EQUITY LIFESTYLE PROPERTIES (ELS) Stock Fundamental Analysis
NYSE:ELS - New York Stock Exchange, Inc. - US29472R1086 - REIT - Currency: USD
We assign a fundamental rating of 5 out of 10 to ELS. ELS was compared to 20 industry peers in the Residential REITs industry. While ELS has a great profitability rating, there are quite some 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.
ELS had a positive operating cash flow in the past year.
In the past 5 years ELS has always been profitable.
ELS had a positive operating cash flow in each of the past 5 years.
1.2 Ratios
ELS's Return On Assets of 6.50% is amongst the best of the industry. ELS outperforms 100.00% of its industry peers.
ELS has a Return On Equity of 21.08%. This is amongst the best in the industry. ELS outperforms 100.00% of its industry peers.
Looking at the Return On Invested Capital, with a value of 7.27%, ELS belongs to the top of the industry, outperforming 100.00% of the companies in the same industry.
The Average Return On Invested Capital over the past 3 years for ELS is above the industry average of 2.74%.
The last Return On Invested Capital (7.27%) for ELS is above the 3 year average (6.66%), which is a sign of increasing profitability.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 6.5% | ||
| ROE | 21.08% | ||
| ROIC | 7.27% |
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 24.18% is fine compared to the rest of the industry. ELS outperforms 80.00% of its industry peers.
ELS's Profit Margin has declined in the last couple of years.
Looking at the Operating Margin, with a value of 32.61%, ELS belongs to the top of the industry, outperforming 100.00% of the companies in the same industry.
ELS's Operating Margin has been stable in the last couple of years.
The Gross Margin of ELS (52.22%) is worse than 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 | 32.61% | ||
| PM (TTM) | 24.18% | ||
| GM | 52.22% |
OM growth 3Y4.08%
OM growth 5Y0.27%
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.
ELS has more shares outstanding than it did 1 year ago.
Compared to 5 years ago, ELS has more shares outstanding
The debt/assets ratio for ELS has been reduced compared to a year ago.
2.2 Solvency
ELS has an Altman-Z score of 2.32. 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.
The Altman-Z score of ELS (2.32) is better than 100.00% of its industry peers.
The Debt to FCF ratio of ELS is 9.05, which is on the high side as it means it would take ELS, 9.05 years of fcf income to pay off all of its debts.
ELS's Debt to FCF ratio of 9.05 is amongst the best of the industry. ELS outperforms 95.00% of its industry peers.
A Debt/Equity ratio of 1.84 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 1.84, ELS is doing worse than 75.00% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.84 | ||
| Debt/FCF | 9.05 | ||
| Altman-Z | 2.32 |
ROIC/WACC0.93
WACC7.78%
2.3 Liquidity
A Current Ratio of 0.02 indicates that ELS may have some problems paying its short term obligations.
With a Current ratio value of 0.02, ELS is not doing good in the industry: 90.00% of the companies in the same industry are doing better.
A Quick Ratio of 0.02 indicates that ELS may have some problems paying its short term obligations.
Looking at the Quick ratio, with a value of 0.02, ELS is doing worse than 90.00% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 0.02 | ||
| Quick Ratio | 0.02 |
3. Growth
3.1 Past
ELS shows a strong growth in Earnings Per Share. In the last year, the EPS has been growing by 19.67%, which is quite good.
The Earnings Per Share has been growing slightly by 4.77% on average over the past years.
ELS shows a small growth in Revenue. In the last year, the Revenue has grown by 1.42%.
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)19.67%
EPS 3Y11.41%
EPS 5Y4.77%
EPS Q2Q%40.68%
Revenue 1Y (TTM)1.42%
Revenue growth 3Y4.98%
Revenue growth 5Y8.11%
Sales Q2Q%0.19%
3.2 Future
The Earnings Per Share is expected to grow by 5.72% on average over the next years.
ELS is expected to show a small growth in Revenue. In the coming years, the Revenue will grow by 4.31% yearly.
EPS Next Y1.91%
EPS Next 2Y4.79%
EPS Next 3Y6.1%
EPS Next 5Y5.72%
Revenue Next Year2.81%
Revenue Next 2Y3.34%
Revenue Next 3Y4.26%
Revenue Next 5Y4.31%
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 accelerating.
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 29.37, which means the current valuation is very expensive for ELS.
ELS's Price/Earnings ratio is rather cheap when compared to the industry. ELS is cheaper than 90.00% of the companies in the same industry.
The average S&P500 Price/Earnings ratio is at 24.21. ELS is valued slightly more expensive when compared to this.
With a Price/Forward Earnings ratio of 30.04, ELS can be considered very expensive at the moment.
Based on the Price/Forward Earnings ratio, ELS is valued cheaply inside the industry as 100.00% of the companies are valued more expensively.
When comparing the Price/Forward Earnings ratio of ELS to the average of the S&P500 Index (20.44), we can say ELS is valued slightly more expensively.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 29.37 | ||
| Fwd PE | 30.04 |
4.2 Price Multiples
ELS's Enterprise Value to EBITDA ratio is a bit more expensive when compared to the industry. ELS is more expensive than 75.00% of the companies in the same industry.
Compared to the rest of the industry, the Price/Free Cash Flow ratio of ELS indicates a somewhat cheap valuation: ELS is cheaper than 70.00% of the companies listed in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 34.72 | ||
| EV/EBITDA | 21.81 |
4.3 Compensation for Growth
The high PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates an expensive valuation of the company.
ELS has a very decent profitability rating, which may justify a higher PE ratio.
PEG (NY)15.41
PEG (5Y)6.16
EPS Next 2Y4.79%
EPS Next 3Y6.1%
5. Dividend
5.1 Amount
ELS has a Yearly Dividend Yield of 3.18%.
