Envela Corporation (ELA): fair value, margin of safety and Wheel Score

Is ELA undervalued?

ELA closed at 12.04 on 16 Oct 2026 against a GLS average fair value of 11.29 - 6.6% above fair value, which our screens read as "fairly priced". 3 of 8 models are above the current price. There is no discount to lean on here, so the margin of safety is not the reason to look at the stock.

The 8 models disagree widely: GLS Growth gives 2.52 while 10 Cap gives 23.76. A spread that wide means the average is sensitive to which methods you trust; the model table below shows where each one lands, and the Quote page lets you switch any of them off.

The nightly engine files ELA under Value: positive earnings at a P/E of 18 or less.

Nine valuation models for ELA

Each model turns the latest filed numbers into a value per share; the GLS fair value is the simple average of the ones that produce a positive number. The last two rows are shown for reference and never enter the average. The Quote page lets you switch any model off and add your own margin of safety.

Quality and financial health

On financial health ELA scores 8/9 (Piotroski): most of the nine tests - positive earnings and cash flow, falling debt, rising margins and turnover - are passed, which is the kind of balance sheet a wheel trader is happy to be assigned. The GLS Moat score is 5.7 out of 10: a ten-year record that is consistent in some of the metrics the score tracks (revenue, earnings, margins, cash flow, returns on capital) and patchy in others.

Returns on capital are high - ROIC 16.8%, ROE 21.8%, ROA 15.2% - with debt at 0.30 times equity and a free-cash-flow yield of 7.7%.

Envela Corporation pays no dividend, so the DDM model does not apply and a covered-call holder earns only the premium and any price gain. Revenue comes mainly from Consumer 79%, Commercial 21% (quarter Q2 FY2026).

Institutional ownership scores 2/10, insider activity 10/10 and Congressional trading 5/10 on the GLS smart-money scales.

Wheel Score 54: Fair

ELA scores 54 out of 100 on the Wheel Score (Fair band, 50-64): a usable but unremarkable fit for the wheel strategy. The parts: Value 10/25, Health 18/20, Moat 9/15, Premium 12/20, Stability 6/20. Stability (6/20) is where the points are missing.

Implied volatility is 92% on the near-the-money contracts 20-60 days out - above the 60% ceiling of the sweet spot. Premiums are large, but the Wheel Score tapers the Premium points (12 of 20) because volatility this high usually comes with a reason. Chain open interest is thin - 561 contracts across every expiry - so fills at a fair price are not guaranteed; a 30-45-day put may not exist at a usable strike.

Volume runs at 93k shares a day on a market cap of $313M, with a beta of 0.42 - a low beta, so day-to-day moves are smaller than the market's; the Stability part of the Wheel Score gives that 6 of 20.

The Wheel Score ranks ~7,400 US stocks for selling cash-secured puts and covered calls; it is updated nightly and is not a recommendation. The walkthrough lesson shows how the score fits into a trade, start to finish.

Upcoming events

The next earnings report is due on 4 Nov 2026, 19 days away; a 30-45-day put sold today would expire after it, which is worth weighing against the premium.

Earnings, dividend, IPO, split and economic calendars for the whole market, filterable to your watchlists.

Similar stocks in Specialty Retail

The 12 companies below are the closest to Envela Corporation by market cap within the Specialty Retail industry, each with its own fact sheet; the Compare page puts up to eight of them side by side.

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