Envela Corporation (ELA) | Investment Case

1. Company Snapshot

1.a. Company Description

Envela Corporation, together with its subsidiaries, primarily buys and sells jewelry and bullion products to individual consumers, dealers, Fortune 500 companies, municipalities, school districts, and other organizations in the United States.It offers jewelry and fine-watch products, including bridal jewelry, fashion jewelry, custom-made jewelry, diamonds, and other gemstones, as well as watches and jewelry components.The company also buys and sells various forms of gold, silver, platinum, and palladium products, including United States and other government coins, private mint medallions, art bars, and trade unit bars; and numismatic items, such as rare coins, currency, medals, tokens, and other collectibles, as well as provides jewelry and watches repair services.

In addition, it offers end-of-life electronics recycling services; disposal transportation and product tracking services; IT-asset disposition services, including compliance and data sanitization services; and services to companies in the areas of software upgrades, and hardware or networking capabilities, as well as moving to cloud services.As of December 31, 2021, Envela Corporation marketed its products and services through six retail locations under the Dallas Gold & Silver Exchange name; and one retail location under the Charleston Gold & Diamond Exchange name, as well as through cgdeinc.com, dgse.com, echoenvironmental.com, ITADUSA.com, availrecovery.com, and teladvance.com e-commerce sites.The company was formerly known as DGSE Companies, Inc.

and changed its name to Envela Corporation in December 2019.Envela Corporation was incorporated in 1965 and is headquartered in Irving, Texas.

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1.b. Last Insights on ELA

Envela Corporation's recent performance was driven by the growing demand for luxury items, fueled by sustainability trends and rising retail prices due to tariffs. The second-hand luxury goods market, valued at $8.1 billion in 2024, is expected to continue its upward trajectory. Envela's focus on luxury items and asset disposition has positioned the company for success in this expanding market. Additionally, the company's projected revenue growth of 5.4% and EPS increase of 23% in FY 2025, coupled with low debt, suggests a strong financial foundation.

1.c. Company Highlights

Last Price	13.2
Change Percentage	-0.15%
Open	13.38
Previous Close	13.22
Market Cap ( Millions)	343
Volume	68625
Year High	13.73
Year Low	5.1
M A 50	9.48
M A 200	7.13

FCF Yield	2.43%
Dividend Yield	0.00%
ROE	18.01%
Debt / Equity	37.60%
Net Debt / EBIDTA	-9.52%
Price To Book	5.61
Price Earnings Ratio	33.59
Price To FCF	41.15
Price To sales	1.64
EV / EBITDA	22.25

2. Transcript Summary

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3. NewsRoom

Envela: A Bit Pricier Now, But Earnings Beats Keep Me Optimistic

Nov -18

Source: seekingalpha.com

Envela to Present at the 17th Annual Southwest IDEAS Investor Conference

Nov -17

Source: accessnewswire.com

Envela Corporation (ELA) Hit a 52 Week High, Can the Run Continue?

Nov -11

Source: zacks.com

Envela Corporation (ELA) Tops Q3 Earnings and Revenue Estimates

Nov -05

Source: zacks.com

Envela Reports Third Quarter 2025 Financial Results

Nov -05

Source: accessnewswire.com

Envela (ELA) Moves 8.6% Higher: Will This Strength Last?

Oct -29

Source: zacks.com

Envela to Announce Third Quarter 2025 Financial Results on November 5

Oct -23

Source: accessnewswire.com

Envela to Present at the LD Micro Main Event XIX

Oct -17

Source: accessnewswire.com

4. Business Breakdown

4.a. Revenues by Country

4.b. Revenues by Segment

5. Expected revenues mid-term growth (10.72%)

6. Segments

Consumer

Expected Growth: 10.2%

Growing demand for sustainable and affordable electronics, increasing adoption of refurbished devices, and rising consumer awareness of e-waste drive growth in the consumer segment.

Commercial

Expected Growth: 12.3%

Growing demand for refurbished electronics, increasing adoption of circular economy practices, and rising need for cost-effective IT and telecom solutions drive growth in Envela's commercial segment.

7. Detailed Products

DGSE

DGSE is a leading provider of retail and wholesale services for the buying, selling, and trading of jewelry, diamonds, and watches.

Envela PWS

Envela PWS provides IT asset disposition, reverse logistics, and electronic waste recycling services.

Teladvance

Teladvance provides refurbished and used telecommunications equipment, as well as repair and maintenance services.

ITAD Services

Envela's ITAD services provide secure and environmentally responsible disposal of IT assets, including data destruction and recycling.

