EQUITY LIFESTYLE PROPERTIES (ELS)
US29472R1086 - REIT
We assign a fundamental rating of 5 out of 10 to ELS. ELS was compared to 20 industry peers in the Residential REITs industry. ELS scores excellent on profitability, but there are concerns on its financial health. ELS is quite expensive at the moment. It does show a decent growth rate.
1. Profitability
1.1 Basic Checks
ELS had positive earnings in the past year.
ELS had a positive operating cash flow in the past year.
Each year in the past 5 years ELS has been profitable.
Each year in the past 5 years ELS had a positive operating cash flow.
1.2 Ratios
ELS has a better Return On Assets (6.43%) than 100.00% of its industry peers.
ELS's Return On Equity of 25.46% is amongst the best of the industry. ELS outperforms 100.00% of its industry peers.
ELS has a better Return On Invested Capital (7.04%) than 100.00% of its industry peers.
The Average Return On Invested Capital over the past 3 years for ELS is above the industry average of 2.61%.
The 3 year average ROIC (6.22%) for ELS is below the current ROIC(7.04%), indicating increased profibility in the last year.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 6.43% | ||
| ROE | 25.46% | ||
| ROIC | 7.04% |
ROA(3y)5.24%
ROA(5y)5.52%
ROE(3y)20.08%
ROE(5y)20.21%
ROIC(3y)6.22%
ROIC(5y)6.35%
1.3 Margins
Looking at the Profit Margin, with a value of 24.10%, ELS belongs to the top of the industry, outperforming 85.00% of the companies in the same industry.
In the last couple of years the Profit Margin of ELS has remained more or less at the same level.
The Operating Margin of ELS (31.54%) is better than 95.00% of its industry peers.
ELS's Operating Margin has declined in the last couple of years.
ELS's Gross Margin of 51.39% is on the low side compared to the rest of the industry. ELS is outperformed by 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 | 31.54% | ||
| PM (TTM) | 24.1% | ||
| GM | 51.39% |
OM growth 3Y-1.9%
OM growth 5Y-1.56%
PM growth 3Y0.35%
PM growth 5Y-0.53%
GM growth 3Y-0.76%
GM growth 5Y-0.61%
2. Health
2.1 Basic Checks
The Return on Invested Capital (ROIC) is below the Cost of Capital (WACC), so ELS is destroying value.
ELS has about the same amout of shares outstanding than it did 1 year ago.
ELS has more shares outstanding than it did 5 years ago.
ELS has a worse debt/assets ratio than last year.
2.2 Solvency
An Altman-Z score of 2.20 indicates that ELS is not a great score, but indicates only limited risk for bankruptcy at the moment.
Looking at the Altman-Z score, with a value of 2.20, ELS belongs to the top of the industry, outperforming 95.00% of the companies in the same industry.
ELS has a debt to FCF ratio of 9.67. This is a negative value and a sign of low solvency as ELS would need 9.67 years to pay back of all of its debts.
The Debt to FCF ratio of ELS (9.67) is better than 90.00% of its industry peers.
A Debt/Equity ratio of 2.44 is on the high side and indicates that ELS has dependencies on debt financing.
Looking at the Debt to Equity ratio, with a value of 2.44, ELS is doing worse than 80.00% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 2.44 | ||
| Debt/FCF | 9.67 | ||
| Altman-Z | 2.2 |
ROIC/WACC0.88
WACC8.03%
2.3 Liquidity
ELS has a Current Ratio of 0.06. 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 has a Current ratio of 0.06. This is amonst the worse of the industry: ELS underperforms 85.00% of its industry peers.
A Quick Ratio of 0.06 indicates that ELS may have some problems paying its short term obligations.
With a Quick ratio value of 0.06, ELS is not doing good in the industry: 80.00% of the companies in the same industry are doing better.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 0.06 | ||
| Quick Ratio | 0.06 |
3. Growth
3.1 Past
ELS shows a strong growth in Earnings Per Share. In the last year, the EPS has been growing by 22.78%, which is quite impressive.
Measured over the past 5 years, ELS shows a small growth in Earnings Per Share. The EPS has been growing by 7.39% on average per year.
The Revenue has been growing slightly by 3.08% in the past year.
ELS shows quite a strong growth in Revenue. Measured over the last years, the Revenue has been growing by 8.70% yearly.
