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ELME COMMUNITIES (ELME) Stock Fundamental Analysis

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

15.8  -0.1 (-0.63%)

After market: 15.8 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. Both the profitability and financial health of ELME have multiple concerns. ELME has a expensive valuation and it also scores bad on growth.


Dividend Valuation Growth Profitability Health

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3

1. Profitability

1.1 Basic Checks

ELME had negative earnings in the past year.
In the past year ELME had a positive cash flow from operations.
In the past 5 years ELME reported 4 times negative net income.
Each year in the past 5 years ELME had a positive operating cash flow.
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 2024 0 200M -200M -400M

1.2 Ratios

The Return On Assets of ELME (-0.79%) is worse than 65.00% of its industry peers.
ELME has a Return On Equity of -1.36%. This is in the lower half of the industry: ELME underperforms 60.00% of its industry peers.
The Return On Invested Capital of ELME (1.06%) is worse than 80.00% of its industry peers.
Measured over the past 3 years, the Average Return On Invested Capital for ELME is in line with the industry average of 2.62%.
The 3 year average ROIC (0.82%) for ELME is below the current ROIC(1.06%), indicating increased profibility in the last year.
Industry RankSector Rank
ROA -0.79%
ROE -1.36%
ROIC 1.06%
ROA(3y)-1.73%
ROA(5y)-1%
ROE(3y)-2.77%
ROE(5y)-1.66%
ROIC(3y)0.82%
ROIC(5y)0.6%
ELME Yearly ROA, ROE, ROICELME Yearly ROA, ROE, ROICYearly ROA, ROE, ROIC 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 0 10 20

1.3 Margins

With a Operating Margin value of 9.76%, ELME is not doing good in the industry: 80.00% of the companies in the same industry are doing better.
In the last couple of years the Operating Margin of ELME has grown nicely.
ELME has a Gross Margin of 59.88%. This is in the better half 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 9.76%
PM (TTM) N/A
GM 59.88%
OM growth 3Y98.45%
OM growth 5YN/A
PM growth 3YN/A
PM growth 5YN/A
GM growth 3Y-0.4%
GM growth 5Y-0.35%
ELME Yearly Profit, Operating, Gross MarginsELME Yearly Profit, Operating, Gross MarginsYearly Profit, Operating, Gross Margins 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 0 50 100 150 200

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3

2. Health

2.1 Basic Checks

With a Return on Invested Capital (ROIC) below the Cost of Capital (WACC), ELME is destroying value.
ELME has about the same amout of shares outstanding than it did 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 2024 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 2024 500M 1B 1.5B 2B 2.5B

2.2 Solvency

ELME has an Altman-Z score of 0.74. This is a bad value and indicates that ELME is not financially healthy and even has some risk of bankruptcy.
ELME has a Altman-Z score (0.74) which is in line with its industry peers.
ELME has a debt to FCF ratio of 13.96. This is a negative value and a sign of low solvency as ELME would need 13.96 years to pay back of all of its debts.
ELME has a Debt to FCF ratio of 13.96. This is in the better half of the industry: ELME outperforms 80.00% of its industry peers.
ELME has a Debt/Equity ratio of 0.66. This is a neutral value indicating ELME is somewhat dependend on debt financing.
Looking at the Debt to Equity ratio, with a value of 0.66, ELME belongs to the top of the industry, outperforming 95.00% of the companies in the same industry.
Industry RankSector Rank
Debt/Equity 0.66
Debt/FCF 13.96
Altman-Z 0.74
ROIC/WACC0.15
WACC7.26%
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 2024 0 500M 1B

