EQUITY LIFESTYLE PROPERTIES (ELS) Stock Fundamental Analysis
NYSE:ELS - New York Stock Exchange, Inc. - US29472R1086 - REIT - Currency: USD
ELS gets a fundamental rating of 5 out of 10. The analysis compared the fundamentals against 20 industry peers in the Residential REITs industry. ELS scores excellent on profitability, but 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.
ELS had positive earnings in each of the past 5 years.
ELS had a positive operating cash flow in 4 of the past 5 years.
1.2 Ratios
ELS's Return On Assets of 6.43% is amongst the best of the industry. ELS outperforms 100.00% of its industry peers.
The Return On Equity of ELS (25.46%) is better than 100.00% of its industry peers.
ELS has a Return On Invested Capital of 7.04%. This is amongst the best in the industry. ELS outperforms 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 last Return On Invested Capital (7.04%) for ELS is above the 3 year average (6.66%), which is a sign of increasing profitability.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 6.43% | ||
| ROE | 25.46% | ||
| ROIC | 7.04% |
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's Profit Margin of 24.10% is amongst the best of the industry. ELS outperforms 85.00% of its industry peers.
ELS's Profit Margin has declined in the last couple of years.
ELS has a better Operating Margin (31.54%) than 95.00% of its industry peers.
In the last couple of years the Operating Margin of ELS has remained more or less at the same level.
ELS has a Gross Margin of 51.39%. This is amonst the worse of the industry: ELS underperforms 85.00% of its industry peers.
ELS's Gross Margin has been stable in the last couple of years.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 31.54% | ||
| PM (TTM) | 24.1% | ||
| GM | 51.39% |
OM growth 3Y4.05%
OM growth 5Y0.26%
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.
The number of shares outstanding for ELS has been increased compared to 1 year ago.
Compared to 5 years ago, ELS has more shares outstanding
ELS has a better debt/assets ratio than last year.
2.2 Solvency
ELS has an Altman-Z score of 2.23. 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 2.23 is amongst the best of the industry. ELS outperforms 95.00% of its industry peers.
The Debt to FCF ratio of ELS is 9.67, which is on the high side as it means it would take ELS, 9.67 years of fcf income to pay off all of its debts.
With an excellent Debt to FCF ratio value of 9.67, ELS belongs to the best of the industry, outperforming 90.00% of the companies in the same industry.
A Debt/Equity ratio of 2.44 is on the high side and indicates that ELS has dependencies on debt financing.
ELS has a Debt to Equity ratio of 2.44. This is amonst the worse of the industry: ELS underperforms 80.00% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 2.44 | ||
| Debt/FCF | 9.67 | ||
| Altman-Z | 2.23 |
ROIC/WACC0.91
WACC7.75%
2.3 Liquidity
A Current Ratio of 0.06 indicates that ELS may have some problems paying its short term obligations.
ELS has a worse Current ratio (0.06) than 85.00% of its industry peers.
ELS has a Quick 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.
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
The Earnings Per Share has grown by an nice 16.07% over the past year.
ELS shows a small growth in Earnings Per Share. Measured over the last years, the EPS has been growing by 4.77% yearly.
The Revenue has been growing slightly by 2.51% 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)16.07%
EPS 3Y11.41%
EPS 5Y4.77%
EPS Q2Q%2.04%
Revenue 1Y (TTM)2.51%
Revenue growth 3Y4.98%
Revenue growth 5Y8.11%
Sales Q2Q%3.24%
3.2 Future
The Earnings Per Share is expected to grow by 5.05% on average over the next years.
The Revenue is expected to grow by 4.53% on average over the next years.
EPS Next Y1.13%
EPS Next 2Y3.71%
EPS Next 3Y5.16%
EPS Next 5Y5.05%
Revenue Next Year3.13%
Revenue Next 2Y2.67%
Revenue Next 3Y4.9%
Revenue Next 5Y4.53%
3.3 Evolution
The EPS growth rate is stable: in the next years the growth will be about the same than in the last years.
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
With a Price/Earnings ratio of 33.87, ELS can be considered very expensive at the moment.
Based on the Price/Earnings ratio, ELS is valued a bit cheaper than the industry average as 70.00% of the companies are valued more expensively.
ELS is valuated at similar levels of the S&P average when we compare the Price/Earnings ratio to 29.63, which is the current average of the S&P500 Index.
A Price/Forward Earnings ratio of 33.49 indicates a quite expensive valuation of ELS.
ELS's Price/Forward Earnings ratio is rather cheap when compared to the industry. ELS is cheaper than 95.00% of the companies in the same industry.
ELS's Price/Forward Earnings ratio indicates a valuation a bit more expensive than the S&P500 average which is at 22.68.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 33.87 | ||
| Fwd PE | 33.49 |
4.2 Price Multiples
Based on the Enterprise Value to EBITDA ratio, ELS is valued expensively inside the industry as 80.00% of the companies are valued cheaper.
