EQUITY LIFESTYLE PROPERTIES (ELS) Stock Fundamental Analysis
USA - New York Stock Exchange - NYSE:ELS - US29472R1086 - REIT
62.87 USD
-1.11 (-1.73%)
62.87 USD
0 (0%)
Taking everything into account, ELS scores 5 out of 10 in our fundamental rating. ELS was compared to 20 industry peers in the Residential REITs industry. While ELS belongs to the best of the industry regarding profitability, there are concerns on its financial health. ELS is valied quite expensively at the moment, while it does show a decent growth rate.
1. Profitability
1.1 Basic Checks
- In the past year ELS was profitable.
- In the past year ELS had a positive cash flow from operations.
- In the past 5 years ELS has always been profitable.
- ELS had a positive operating cash flow in each of the past 5 years.
1.2 Ratios
- ELS has a better Return On Assets (6.65%) than 90.00% of its industry peers.
- The Return On Equity of ELS (21.79%) is better than 95.00% of its industry peers.
- ELS has a better Return On Invested Capital (7.50%) than 100.00% of its industry peers.
- Measured over the past 3 years, the Average Return On Invested Capital for ELS is above the industry average of 2.59%.
- The 3 year average ROIC (6.66%) for ELS is below the current ROIC(7.50%), indicating increased profibility in the last year.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 6.65% | ||
| ROE | 21.79% | ||
| ROIC | 7.5% |
ROA(3y)5.76%
ROA(5y)5.48%
ROE(3y)20.92%
ROE(5y)19.96%
ROIC(3y)6.66%
ROIC(5y)6.48%
1.3 Margins
- ELS has a Profit Margin of 25.09%. This is in the better half of the industry: ELS outperforms 75.00% of its industry peers.
- In the last couple of years the Profit Margin of ELS has declined.
- ELS has a Operating Margin of 33.91%. This is amongst the best in the industry. ELS outperforms 100.00% of its industry peers.
- ELS's Operating Margin has been stable in the last couple of years.
- ELS has a Gross Margin of 52.99%. This is amonst the worse of the industry: ELS underperforms 85.00% of its industry peers.
- In the last couple of years the Gross Margin of ELS has remained more or less at the same level.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 33.91% | ||
| PM (TTM) | 25.09% | ||
| GM | 52.99% |
OM growth 3Y4.08%
OM growth 5Y0.27%
PM growth 3Y6.52%
PM growth 5Y-2.3%
GM growth 3Y1.58%
GM growth 5Y-0.14%
2. Health
2.1 Basic Checks
- With a Return on Invested Capital (ROIC) below the Cost of Capital (WACC), ELS is destroying value.
- Compared to 1 year ago, ELS has more shares outstanding
- ELS has more shares outstanding than it did 5 years ago.
- Compared to 1 year ago, ELS has an improved debt to assets ratio.
2.2 Solvency
- ELS has an Altman-Z score of 2.31. This is not the best score and indicates that ELS is in the grey zone with still only limited risk for bankruptcy at the moment.
- ELS's Altman-Z score of 2.31 is amongst the best of the industry. ELS outperforms 100.00% of its industry peers.
- The Debt to FCF ratio of ELS is 9.81, which is on the high side as it means it would take ELS, 9.81 years of fcf income to pay off all of its debts.
- Looking at the Debt to FCF ratio, with a value of 9.81, ELS belongs to the top of the industry, outperforming 90.00% of the companies in the same industry.
- ELS has a Debt/Equity ratio of 1.87. This is a high value indicating a heavy dependency on external financing.
- With a Debt to Equity ratio value of 1.87, ELS is not doing good in the industry: 75.00% of the companies in the same industry are doing better.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.87 | ||
| Debt/FCF | 9.81 | ||
| Altman-Z | 2.31 |
ROIC/WACC0.98
WACC7.67%
2.3 Liquidity
- A Current Ratio of 0.04 indicates that ELS may have some problems paying its short term obligations.
- The Current ratio of ELS (0.04) is worse than 90.00% of its industry peers.
- ELS has a Quick Ratio of 0.04. This is a bad value and indicates that ELS is not financially healthy enough and could expect problems in meeting its short term obligations.
- ELS's Quick ratio of 0.04 is on the low side compared to the rest of the industry. ELS is outperformed by 85.00% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 0.04 | ||
| Quick Ratio | 0.04 |
3. Growth
3.1 Past
- ELS shows a small growth in Earnings Per Share. In the last year, the EPS has grown by 1.03%.
- The Earnings Per Share has been growing slightly by 4.77% on average over the past years.
- The Revenue has been growing slightly by 1.10% in the past year.