EPS 1Y (TTM)22.78%
EPS 3Y10.06%
EPS 5Y7.39%
EPS Q2Q%7.32%
Revenue 1Y (TTM)3.08%
Revenue growth 3Y10.84%
Revenue growth 5Y8.7%
Sales Q2Q%-0.96%
3.2 Future
Based on estimates for the next years, ELS will show a small growth in Earnings Per Share. The EPS will grow by 6.70% on average per year.
ELS is expected to show a small growth in Revenue. In the coming years, the Revenue will grow by 4.45% yearly.
EPS Next Y12.52%
EPS Next 2Y8.55%
EPS Next 3Y8.66%
EPS Next 5Y6.7%
Revenue Next Year3.37%
Revenue Next 2Y4.35%
Revenue Next 3Y4.26%
Revenue Next 5Y4.45%
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
Based on the Price/Earnings ratio of 33.50, the valuation of ELS can be described as expensive.
Based on the Price/Earnings ratio, ELS is valued a bit cheaper than 65.00% of the companies in the same industry.
ELS is valuated rather expensively when we compare the Price/Earnings ratio to 27.28, which is the current average of the S&P500 Index.
A Price/Forward Earnings ratio of 32.83 indicates a quite expensive valuation of ELS.
Based on the Price/Forward Earnings ratio, ELS is valued cheaply inside the industry as 95.00% of the companies are valued more expensively.
ELS's Price/Forward Earnings ratio indicates a valuation a bit more expensive than the S&P500 average which is at 23.53.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 33.5 | ||
| Fwd PE | 32.83 |
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 80.00% of the companies listed in the same industry.
ELS's Price/Free Cash Flow ratio is a bit cheaper when compared to the industry. ELS is cheaper than 70.00% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 34.57 | ||
| EV/EBITDA | 23.17 |
4.3 Compensation for Growth
The high PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates ELS does not grow enough to justify the current Price/Earnings ratio.
The excellent profitability rating of ELS may justify a higher PE ratio.
PEG (NY)2.68
PEG (5Y)4.53
EPS Next 2Y8.55%
EPS Next 3Y8.66%
5. Dividend
5.1 Amount
ELS has a Yearly Dividend Yield of 2.90%. Purely for dividend investing, there may be better candidates out there.
With a Dividend Yield of 2.90, ELS pays less dividend than the industry average, which is at 4.33. 80.00% of the companies listed in the same industry pay a better dividend than ELS!
Compared to an average S&P500 Dividend Yield of 2.33, ELS pays a bit more dividend than the S&P500 average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 2.9% |
5.2 History
On average, the dividend of ELS grows each year by 10.13%, which is quite nice.
ELS has paid a dividend for at least 10 years, which is 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)10.13%
Div Incr Years20
Div Non Decr Years20
5.3 Sustainability
99.69% of the earnings are spent on dividend by ELS. This is not a sustainable payout ratio.
ELS's earnings are growing slower than its dividend. This means the dividend growth is not sustainable.
DP99.69%
EPS Next 2Y8.55%
EPS Next 3Y8.66%
EQUITY LIFESTYLE PROPERTIES
NYSE:ELS (1/14/2025, 8:04:00 PM)
After market: 64.99 0 (0%)64.99
-0.06 (-0.09%)
Chartmill FA Rating
GICS SectorReal Estate
GICS IndustryGroupEquity Real Estate Investment Trusts (REITs)
GICS IndustryResidential REITs