ELS's Price/Free Cash Flow ratio is a bit cheaper when compared to the industry. ELS is cheaper than 65.00% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 35.13 | ||
| EV/EBITDA | 23.49 |
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.
ELS has a very decent profitability rating, which may justify a higher PE ratio.
PEG (NY)29.99
PEG (5Y)7.11
EPS Next 2Y3.71%
EPS Next 3Y5.16%
5. Dividend
5.1 Amount
ELS has a Yearly Dividend Yield of 3.11%. Purely for dividend investing, there may be better candidates out there.
With a Dividend Yield of 3.11, ELS pays less dividend than the industry average, which is at 4.25. 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 2.27, ELS pays a bit more dividend than the S&P500 average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 3.11% |
5.2 History
The dividend of ELS is nicely growing with an annual growth rate of 10.13%!
ELS has paid a dividend for at least 10 years, which is a reliable track record.
ELS has not decreased their dividend for at least 10 years, which is a reliable track record.
Dividend Growth(5Y)10.13%
Div Incr Years20
Div Non Decr Years20
5.3 Sustainability
ELS pays out 99.69% of its income as dividend. 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 2Y3.71%
EPS Next 3Y5.16%
66.05
-0.13 (-0.2%)
Chartmill FA Rating
GICS SectorReal Estate
GICS IndustryGroupEquity Real Estate Investment Trusts (REITs)
GICS IndustryResidential REITs
Earnings (Last)
Earnings (Next)
Inst Owners102.37%
Inst Owner Change3.1%
Ins Owners0.63%
Ins Owner Change-4.27%
Market Cap12.62B
Analysts76.47
Price Target75.65 (14.53%)
Short Float %2%
Short Ratio2.74
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 3.11% |
Yearly Dividend1.84
Dividend Growth(5Y)10.13%
DP99.69%
Div Incr Years20
Div Non Decr Years20
Ex-Date
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)0.94%
PT rev (3m)1.34%
EPS NQ rev (1m)-0.24%
EPS NQ rev (3m)0.6%
EPS NY rev (1m)-0.38%
EPS NY rev (3m)-0.64%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)0.63%
Revenue NY rev (1m)-2.1%
Revenue NY rev (3m)-1.68%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 33.87 | ||
| Fwd PE | 33.49 | ||
| P/S | 8.38 | ||
| P/FCF | 35.13 | ||
| P/OCF | 20.33 | ||
| P/B | 8.85 | ||
| P/tB | 8.85 | ||
| EV/EBITDA | 23.49 |
EPS(TTM)1.95
EY2.95%
EPS(NY)1.97
Fwd EY2.99%
FCF(TTM)1.88
FCFY2.85%
OCF(TTM)3.25
OCFY4.92%
SpS7.88
BVpS7.46
TBVpS7.46
PEG (NY)29.99
PEG (5Y)7.11
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)5.76%
ROA(5y)5.48%
ROE(3y)20.92%
ROE(5y)19.96%
ROIC(3y)6.66%
ROIC(5y)6.48%
ROICexc(3y)6.69%
ROICexc(5y)6.52%
ROICexgc(3y)6.87%
ROICexgc(5y)6.67%
ROCE(3y)8.43%
ROCE(5y)8.2%
ROICexcg growth 3Y6.72%
ROICexcg growth 5Y2.39%
ROICexc growth 3Y6.49%
ROICexc growth 5Y2.01%
OM growth 3Y4.05%
OM growth 5Y0.26%
PM growth 3Y6.52%
PM growth 5Y-2.3%
GM growth 3Y1.58%
GM growth 5Y-0.14%
F-Score8
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 | 2.23 |
F-Score8
WACC7.75%
ROIC/WACC0.91
Cap/Depr(3y)N/A
Cap/Depr(5y)N/A
Cap/Sales(3y)N/A
Cap/Sales(5y)N/A
Profit Quality(3y)N/A
Profit Quality(5y)N/A
High Growth Momentum
Growth
EPS 1Y (TTM)16.07%
EPS 3Y11.41%
EPS 5Y4.77%
EPS Q2Q%2.04%
EPS Next Y1.13%
EPS Next 2Y3.71%
EPS Next 3Y5.16%
EPS Next 5Y5.05%
Revenue 1Y (TTM)2.51%
Revenue growth 3Y4.98%
Revenue growth 5Y8.11%
Sales Q2Q%3.24%
Revenue Next Year3.13%
Revenue Next 2Y2.67%
Revenue Next 3Y4.9%
Revenue Next 5Y4.53%
EBIT growth 1Y10.52%
EBIT growth 3Y9.24%
EBIT growth 5Y8.39%
EBIT Next Year48.4%
EBIT Next 3Y16.66%
EBIT Next 5Y12.08%
FCF growth 1Y118.04%
FCF growth 3YN/A
FCF growth 5YN/A
OCF growth 1Y17.08%
OCF growth 3YN/A
OCF growth 5YN/A