ELA's Return on Equity is forecast to be high in 3 years time


Next Steps

Past Performance

How has Envela performed over the past 5 years?

61.1%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: ELA has high quality earnings.

Growing Profit Margin: ELA's current net profit margins (3.9%) are higher than last year (1.6%).


Past Earnings Growth Analysis

Earnings Trend: ELA has become profitable over the past 5 years, growing earnings by 61.1% per year.

Accelerating Growth: ELA's earnings growth over the past year (258.4%) exceeds its 5-year average (61.1% per year).

Earnings vs Industry: ELA earnings growth over the past year (258.4%) exceeded the Specialty Retail industry 3%.


Return on Equity

High ROE: ELA's Return on Equity (27.7%) is considered high.


Next Steps

Financial Health

How is Envela's financial position?


Financial Position Analysis

Short Term Liabilities: ELA's short term assets ($19.9M) exceed its short term liabilities ($5.2M).

Long Term Liabilities: ELA's short term assets ($19.9M) exceed its long term liabilities ($11.0M).


Debt to Equity History and Analysis

Debt Level: ELA's debt to equity ratio (86.3%) is considered high.

Reducing Debt: ELA's debt to equity ratio has increased from 75.8% to 86.3% over the past 5 years.

Debt Coverage: ELA's debt is well covered by operating cash flow (32.8%).

Interest Coverage: ELA's interest payments on its debt are well covered by EBIT (6.9x coverage).


Balance Sheet


Next Steps

Dividend

What is Envela current dividend yield, its reliability and sustainability?


Dividend Yield vs Market

Notable Dividend: Unable to evaluate ELA's dividend yield against the bottom 25% of dividend payers, as the company has not reported any recent payouts.

High Dividend: Unable to evaluate ELA's dividend yield against the top 25% of dividend payers, as the company has not reported any recent payouts.


Stability and Growth of Payments

Stable Dividend: Insufficient data to determine if ELA's dividends per share have been stable in the past.

Growing Dividend: Insufficient data to determine if ELA's dividend payments have been increasing.


Current Payout to Shareholders

Dividend Coverage: Insufficient data to calculate payout ratio to determine if its dividend payments are covered by earnings.


Future Payout to Shareholders

Future Dividend Coverage: No need to calculate the sustainability of ELA's dividend in 3 years as they are not forecast to pay a notable one for the US market.


Next Steps

Management

How experienced are the management team and are they aligned to shareholders interests?

3.8yrs

Average board tenure


CEO

John Loftus (50 yo)

3.83yrs

Tenure

Mr. John Richardson Loftus has been the Chairman, Chief Executive Officer and President of Envela Corporation (formerly known as DGSE Companies, Inc.) since December 12, 2016. Mr. Loftus has experience wit ...


Board Members

NamePositionTenureCompensationOwnership
John Loftus
Chairman3.83yrsno datano data
Jim Ruth
Independent Director3.75yrsUS$10.00k0.045%
$ 51.2k
Alexandra Griffin
Independent Director3.75yrsUS$10.00k0.0085%
$ 9.8k
Joel Friedman
Lead Independent Director3.75yrsUS$10.00k0.031%
$ 35.3k
Allison DeStefano
Director2.58yrsno data0.48%
$ 551.1k

3.8yrs

Average Tenure

50yo

Average Age

Experienced Board: ELA's board of directors are considered experienced (3.8 years average tenure).


Ownership

Who are the major shareholders and have insiders been buying or selling?


Insider Trading Volume

Insider Buying: ELA insiders have bought more shares than they have sold in the past 3 months.


Recent Insider Transactions

Ownership Breakdown

Dilution of Shares: Shareholders have not been meaningfully diluted in the past year.


Top Shareholders

Company Information

Envela Corporation's company bio, employee growth, exchange listings and data sources


Key Information

  • Name: Envela Corporation
  • Ticker: ELA
  • Exchange: AMEX
  • Founded: 1965
  • Industry: Specialty Stores
  • Sector: Retail
  • Market Cap: US$114.967m
  • Shares outstanding: 26.92m
  • Website: https://www.envela.com

Number of Employees


Location

  • Envela Corporation
  • 13022 Preston Road
  • Dallas
  • Texas
  • 75240-5202
  • United States

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
ELAAMEX (NYSE MKT LLC)YesCommon StockUSUSDFeb 1986

Biography

Envela Corporation, together with its subsidiaries, primarily buys and sells jewelry and bullion products to individual consumers, dealers, and institutions in the United States. The company operates in tw ...


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2020/10/27 00:44
End of Day Share Price2020/10/26 00:00
Earnings2020/06/30
Annual Earnings2019/12/31


Unless specified all financial data is based on a yearly period but updated quarterly. This is known as Trailing Twelve Month (TTM) or Last Twelve Month (LTM) Data. Learn more here.