Equity Lifestyle (ELS) AI Stock Analysis

• Market Cap: $12.59B
• Dividend Yield: 3.29%
• Average Volume (3M): 1.72M
• Price to Earnings (P/E): 33.6
• Beta (1Y): 0.13
• Revenue Growth: -0.03%
• EPS Growth: 1.00%
• Country: US
• Employees: 3,800
• Sector: Real Estate
• Sector Strength: 53
• Industry: REIT - Residential
• EPS (TTM): 0.42
• Shares Outstanding: 193,789,750
• 10 Day Avg. Volume: 2,253,509
• 30 Day Avg. Volume: 1,719,196
• PEG Ratio: N/A
• Price to Book (P/B): 0.00
• Price to Sales (P/S): 0.00
• P/FCF Ratio: 0.00
• Enterprise Value/Market Cap: 1.24
• Enterprise Value/Revenue: 10.39
• Enterprise Value/Gross Profit: 21.33
• Enterprise Value/Ebitda: 22.99
• 1Y Price Target: $68.15
• Price Target Upside: 10.94% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 10

• Rating: 70 Outperform
• Price Target: $68.00 ▲(10.70% Upside)

Equity Lifestyle (ELS) demonstrates strong financial performance with robust revenue growth and profitability, though cash flow reporting issues present a concern. Technical indicators suggest potential resistance, and the high P/E ratio may indicate overvaluation. The earnings call provided mixed sentiment, with strong MH portfolio performance but challenges in other segments. Overall, ELS is positioned well in the REIT industry, but investors should be cautious of valuation and market momentum.

Positive Factors

Financial Performance

ELS maintains steady MH business and attractive valuation.

Operational Efficiency

Better-than-anticipated MH revenue growth and lower-than-expected OpEx growth were key highlights.

Negative Factors

Earnings Guidance

Guidance for RV/Marina was revised lower, which is expected to draw investor focus.

Market Expectations

The market was likely expecting softness in RV/Marina, and the lowered core property operating revenue is expected to be viewed modestly negatively by the market.

Equity Lifestyle Business Overview & Revenue Model

Company Description

Equity Lifestyle Properties, Inc. (ELS) is a leading real estate investment trust (REIT) that specializes in owning and managing manufactured home communities, RV resorts, and campgrounds across North America. The company provides a wide range of lifestyle-oriented properties offering a variety of affordable, high-quality housing and recreational options for individuals seeking a unique living experience. ELS focuses on fostering vibrant communities that cater to active adults, families, and vacationers alike.

How the Company Makes Money

Equity Lifestyle Properties generates revenue primarily through leasing activities, where it earns rental income from residents of its manufactured home communities and RV resort sites. The company offers long-term leases for home sites, as well as seasonal and short-term stays in its RV and campground facilities. Additionally, ELS derives income from the sale of manufactured homes and related services, enhancing the value offered to its residents. The company also benefits from strategic partnerships and affiliations with hospitality and leisure service providers, further enhancing its revenue streams.

Equity Lifestyle Financial Statement Overview

Summary

Equity Lifestyle (ELS) presents a strong financial profile with robust revenue growth and profitability as evidenced by high margins and a strong ROE. The balance sheet reveals high leverage typical for REITs but maintains stability through a solid equity ratio. Cash flow reporting issues cloud the recent picture, but past trends indicate reasonable cash generation capability. Overall, ELS is positioned well in the REIT industry, with strengths in profitability and growth, albeit with some cash flow reporting concerns.

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
EBITDA	584.56M	669.63M	615.04M	571.45M	506.08M
Net Income	384.82M	314.21M	182.26M	152.98M	122.68M
Balance Sheet
Total Assets	5.65B	5.61B	5.49B	5.31B	4.42B
Cash, Cash Equivalents and Short-Term Investments	5.58M	4.24M	2.65M	123.40M	24.06M
Total Debt	3.23B	3.52B	3.39B	3.27B	2.67B
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	596.72M	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	-384.24M	-215.66M	-174.80M	418.74M	-20.96M

Equity Lifestyle Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 61.43
• 50DMA: Positive
• 100DMA: Negative
• 200DMA: Negative
• MACD: Negative
• RSI: Neutral
• STOCH: Negative

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For ELS, the sentiment is Positive. The current price of 61.43 is above the 20-day moving average (MA) of 60.92, below the 50-day MA of 61.74, and below the 200-day MA of 64.98, indicating a neutral trend. The MACD of -0.37 indicates Negative momentum. The RSI at 55.35 is Neutral, neither overbought nor oversold. The STOCH value of 82.81 is Negative, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for ELS.

Equity Lifestyle Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
EQR	78 Outperform	$24.09B	24.02	9.20%	4.36%	4.74%	5.87%
AMH	77 Outperform	$13.09B	31.74	5.99%	3.17%	7.19%	15.70%
ELS	70 Outperform	$12.59B	33.58	23.16%	3.29%	-0.03%	1.00%
SUI	70 Neutral	$15.87B	12.39	-1.51%	6.32%	-14.17%	1097.53%
UDR	70 Neutral	$12.77B	99.03	3.74%	4.44%	2.29%	-4.89%
Sector *	66 Neutral	€5.13B	19.00	1082.11%	5.38%	1.41%	99.06%
CPT	66 Neutral	$15.24B	73.81	3.30%	3.89%	0.56%	-73.40%

Equity Lifestyle Corporate Events

Equity Lifestyle Reports Q1 2025 Financial Growth

On May 5, 2025, Equity LifeStyle Properties, Inc. released an investor presentation highlighting its financial performance and strategic initiatives. The company reported a 6.7% increase in Normalized FFO per Common Share for Q1 2025 compared to the same period in 2024, driven by increased rental income and efficient expense management. The board approved a 7.9% increase in the annual dividend rate for 2025, reflecting confidence in sustained growth. The presentation emphasized the company’s robust portfolio performance, strategic acquisitions, and strong balance sheet, positioning it favorably within the REIT industry.