8. Envela Corporation's Porter Forces

Forces Ranking

Threat Of Substitutes

The threat of substitutes for Envela Corporation is moderate due to the presence of alternative products and services in the market.

Bargaining Power Of Customers

The bargaining power of customers for Envela Corporation is low due to the lack of concentration of buyers in the market.

Bargaining Power Of Suppliers

The bargaining power of suppliers for Envela Corporation is moderate due to the presence of multiple suppliers in the market.

Threat Of New Entrants

The threat of new entrants for Envela Corporation is high due to the low barriers to entry in the market.

Intensity Of Rivalry

The intensity of rivalry for Envela Corporation is high due to the presence of multiple competitors in the market.

9. SWOT Analysis

10. Capital Structure

10.a. Balance Sheet

10.b. Weighted Average Cost of capital

	Value
Debt Weight	25.74%
Debt Cost	3.95%
Equity Weight	74.26%
Equity Cost	4.61%
WACC	4.44%
Leverage	34.65%

11. Quality Control: Envela Corporation passed 4 out of 9 key points

Strong Liquidity

Low Debt

Strong Interest Coverage

Healthy Cash Flow

Operating Efficiency

Strong Return On Equity

Consistent Revenue Growth

Consistent Operating Cash Flow Growth

Margin Improvement

12.a Historical Valuation

12.b Price/Earnings Ratio

12.c Margin Valuation

12.d Peers Valuation

Peers Group Analysis

Brilliant Earth

A-Score: 6.0/10

Value: 6.7

Growth: 5.4

Quality: 6.6

Yield: 10.0

Momentum: 6.0

Volatility: 1.3

1-Year Total Return ->

Movado

A-Score: 5.9/10

Value: 6.6

Growth: 1.8

Quality: 5.5

Yield: 10.0

Momentum: 5.5

Volatility: 6.0

1-Year Total Return ->

Envela

A-Score: 5.0/10

Value: 3.2

Growth: 7.4

Quality: 6.1

Yield: 0.0

Momentum: 9.5

Volatility: 4.0

1-Year Total Return ->

The RealReal

A-Score: 4.6/10

Value: 6.4

Growth: 5.9

Quality: 3.9

Yield: 0.0

Momentum: 10.0

Volatility: 1.3

1-Year Total Return ->

Fossil

A-Score: 4.4/10

Value: 9.8

Growth: 2.1

Quality: 4.5

Yield: 0.0

Momentum: 9.5

Volatility: 0.7

1-Year Total Return ->

Charles & Colvard

A-Score: 2.6/10

Value: 10.0

Growth: 1.0

Quality: 3.8

Yield: 0.0

Momentum: 1.0

Volatility: 0.0

1-Year Total Return ->

Peers Metrics

12.e Scoring ^Insights

12.f DCF ^BETA

Parameters

Short Term Growth

2.95%

Short term Time

10.0

Long-Term Growth

2.00%

WACC

4.44%

Envela Corporation - US29402E1029

1. Company Snapshot

1.a. Company Description

1.b. Last Insights on ELA

1.c. Company Highlights

Weak Momentum

Average Yield

Average Growth

Earnings Beats

Revenues Beats

Fairly Valued

Higher Growth

Expensive

Stable Momentum

Strong Momentum

2. Transcript Summary

3. NewsRoom

4. Business Breakdown

4.a. Revenues by Country

4.b. Revenues by Segment

5. Expected revenues mid-term growth (10.72%)

6. Segments

Consumer

Expected Growth: 10.2%

Commercial

Expected Growth: 12.3%

7. Detailed Products

DGSE

Envela PWS

Teladvance

ITAD Services

8. Envela Corporation's Porter Forces

Forces Ranking

Threat Of Substitutes

Bargaining Power Of Customers

Bargaining Power Of Suppliers

Threat Of New Entrants

Intensity Of Rivalry

9. SWOT Analysis

Strength

Weaknesses

Opportunities

Threats

10. Capital Structure

10.a. Balance Sheet

10.b. Weighted Average Cost of capital

11. Quality Control: Envela Corporation passed 4 out of 9 key points

12.a Historical Valuation

12.b Price/Earnings Ratio

12.c Margin Valuation

12.d Peers Valuation

Peers Group Analysis

Peers Metrics

12.e Scoring Insights

12.f DCF BETA

Parameters

Short Term Growth

Short term Time

Long-Term Growth

WACC

Target Price

13.2$

Current Price

13.2$

Potential

-0.00%

Expected Cash-Flows

12.e Scoring ^Insights

12.f DCF ^BETA