The Envela Corporation (ELA) shares are trading at higher $5.90.
To add more color to this target, the company’s high over the last year is $5.00 and the low is $0.71. Over the last 52 weeks, ELA is up 18.00% while the S&P 500 is up 1.47%. 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 0.23 and outstanding shares of 26.92M.
ELA has seen increased volume after this news and investors are putting their support behind the value proposition. Traders will also note the company’s earnings per share came in at 0.13. Envela Corporation ELA also noted assets of $26.98 million at the end of the last quarter. Investors should also keep an eye on sector updates as ELA has historically followed its peers on positive news.
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 156.65M 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.