Envela Corporation Fundamental Analysis
Envela Corporation (ELA) shows moderate financial fundamentals with a PE ratio of 30.86, profit margin of 7.19%, and ROE of 32.00%. The company generates $0.3B in annual revenue with strong year-over-year growth of 33.62%.
Key Strengths
Areas of Concern
The stock receives a Fundamental Health Score of 74.0/100 based on profitability, valuation, growth, and balance sheet metrics. The B grade reflects solid fundamentals with room for improvement in valuation or growth.
Fundamental Health Score
We analyze ELA's fundamental strength across five key dimensions:
Efficiency Score
ExcellentELA demonstrates superior asset utilization.
Valuation Score
ModerateELA shows balanced valuation metrics.
Growth Score
ModerateELA shows steady but slowing expansion.
Financial Health Score
ExcellentELA maintains a strong and stable balance sheet.
Profitability Score
ModerateELA maintains healthy but balanced margins.
Key Financial Metrics
Is ELA Expensive or Cheap?
P/E Ratio
ELA trades at 30.86 times earnings. This suggests a premium valuation.
PEG Ratio
When adjusting for growth, ELA's PEG of 0.16 indicates potential undervaluation.
Price to Book
The market values Envela Corporation at 8.51 times its book value. This suggests the stock is fully valued or overvalued on an asset basis.
EV/EBITDA
Enterprise value stands at 23.83 times EBITDA. This signals the market has high growth expectations.
How Well Does ELA Make Money?
Net Profit Margin
For every $100 in sales, Envela Corporation keeps $7.19 as profit after all expenses.
Operating Margin
Core operations generate 9.00 in profit for every $100 in revenue, before interest and taxes.
ROE
Management delivers $32.00 in profit for every $100 of shareholder equity.
ROA
Envela Corporation generates $19.40 in profit for every $100 in assets, demonstrating efficient asset deployment.
Following the Money - Real Cash Generation
Operating Cash Flow
Envela Corporation generates limited operating cash flow of $22.61M, signaling weaker underlying cash strength.
Free Cash Flow
Envela Corporation produces free cash flow of $21.17M, offering steady but limited capital for shareholder returns and expansion.
FCF Per Share
Each share generates $0.82 in free cash annually.
FCF Yield
ELA converts 3.28% of its market value into free cash.
Financial Ratios Analysis
Valuation Ratios
P/E Ratio
Price to earnings ratio
30.86
vs 25 benchmark
PEG Ratio
Price/earnings to growth ratio
0.16
vs 25 benchmark
P/B Ratio
Price to book value ratio
8.51
vs 25 benchmark
P/S Ratio
Price to sales ratio
2.22
vs 25 benchmark
Financial Health
Debt/Equity
Total debt to shareholders' equity
0.26
vs 25 benchmark
Current Ratio
Current assets to current liabilities
3.52
vs 25 benchmark
Efficiency Ratios
ROE
Return on equity percentage
0.32
vs 25 benchmark
ROA
Return on assets percentage
0.19
vs 25 benchmark
ROCE
Return on capital employed
0.30
vs 25 benchmark
How ELA Stacks Against Its Sector Peers
| Metric | ELA Value | Sector Average | Performance |
|---|---|---|---|
| P/E Ratio | 30.86 | 23.82 | Worse (Expensive) |
| ROE | 32.00% | 1185.00% | Weak |
| Net Margin | 7.19% | 2545.00% | Weak |
| Debt/Equity | 0.26 | 0.71 | Strong (Low Leverage) |
| Current Ratio | 3.52 | 2.82 | Strong Liquidity |
| ROA | 19.40% | -8457.00% (disorted) | Strong |
ELA outperforms its industry in 3 out of 6 key metrics, particularly excelling in ROA, but lagging in P/E Ratio.
Historical Growth Performance
5-Year Growth Trajectory
This section reviews Envela Corporation's 5-year compound annual growth rate (CAGR) and compares its performance against the typical investment style of its industry.
Revenue CAGR
119.26%
Industry Style: Cyclical, Growth, Discretionary
High GrowthEPS CAGR
136.97%
Industry Style: Cyclical, Growth, Discretionary
High GrowthFCF CAGR
-61.22%
Industry Style: Cyclical, Growth, Discretionary
Declining