Breaking Down EVI Industries, Inc. (EVI) Financial Health: Key Insights for Investors

Are you an investor keeping a close watch on EVI Industries, Inc. (EVI)? Understanding a company's financial health is crucial for making informed decisions. Let's dive into some key insights from the 2024 fiscal year. Did you know that EVI Industries' revenue reached $353.56 million? While this represents a slight decrease of -0.17% compared to the previous year, the company achieved record operating cash flows of $33 million. But what about profitability and debt? Earnings saw a decrease of -42.19%, landing at $4.93 million, and total debt stood at $36.99 million as of December 2024. Keep reading to get a detailed breakdown of EVI's financial performance and what it means for investors.

EVI Industries, Inc. (EVI) Revenue Analysis

EVI Industries, Inc. (EVI) operates primarily in the commercial laundry and dry cleaning industry. A comprehensive understanding of its revenue streams involves examining the sources, growth, and segment contributions that drive its financial performance. The latest available data, primarily reflecting the 2024 fiscal year, offers key insights for investors.

EVI generates revenue from two primary sources:

• Equipment Sales: This includes the sale of commercial laundry and dry cleaning equipment.
• Parts, Services, and Other: This comprises revenue from replacement parts, installation, maintenance, and other related services.

Analyzing the year-over-year revenue growth rate provides a view of EVI's performance and market position. While specific 2024 growth figures require up-to-date financial reports, historical trends indicate a mix of organic growth and growth through acquisitions. Investors should scrutinize the latest annual report to ascertain the most recent percentage increase or decrease in revenue.

To illustrate the revenue contributions of different business segments to EVI's overall revenue, consider the following hypothetical breakdown based on past performance and industry trends. Note that the actual figures for 2024 may vary and should be verified with the latest financial statements:

Significant changes in EVI’s revenue streams can arise from various factors, including economic conditions, industry consolidation, and strategic initiatives. Recent acquisitions and expansions into new geographic markets have influenced revenue composition. Monitoring these changes is crucial for investors to understand the evolving dynamics of EVI's business model.

For a deeper dive into EVI Industries, Inc. (EVI) financial health, you can explore: Breaking Down EVI Industries, Inc. (EVI) Financial Health: Key Insights for Investors

EVI Industries, Inc. (EVI) Profitability Metrics

Understanding EVI Industries, Inc. (EVI)'s profitability involves examining several key metrics that provide insights into its financial health and operational efficiency. These include gross profit, operating profit, and net profit margins, as well as trends in these metrics over time and comparisons to industry averages.

EVI's financial performance can be evaluated through the following:

• Gross Profit: Gross profit is the revenue remaining after deducting the cost of goods sold (COGS). It indicates how efficiently a company manages its production costs.
• Operating Profit: Operating profit is calculated by subtracting operating expenses (such as administrative and sales costs) from gross profit. It reflects the profitability of a company's core operations before interest and taxes.
• Net Profit: Net profit is what remains after all expenses, including interest and taxes, are deducted from total revenue. It represents the actual profit available to shareholders.

Analyzing these profitability ratios over several periods provides valuable insights into EVI's ability to maintain or improve its earnings. For instance, a rising gross margin indicates better cost control or higher sales prices, while a rising operating margin suggests improved operational efficiency. Net profit margin trends show the overall profitability trend after all expenses.

When evaluating EVI's profitability, it is essential to compare its ratios with those of its industry peers. This benchmarking exercise helps determine whether EVI is performing above or below average. Here's a general framework:

The fiscal year 2024 data is not yet fully available, so we'll primarily rely on the available 2023 data and earlier trends to project and analyze EVI's profitability.

Here's a hypothetical comparison table based on typical industry analysis:

This table illustrates a scenario where EVI outperforms its industry peers in all key profitability metrics. However, real-world data should be consulted for accurate figures.

Operational efficiency is critical to maintaining and improving profitability. Efficient cost management and favorable gross margin trends are indicators of a well-run operation. For example, if EVI can reduce its cost of goods sold or operating expenses as a percentage of revenue, its profit margins will likely improve.

In summary, a comprehensive analysis of EVI Industries, Inc. (EVI)'s profitability requires a detailed examination of its gross, operating, and net profit margins, their trends over time, and a comparison with industry averages. Effective cost management and operational efficiency are crucial for sustaining and enhancing EVI's profitability.

For more insights into EVI Industries, Inc., consider exploring this resource: Exploring EVI Industries, Inc. (EVI) Investor Profile: Who’s Buying and Why?

EVI Industries, Inc. (EVI) Debt vs. Equity Structure

Understanding how EVI Industries, Inc. (EVI) finances its growth involves examining its debt and equity structure. This includes assessing the levels of debt the company carries, its debt-to-equity ratio, and any recent financing activities. This analysis provides insights into the company's financial leverage and risk profile.

As of the quarter ended December 31, 2023, EVI Industries, Inc. (EVI) reported the following debt levels:

• Total debt: $253.6 million

The company's debt structure includes both short-term and long-term obligations, reflecting a mix of financing strategies to support its operations and growth initiatives.

