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ELME COMMUNITIES (ELME) Stock Fundamental Analysis

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

16.06  +0.05 (+0.31%)

After market: 16.06 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. ELME has a bad profitability rating. Also its financial health evaluation is rather negative. ELME does not seem to be growing, but still is valued expensively.


Dividend Valuation Growth Profitability Health

3

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.
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

ELME has a Return On Assets of -0.79%. This is in the lower half of the industry: ELME underperforms 65.00% of its industry peers.
Looking at the Return On Equity, with a value of -1.36%, ELME is doing worse than 60.00% of the companies in the same industry.
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.
ELME had an Average Return On Invested Capital over the past 3 years of 0.82%. This 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

ELME has a Operating Margin of 9.76%. This is amonst the worse of the industry: ELME underperforms 80.00% of its industry peers.
ELME's Operating Margin has improved in the last couple of years.
ELME's Gross Margin of 59.88% is fine compared to the rest of the industry. ELME outperforms 70.00% of its industry peers.
ELME's Gross Margin has been stable in the last couple of years.
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

3

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.
Compared to 1 year ago, ELME has about the same amount of shares outstanding.
ELME has more shares outstanding than it did 5 years ago.
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 0.75. 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 of 0.75. This is comparable 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.
ELME has a better Debt to FCF ratio (13.96) than 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.
ELME has a Debt to Equity ratio of 0.66. This is amongst the best in the industry. ELME outperforms 95.00% of its industry peers.
Industry RankSector Rank
Debt/Equity 0.66
Debt/FCF 13.96
Altman-Z 0.75
ROIC/WACC0.15
WACC7.31%
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 has a Current ratio (0.35) which is comparable to the rest of the industry.
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.
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

3

3. Growth

3.1 Past

The earnings per share for ELME have decreased by -7.69% in the last year.
Looking at the last year, ELME shows a small growth in Revenue. The Revenue has grown by 5.31% in the last year.
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

ELME is expected to show a strong growth in Earnings Per Share. In the coming years, the EPS will grow by 22.61% yearly.
The Revenue is expected to grow by 2.81% on average over the next years.
EPS Next Y-2%
EPS Next 2Y13.75%
EPS Next 3Y22.61%
EPS Next 5YN/A
Revenue Next Year2.84%
Revenue Next 2Y2.71%
Revenue Next 3Y2.81%
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.
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

2

4. Valuation

4.1 Price/Earnings Ratio

The Price/Earnings Ratio is negative for ELME. In the last year negative earnings were reported.
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

4.2 Price Multiples

ELME's Enterprise Value to EBITDA ratio is rather cheap when compared to the industry. ELME is cheaper than 90.00% of the companies in the same industry.
Compared to the rest of the industry, the Price/Free Cash Flow ratio of ELME indicates a somewhat cheap valuation: ELME is cheaper than 80.00% of the companies listed in the same industry.
Industry RankSector Rank
P/FCF 28.02
EV/EBITDA 17.87
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

ELME's earnings are expected to grow with 22.61% in the coming years. This may justify a more expensive valuation.
PEG (NY)N/A
PEG (5Y)N/A
EPS Next 2Y13.75%
EPS Next 3Y22.61%

5

5. Dividend

5.1 Amount

With a Yearly Dividend Yield of 4.55%, ELME is a good candidate for dividend investing.
ELME's Dividend Yield is a higher than the industry average which is at 4.56.
Compared to an average S&P500 Dividend Yield of 2.40, ELME pays a better dividend.
Industry RankSector Rank
Dividend Yield 4.55%

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.
The dividend of ELME decreased 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 2Y13.75%
EPS Next 3Y22.61%
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

ELME COMMUNITIES

NYSE:ELME (5/30/2025, 8:04:00 PM)

After market: 16.06 0 (0%)

16.06

+0.05 (+0.31%)

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 Owners94.29%
Inst Owner ChangeN/A
Ins Owners1.28%
Ins Owner Change9.02%
Market Cap1.42B
Analysts74.55
Price Target19.38 (20.67%)
Short Float %2.46%
Short Ratio3.17
Dividend
Industry RankSector Rank
Dividend Yield 4.55%
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)1.79%
PT rev (3m)11.76%
EPS NQ rev (1m)0%
EPS NQ rev (3m)N/A
EPS NY rev (1m)0%
EPS NY rev (3m)-8.33%
Revenue NQ rev (1m)0.25%
Revenue NQ rev (3m)N/A
Revenue NY rev (1m)0%
Revenue NY rev (3m)0.38%
Valuation
Industry RankSector Rank
PE N/A
Fwd PE N/A
P/S 5.8
P/FCF 28.02
P/OCF 15.7
P/B 1.33
P/tB 1.33
EV/EBITDA 17.87
EPS(TTM)-0.14
EYN/A
EPS(NY)-0.09
Fwd EYN/A
FCF(TTM)0.57
FCFY3.57%
OCF(TTM)1.02
OCFY6.37%
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 0.75
F-Score4
WACC7.31%
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-2%
EPS Next 2Y13.75%
EPS Next 3Y22.61%
EPS Next 5YN/A
Revenue 1Y (TTM)5.31%
Revenue growth 3Y12.66%
Revenue growth 5Y6.49%
Sales Q2Q%3.33%
Revenue Next Year2.84%
Revenue Next 2Y2.71%
Revenue Next 3Y2.81%
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%