Envela Corp (ELA)
🔔 Watch stock
Envela buys and sells pre-owned jewelry, gold and electronic scrap — and has doubled its quarterly revenue from $48 million to $98 million within six quarters, with net cash on the balance sheet and not a single new share issued. We read two annual reports (10-K), four quarterly reports (10-Q) and one old ad-hoc filing (8-K) and found an engine that does not sit in the engine room: the price of gold. Add two customers that account for a good half of revenue, and a boss who owns almost three quarters of the company. Not investment advice — just the question of who deserves the applause: management, or the gold price.
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Basics
Performance
Valuation
Profitability
Balance Sheet & Safety
Growth
Quality & Screener
AI Rating
NeutralEnvela verdient sein Geld mit Recommerce — An- und Verkauf von Schmuck, Gold und Silber plus Elektroschrott-Recycling/ITAD; in den sechs geprüften Filings gibt es keine KI-Umsatzquelle, keinen belegten operativen KI-Einsatz und kein konkretes KI-Geschäftsrisiko. KI erscheint nur zweimal beiläufig im 10-K: als generischer Risikofaktor im Evaluierungsstadium („continues to evaluate opportunities for AI and machine learning") und als Markt-Randnotiz, wonach „AI-driven data centers" die industrielle Silber-Nachfrage treiben; alle vier 10-Qs sind komplett ohne KI-Erwähnung.
View the full file — quotes, sources, reviewed filings
Filings Reviewed: 10-Q 2026-05-06 · 10-Q 2025-11-05 · 10-Q 2025-08-06 · 10-Q 2025-05-07 · 10-K 2026-03-18 · 10-K 2025-03-26
Rated on July 8, 2026 · How the Rating Is Built
Highlighted are things our editorial team noticed: green = stands out as strong, red = deserves a closer look. No single metric is a verdict on its own — always read it in context.
Quarterly Figures
| Quarter | EPS (Earnings Per Share) | EPS YoY (%) | Sales ($M) | Sales YoY (%) | Net Margin (%) | OCF ($M) | FCF ($M) |
|---|---|---|---|---|---|---|---|
| 2024: Q4 | 0.06 | 22.10 | 48 | 31.60 | 3.30 | 4 | 3 |
| 2025: Q1 | 0.10 | 30.70 | 48 | 21.10 | 5.20 | 1 | 1 |
| 2025: Q2 | 0.11 | 76.00 | 55 | 21.10 | 5.00 | 3 | 2 |
| 2025: Q3 | 0.13 | 99.20 | 57 | 22.40 | 5.80 | 2 | 2 |
| 2025: Q4 | 0.23 | 274.60 | 81 | 66.60 | 7.40 | -4 | -4 |
| 2026: Q1 | 0.34 | 254.60 | 98 | 103.90 | 9.00 | 21 | 21 |
- EPS (Earnings Per Share):
- Quarterly profit divided by the total share count — how much of the profit works out to a single share.
- YoY (Year over Year):
- Change versus the same quarter a year ago — this is how you compare without seasonal distortion (e.g. the holiday shopping season).
- Sales:
- All revenue for the quarter, before any costs are deducted — the top line of the income statement.
- Net Margin:
- What percentage of sales is left over as profit in the end. Negative means the company is posting a loss.
- OCF (Operating Cash Flow):
- The cash that actually flows into the till from the core business during the quarter — harder to dress up than book profit.
- FCF (Free Cash Flow):
- Operating cash flow minus capital expenditures — the money that's genuinely free to use, say for paying down debt, buybacks, or dividends.
Assessment: Opportunities & Risks
A fundamentally solid, 60-year-old trading business with two legs: buying and selling jewelry and precious metal (80% of revenue, but only an 11.9% gross margin — metal is passed through close to the spot price) plus electronics recycling/ITAD with a 64.2% gross margin. Revenue is therefore, above all, a price gauge of the precious-metals market.
Six quarters in a row of at least +20% revenue growth ($48.3 million to $98.4 million), 2025 net income more than doubled, Q1 2026 +254.5%; 17 scanner hits, relative strength of 96, stress RS of 94 (as of July 8, 2026). The 10-Q, however, explicitly attributes the surge to higher gold and silver prices.
Rock-solid: $38.6 million in cash against $9.8 million in debt (March 31, 2026), an untouched credit line, a Piotroski F-score of 8, an Altman Z above 11, a constant share count (25.96 million), even a small buyback in 2025. The growth is fully self-funded — the counter-model to the credit-levered growth story.
The engine is the gold price, not the model: before the metals surge, the consumer segment earned practically nothing (Q1 2025: $69,094 net). Two refiner customers accounted for 54.9% of revenue and 68.3% of receivables in 2025; per the 10-K, the boom is backing up refiner payments industry-wide — though Envela's own backlog was fully cleared as of March 31, 2026 per the quarterly report (10-Q, Note 3), at 0.0% of receivables.
CEO Loftus controls 73.8% — a "controlled company" with no obligation to maintain a majority-independent board; the free float was worth only about $41.5 million as of mid-2025, and trading is thin. On the plus side: owner alignment without dilution. A warning from history: the 2012 DGSE accounting scandal (under previous leadership).
About $0.7 billion in market value on $75.9 million of equity: roughly 33 times trailing twelve-month earnings, 2.4 times revenue, almost 9 times book value (as of July 8, 2026) — a growth price tag on a cyclical's profit that, per the 10-Q, rests on prices that "may not persist".
Envela is the rare combination of genuine momentum and a rock-solid balance sheet: revenue doubled in six quarters, net cash, no dilution, a margin jewel in the recycling segment. But the engine of the doubling is the gold and silver price, not the business model — 80 percent of revenue carries only an 11.9 percent gross margin, two customers account for more than half of revenue, and the CEO himself holds almost three quarters of the shares. Whoever buys here pays a growth price tag for a cyclical. Not investment advice.
- Traded as DGSE Companies, Inc. until 2019 (before that Dallas Gold & Silver Exchange); in April 2012, after inventory-booking manipulation by the former chief financial officer, four annual reports (2007–2010) and 14 quarterly reports were declared unreliable (8-K dated April 16, 2012). Today's majority owner took over later.
- The revenue estimate on file in the fundamental data for the current year (about −11% versus 2025, as of July 2026) may be stale for a small cap this thinly covered by analysts — but it illustrates the cyclical question, not the operating picture.
- Q1 2026 cash flow ($21.2 million operating) includes about $8.6 million from clearing backed-up refiner receivables — to be read as a one-off effect, not a new run rate.
About the Company
Envela Corporation bietet zusammen mit seinen Tochtergesellschaften Recommerce- und Recyclingdienste in den USA an. Das Unternehmen ist in zwei Segmenten tätig: Consumer und Commercial.
| Employees | 276 |
|---|---|
| Headquarters | Irving, TX |
| Website | envela.com |
| IPO Date | 19. Mar 1992 |
| Next Earnings | 5. Aug 2026 |
Management
| Name | Title | Birth Year |
|---|---|---|
| John G. DeLuca | CFO, Secretary & Treasurer | 1977 |
| John Richardson Loftus | Chairman, CEO & President | 1970 |
| Joel S. Friedman | Chief Information Officer | 1969 |
Executives per the latest required filings; titles kept in their original language. Source: fundamental data.
Chart
Interactive price chart (TradingView).
Data as of: July 20, 2026 · Source: fundamental data & SEC filings (annual and quarterly reports, 10-K/10-Q)
Note: pure fact-based analysis, not investment advice and not a solicitation to buy or sell. All figures without guarantee.