Is Envela Corp (ELA) Halal?
Shariah Screening — 5 Standards
Based on financial data from December 2024
| Standard | Debt Ratio | Cash Ratio | Receivables | Income | Status |
|---|---|---|---|---|---|
| AAOIFI | 5.6% / 30% | 6.3% / 30% | 1.3% / 30% | 0.58% / 5% | ✓ HALAL |
| DJIM | 5.6% / 33% | 6.3% / 33% | 1.3% / 33% | 0.58% / 5% | ✓ HALAL |
| MSCI | 23.6% / 33% | 26.5% / 33% | 5.6% / 33% | 0.58% / 5% | ✓ HALAL |
| S&P | 5.6% / 33% | 6.3% / 33% | 1.3% / 33% | 0.58% / 5% | ✓ HALAL |
| FTSE | 23.6% / 33% | 26.5% / 33% | 5.6% / 50% | 0.58% / 5% | ✓ HALAL |
Financial Highlights
Profitability
| Gross Margin | 22.4% | |
| Operating Margin | 9.4% | |
| Net Margin | 6.1% | |
| Return on Equity (ROE) | 24.4% | |
| Return on Assets (ROA) | 13.0% |
Cash Flow & Balance Sheet
| Operating Cash Flow | $10M |
| Free Cash Flow | $6M |
| Total Debt | $18M |
| Debt-to-Equity | 29.6 |
| Current Ratio | 3.5 |
| Total Assets | $78M |
Price & Trading
| Last Close | $17.45 |
| 50-Day MA | $13.72 |
| 200-Day MA | $9.91 |
| Avg Volume | 115K |
| Beta | 0.3 |
|
52-Week Range
$5.33
| |
About Envela Corp (ELA)
Envela Corporation, together with its subsidiaries, provides recommerce and recycling services in the United States. It operates in two segments, Consumer and Commercial. The company is involved in the online and brick-and-mortar sale of authenticated high-end luxury goods, including fine jewelry, diamonds and gemstones, luxury watches, and secondary market bullion. It also offers precious metal products. In addition, it provides end-of-life management of IT assets comprising data destruction, asset refurbishment, and remarketing; and detailed asset disposition data services. The company was formerly known as DGSE Companies, Inc. and changed its name to Envela Corporation in December 2019. Envela Corporation was incorporated in 1965 and is headquartered in Irving, Texas.
Purification Calculator
As a halal stock with 0.58% impermissible income, you need to purify your dividends.
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Frequently Asked Questions
Is Envela Corp (ELA) halal to invest in?
Based on our screening using AAOIFI Standard 21 (the strictest methodology), Envela Corp is Halal. The company passes all financial ratio thresholds for debt, cash, receivables, and impermissible income. We screen against all 5 major standards: AAOIFI, DJIM, MSCI, S&P, and FTSE.
What is Envela Corp's debt ratio?
Envela Corp's debt ratio is 5.6% under the AAOIFI standard (which uses market capitalization as the denominator). The AAOIFI threshold is 30%. Under MSCI and FTSE (which use total assets as the denominator), the debt ratio is 23.6%.
Does Envela Corp require dividend purification?
Yes, Envela Corp has an impermissible income ratio of 0.58%, which means 0.58% of any dividends received should be donated to charity as purification. This is because a small portion of the company's revenue comes from non-Shariah-compliant sources.
What are Envela Corp's key financial metrics?
Envela Corp has a market capitalization of $440M, trailing P/E ratio of 30.3, and revenue of $180M. The company maintains a gross margin of 22.4% and a net margin of 6.1%. Return on equity stands at 24.4%.
How often is the screening data updated?
Our screening data is updated regularly using the latest available financial statements and market data. Stock prices and market caps are refreshed frequently, while financial statements are updated quarterly when companies report earnings.
Disclaimer: HalalStockGuide.com provides Shariah compliance screening for educational and informational purposes only. This is not a fatwa, financial advice, or a recommendation to buy or sell any security. Screening results are based on publicly available financial data and established methodologies. Always consult a qualified Islamic scholar and a licensed financial advisor before making investment decisions.