Equity Lifestyle (ELS) AI Stock Analysis

• Market Cap: $12.63B
• Dividend Yield: 3.09%
• Average Volume (3M): 1.66M
• Price to Earnings (P/E): 33.7
• Beta (1Y): 0.19
• Revenue Growth: 0.69%
• EPS Growth: 5.67%
• Country: US
• Employees: 3,800
• Sector: Real Estate
• Sector Strength: 77
• Industry: REIT - Residential
• EPS (TTM): 1.87
• Shares Outstanding: 191,142,870
• 10 Day Avg. Volume: 1,491,744
• 30 Day Avg. Volume: 1,663,905
• PEG Ratio: 5.95
• Price to Book (P/B): N/A
• Price to Sales (P/S): 8.58
• Price to Cash Flow (P/CF): 31.10
• P/FCF Ratio: 23.90
• Enterprise Value/Market Cap: N/A
• Enterprise Value/Revenue: N/A
• Enterprise Value/Gross Profit: N/A
• Enterprise Value/Ebitda: N/A
• 1Y Price Target: $74.25
• Price Target Upside: 17.75% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 8

Equity Lifestyle (ELS) demonstrates robust financial performance, particularly in revenue growth and profitability, which are major strengths. The technical analysis suggests the stock is currently under downward pressure, indicating potential risks. Valuation metrics show the stock may be overvalued, but the dividend yield offers some investor appeal. The earnings call provided a positive outlook, albeit with some operational challenges. Overall, ELS shows strong fundamentals but faces technical and valuation headwinds.

Positive Factors

Financial Performance

ELS has generated an impressive ROE/ROIC and has a proven track record of all-season/all-cycle performance due to its high-quality portfolio, predictable customer base, and strong balance sheet.

Insurance Costs

Annual insurance renewal premiums declined by -6.1% year-over-year, better than expected.

Negative Factors

Occupancy Rates

Core MH occupancy declined -50bps quarter-over-quarter to 94.4%, largely due to communities impacted by hurricanes.

Revenue Streams

There are concerns on ELS' seasonal/transient revenue streams as continued moderation in demand post-covid is coupled with an increasingly uncertain macro backdrop.

Equity Lifestyle Business Overview & Revenue Model

Company Description

We are a self-administered, self-managed real estate investment trust (REIT) with headquarters in Chicago. As of January 25, 2021, we own or have an interest in 423 quality properties in 33 states and British Columbia consisting of 161,229 sites.

How the Company Makes Money

Equity Lifestyle Properties, Inc. generates revenue primarily through the leasing of land in its manufactured home communities and RV resorts. The company earns rental income from residents who lease land for their manufactured homes, as well as from RV owners who pay fees to stay at its resorts and campgrounds. Additional revenue streams include selling membership subscriptions that provide access to a network of campgrounds and offering ancillary services such as utility provision, resort amenities, and maintenance services. ELS's revenue is further supported by strategic acquisitions and partnerships that expand its property portfolio and enhance its service offerings.

Equity Lifestyle Financial Statement Overview

Summary

Equity Lifestyle (ELS) demonstrates strong profitability and revenue growth, with impressive margins and a solid ROE. The balance sheet shows significant leverage typical for REITs, but maintains stability through a strong equity ratio. The cash flow presents some challenges due to recent reporting issues, but past trends indicate reasonable cash generation capability.

Income Statement

Equity Lifestyle (ELS) has demonstrated robust revenue growth with the latest annual revenue increasing to $1.53 billion, showing strong growth from the previous year. The company's gross profit margin stands at 63.2%, indicating efficient cost management. The net profit margin improved to 25.2%, reflecting enhanced profitability. The EBIT margin is impressive at 59.2%, and the EBITDA margin is 38.3%, highlighting strong operational performance. Overall, ELS shows solid growth and profitability metrics indicative of a well-managed company in the REIT sector.

