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ELME COMMUNITIES (ELME) Stock Fundamental Analysis

NYSE:ELME - New York Stock Exchange, Inc. - US9396531017 - REIT

14.85  +0.03 (+0.2%)

After market: 14.85 0 (0%)

Fundamental Rating

3

We assign a fundamental rating of 3 out of 10 to ELME. ELME was compared to 20 industry peers in the Residential REITs industry. ELME has a bad profitability rating. Also its financial health evaluation is rather negative. ELME is valued expensive and it does not seem to be growing.


Dividend Valuation Growth Profitability Health

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3

1. Profitability

1.1 Basic Checks

In the past year ELME has reported negative net income.
ELME had a positive operating cash flow in the past year.
In multiple years ELME reported negative net income over the last 5 years.
ELME had a positive operating cash flow in each of the past 5 years.
ELME Yearly Net Income VS EBIT VS OCF VS FCFELME Yearly Net Income VS EBIT VS OCF VS FCFYearly Net Income VS EBIT VS OCF VS FCF 2015 2016 2017 2018 2019 2020 2021 2022 2023 0 200M -200M -400M

1.2 Ratios

ELME has a worse Return On Assets (-0.73%) than 80.00% of its industry peers.
Looking at the Return On Equity, with a value of -1.23%, ELME is doing worse than 60.00% of the companies in the same industry.
ELME has a worse Return On Invested Capital (1.03%) than 80.00% of its industry peers.
Measured over the past 3 years, the Average Return On Invested Capital for ELME is below the industry average of 2.61%.
The 3 year average ROIC (0.51%) for ELME is below the current ROIC(1.03%), indicating increased profibility in the last year.
Industry RankSector Rank
ROA -0.73%
ROE -1.23%
ROIC 1.03%
ROA(3y)-1.2%
ROA(5y)2.05%
ROE(3y)-1.95%
ROE(5y)3.99%
ROIC(3y)0.51%
ROIC(5y)N/A
ELME Yearly ROA, ROE, ROICELME Yearly ROA, ROE, ROICYearly ROA, ROE, ROIC 2015 2016 2017 2018 2019 2020 2021 2022 2023 0 10 20

1.3 Margins

Looking at the Operating Margin, with a value of 9.75%, ELME is doing worse than 80.00% of the companies in the same industry.
In the last couple of years the Operating Margin of ELME has declined.
ELME's Gross Margin of 60.31% is fine compared to the rest of the industry. ELME outperforms 70.00% of its industry peers.
In the last couple of years the Gross Margin of ELME has remained more or less at the same level.
Industry RankSector Rank
OM 9.75%
PM (TTM) N/A
GM 60.31%
OM growth 3Y15.8%
OM growth 5Y-9.26%
PM growth 3YN/A
PM growth 5YN/A
GM growth 3Y0.37%
GM growth 5Y-0.76%
ELME Yearly Profit, Operating, Gross MarginsELME Yearly Profit, Operating, Gross MarginsYearly Profit, Operating, Gross Margins 2015 2016 2017 2018 2019 2020 2021 2022 2023 0 50 100 150 200

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3

2. Health

2.1 Basic Checks

ELME has a Return on Invested Capital (ROIC), which is below the Cost of Capital (WACC), which means it is destroying value.
The number of shares outstanding for ELME has been increased compared to 1 year ago.
Compared to 5 years ago, ELME has more shares outstanding
ELME has a worse debt/assets ratio than last year.
ELME Yearly Shares OutstandingELME Yearly Shares OutstandingYearly Shares Outstanding 2015 2016 2017 2018 2019 2020 2021 2022 2023 20M 40M 60M 80M
ELME Yearly Total Debt VS Total AssetsELME Yearly Total Debt VS Total AssetsYearly Total Debt VS Total Assets 2015 2016 2017 2018 2019 2020 2021 2022 2023 500M 1B 1.5B 2B 2.5B