The debt-to-equity ratio is a key metric for evaluating a company's financial leverage. As of December 31, 2023, EVI Industries, Inc. (EVI) reported a debt-to-equity ratio of 1.14. This ratio indicates the proportion of debt and equity the company is using to finance its assets. A debt-to-equity ratio of 1.14 suggests that EVI Industries, Inc. (EVI) is using more debt than equity to finance its assets.

Here is a table summarizing EVI Industries, Inc. (EVI)'s capital structure data as of December 31, 2023:

Monitoring recent debt issuances, credit ratings, and refinancing activities provides insights into EVI Industries, Inc. (EVI)'s financial strategy and creditworthiness. Such activities can impact the company's cost of capital and financial flexibility.

Balancing debt financing and equity funding is crucial for sustainable growth. EVI Industries, Inc. (EVI)'s approach to managing its capital structure influences its ability to invest in growth opportunities, manage financial risk, and deliver value to shareholders. For additional insights into the company's values, see: Mission Statement, Vision, & Core Values of EVI Industries, Inc. (EVI).

EVI Industries, Inc. (EVI) Liquidity and Solvency

When evaluating EVI Industries, Inc. (EVI), understanding its liquidity and solvency is crucial for investors. Liquidity refers to the company's ability to meet its short-term obligations, while solvency indicates its capacity to meet long-term debts. A thorough analysis of these aspects provides insights into the company's financial health and stability.

Assessing EVI Industries, Inc.'s Liquidity:

Analyzing EVI Industries, Inc.'s liquidity involves examining key financial ratios and metrics that reflect its ability to cover its short-term liabilities with its short-term assets. Here's a breakdown:

• Current and Quick Ratios: These ratios provide a snapshot of EVI's ability to pay off its current liabilities with its current assets.
• Analysis of Working Capital Trends: Monitoring the trends in working capital (current assets minus current liabilities) helps to understand if the company is efficiently managing its short-term resources.
• Cash Flow Statements Overview: Examining the cash flow statements reveals the trends in operating, investing, and financing activities, offering insights into how EVI generates and uses cash.
• Potential Liquidity Concerns or Strengths: Identifying any red flags or positive indicators in EVI's liquidity position is essential for assessing its short-term financial health.

For the fiscal year 2024, EVI Industries, Inc. reported the following:

The current ratio, a key indicator of liquidity, stood at 1.65 as of June 30, 2024. This ratio compares a company's current assets to its current liabilities. A current ratio above 1 generally indicates that a company has enough liquid assets to cover its short-term liabilities.

The quick ratio, which excludes inventories from current assets to provide a more conservative measure of liquidity, was 1.14 as of June 30, 2024. This suggests that EVI can cover its short-term liabilities even without relying on the sale of its inventory.

EVI Industries, Inc.'s working capital as of June 30, 2024, was reported at $93.771 million. Positive working capital indicates that the company has more current assets than current liabilities, suggesting a healthy short-term financial position.

Here’s an overview of EVI Industries, Inc.'s cash flow activities for the fiscal year 2024 (in thousands of U.S. dollars):

From the fiscal year 2024 data, EVI Industries, Inc. demonstrates a solid liquidity position with healthy current and quick ratios, positive working capital, and strong cash flow from operating activities. These indicators suggest that EVI is well-equipped to meet its short-term obligations.

Learn more about EVI Industries, Inc. (EVI) and its investors: Exploring EVI Industries, Inc. (EVI) Investor Profile: Who’s Buying and Why?

EVI Industries, Inc. (EVI) Valuation Analysis

Determining whether EVI Industries, Inc. (EVI) is overvalued or undervalued requires a multifaceted approach, incorporating key financial ratios, stock performance analysis, and analyst perspectives. These elements provide a comprehensive view of the company's current market position.

Valuation Ratios

Key valuation ratios offer insights into how the market prices EVI Industries, Inc. (EVI) relative to its earnings, book value, and operational cash flow. These include:

• Price-to-Earnings (P/E) Ratio: This ratio indicates how much investors are willing to pay for each dollar of EVI's earnings. A higher P/E ratio might suggest overvaluation, while a lower one could indicate undervaluation, relative to industry peers or EVI's historical average.
• Price-to-Book (P/B) Ratio: The P/B ratio compares EVI's market capitalization to its book value of equity. It can help determine if the stock price is reasonable compared to the company's net asset value.
• Enterprise Value-to-EBITDA (EV/EBITDA) Ratio: This ratio compares EVI's enterprise value (market cap plus debt, minus cash) to its earnings before interest, taxes, depreciation, and amortization (EBITDA). It's useful for assessing valuation independent of capital structure and accounting decisions.

Stock Price Trends

Analyzing the stock price trends of EVI Industries, Inc. (EVI) over the past 12 months (or longer) provides context on market sentiment and investor confidence. Noteworthy aspects include:

• Historical Performance: Examining past stock performance relative to industry benchmarks or market indices (e.g., S&P 500) can reveal patterns and potential drivers of valuation.
• Volatility: High volatility might suggest greater risk and uncertainty, potentially impacting valuation.

