MeritValue

Envela Corp

ELAdata completeness 100%16 fiscal years on file
The thesis, from the filings

Envela Corp earns about 20% on invested capital, far above its ~9% cost of capital, and has bought back 4% of its shares over 5 years — the marks of a durable business run for its owners. The estimate methods put fair value between $4.01 and $8.65 a share.Whether it’s worth owning at today’s price is the last question — and yours to answer, below.

i. The business — what you’d actually own
FigureFY 2021FY 2022FY 2023FY 2024FY 2025
Revenue$141M1$182.7M2$171.7M2$180.4M3$241M3
Net income$10M4$15.7M5$7.15M6$6.76M7$14.6M7
Operating cash flow$2.81M8$10M9$5.84M10$10.2M11$2.58M11
Capital expenditure$3.14M12$272,74813$2.05M14$3.46M15$1.2M15
Free cash flow (derived)−$333,6528$9.75M9$3.8M10$6.73M11$1.38M11
Total debt$34.7M16$14.7M17$29.9M18$27M19$19.8M19
Cash & equivalents$10.1M20$17.2M21$17.9M21$20.6M22$18.2M22
Diluted shares26.9M26.9M26.8M26.2M26.0M

Superscripts are receipts. Each links to the SEC filing the number came from (full list at the bottom).

ii. Your slice — ownership made literal
If you owned
shares
Net assets behind them
$25.81
your share of equity
Profit it earned you last year
$5.62
Free cash flow it threw off
$0.53
Debt you’d be carrying
$7.64

10 shares is a claim on $25.81 of net worth that earned you $5.62 and generated $0.53 of cash last year, against $7.64 of debt.

iii. Is this a good business?
Moat signal · return on invested capital
20% avg · 5y
FY21 21%FY22 36%FY23 12%FY24 11%FY25 21%

It earned about 20% on invested capital, year after year, against a ~9% cost of capital — the footprint of real pricing power. Competition usually drags returns like this back down; here it hasn't.

seeing a moat in the numbers →
Management signal · capital allocation
−4% shares · 5y

Share count is down 4% over 5 years — management has been buying back stock, quietly handing owners a bigger slice. Total debt has fallen 43% — deleveraging.

reading capital allocation →

Signals, not verdicts — read from the filings above. Numbers don’t prove a moat; they show its footprint. You decide.

iv. What it’s worth — engine v0.1.0

The 3 estimate methods that apply put fair value between $4.01 and $8.65 a share. They rest on different assumptions, so where they diverge is the story; the Graham Number is a stricter floor, not a target.

DCF · Growth Exit 10Y
$8.65
assumptions (10)
  • riskFreeRate4.7%
  • equityRiskPremium5.0%
  • beta100.0%
  • equityWeight85.0%
  • costOfDebtSpread1.5%
  • taxRate21.0%
  • terminalGrowth2.5%
  • projectionYears10
  • fcfGrowth20.0%
  • fcfBase$3.8M
DCF · Growth Exit 5Y
$4.7
assumptions (10)
  • riskFreeRate4.7%
  • equityRiskPremium5.0%
  • beta100.0%
  • equityWeight85.0%
  • costOfDebtSpread1.5%
  • taxRate21.0%
  • terminalGrowth2.5%
  • projectionYears5
  • fcfGrowth20.0%
  • fcfBase$3.8M
Earnings Power Value
$4.01
assumptions (8)
  • riskFreeRate4.7%
  • equityRiskPremium5.0%
  • beta100.0%
  • equityWeight85.0%
  • costOfDebtSpread1.5%
  • taxRate21.0%
  • normalizedEarnings$10M
  • growthAssumed0.0%
Graham Number
$5.7
assumptions (1)
  • grahamMultiplier2250.0%

Different models answer different questions — which to trust when →

v. The price question — last, on purpose
Is today’s price fair?
See live price ↗
Type a price. The ledger answers.
Or set your own belief
FCF growth, next 5 years20.0%
Discount rate (WACC)8.93%
Terminal growth2.5%
At your growth, a share is worth $4.7
The three cases
Bear0.0%$2.02
Base20.0%$4.7
Bull20.0%$4.7

Bear/base/bull growth = 0% / filed history / history + 5pp. Type a price to see the return each case implies.

Default growth 20.0%= this company’s own filed history (median-to-median FCF CAGR, clamped 0–20%). Your adjustments are recorded anonymously. They become the “what do owners actually believe” dataset.

Sources — the receipts
  1. 10-K · period ending 2021-12-31 · accession 0001654954-23-003057 (RevenueFromContractWithCustomerExcludingAssessedTax)
  2. 10-K · period ending 2022-12-31 · accession 0001654954-24-003505 (RevenueFromContractWithCustomerExcludingAssessedTax)
  3. 10-K · period ending 2024-12-31 · accession 0000701719-26-000004 (Revenues)
  4. 10-K · period ending 2021-12-31 · accession 0001654954-23-003057 (NetIncomeLoss)
  5. 10-K · period ending 2022-12-31 · accession 0001654954-24-003505 (NetIncomeLoss)
  6. 10-K · period ending 2023-12-31 · accession 0000701719-25-000007 (NetIncomeLoss)
  7. 10-K · period ending 2024-12-31 · accession 0000701719-26-000004 (NetIncomeLoss)
  8. 10-K · period ending 2021-12-31 · accession 0001654954-23-003057 (NetCashProvidedByUsedInOperatingActivities)
  9. 10-K · period ending 2022-12-31 · accession 0001654954-24-003505 (NetCashProvidedByUsedInOperatingActivities)
  10. 10-K · period ending 2023-12-31 · accession 0000701719-25-000007 (NetCashProvidedByUsedInOperatingActivities)
  11. 10-K · period ending 2024-12-31 · accession 0000701719-26-000004 (NetCashProvidedByUsedInOperatingActivities)
  12. 10-K · period ending 2021-12-31 · accession 0001654954-23-003057 (PaymentsToAcquirePropertyPlantAndEquipment)
  13. 10-K · period ending 2022-12-31 · accession 0001654954-24-003505 (PaymentsToAcquirePropertyPlantAndEquipment)
  14. 10-K · period ending 2023-12-31 · accession 0000701719-25-000007 (PaymentsToAcquirePropertyPlantAndEquipment)
  15. 10-K · period ending 2024-12-31 · accession 0000701719-26-000004 (PaymentsToAcquirePropertyPlantAndEquipment)
  16. 10-K · period ending 2021-12-31 · accession 0001654954-22-003269 (LongTermDebtNoncurrent)
  17. 10-K · period ending 2022-12-31 · accession 0001654954-24-003505 (LongTermDebt)
  18. 10-K · period ending 2023-12-31 · accession 0000701719-25-000007 (LongTermDebtNoncurrent)
  19. 10-K · period ending 2024-12-31 · accession 0000701719-26-000004 (LongTermDebtNoncurrent)
  20. 10-K · period ending 2021-12-31 · accession 0001654954-23-003057 (CashAndCashEquivalentsAtCarryingValue)
  21. 10-K · period ending 2022-12-31 · accession 0001654954-24-003505 (CashAndCashEquivalentsAtCarryingValue)
  22. 10-K · period ending 2024-12-31 · accession 0000701719-26-000004 (CashCashEquivalentsRestrictedCashAndRestrictedCashEquivalents)