2.2 Solvency

Based on the Altman-Z score of 0.73, we must say that ELME is in the distress zone and has some risk of bankruptcy.
Looking at the Altman-Z score, with a value of 0.73, ELME is in line with its industry, outperforming 45.00% of the companies in the same industry.
The Debt to FCF ratio of ELME is 15.64, which is on the high side as it means it would take ELME, 15.64 years of fcf income to pay off all of its debts.
Looking at the Debt to FCF ratio, with a value of 15.64, ELME is in the better half of the industry, outperforming 80.00% of the companies in the same industry.
A Debt/Equity ratio of 0.63 indicates that ELME is somewhat dependend on debt financing.
ELME's Debt to Equity ratio of 0.63 is amongst the best of the industry. ELME outperforms 100.00% of its industry peers.
Industry RankSector Rank
Debt/Equity 0.63
Debt/FCF 15.64
Altman-Z 0.73
ROIC/WACC0.14
WACC7.25%
ELME Yearly LT Debt VS Equity VS FCFELME Yearly LT Debt VS Equity VS FCFYearly LT Debt VS Equity VS FCF 2015 2016 2017 2018 2019 2020 2021 2022 2023 0 500M 1B

2.3 Liquidity

A Current Ratio of 0.77 indicates that ELME may have some problems paying its short term obligations.
ELME has a Current ratio (0.77) which is comparable to the rest of the industry.
ELME has a Quick Ratio of 0.77. This is a bad value and indicates that ELME is not financially healthy enough and could expect problems in meeting its short term obligations.
The Quick ratio of ELME (0.77) is comparable to the rest of the industry.
Industry RankSector Rank
Current Ratio 0.77
Quick Ratio 0.77
ELME Yearly Current Assets VS Current LiabilitesELME Yearly Current Assets VS Current LiabilitesYearly Current Assets VS Current Liabilites 2015 2016 2017 2018 2019 2020 2021 2022 2023 50M 100M 150M 200M 250M

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3

3. Growth

3.1 Past

ELME shows a slight negative growth in Earnings Per Share. In the last year, the EPS has decreased by -7.69%.
ELME shows a small growth in Revenue. In the last year, the Revenue has grown by 6.62%.
The Revenue has been decreasing by -4.82% on average over the past years.
EPS 1Y (TTM)-7.69%
EPS 3YN/A
EPS 5YN/A
EPS Q2Q%-50%
Revenue 1Y (TTM)6.62%
Revenue growth 3Y9%
Revenue growth 5Y-4.82%
Sales Q2Q%7.77%

3.2 Future

Based on estimates for the next years, ELME will show a quite strong growth in Earnings Per Share. The EPS will grow by 17.15% on average per year.
The Revenue is expected to grow by 4.04% on average over the next years.
EPS Next Y-9.85%
EPS Next 2Y6.63%
EPS Next 3Y17.15%
EPS Next 5YN/A
Revenue Next Year5.93%
Revenue Next 2Y4.18%
Revenue Next 3Y4.04%
Revenue Next 5YN/A

3.3 Evolution

When comparing the Revenue growth rate of the last years to the growth rate of the upcoming years, we see that the growth is accelerating.
ELME Yearly Revenue VS EstimatesELME Yearly Revenue VS EstimatesYearly Revenue VS Estimates 2014 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 2026 100M 200M 300M
ELME Yearly EPS VS EstimatesELME Yearly EPS VS EstimatesYearly EPS VS Estimates 2014 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 2026 0 1 2 3 4

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2

4. Valuation

4.1 Price/Earnings Ratio

The Price/Earnings Ratio is negative for ELME. In the last year negative earnings were reported.
Also next year ELME is expected to report negative earnings again, which makes the also the Forward Price/Earnings Ratio negative.
Industry RankSector Rank
PE N/A
Fwd PE N/A
ELME Price Earnings VS Forward Price EarningsELME Price Earnings VS Forward Price Earnings ChartPrice Earnings - Forward Price Earnings PE FPE 0 50 -50 -100

