NYSE:ELS

Stock Analysis Report

Equity LifeStyle Properties

Executive Summary

We are a self-administered, self-managed real estate investment trust (“REIT”) with headquarters in Chicago.

Rewards

Earnings grew by 32.3% over the past year

Risk Analysis

Earnings are forecast to decline by an average of -1.3% per year for the next 3 years

Unstable dividend track record

Large one-off items impacting financial results



Snowflake Analysis

Proven track record average dividend payer.


Similar Companies

Share Price & News

How has Equity LifeStyle Properties's share price performed over time and what events caused price changes?


Latest Share Price and Events

Stable Share Price: ELS has not had significant price volatility in the past 3 months.


Market Performance


7 Day Return

1.9%

ELS

1.2%

US REITs

-0.09%

US Market


1 Year Return

40.7%

ELS

19.0%

US REITs

23.9%

US Market

Return vs Industry: ELS exceeded the US REITs industry which returned 17.9% over the past year.

Return vs Market: ELS exceeded the US Market which returned 24.7% over the past year.


Shareholder returns

ELSIndustryMarket
7 Day1.9%1.2%-0.09%
30 Day3.8%4.6%3.1%
90 Day4.3%1.5%10.4%
1 Year43.5%40.7%23.9%19.0%26.6%23.9%
3 Year107.5%94.1%37.5%20.1%50.9%41.2%
5 Year194.8%162.5%48.7%18.0%78.1%58.5%

Price Volatility Vs. Market

How volatile is Equity LifeStyle Properties's share price compared to the market and industry in the last 5 years?


Simply Wall St News

Valuation

Is Equity LifeStyle Properties undervalued compared to its fair value and its price relative to the market?

47.18x

Price to Earnings (PE) ratio


Share Price vs. Fair Value

Below Fair Value: ELS ($70.59) is trading above our estimate of fair value ($53.7)

Significantly Below Fair Value: ELS is trading above our estimate of fair value.


Price To Earnings Ratio

PE vs Industry: ELS is poor value based on its PE Ratio (46.4x) compared to the REITs industry average (37.8x).

PE vs Market: ELS is poor value based on its PE Ratio (46.4x) compared to the US market (18.9x).


Price to Earnings Growth Ratio

PEG Ratio: ELS's earnings are forecast to decline next year, so we can't calculate its PEG ratio.


Price to Book Ratio

PB vs Industry: ELS is overvalued based on its PB Ratio (10.3x) compared to the US REITs industry average (2x).


Next Steps

Future Growth

How is Equity LifeStyle Properties forecast to perform in the next 1 to 3 years based on estimates from 3 analysts?

-1.3%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: ELS's earnings are forecast to decline over the next 3 years (-1.3% per year).

Earnings vs Market: ELS's earnings are forecast to decline over the next 3 years (-1.3% per year).

High Growth Earnings: ELS's earnings are forecast to decline over the next 3 years.

Revenue vs Market: ELS's revenue (3.4% per year) is forecast to grow slower than the US market (7.5% per year).

High Growth Revenue: ELS's revenue (3.4% per year) is forecast to grow slower than 20% per year.


Earnings per Share Growth Forecasts


Future Return on Equity

Future ROE: Insufficient data to determine if ELS's Return on Equity is forecast to be high in 3 years time


Next Steps

Past Performance

How has Equity LifeStyle Properties performed over the past 5 years?

17.9%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: ELS has a large one-off gain of $49.9M impacting its September 30 2019 financial results.

Growing Profit Margin: ELS's current net profit margins (26.6%) are higher than last year (21.1%).


Past Earnings Growth Analysis

Earnings Trend: ELS's earnings have grown by 17.9% per year over the past 5 years.

Accelerating Growth: ELS's earnings growth over the past year (32.3%) exceeds its 5-year average (17.9% per year).

Earnings vs Industry: ELS earnings growth over the past year (32.3%) exceeded the REITs industry 8.1%.


Return on Equity

High ROE: Whilst ELS's Return on Equity (22.06%) is high, this metric is skewed due to their high level of debt.


Return on Assets


Return on Capital Employed


Next Steps

Financial Health

How is Equity LifeStyle Properties's financial position? (This company is analysed differently as a bank or financial institution)


Financial Position Analysis


Debt to Equity History and Analysis


Balance Sheet

Inventory Level: ELS has a high level of physical assets or inventory.

Debt Coverage by Assets: ELS's debt is not covered by short term assets (assets are 0x debt).


Financial Institutions Analysis

Asset Level: ELS's level of assets compared to its equity is low.

Allowance for Bad Loans: Insufficient data to determine if ELS has a sufficient allowance for bad loans.

