ELME COMMUNITIES (ELME) Stock Fundamental Analysis
NYSE:ELME - New York Stock Exchange, Inc. - US9396531017 - REIT - Currency: USD
ELME gets a fundamental rating of 3 out of 10. The analysis compared the fundamentals against 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.
1. Profitability
1.1 Basic Checks
In the past year ELME has reported negative net income.
In the past year ELME had a positive cash flow from operations.
ELME had negative earnings in 4 of the past 5 years.
ELME had a positive operating cash flow in each of the past 5 years.
1.2 Ratios
Looking at the Return On Assets, with a value of -0.79%, ELME is doing worse than 70.00% of the companies in the same industry.
The Return On Equity of ELME (-1.36%) is worse than 60.00% of its industry peers.
Looking at the Return On Invested Capital, with a value of 1.06%, ELME is doing worse than 80.00% of the companies in the same industry.
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 Rank | Sector 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%
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.
Looking at the Gross Margin, with a value of 59.88%, ELME is in the better half of the industry, outperforming 65.00% of the companies in the same industry.
In the last couple of years the Gross Margin of ELME has remained more or less at the same level.
| Industry Rank | Sector 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%
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 remains at a similar level 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.
2.2 Solvency
ELME has an Altman-Z score of 0.69. This is a bad value and indicates that ELME is not financially healthy and even has some risk of bankruptcy.
ELME's Altman-Z score of 0.69 is in line compared to the rest of the industry. ELME outperforms 45.00% of its industry peers.
The Debt to FCF ratio of ELME is 13.96, which is on the high side as it means it would take ELME, 13.96 years of fcf income to pay off all of its debts.
With a decent Debt to FCF ratio value of 13.96, ELME is doing good in the industry, outperforming 80.00% of the companies in the same industry.
ELME has a Debt/Equity ratio of 0.66. This is a neutral value indicating ELME is somewhat dependend on debt financing.
The Debt to Equity ratio of ELME (0.66) is better than 95.00% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.66 | ||
| Debt/FCF | 13.96 | ||
| Altman-Z | 0.69 |
ROIC/WACC0.15
WACC7.11%
2.3 Liquidity
A Current Ratio of 0.35 indicates that ELME may have some problems paying its short term obligations.
ELME has a Current ratio (0.35) which is in line with its industry peers.
ELME has a Quick 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 Quick ratio of 0.35 is in line compared to the rest of the industry. ELME outperforms 55.00% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 0.35 | ||
| Quick Ratio | 0.35 |
3. Growth
3.1 Past
The earnings per share for ELME have decreased by -7.69% in the last year.
ELME shows a small growth in Revenue. In the last year, the Revenue has grown by 5.31%.
ELME shows a small growth in Revenue. Measured over the last years, the Revenue has been growing by 6.49% yearly.
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
ELME is expected to show a strong growth in Earnings Per Share. In the coming years, the EPS will grow by 20.84% yearly.
The Revenue is expected to grow by 1.16% on average over the next years.
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
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 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 Rank | Sector Rank | ||
|---|---|---|---|
| PE | N/A | ||
| Fwd PE | N/A |
4.2 Price Multiples
80.00% of the companies in the same industry are more expensive than ELME, based on the Enterprise Value to EBITDA ratio.
ELME's Price/Free Cash Flow ratio is a bit cheaper when compared to the industry. ELME is cheaper than 80.00% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 26.37 | ||
| EV/EBITDA | 17.18 |
4.3 Compensation for Growth
ELME's earnings are expected to grow with 20.84% in the coming years. This may justify a more expensive valuation.
PEG (NY)N/A
PEG (5Y)N/A
EPS Next 2Y20.45%
EPS Next 3Y20.84%
5. Dividend
5.1 Amount
ELME has a Yearly Dividend Yield of 4.77%, which is a nice return.
Compared to an average industry Dividend Yield of 4.57, ELME pays a bit more dividend than its industry peers.
ELME's Dividend Yield is rather good when compared to the S&P500 average which is at 2.35.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 4.77% |
5.2 History
The dividend of ELME decreases each year by -9.47%.
ELME has paid a dividend for at least 10 years, which is 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
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%
15.11
+0.03 (+0.2%)
Chartmill FA Rating
GICS SectorReal Estate
GICS IndustryGroupEquity Real Estate Investment Trusts (REITs)
GICS IndustryResidential REITs
Earnings (Last)
Earnings (Next)
Inst Owners92.51%
Inst Owner ChangeN/A
Ins Owners1.32%
Ins Owner Change10.23%
Market Cap1.33B
Analysts74.55
Price Target18.87 (24.88%)
Short Float %2.41%
Short Ratio3.5
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 4.77% |
Yearly Dividend0.72
Dividend Growth(5Y)-9.47%
DP-440.97%
Div Incr Years2
Div Non Decr Years2
Ex-Date
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)0%
PT rev (3m)-2.63%
EPS NQ rev (1m)0%
EPS NQ rev (3m)0%
EPS NY rev (1m)0%
EPS NY rev (3m)-7.69%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)0.26%
Revenue NY rev (1m)0%
Revenue NY rev (3m)0.3%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | N/A | ||
| Fwd PE | N/A | ||
| P/S | 5.46 | ||
| P/FCF | 26.37 | ||
| P/OCF | 14.77 | ||
| P/B | 1.25 | ||
| P/tB | 1.25 | ||
| EV/EBITDA | 17.18 |
EPS(TTM)-0.14
EYN/A
EPS(NY)-0.07
Fwd EYN/A
FCF(TTM)0.57
FCFY3.79%
OCF(TTM)1.02
OCFY6.77%
SpS2.77
BVpS12.06
TBVpS12.06
PEG (NY)N/A
PEG (5Y)N/A
Profitability
| Industry Rank | Sector 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 Rank | Sector 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 | 0.69 |
F-Score4
WACC7.11%
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%