Envela Corporation — Earnings Quality Grade F
ELA · Consumer Cyclical
Major red flags
Screening Summary
Management Signals
Financial Trends
Revenue & Net Income ($B)
Margins (%)
18-Point Screening
Revenue Quality
DSO 17 days, change +8 days YoY
AR growth 150.5% exceeds revenue growth 33.6%
Revenue grew 33.6% but CFFO declined -74.7%
Small-cap context: Small-cap revenue/CFFO ratio is sensitive to growth-stage working-capital draws.
Expense Quality
Inventory 36.4% vs COGS 37.5%. Normal
CapEx growth -66.7% vs revenue 33.6%. Normal
SG&A/Gross Profit = 63.0%. Normal
Gross margin 22.4%, change -2.2pp. Stable
Cash Flow Quality
CFFO/NI = 0.18. Only 18% of profit backed by cash
Small-cap context: Small-cap CFFO/NI often diverges from working-capital swings, not necessarily manipulation.
FCF $0.0B, FCF/NI = 0.09
Accruals ratio = 12.5%. Exceeds 10%
Cash $0.0B covers 91% of debt $0.0B
Balance Sheet Health
Goodwill+Intangibles $0.0B = 10% of equity. Manageable
Debt/EBITDA = 0.9x. Healthy
Other assets 1.3% vs revenue 33.6%. Normal
No write-off data
Acquisition Risk
FCF after acquisitions positive
Goodwill+Intangibles change -9% YoY. Normal
Manipulation Score
M-Score = -0.71 (> -1.78). LIKELY MANIPULATOR
Small-cap context: Beneish M-Score was calibrated on large-caps; small-cap DSO/inventory volatility mechanically inflates it.
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Beneish M-Score
Altman Z-Score
Generated from public financial data using forensic accounting frameworks. Not investment advice. Data: Yahoo Finance · 2026-04-25