Envela Corp EBITDA vs. Operating Margin

ELA Stock  USD 7.41  0.68  10.10%   
Considering Envela Corp's profitability and operating efficiency indicators, Envela Corp is performing exceptionally good at the moment. It has a great risk to showcase excellent profitability results in January. Profitability indicators assess Envela Corp's ability to earn profits and add value for shareholders.
 
EBITDA  
First Reported
2010-12-31
Previous Quarter
10.8 M
Current Value
11.4 M
Quarterly Volatility
5.5 M
 
Credit Downgrade
 
Yuan Drop
 
Covid
The current year's Price To Sales Ratio is expected to grow to 0.87. The current year's Days Sales Outstanding is expected to grow to 17.44. At present, Envela Corp's Accumulated Other Comprehensive Income is projected to increase significantly based on the last few years of reporting. The current year's Operating Income is expected to grow to about 9.2 M, whereas Interest Income is forecasted to decline to about 451.6 K.
Current ValueLast YearChange From Last Year 10 Year Trend
Gross Profit Margin0.140.2347
Way Down
Slightly volatile
For Envela Corp profitability analysis, we use financial ratios and fundamental drivers that measure the ability of Envela Corp to generate income relative to revenue, assets, operating costs, and current equity. These fundamental indicators attest to how well Envela Corp utilizes its assets to generate profit and value for its shareholders. The profitability module also shows relationships between Envela Corp's most relevant fundamental drivers. It provides multiple suggestions of what could affect the performance of Envela Corp over time as well as its relative position and ranking within its peers.
  

Envela Corp's Revenue Breakdown by Earning Segment

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For information on how to trade Envela Stock refer to our How to Trade Envela Stock guide.
Is Other Specialty Retail space expected to grow? Or is there an opportunity to expand the business' product line in the future? Factors like these will boost the valuation of Envela Corp. If investors know Envela will grow in the future, the company's valuation will be higher. The financial industry is built on trying to define current growth potential and future valuation accurately. All the valuation information about Envela Corp listed above have to be considered, but the key to understanding future value is determining which factors weigh more heavily than others.
Earnings Share
0.25
Revenue Per Share
6.3
Quarterly Revenue Growth
0.272
Return On Assets
0.0648
Return On Equity
0.1307
The market value of Envela Corp is measured differently than its book value, which is the value of Envela that is recorded on the company's balance sheet. Investors also form their own opinion of Envela Corp's value that differs from its market value or its book value, called intrinsic value, which is Envela Corp's true underlying value. Investors use various methods to calculate intrinsic value and buy a stock when its market value falls below its intrinsic value. Because Envela Corp's market value can be influenced by many factors that don't directly affect Envela Corp's underlying business (such as a pandemic or basic market pessimism), market value can vary widely from intrinsic value.
Please note, there is a significant difference between Envela Corp's value and its price as these two are different measures arrived at by different means. Investors typically determine if Envela Corp is a good investment by looking at such factors as earnings, sales, fundamental and technical indicators, competition as well as analyst projections. However, Envela Corp's price is the amount at which it trades on the open market and represents the number that a seller and buyer find agreeable to each party.

Envela Corp Operating Margin vs. EBITDA Fundamental Analysis

Comparative valuation techniques use various fundamental indicators to help in determining Envela Corp's current stock value. Our valuation model uses many indicators to compare Envela Corp value to that of its competitors to determine the firm's financial worth.
Envela Corp is rated # 5 in ebitda category among its peers. It is rated # 3 in operating margin category among its peers . The ratio of EBITDA to Operating Margin for Envela Corp is about  251,662,019 . At present, Envela Corp's EBITDA is projected to increase significantly based on the last few years of reporting. The reason why the comparable model can be used in almost all circumstances is due to the vast number of multiples that can be utilized, such as the price-to-earnings (P/E), price-to-book (P/B), price-to-sales (P/S), price-to-cash flow (P/CF), and many others. The P/E ratio is the most commonly used of these ratios because it focuses on the Envela Corp's earnings, one of the primary drivers of an investment's value.

Envela Operating Margin vs. EBITDA

EBITDA stands for earnings before interest, taxes, depreciation, and amortization. It is a measure of a company operating cash flow based on data from the company income statement and is a very good way to compare companies within industries or across different sectors. However, unlike Operating Cash Flow, EBITDA does not include the effects of changes in working capital.

Envela Corp

EBITDA

 = 

Revenue

-

Basic Expenses

 = 
10.85 M
In a nutshell, EBITDA is calculated by adding back each of the excluded items to the post-tax profit, and can be used to compare companies with very different capital structures.
Operating Margin shows how much operating income a company makes on each dollar of sales. It is one of the profitability indicators which helps analysts to understand whether the firm is successful or not making money from everyday operations.

Envela Corp

Operating Margin

 = 

Operating Income

Revenue

X

100

 = 
0.04 %
A good Operating Margin is required for a company to be able to pay for its fixed costs or payout its debt, which implies that the higher the margin, the better. This ratio is most effective in evaluating the earning potential of a company over time when comparing it against a firm's competitors.

Envela Operating Margin Comparison

Envela Corp is currently under evaluation in operating margin category among its peers.