4.2 Price Multiples

Based on the Enterprise Value to EBITDA ratio, ELME is valued cheaply inside the industry as 95.00% of the companies are valued more expensively.
Based on the Price/Free Cash Flow ratio, ELME is valued a bit cheaper than 80.00% of the companies in the same industry.
Industry RankSector Rank
P/FCF 29.59
EV/EBITDA 16.64
ELME Per share dataELME EPS, Sales, OCF, FCF, BookValue per sharePer Share Data Per Share 0 2 4 6 8 10

4.3 Compensation for Growth

A more expensive valuation may be justified as ELME's earnings are expected to grow with 17.15% in the coming years.
PEG (NY)N/A
PEG (5Y)N/A
EPS Next 2Y6.63%
EPS Next 3Y17.15%

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5

5. Dividend

5.1 Amount

With a Yearly Dividend Yield of 4.89%, ELME is a good candidate for dividend investing.
Compared to an average industry Dividend Yield of 4.29, ELME pays a bit more dividend than its industry peers.
Compared to an average S&P500 Dividend Yield of 2.28, ELME pays a better dividend.
Industry RankSector Rank
Dividend Yield 4.89%

5.2 History

The dividend of ELME decreases each year by -9.38%.
ELME has paid a dividend for at least 10 years, which is a reliable track record.
The dividend of ELME decreased in the last 3 years.
Dividend Growth(5Y)-9.38%
Div Incr Years2
Div Non Decr Years2
ELME Yearly Dividends per shareELME Yearly Dividends per shareYearly Dividends per share 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 0.2 0.4 0.6 0.8 1

5.3 Sustainability

ELME has negative earnings and hence a negative payout ratio. The dividend may be in danger.
DP-471.87%
EPS Next 2Y6.63%
EPS Next 3Y17.15%
ELME Yearly Income VS Free CF VS DividendELME Yearly Income VS Free CF VS DividendYearly Income VS Free CF VS Dividend 2015 2016 2017 2018 2019 2020 2021 2022 2023 0 200M -200M -400M

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ELME COMMUNITIES

NYSE:ELME (1/21/2025, 8:04:01 PM)

After market: 14.85 0 (0%)

14.85

+0.03 (+0.2%)