Balance Sheet

ELS has a debt-to-equity ratio of 1.84, indicating significant leverage but within acceptable limits for a REIT. The return on equity (ROE) is strong at 22.1%, showcasing efficient use of equity to generate profits. The equity ratio stands at 30.8%, suggesting a stable capital structure with a reasonable level of assets financed by equity. Despite the high leverage, ELS maintains a solid equity base, supporting its financial stability.

Cash Flow

The cash flow analysis shows a challenge, as the operating cash flow is reported as zero in the latest period, possibly due to reporting changes or adjustments. The previous year's free cash flow was positive, demonstrating the ability to generate cash. However, the lack of current cash flow data limits the analysis. The cash flow to net income ratios from previous years indicate moderate cash conversion efficiency.

Breakdown
Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement		Total Revenue
1.53B	1.40B	1.43B	1.26B	1.08B
	Gross Profit
963.76M	672.53M	700.70M	628.18M	555.61M
	EBIT
903.22M	470.56M	407.99M	383.01M	350.95M
	EBITDA
584.56M	669.63M	615.04M	571.45M	506.08M
	Net Income Common Stockholders
384.82M	314.21M	182.26M	152.98M	122.68M
Balance Sheet		Cash, Cash Equivalents and Short-Term Investments
5.58M	4.24M	2.65M	123.40M	24.06M
	Total Assets
5.65B	5.61B	5.49B	5.31B	4.42B
	Total Debt
3.20B	3.52B	3.39B	3.27B	2.67B
	Net Debt
3.18B	3.51B	3.39B	3.15B	2.64B
	Total Liabilities
3.82B	4.12B	3.98B	3.82B	3.11B
	Stockholders Equity
1.74B	1.43B	1.45B	1.42B	1.23B
Cash Flow		Free Cash Flow
355.44M	230.92M	226.54M	304.76M	249.46M
	Operating Cash Flow
596.72M	548.00M	599.34M	595.05M	466.54M
	Investing Cash Flow
-217.84M	-324.75M	-525.59M	-914.46M	-450.38M
	Financing Cash Flow
0.00	-215.66M	-174.80M	418.74M	-20.96M

Equity Lifestyle Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 63.06
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Negative
• MACD: Positive
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For ELS, the sentiment is Negative. The current price of 63.06 is below the 20-day moving average (MA) of 64.82, below the 50-day MA of 66.08, and below the 200-day MA of 67.64, indicating a bearish trend. The MACD of -0.80 indicates Positive momentum. The RSI at 40.77 is Neutral, neither overbought nor oversold. The STOCH value of 30.51 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for ELS.

Equity Lifestyle Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
AVB	77 Outperform	$29.29B	27.09	9.10%	3.33%	4.85%	16.04%
EQR	74 Outperform	$26.82B	25.51	9.36%	3.96%	3.80%	24.08%
ELS	68 Neutral	$12.63B	33.73	22.87%	3.09%	0.69%	5.67%
SUI	66 Neutral	$15.61B	173.26	1.39%	3.07%	0.02%	-33.99%
MAA	60 Neutral	$19.12B	35.55	8.73%	3.72%	1.98%	-4.78%
UMH	60 Neutral	$1.44B	529.70	2.67%	4.92%	8.88%	―
Sector *	59 Neutral	$2.72B	11.59	0.11%	8770.69%	5.44%	-16.52%

Equity Lifestyle Corporate Events

Equity Lifestyle Reports Strong 2024 Financial Performance

In 2024, Equity LifeStyle Properties, Inc. reported strong financial performance, with a 5.9% increase in Normalized FFO per share compared to 2023. The company achieved a 6.5% growth in income from property operations, excluding property management, and expanded its portfolio by adding 736 new sites. Additionally, they closed a modification of a $500 million unsecured line of credit and launched an ATM equity offering program worth up to $700 million. The company also released its 2023-24 Sustainability Report, highlighting strategic priorities and initiatives. The Board approved a 7.9% increase in the annual dividend rate for 2025, reflecting confidence in continued growth and stability.