2.3 Liquidity

ELME has a Current Ratio of 0.35. This is a bad value and indicates that ELME is not financially healthy enough and could expect problems in meeting its short term obligations.
ELME's Current ratio of 0.35 is in line compared to the rest of the industry. ELME outperforms 55.00% of its industry peers.
A Quick Ratio of 0.35 indicates that ELME may have some problems paying its short term obligations.
With a Quick ratio value of 0.35, ELME perfoms like the industry average, outperforming 55.00% of the companies in the same industry.
Industry RankSector Rank
Current Ratio 0.35
Quick Ratio 0.35
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 2024 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 5.31%.
The Revenue has been growing slightly by 6.49% on average over the past years.
EPS 1Y (TTM)-7.69%
EPS 3YN/A
EPS 5YN/A
EPS Q2Q%-25%
Revenue 1Y (TTM)5.31%
Revenue growth 3Y12.66%
Revenue growth 5Y6.49%
Sales Q2Q%3.33%

3.2 Future

The Earnings Per Share is expected to grow by 20.84% on average over the next years. This is a very strong growth
ELME is expected to show a small growth in Revenue. In the coming years, the Revenue will grow by 1.16% yearly.
EPS Next Y-9.85%
EPS Next 2Y20.45%
EPS Next 3Y20.84%
EPS Next 5YN/A
Revenue Next Year3.16%
Revenue Next 2Y1.97%
Revenue Next 3Y1.16%
Revenue Next 5YN/A

3.3 Evolution

The Revenue growth rate is decreasing: in the next years the growth will be less than in the last years.
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 2027 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 2027 0 1 2 3 4

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2

4. Valuation

4.1 Price/Earnings Ratio

ELME reported negative earnings for the last year, which makes the Price/Earnings Ratio negative.
Besides the negative Price/Earnings Ratio, also the Forward Price/Earnings Ratio is negative for ELME. No positive earnings are expected for the next year.
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 -150 -200

4.2 Price Multiples

Based on the Enterprise Value to EBITDA ratio, ELME is valued cheaply inside the industry as 85.00% 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 27.57
EV/EBITDA 17.72
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 20.84% in the coming years.
PEG (NY)N/A
PEG (5Y)N/A
EPS Next 2Y20.45%
EPS Next 3Y20.84%

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5

5. Dividend

5.1 Amount

With a Yearly Dividend Yield of 4.53%, ELME is a good candidate for dividend investing.
Compared to an average industry Dividend Yield of 4.66, ELME pays a bit more dividend than its industry peers.
Compared to an average S&P500 Dividend Yield of 2.42, ELME pays a better dividend.
Industry RankSector Rank
Dividend Yield 4.53%

5.2 History

The dividend of ELME decreases each year by -9.47%.
ELME has been paying a dividend for at least 10 years, so it has a reliable track record.
ELME has decreased its dividend in the last 3 years.
Dividend Growth(5Y)-9.47%
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 2025 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-440.97%
EPS Next 2Y20.45%
EPS Next 3Y20.84%
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 2024 0 200M -200M -400M

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ELME COMMUNITIES

NYSE:ELME (6/20/2025, 8:04:00 PM)

After market: 15.8 0 (0%)

15.8

-0.1 (-0.63%)