- ELS shows quite a strong growth in Revenue. Measured over the last years, the Revenue has been growing by 8.11% yearly.
EPS 1Y (TTM)1.03%
EPS 3Y11.41%
EPS 5Y4.77%
EPS Q2Q%13.64%
Revenue 1Y (TTM)1.1%
Revenue growth 3Y4.98%
Revenue growth 5Y8.11%
Sales Q2Q%1.63%
3.2 Future
- ELS is expected to show a small growth in Earnings Per Share. In the coming years, the EPS will grow by 5.39% yearly.
- ELS is expected to show a small growth in Revenue. In the coming years, the Revenue will grow by 3.91% yearly.
EPS Next Y2.12%
EPS Next 2Y3.07%
EPS Next 3Y4.59%
EPS Next 5Y5.39%
Revenue Next Year1.11%
Revenue Next 2Y2.67%
Revenue Next 3Y2.86%
Revenue Next 5Y3.91%
3.3 Evolution
- When comparing the EPS growth rate of the last years to the growth rate of the upcoming years, we see that the growth is stable.
- When comparing the Revenue growth rate of the last years to the growth rate of the upcoming years, we see that the growth is decreasing.
4. Valuation
4.1 Price/Earnings Ratio
- The Price/Earnings ratio is 32.08, which means the current valuation is very expensive for ELS.
- ELS's Price/Earnings is on the same level as the industry average.
- ELS's Price/Earnings ratio indicates a similar valuation than the S&P500 average which is at 27.21.
- ELS is valuated quite expensively with a Price/Forward Earnings ratio of 30.35.
- Based on the Price/Forward Earnings ratio, ELS is valued cheaply inside the industry as 100.00% of the companies are valued more expensively.
- ELS's Price/Forward Earnings ratio indicates a similar valuation than the S&P500 average which is at 25.98.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 32.08 | ||
| Fwd PE | 30.35 |
4.2 Price Multiples
- Compared to the rest of the industry, the Enterprise Value to EBITDA ratio of ELS indicates a rather expensive valuation: ELS more expensive than 90.00% of the companies listed in the same industry.
- Based on the Price/Free Cash Flow ratio, ELS is valued a bit cheaper than 70.00% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 36.47 | ||
| EV/EBITDA | 21.49 |
4.3 Compensation for Growth
- The high PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates an expensive valuation of the company.
- The decent profitability rating of ELS may justify a higher PE ratio.
PEG (NY)15.11
PEG (5Y)6.73
EPS Next 2Y3.07%
EPS Next 3Y4.59%
5. Dividend
5.1 Amount
- With a Yearly Dividend Yield of 3.25%, ELS has a reasonable but not impressive dividend return.
- With a Dividend Yield of 3.25, ELS pays less dividend than the industry average, which is at 32.02. 90.00% of the companies listed in the same industry pay a better dividend than ELS!
- ELS's Dividend Yield is rather good when compared to the S&P500 average which is at 1.81.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 3.25% |
5.2 History
- The dividend of ELS is nicely growing with an annual growth rate of 8.99%!
- ELS has been paying a dividend for at least 10 years, so it has a reliable track record.
- ELS has not decreased its dividend for at least 10 years, so it has a reliable track record of non decreasing dividend.
Dividend Growth(5Y)8.99%
Div Incr Years20
Div Non Decr Years20
5.3 Sustainability
- 103.47% of the earnings are spent on dividend by ELS. This is not a sustainable payout ratio.
- The dividend of ELS is growing, but the earnings are growing slower. This means the dividend growth is not sustainable.
DP103.47%
EPS Next 2Y3.07%
EPS Next 3Y4.59%
EQUITY LIFESTYLE PROPERTIES / ELS FAQ
What is the fundamental rating for ELS stock?
ChartMill assigns a fundamental rating of 5 / 10 to ELS.
Can you provide the valuation status for EQUITY LIFESTYLE PROPERTIES?
ChartMill assigns a valuation rating of 3 / 10 to EQUITY LIFESTYLE PROPERTIES (ELS). This can be considered as Overvalued.
What is the profitability of ELS stock?
EQUITY LIFESTYLE PROPERTIES (ELS) has a profitability rating of 7 / 10.
What are the PE and PB ratios of EQUITY LIFESTYLE PROPERTIES (ELS) stock?
The Price/Earnings (PE) ratio for EQUITY LIFESTYLE PROPERTIES (ELS) is 32.08 and the Price/Book (PB) ratio is 6.95.
How sustainable is the dividend of EQUITY LIFESTYLE PROPERTIES (ELS) stock?
The dividend rating of EQUITY LIFESTYLE PROPERTIES (ELS) is 5 / 10 and the dividend payout ratio is 103.47%.