Envela Corp Profitability Projections

The most important aspect of a successful company is its ability to generate a profit. For investors in Envela Corp, profitability is also one of the essential criteria for including it into their portfolios because, without profit, Envela Corp will eventually generate negative long term returns. The profitability progress is the general direction of Envela Corp's change in net profit over the period of time. It can combine multiple indicators of Envela Corp, where stable trends show no significant progress. An accelerating trend is seen as positive, while a decreasing one is unfavorable. A rising trend means that profits are rising, and operational efficiency may be rising as well. A decreasing trend is a sign of poor performance and may indicate upcoming losses.
Last ReportedProjected for Next Year
Operating Income8.8 M9.2 M
Income Before TaxM9.5 M
Total Other Income Expense Net264.6 K277.8 K
Net Income7.1 M7.5 M
Income Tax Expense1.9 MM
Net Income From Continuing Ops11.7 M12.3 M
Non Operating Income Net Other1.1 M1.1 M
Net Income Applicable To Common Shares18 M18.9 M
Interest Income556.2 K451.6 K
Net Interest Income-468.4 K-491.8 K
Change To Netincome108.5 K103.1 K
Net Income Per Share 0.27  0.28 
Income Quality 0.82  0.86 
Net Income Per E B T 0.79  0.87 

Envela Profitability Driver Comparison

Profitability drivers are factors that can directly affect your investment outlook on Envela Corp. Investors often realize that things won't turn out the way they predict. There are maybe way too many unforeseen events and contingencies during the holding period of Envela Corp position where the market behavior may be hard to predict, tax policy changes, gold or oil price hikes, calamities change, and many others. The question is, are you prepared for these unexpected events? Although some of these situations are obviously beyond your control, you can still follow the important profit indicators to know where you should focus on when things like this occur. Below are some of the Envela Corp's important profitability drivers and their relationship over time.

Use Envela Corp in pair-trading

One of the main advantages of trading using pair correlations is that every trade hedges away some risk. Because there are two separate transactions required, even if Envela Corp position performs unexpectedly, the other equity can make up some of the losses. Pair trading also minimizes risk from directional movements in the market. For example, if an entire industry or sector drops because of unexpected headlines, the short position in Envela Corp will appreciate offsetting losses from the drop in the long position's value.

Envela Corp Pair Trading

Envela Corp Pair Trading Analysis

The ability to find closely correlated positions to Envela Corp could be a great tool in your tax-loss harvesting strategies, allowing investors a quick way to find a similar-enough asset to replace Envela Corp when you sell it. If you don't do this, your portfolio allocation will be skewed against your target asset allocation. So, investors can't just sell and buy back Envela Corp - that would be a violation of the tax code under the "wash sale" rule, and this is why you need to find a similar enough asset and use the proceeds from selling Envela Corp to buy it.
The correlation of Envela Corp is a statistical measure of how it moves in relation to other instruments. This measure is expressed in what is known as the correlation coefficient, which ranges between -1 and +1. A perfect positive correlation (i.e., a correlation coefficient of +1) implies that as Envela Corp moves, either up or down, the other security will move in the same direction. Alternatively, perfect negative correlation means that if Envela Corp moves in either direction, the perfectly negatively correlated security will move in the opposite direction. If the correlation is 0, the equities are not correlated; they are entirely random. A correlation greater than 0.8 is generally described as strong, whereas a correlation less than 0.5 is generally considered weak.
Correlation analysis and pair trading evaluation for Envela Corp can also be used as hedging techniques within a particular sector or industry or even over random equities to generate a better risk-adjusted return on your portfolios.
Pair CorrelationCorrelation Matching

Use Investing Themes to Complement your Envela Corp position

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Agriculture
Agriculture Theme
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When determining whether Envela Corp offers a strong return on investment in its stock, a comprehensive analysis is essential. The process typically begins with a thorough review of Envela Corp's financial statements, including income statements, balance sheets, and cash flow statements, to assess its financial health. Key financial ratios are used to gauge profitability, efficiency, and growth potential of Envela Corp Stock. Outlined below are crucial reports that will aid in making a well-informed decision on Envela Corp Stock:
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For information on how to trade Envela Stock refer to our How to Trade Envela Stock guide.
You can also try the Equity Search module to search for actively traded equities including funds and ETFs from over 30 global markets.
To fully project Envela Corp's future profitability, investors should examine all historical financial statements. These statements provide investors with a comprehensive snapshot of the financial position of Envela Corp at a specified time, usually calculated after every quarter, six months, or one year. Three primary documents fall into the category of financial statements. These documents include Envela Corp's income statement, its balance sheet, and the statement of cash flows.
Potential Envela Corp investors and stakeholders can use historical trends found within financial statements to determine how well the company is positioned for the future. Although Envela Corp investors may work on each financial statement separately, they are all related. The changes in Envela Corp's assets and liabilities, for example, are also reflected in the revenues and expenses that we see on Envela Corp's income statement, which results in the company's gains or losses. Cash flows can provide more information regarding cash listed on a balance sheet but not equivalent to net income shown on the income statement. Please read more on our technical analysis and fundamental analysis pages.