Earnings (Last)
Earnings (Next)
Inst Owners97.39%
Inst Owner Change0%
Ins Owners0.63%
Ins Owner Change-6.92%
Market Cap12.42B
Analysts73.33
Price Target74.86 (15.19%)
Short Float %2.19%
Short Ratio3.16
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 2.9% |
Dividend Growth(5Y)10.13%
DP99.69%
Div Incr Years20
Div Non Decr Years20
Ex-DateN/A
Surprises & Revisions
EPS beat(2)1
Avg EPS beat(2)7.59%
Min EPS beat(2)-1.63%
Max EPS beat(2)16.81%
EPS beat(4)3
Avg EPS beat(4)11.59%
Min EPS beat(4)-1.63%
Max EPS beat(4)19.22%
EPS beat(8)4
Avg EPS beat(8)6.78%
EPS beat(12)6
Avg EPS beat(12)5.79%
EPS beat(16)9
Avg EPS beat(16)5.55%
Revenue beat(2)1
Avg Revenue beat(2)-1.8%
Min Revenue beat(2)-4.16%
Max Revenue beat(2)0.57%
Revenue beat(4)3
Avg Revenue beat(4)-0.49%
Min Revenue beat(4)-4.16%
Max Revenue beat(4)1.55%
Revenue beat(8)3
Avg Revenue beat(8)-0.84%
Revenue beat(12)7
Avg Revenue beat(12)3.49%
Revenue beat(16)11
Avg Revenue beat(16)25.51%
PT rev (1m)-0.1%
PT rev (3m)1.66%
EPS NQ rev (1m)0%
EPS NQ rev (3m)4.76%
EPS NY rev (1m)-1.23%
EPS NY rev (3m)-0.31%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)-0.54%
Revenue NY rev (1m)0.2%
Revenue NY rev (3m)3.16%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 33.5 | ||
| Fwd PE | 32.83 | ||
| P/S | 8.25 | ||
| P/FCF | 34.57 | ||
| P/OCF | 20 | ||
| P/B | 8.71 | ||
| P/tB | 8.71 | ||
| EV/EBITDA | 23.17 |
EPS(TTM)1.94
EY2.99%
EPS(NY)1.98
Fwd EY3.05%
FCF(TTM)1.88
FCFY2.89%
OCF(TTM)3.25
OCFY5%
SpS7.88
BVpS7.46
TBVpS7.46
PEG (NY)2.68
PEG (5Y)4.53
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 6.43% | ||
| ROE | 25.46% | ||
| ROCE | 8.91% | ||
| ROIC | 7.04% | ||
| ROICexc | 7.09% | ||
| ROICexgc | 7.26% | ||
| OM | 31.54% | ||
| PM (TTM) | 24.1% | ||
| GM | 51.39% | ||
| FCFM | 23.85% |
ROA(3y)5.24%
ROA(5y)5.52%
ROE(3y)20.08%
ROE(5y)20.21%
ROIC(3y)6.22%
ROIC(5y)6.35%
ROICexc(3y)6.27%
ROICexc(5y)6.38%
ROICexgc(3y)6.43%
ROICexgc(5y)6.5%
ROCE(3y)7.87%
ROCE(5y)8.03%
ROICexcg growth 3Y0.9%
ROICexcg growth 5Y-0.29%
ROICexc growth 3Y0.53%
ROICexc growth 5Y-0.45%
OM growth 3Y-1.9%
OM growth 5Y-1.56%
PM growth 3Y0.35%
PM growth 5Y-0.53%
GM growth 3Y-0.76%
GM growth 5Y-0.61%
F-Score7
Asset Turnover0.27
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 2.44 | ||
| Debt/FCF | 9.67 | ||
| Debt/EBITDA | 5.08 | ||
| Cap/Depr | 124.78% | ||
| Cap/Sales | 17.37% | ||
| Interest Coverage | 3.4 | ||
| Cash Conversion | 90.68% | ||
| Profit Quality | 98.96% | ||
| Current Ratio | 0.06 | ||
| Quick Ratio | 0.06 | ||
| Altman-Z | 2.2 |
F-Score7
WACC8.03%
ROIC/WACC0.88
Cap/Depr(3y)243.94%
Cap/Depr(5y)261.75%
Cap/Sales(3y)35.23%
Cap/Sales(5y)38.15%
Profit Quality(3y)N/A
Profit Quality(5y)N/A
High Growth Momentum
Growth
EPS 1Y (TTM)22.78%
EPS 3Y10.06%
EPS 5Y7.39%
EPS Q2Q%7.32%
EPS Next Y12.52%
EPS Next 2Y8.55%
EPS Next 3Y8.66%
EPS Next 5Y6.7%
Revenue 1Y (TTM)3.08%
Revenue growth 3Y10.84%
Revenue growth 5Y8.7%
Sales Q2Q%-0.96%
Revenue Next Year3.37%
Revenue Next 2Y4.35%
Revenue Next 3Y4.26%
Revenue Next 5Y4.45%
EBIT growth 1Y10.52%
EBIT growth 3Y8.73%
EBIT growth 5Y7%
EBIT Next Year58.97%
EBIT Next 3Y20.3%
EBIT Next 5Y13.66%
FCF growth 1Y277.96%
FCF growth 3Y177.23%
FCF growth 5YN/A
OCF growth 1Y-1.35%
OCF growth 3Y5.51%
OCF growth 5Y5.76%