The Rejuvenation of Envela Corporation (AMEX:ELA)

The Rejuvenation of Envela Corporation (AMEX:ELA)


The Envela Corporation (ELA) shares are trading at higher $4.88.

To add more color to this target, the company’s high over the last year is $4.48 and the low is $0.71. Over the last 52 weeks, ELA is up 8.93% while the S&P 500 is up 1.07%. The catalyst for this interesting swing was the company’s recent earnings report.

A Notable Earnings Report

In the last quarter, ELA reported a profit of $5.3 million. Envela Corporation also saw revenues increase to $25.83 million. In addition, ELA has free cash flow of $1.0 million as of 03-2020 The company’s EBITDA came in at $1.48 million which compares well with its peers.

ELA booked profit margins of 3.90%, its Return on Equity (ROE) is 33.20%, and its Return on Assets is 13.60%. All told, it is clear that, ELA needs to be on your watchlist.

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Of course, we must look beyond the financials and question how well those numbers represent the sustainable earnings power of the business. Investors need to know how sustainable this current run. ELA has a short ratio of 0.33 and outstanding shares of 26.92M.

Company Outlook

All told, Envela Corporation ELA has strung together solid data and demonstrated underlying fundamentals. At its current valuation, ELA represents an interesting risk/reward case. Traders should stay tuned to see if this recent report will push the stock to test recent resistance levels.

Envela Corporation ELA is now commanding a market cap of 130.78M and a float of 7.65M. ELA is increasing its credibility in this sector and that could lead to more upside down the line. Sign-up for continuing coverage on shares of ELA stock, as well as other hot stock picks, get our free newsletter today and get our next breakout pick!

Disclosure: we hold no position in ELA, either long or short, and we have not been compensated for this article.