Equity Lifestyle (ELS) AI Stock Analysis

• Market Cap: $11.99B
• Dividend Yield: 3.31%
• Average Volume (3M): 1.82M
• Price to Earnings (P/E): 32.4
• Beta (1Y): 0.10
• Revenue Growth: -0.03%
• EPS Growth: 1.00%
• Country: US
• Employees: 3,800
• Sector: Real Estate
• Sector Strength: 48
• Industry: REIT - Residential
• EPS (TTM): 0.42
• Shares Outstanding: 193,789,750
• 10 Day Avg. Volume: 1,354,099
• 30 Day Avg. Volume: 1,824,865
• 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: 1.31
• Enterprise Value/Revenue: 10.39
• Enterprise Value/Gross Profit: 21.33
• Enterprise Value/Ebitda: 22.99
• 1Y Price Target: $68.15
• Price Target Upside: 15.31% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 10

• Rating: 69 Neutral
• Price Target: $66.00 ▲(11.68% Upside)

Equity Lifestyle (ELS) demonstrates strong financial performance with robust revenue growth and profitability, which is the most significant factor in the overall score. The earnings call provided a positive outlook with strategic investments supporting long-term stability. However, technical analysis indicates a bearish trend, and the high P/E ratio suggests potential overvaluation, which tempers the overall score.

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.

Guidance and Forecasts

ELS raised SSNOI guidance by +10bps, supported by lower insurance costs.

Negative Factors

Occupancy Challenges

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

RV Market Weakness

RV weakness continues to be a key theme for ELS, with worse-than-expected annual RV growth.

Equity Lifestyle Business Overview & Revenue Model

Company Description

Equity Lifestyle Properties, Inc. (ELS) is a publicly traded real estate investment trust (REIT) that specializes in owning and managing a diverse portfolio of lifestyle-oriented properties, primarily focused on manufactured home communities and recreational vehicle (RV) resorts. The company operates across the United States and Canada, providing affordable housing options and recreational spaces that cater to a variety of demographics, including retirees and families seeking leisure and seasonal living experiences.

How the Company Makes Money

Equity Lifestyle Properties generates revenue through multiple key streams, primarily from the leasing of land in its manufactured home communities and RV parks. The company charges monthly lot rents to residents, which constitute the bulk of its revenue. Additionally, ELS earns income from the sale of homes situated in its communities, as well as from rental agreements for transient RV sites. The company may also benefit from ancillary services such as utilities, storage, and amenity fees. Significant partnerships with home manufacturers and service providers can enhance its revenue potential, while the growth in demand for affordable housing and recreational living contributes positively to its earnings.

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: Negative
• Last Price: 59.10
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Negative
• MACD: Negative
• 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 59.1 is below the 20-day moving average (MA) of 60.43, below the 50-day MA of 61.15, and below the 200-day MA of 64.45, indicating a bearish trend. The MACD of -0.25 indicates Negative momentum. The RSI at 44.72 is Neutral, neither overbought nor oversold. The STOCH value of 38.09 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
AMH	75 Outperform	$13.02B	31.70	5.99%	3.19%	7.19%	15.70%
UDR	70 Outperform	$12.84B	101.59	3.74%	4.41%	2.29%	-4.89%
ELS	69 Neutral	$11.99B	32.37	23.16%	3.31%	-0.03%	1.00%
SUI	69 Neutral	$15.61B	12.33	-1.51%	6.30%	-14.17%	1097.53%
CPT	68 Neutral	$15.46B	75.97	3.30%	3.81%	0.76%	-60.70%
EQR	65 Neutral	$24.62B	24.80	9.20%	4.24%	4.49%	5.87%
Sector *	53 Neutral	$1.24B	2.91	-5.63%	5.65%	-4.33%	-90.50%

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.