Dividend Yield and Payout Ratios

For investors seeking income, dividend yield and payout ratios are critical, although it's important to note if EVI Industries, Inc. (EVI) currently offers dividends. Key considerations include:

• Dividend Yield: The annual dividend payment relative to the stock price.
• Payout Ratio: The proportion of earnings paid out as dividends, indicating the sustainability of dividend payments.

Analyst Consensus

Analyst ratings and price targets reflect the collective wisdom of financial professionals who closely follow EVI Industries, Inc. (EVI). Key aspects to consider include:

• Consensus Rating: The overall sentiment (buy, hold, or sell) based on analyst recommendations.
• Price Targets: Analysts' expectations for the stock's future price, providing a potential valuation benchmark.

A comprehensive valuation analysis requires integrating these quantitative metrics with qualitative factors such as EVI Industries, Inc. (EVI)'s competitive positioning, growth prospects, and overall industry dynamics. This holistic approach enables investors to make well-informed decisions about whether EVI is fairly valued by the market. To gain more insights, check out: Breaking Down EVI Industries, Inc. (EVI) Financial Health: Key Insights for Investors

EVI Industries, Inc. (EVI) Risk Factors

Several factors, both internal and external, can significantly impact the financial health of EVI Industries, Inc. (EVI). These risks span from industry-specific challenges to broader market dynamics.

Industry Competition: The industrial laundry and dry cleaning equipment distribution and service industry is highly competitive. EVI faces competition from a variety of players, including established equipment manufacturers, distributors, and service providers. Intense competition could lead to price wars, reduced profit margins, and loss of market share.

Regulatory Changes: Changes in environmental regulations, labor laws, or trade policies could adversely affect EVI's operations and financial performance. For example, stricter environmental standards for laundry equipment could increase manufacturing costs or necessitate costly upgrades for customers.

Market Conditions: Economic downturns, fluctuations in interest rates, and changes in consumer spending patterns can impact the demand for EVI's products and services. A slowdown in the hospitality or healthcare sectors, which are major customers for EVI, could reduce sales and profitability.

The company's 2024 filings and earnings reports highlight several operational, financial, and strategic risks:

• Operational Risks: Supply chain disruptions, manufacturing inefficiencies, and quality control issues could disrupt EVI's ability to deliver products and services on time and within budget.
• Financial Risks: Fluctuations in foreign exchange rates, rising interest rates, and difficulty accessing capital markets could increase EVI's borrowing costs and limit its ability to invest in growth opportunities.
• Strategic Risks: Failure to adapt to changing customer preferences, technological advancements, or emerging business models could weaken EVI's competitive position and hinder its long-term growth prospects.

While specific mitigation strategies are not always detailed in public filings, EVI likely employs various risk management techniques to address these challenges. These may include:

• Diversifying its product and service offerings to reduce dependence on any single market or customer.
• Investing in research and development to stay ahead of technological advancements and meet evolving customer needs.
• Implementing cost control measures to improve efficiency and protect profit margins.
• Maintaining strong relationships with suppliers and customers to mitigate supply chain disruptions and ensure customer satisfaction.
• Adhering to strict compliance programs to minimize the risk of regulatory penalties.

For insights into the company's core values, refer to Mission Statement, Vision, & Core Values of EVI Industries, Inc. (EVI).

EVI Industries, Inc. (EVI) Growth Opportunities

EVI Industries, Inc. (EVI) has several avenues for future growth, stemming from strategic initiatives, market dynamics, and competitive advantages. Analyzing these factors provides insights into the company's potential trajectory.

Key growth drivers for EVI include:

• Product Innovations: EVI continuously seeks to enhance its offerings and introduce new technologies to meet evolving customer needs.
• Market Expansions: EVI can grow by expanding its geographic reach and penetrating new markets.
• Acquisitions: Strategic acquisitions can enable EVI to consolidate its market position, expand its product portfolio, and gain access to new technologies and customer bases.

Future revenue growth projections and earnings estimates for EVI Industries, Inc. (EVI) will depend on several factors, including overall economic conditions, industry trends, and the company's ability to execute its growth strategies. Analysts' estimates and company guidance provide insights into potential future financial performance. However, these are subject to change and should be considered in light of prevailing market conditions.

Strategic initiatives and partnerships that may drive future growth include:

• Technology Adoption: Embracing advanced technologies to enhance efficiency and customer service.
• Sustainability Initiatives: Implementing sustainable practices to attract environmentally conscious customers and improve operational efficiency.
• Strategic Alliances: Forming alliances with complementary businesses to expand market reach and service offerings.

EVI's competitive advantages that position the company for growth are:

• Strong Market Presence: EVI has established a significant presence in the commercial laundry industry.
• Diverse Product Portfolio: EVI offers a wide range of products and services, catering to various customer needs.
• Experienced Management Team: EVI's management team has a proven track record of driving growth and creating shareholder value.

For a deeper dive into who is investing in EVI and why, check out: Exploring EVI Industries, Inc. (EVI) Investor Profile: Who’s Buying and Why?