With a Dividend Yield of 3.18, ELS pays less dividend than the industry average, which is at 4.49. 80.00% of the companies listed in the same industry pay a better dividend than ELS!
ELS's Dividend Yield is a higher than the S&P500 average which is at 2.44.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 3.18% |
5.2 History
The dividend of ELS is nicely growing with an annual growth rate of 8.99%!
ELS has been paying a dividend for at least 10 years, so it has 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)8.99%
Div Incr Years20
Div Non Decr Years20
5.3 Sustainability
100.20% 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.
DP100.2%
EPS Next 2Y4.79%
EPS Next 3Y6.1%
64.32
+0.59 (+0.93%)
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 Change-0.73%
Ins Owners0.63%
Ins Owner Change2.57%
Market Cap12.29B
Analysts78.89
Price Target75.59 (17.52%)
Short Float %2.18%
Short Ratio2.59
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 3.18% |
Yearly Dividend1.95
Dividend Growth(5Y)8.99%
DP100.2%
Div Incr Years20
Div Non Decr Years20
Ex-Date
Surprises & Revisions
EPS beat(2)1
Avg EPS beat(2)0.45%
Min EPS beat(2)-1.63%
Max EPS beat(2)2.52%
EPS beat(4)3
Avg EPS beat(4)9.23%
Min EPS beat(4)-1.63%
Max EPS beat(4)19.22%
EPS beat(8)4
Avg EPS beat(8)3.5%
EPS beat(12)6
Avg EPS beat(12)5.33%
EPS beat(16)9
Avg EPS beat(16)5.39%
Revenue beat(2)0
Avg Revenue beat(2)-2.94%
Min Revenue beat(2)-4.16%
Max Revenue beat(2)-1.71%
Revenue beat(4)2
Avg Revenue beat(4)-0.94%
Min Revenue beat(4)-4.16%
Max Revenue beat(4)1.55%
Revenue beat(8)3
Avg Revenue beat(8)-1.01%
Revenue beat(12)6
Avg Revenue beat(12)2.1%
Revenue beat(16)10
Avg Revenue beat(16)20.04%
PT rev (1m)-0.11%
PT rev (3m)0.03%
EPS NQ rev (1m)0.13%
EPS NQ rev (3m)1.04%
EPS NY rev (1m)0.53%
EPS NY rev (3m)0.68%
Revenue NQ rev (1m)0.13%
Revenue NQ rev (3m)4.1%
Revenue NY rev (1m)-0.82%
Revenue NY rev (3m)-2.6%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 29.37 | ||
| Fwd PE | 30.04 | ||
| P/S | 8.1 | ||
| P/FCF | 34.72 | ||
| P/OCF | 20.6 | ||
| P/B | 7.06 | ||
| P/tB | 7.3 | ||
| EV/EBITDA | 21.81 |
EPS(TTM)2.19
EY3.4%
EPS(NY)2.14
Fwd EY3.33%
FCF(TTM)1.85
FCFY2.88%
OCF(TTM)3.12
OCFY4.85%
SpS7.94
BVpS9.11
TBVpS8.82
PEG (NY)15.41
PEG (5Y)6.16
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 6.5% | ||
| ROE | 21.08% | ||
| ROCE | 9.2% | ||
| ROIC | 7.27% | ||
| ROICexc | 7.3% | ||
| ROICexgc | 7.48% | ||
| OM | 32.61% | ||
| PM (TTM) | 24.18% | ||
| GM | 52.22% | ||
| FCFM | 23.33% |
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)6.86%
ROICexgc(5y)6.66%
ROCE(3y)8.44%
ROCE(5y)8.2%
ROICexcg growth 3Y6.59%
ROICexcg growth 5Y2.32%
ROICexc growth 3Y6.52%
ROICexc growth 5Y2.03%
OM growth 3Y4.08%
OM growth 5Y0.27%
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 | 1.84 | ||
| Debt/FCF | 9.05 | ||
| Debt/EBITDA | 4.55 | ||
| Cap/Depr | 115.86% | ||
| Cap/Sales | 15.98% | ||
| Interest Coverage | 3.54 | ||
| Cash Conversion | 84.71% | ||
| Profit Quality | 96.49% | ||
| Current Ratio | 0.02 | ||
| Quick Ratio | 0.02 | ||
| Altman-Z | 2.32 |
F-Score8
WACC7.78%
ROIC/WACC0.93
Cap/Depr(3y)153.33%
Cap/Depr(5y)227.34%
Cap/Sales(3y)21.7%
Cap/Sales(5y)32.72%
Profit Quality(3y)65.81%
Profit Quality(5y)N/A
High Growth Momentum
Growth
EPS 1Y (TTM)19.67%
EPS 3Y11.41%
EPS 5Y4.77%
EPS Q2Q%40.68%
EPS Next Y1.91%
EPS Next 2Y4.79%
EPS Next 3Y6.1%
EPS Next 5Y5.72%
Revenue 1Y (TTM)1.42%
Revenue growth 3Y4.98%
Revenue growth 5Y8.11%
Sales Q2Q%0.19%
Revenue Next Year2.81%
Revenue Next 2Y3.34%
Revenue Next 3Y4.26%
Revenue Next 5Y4.31%
EBIT growth 1Y11.43%
EBIT growth 3Y9.27%
EBIT growth 5Y8.4%
EBIT Next Year47.78%
EBIT Next 3Y17.63%
EBIT Next 5Y12.41%
FCF growth 1Y59.8%
FCF growth 3YN/A
FCF growth 5Y412.66%
OCF growth 1Y8.89%
OCF growth 3Y5.44%
OCF growth 5Y6.11%