Chartmill FA Rating
GICS SectorReal Estate
GICS IndustryGroupEquity Real Estate Investment Trusts (REITs)
GICS IndustryResidential REITs
Earnings (Last)05-01 2025-05-01/amc
Earnings (Next)07-30 2025-07-30
Inst Owners92.51%
Inst Owner ChangeN/A
Ins Owners1.32%
Ins Owner Change10.23%
Market Cap1.39B
Analysts74.55
Price Target18.87 (19.43%)
Short Float %1.77%
Short Ratio2.61
Dividend
Industry RankSector Rank
Dividend Yield 4.53%
Yearly Dividend0.72
Dividend Growth(5Y)-9.47%
DP-440.97%
Div Incr Years2
Div Non Decr Years2
Ex-Date06-17 2025-06-17 (0.18)
Surprises & Revisions
EPS beat(2)1
Avg EPS beat(2)-10.29%
Min EPS beat(2)-22.55%
Max EPS beat(2)1.96%
EPS beat(4)3
Avg EPS beat(4)-4.17%
Min EPS beat(4)-22.55%
Max EPS beat(4)1.96%
EPS beat(8)3
Avg EPS beat(8)-116.95%
EPS beat(12)4
Avg EPS beat(12)-132.11%
EPS beat(16)5
Avg EPS beat(16)-118.81%
Revenue beat(2)0
Avg Revenue beat(2)-1.11%
Min Revenue beat(2)-1.51%
Max Revenue beat(2)-0.71%
Revenue beat(4)0
Avg Revenue beat(4)-1.34%
Min Revenue beat(4)-2.39%
Max Revenue beat(4)-0.71%
Revenue beat(8)0
Avg Revenue beat(8)-1.6%
Revenue beat(12)1
Avg Revenue beat(12)-1.61%
Revenue beat(16)1
Avg Revenue beat(16)-4.68%
PT rev (1m)-2.63%
PT rev (3m)4.72%
EPS NQ rev (1m)0%
EPS NQ rev (3m)N/A
EPS NY rev (1m)-7.69%
EPS NY rev (3m)-16.67%
Revenue NQ rev (1m)0.01%
Revenue NQ rev (3m)N/A
Revenue NY rev (1m)0.3%
Revenue NY rev (3m)0.64%
Valuation
Industry RankSector Rank
PE N/A
Fwd PE N/A
P/S 5.71
P/FCF 27.57
P/OCF 15.44
P/B 1.31
P/tB 1.31
EV/EBITDA 17.72
EPS(TTM)-0.14
EYN/A
EPS(NY)-0.07
Fwd EYN/A
FCF(TTM)0.57
FCFY3.63%
OCF(TTM)1.02
OCFY6.48%
SpS2.77
BVpS12.06
TBVpS12.06
PEG (NY)N/A
PEG (5Y)N/A
Profitability
Industry RankSector Rank
ROA -0.79%
ROE -1.36%
ROCE 1.34%
ROIC 1.06%
ROICexc 1.06%
ROICexgc 1.06%
OM 9.76%
PM (TTM) N/A
GM 59.88%
FCFM 20.71%
ROA(3y)-1.73%
ROA(5y)-1%
ROE(3y)-2.77%
ROE(5y)-1.66%
ROIC(3y)0.82%
ROIC(5y)0.6%
ROICexc(3y)0.82%
ROICexc(5y)0.6%
ROICexgc(3y)0.82%
ROICexgc(5y)0.6%
ROCE(3y)1.04%
ROCE(5y)0.76%
ROICexcg growth 3Y114.94%
ROICexcg growth 5YN/A
ROICexc growth 3Y114.94%
ROICexc growth 5YN/A
OM growth 3Y98.45%
OM growth 5YN/A
PM growth 3YN/A
PM growth 5YN/A
GM growth 3Y-0.4%
GM growth 5Y-0.35%
F-Score4
Asset Turnover0.13
Health
Industry RankSector Rank
Debt/Equity 0.66
Debt/FCF 13.96
Debt/EBITDA 5.97
Cap/Depr 42.11%
Cap/Sales 16.27%
Interest Coverage 0.74
Cash Conversion 76.41%
Profit Quality N/A
Current Ratio 0.35
Quick Ratio 0.35
Altman-Z 0.74
F-Score4
WACC7.26%
ROIC/WACC0.15
Cap/Depr(3y)159.56%
Cap/Depr(5y)144.41%
Cap/Sales(3y)66.58%
Cap/Sales(5y)68.58%
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%-25%
EPS Next Y-9.85%
EPS Next 2Y20.45%
EPS Next 3Y20.84%
EPS Next 5YN/A
Revenue 1Y (TTM)5.31%
Revenue growth 3Y12.66%
Revenue growth 5Y6.49%
Sales Q2Q%3.33%
Revenue Next Year3.16%
Revenue Next 2Y1.97%
Revenue Next 3Y1.16%
Revenue Next 5YN/A
EBIT growth 1Y1.68%
EBIT growth 3Y123.58%
EBIT growth 5YN/A
EBIT Next Year283.77%
EBIT Next 3Y60.28%
EBIT Next 5YN/A
FCF growth 1Y185.49%
FCF growth 3YN/A
FCF growth 5YN/A
OCF growth 1Y11.64%
OCF growth 3Y2.21%
OCF growth 5Y-6.16%