Equity Lifestyle (ELS) AI Stock Analysis

• Market Cap: $12.32B
• Dividend Yield: 3.27%
• Average Volume (3M): 2.09M
• Price to Earnings (P/E): 32.0
• Beta (1Y): 0.08
• Revenue Growth: 0.55%
• EPS Growth: 2.42%
• Country: US
• Employees: 3,800
• Sector: Real Estate
• Sector Strength: 53
• Industry: REIT - Residential
• EPS (TTM): 0.50
• Shares Outstanding: 193,789,750
• 10 Day Avg. Volume: 2,249,098
• 30 Day Avg. Volume: 2,088,207
• PEG Ratio: 2.13
• Price to Book (P/B): 7.17
• Price to Sales (P/S): 8.71
• P/FCF Ratio: 35.12
• Enterprise Value/Market Cap: 1.25
• Enterprise Value/Revenue: 10.67
• Enterprise Value/Gross Profit: 21.10
• Enterprise Value/Ebitda: 21.25
• 1Y Price Target: $68.44
• Price Target Upside: 12.71% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 9

• Rating: 69 Neutral
• Price Target: $67.00 ▲(10.34% Upside)

Equity Lifestyle (ELS) demonstrates strong financial performance and profitability, which are significant strengths. However, technical indicators and valuation suggest caution due to potential overvaluation and mixed market signals. The earnings call provides positive guidance but highlights some operational challenges. Overall, ELS is a solid performer in the REIT sector, but investors should be mindful of valuation and operational risks.

Positive Factors

High Occupancy Rates

High occupancy rates in the manufactured housing portfolio indicate strong demand and stability, reducing turnover and enhancing revenue predictability.

Strategic Investments

Strategic investments in key markets support long-term growth by expanding the company's footprint in high-demand areas, potentially increasing revenue and market share.

Stable Financial Position

A stable financial position with manageable debt levels enhances financial flexibility, allowing the company to invest in growth opportunities and weather economic downturns.

Negative Factors

Challenges in RV and Marina Segments

Challenges in the RV and marina segments, including turnover and storm damage, could impact revenue stability and growth in these areas, requiring strategic adjustments.

Seasonal and Transient Revenue Decline

Declines in seasonal and transient revenue highlight potential vulnerabilities in revenue streams, necessitating diversification or enhancement strategies to mitigate impact.

Impact of Canadian Travel Patterns

Changes in Canadian travel patterns affecting Sunbelt demand could lead to reduced occupancy and revenue, requiring targeted marketing or alternative strategies to attract visitors.

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) shows strong financial performance with robust revenue growth and high profitability margins. The balance sheet indicates high leverage typical for REITs but maintains stability through a solid equity ratio. However, cash flow reporting issues present a challenge, limiting the current analysis.

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	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	1.45B	1.43B	1.40B	1.37B	1.25B	1.11B
Gross Profit	731.85M	708.01M	672.53M	644.56M	596.28M	569.54M
EBITDA	726.94M	731.57M	660.63M	622.44M	576.15M	496.55M
Net Income	367.71M	367.01M	314.21M	284.63M	262.48M	228.28M
Balance Sheet
Total Assets	5.72B	5.65B	5.61B	5.49B	5.31B	4.42B
Cash, Cash Equivalents and Short-Term Investments	9.91M	5.58M	4.24M	2.65M	94.10M	24.06M
Total Debt	3.25B	3.20B	3.52B	3.39B	3.27B	2.67B
Total Liabilities	3.91B	3.82B	4.12B	3.98B	3.82B	3.11B
Stockholders Equity	1.73B	1.74B	1.43B	1.45B	1.42B	1.23B
Cash Flow
Free Cash Flow	350.81M	355.44M	230.92M	226.54M	304.76M	249.46M
Operating Cash Flow	579.52M	596.72M	548.00M	475.81M	509.03M	417.41M
Investing Cash Flow	-270.11M	-217.84M	-324.75M	-402.07M	-828.43M	-401.25M
Financing Cash Flow	-312.07M	-384.24M	-215.66M	-174.80M	418.74M	-20.96M

Equity Lifestyle Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 60.72
• 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 60.72 is below the 20-day moving average (MA) of 62.13, below the 50-day MA of 60.84, and below the 200-day MA of 62.54, indicating a bearish trend. The MACD of 0.24 indicates Positive momentum. The RSI at 43.58 is Neutral, neither overbought nor oversold. The STOCH value of 46.26 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	―	$12.10B	29.34	5.99%	3.56%	7.19%	15.70%
SUI	―	$15.32B	11.96	-1.51%	6.50%	-14.17%	1097.53%
ELS	―	$12.32B	31.99	24.00%	3.27%	0.55%	2.42%
EQR	―	$23.47B	23.52	9.20%	4.48%	4.49%	5.87%
UDR	―	$11.61B	91.39	3.74%	4.89%	2.29%	-4.89%
CPT	―	$14.36B	70.77	3.30%	4.12%	0.76%	-60.70%
Sector *	―	$2.17B	12.19	3.79%	4.94%	3.15%	1.96%

Equity Lifestyle Corporate Events

Equity LifeStyle Properties Reports Strong Q3 2025 Results

Equity LifeStyle Properties, Inc. is a self-administered, self-managed real estate investment trust (REIT) headquartered in Chicago, specializing in owning and operating manufactured home communities, RV resorts, and campgrounds across the United States and British Columbia.