Chartmill FA Rating
GICS SectorReal Estate
GICS IndustryGroupEquity Real Estate Investment Trusts (REITs)
GICS IndustryResidential REITs
Earnings (Last)11-04 2024-11-04/amc
Earnings (Next)02-13 2025-02-13/amc
Inst Owners89.96%
Inst Owner ChangeN/A
Ins Owners1.14%
Ins Owner Change-1.01%
Market Cap1.31B
Analysts50
Price Target17.68 (19.06%)
Short Float %2.86%
Short Ratio3.85
Dividend
Industry RankSector Rank
Dividend Yield 4.89%
Yearly Dividend0.73
Dividend Growth(5Y)-9.38%
DP-471.87%
Div Incr Years2
Div Non Decr Years2
Ex-DateN/A
Surprises & Revisions
EPS beat(2)2
Avg EPS beat(2)1.96%
Min EPS beat(2)1.96%
Max EPS beat(2)1.96%
EPS beat(4)2
Avg EPS beat(4)-80.72%
Min EPS beat(4)-296.08%
Max EPS beat(4)1.96%
EPS beat(8)3
Avg EPS beat(8)-175.65%
EPS beat(12)3
Avg EPS beat(12)-147.49%
EPS beat(16)5
Avg EPS beat(16)-127.39%
Revenue beat(2)0
Avg Revenue beat(2)-1.57%
Min Revenue beat(2)-2.39%
Max Revenue beat(2)-0.76%
Revenue beat(4)0
Avg Revenue beat(4)-1.37%
Min Revenue beat(4)-2.39%
Max Revenue beat(4)-0.76%
Revenue beat(8)0
Avg Revenue beat(8)-2.03%
Revenue beat(12)1
Avg Revenue beat(12)-1.93%
Revenue beat(16)1
Avg Revenue beat(16)-9.78%
PT rev (1m)-0.95%
PT rev (3m)-0.95%
EPS NQ rev (1m)0%
EPS NQ rev (3m)N/A
EPS NY rev (1m)0%
EPS NY rev (3m)-75%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)0.13%
Revenue NY rev (1m)0.33%
Revenue NY rev (3m)0.3%
Valuation
Industry RankSector Rank
PE N/A
Fwd PE N/A
P/S 5.46
P/FCF 29.59
P/OCF 13.96
P/B 1.19
P/tB 1.19
EV/EBITDA 16.64
EPS(TTM)-0.14
EYN/A
EPS(NY)-0.11
Fwd EYN/A
FCF(TTM)0.5
FCFY3.38%
OCF(TTM)1.06
OCFY7.16%
SpS2.72
BVpS12.48
TBVpS12.48
PEG (NY)N/A
PEG (5Y)N/A
Profitability
Industry RankSector Rank
ROA -0.73%
ROE -1.23%
ROCE 1.3%
ROIC 1.03%
ROICexc 1.03%
ROICexgc 1.03%
OM 9.75%
PM (TTM) N/A
GM 60.31%
FCFM 18.44%
ROA(3y)-1.2%
ROA(5y)2.05%
ROE(3y)-1.95%
ROE(5y)3.99%
ROIC(3y)0.51%
ROIC(5y)N/A
ROICexc(3y)0.51%
ROICexc(5y)N/A
ROICexgc(3y)0.51%
ROICexgc(5y)N/A
ROCE(3y)0.64%
ROCE(5y)N/A
ROICexcg growth 3Y36.3%
ROICexcg growth 5Y-9.47%
ROICexc growth 3Y36.3%
ROICexc growth 5Y-9.47%
OM growth 3Y15.8%
OM growth 5Y-9.26%
PM growth 3YN/A
PM growth 5YN/A
GM growth 3Y0.37%
GM growth 5Y-0.76%
F-Score4
Asset Turnover0.13
Health
Industry RankSector Rank
Debt/Equity 0.63
Debt/FCF 15.64
Debt/EBITDA 5.77
Cap/Depr 51.26%
Cap/Sales 20.63%
Interest Coverage 0.74
Cash Conversion 78.14%
Profit Quality N/A
Current Ratio 0.77
Quick Ratio 0.77
Altman-Z 0.73
F-Score4
WACC7.25%
ROIC/WACC0.14
Cap/Depr(3y)207.94%
Cap/Depr(5y)219.11%
Cap/Sales(3y)96.7%
Cap/Sales(5y)132.28%
Profit Quality(3y)N/A
Profit Quality(5y)N/A
High Growth Momentum
Growth
EPS 1Y (TTM)-7.69%
EPS 3YN/A
EPS 5YN/A
EPS Q2Q%-50%
EPS Next Y-9.85%
EPS Next 2Y6.63%
EPS Next 3Y17.15%
EPS Next 5YN/A
Revenue 1Y (TTM)6.62%
Revenue growth 3Y9%
Revenue growth 5Y-4.82%
Sales Q2Q%7.77%
Revenue Next Year5.93%
Revenue Next 2Y4.18%
Revenue Next 3Y4.04%
Revenue Next 5YN/A
EBIT growth 1Y-5.19%
EBIT growth 3Y26.22%
EBIT growth 5Y-13.63%
EBIT Next Year239.48%
EBIT Next 3Y54.1%
EBIT Next 5YN/A
FCF growth 1Y116.34%
FCF growth 3YN/A
FCF growth 5YN/A
OCF growth 1Y25.97%
OCF growth 3Y-9.17%
OCF growth 5Y-10.5%