ELAEnvela Corporation
Is the business good?
A genuinely good business: earnings fully cash-backed (1.2×), margins widening, and elite returns on assets.
Operating profit is fully backed by cash. Conversion is worsening vs a year ago.
Positive operating leverage, operating profit is growing faster than sales, so margins widen as the business scales.
High-quality, exceptional returns on the assets themselves, not leverage. ROE 23% = margin × turnover × leverage.
Unless marked, from derived.
Where this answer is blind. The F-score rewards improvement, so an already-elite company can score mid-pack.
How good a business is ELA?
Envela Corporation earns 41% on the capital it employs against a 9.0% cost of capital, so the business is worth more the bigger it gets.
Return on invested capital · cost of capital 9.0% · 32 points above what the capital costs: growth creates value
- Operating margin
- 9.6%
Operating margin · Luxury Goods median 6.8% · 12 months to Q2 2026
- Cash conversion
- 1.18×
Cash conversion · 1.37× a year ago · operating cash flow covers the operating profit after tax
- Share count, year on year
- −0.11%
Share count, year on year · flat: no meaningful dilution
| Year | Operating margin |
|---|---|
| FY2020 | 6.0% |
| FY2021 | 6.7% |
| FY2022 | 7.6% |
| FY2023 | 5.0% |
| FY2024 | 4.5% |
| FY2025 | 7.5% |
Details›
- Gross margin12 months to Q2 2026
- 22%
- Operating margin12 months to Q2 2026
- 9.6%
- Net margin12 months to Q2 2026
- 7.6%
- Free cash flow margin
- 8.2%
- Revenue, trailing twelve months
- $293M
- Free cash flow, trailing twelve months
- $24M
- Net income, trailing twelve months
- $22M
- Return on invested capitaloperating profit after tax ÷ debt + equity − cash
- 41%
Margins, capital and share counts from the statements as filed with the SEC; cash conversion is operating cash flow over operating profit after tax.