Low Risk Liabilities: ELS reports no customer deposits, loans are made up entirely of externally borrowed funds.

Loan Level: Insufficient data to determine if ELS has an acceptable proportion of non-loan assets held.

Low Risk Deposits: ELS has advanced significantly more loans than the customer deposits it holds.

Level of Bad Loans: Insufficient data to determine if ELS has an appropriate level of bad loans.


Next Steps

Dividend

What is Equity LifeStyle Properties's current dividend yield, its reliability and sustainability?

1.91%

Current Dividend Yield


Dividend Yield vs Market

company1.9%marketbottom25%1.4%markettop25%3.7%industryaverage3.6%forecastin3Years2.0%

Current dividend yield vs market & industry

Notable Dividend: ELS's dividend (1.94%) is higher than the bottom 25% of dividend payers in the US market (1.4%).

High Dividend: ELS's dividend (1.94%) is low compared to the top 25% of dividend payers in the US market (3.66%).


Stability and Growth of Payments

Stable Dividend: ELS's dividend payments have been volatile in the past 10 years.

Growing Dividend: ELS's dividend payments have increased over the past 10 years.


Current Payout to Shareholders

Dividend Coverage: With its reasonable payout ratio (52.8%), ELS's dividend payments are covered by earnings.


Future Payout to Shareholders

Future Dividend Coverage: ELS's dividends in 3 years are forecast to be thoroughly covered by earnings (0.3% payout ratio).


Next Steps

Management

What is the CEO of Equity LifeStyle Properties's salary, the management and board of directors tenure and is there insider trading?

6.9yrs

Average management tenure


CEO

Marguerite Nader (50yo)

6.9yrs

Tenure

US$4,157,015

Compensation

Mrs. Marguerite M. Nader has been the President of Equity LifeStyle Properties, Inc. since May 10, 2012 and has been its Chief Executive Officer since February 1, 2013. Previously, Mrs. Nader served as the ...


CEO Compensation Analysis

Compensation vs Market: Marguerite's total compensation ($USD4.16M) is below average for companies of similar size in the US market ($USD10.76M).

Compensation vs Earnings: Marguerite's compensation has increased by more than 20% in the past year.


Management Age and Tenure

6.9yrs

Average Tenure

50yo

Average Age

Experienced Management: ELS's management team is seasoned and experienced (6.9 years average tenure).


Board Age and Tenure

6.9yrs

Average Tenure

57yo

Average Age

Experienced Board: ELS's board of directors are considered experienced (6.9 years average tenure).


Insider Trading

Insider Buying: ELS insiders have only sold shares in the past 3 months.


Recent Insider Transactions

SellUS$1,282,80412 Dec 19
Patrick Waite
EntityIndividual
Role
Chief Operating Officer
Executive VP & COO
Shares18,000
Max PriceUS$72.17
SellUS$1,599,67010 Dec 19
Marguerite Nader
EntityIndividual
Role
Chief Executive Officer
President
Shares22,000
Max PriceUS$73.04
SellUS$873,62205 Aug 19
Paul Seavey
EntityIndividual
Role
Chief Financial Officer
Executive VP
Shares14,000
Max PriceUS$62.40
SellUS$1,250,01801 Aug 19
Roger Maynard
EntityIndividual
Role
Chief Investment Officer
Executive Vice President of Investments
Shares20,000
Max PriceUS$62.59
SellUS$694,52405 Feb 19
David Contis
EntityIndividual
Role
Member of the Board of Directors
Independent Director
Shares13,162
Max PriceUS$52.77

Ownership Breakdown

Dilution of Shares: Shareholders have not been meaningfully diluted in the past year.


Management Team

  • Roger Maynard (61yo)

    Executive Vice President of Investments

    • Tenure: 3.8yrs
    • Compensation: US$2.31m
  • Marguerite Nader (50yo)

    President

    • Tenure: 6.9yrs
    • Compensation: US$4.16m
  • Paul Seavey (50yo)

    Executive VP

    • Tenure: 7.3yrs
    • Compensation: US$3.34m
  • Peter Underhill

    Senior Vice President of Revenue Management

    • Tenure: 7.5yrs
  • Jim Phillips

    Senior Vice President of Sales

    • Tenure: 7.5yrs
  • Patrick Waite (52yo)

    Executive VP & COO

    • Tenure: 6.9yrs
    • Compensation: US$3.34m
  • Larisa Drake (47yo)

    Executive VP & Chief Marketing Officer

    • Tenure: 4yrs
  • David Eldersveld

    Executive VP

    • Carmelina M. Stoklosa

      Vice President of Treasury

      • Valerie Henry (42yo)

        VP & Chief Accounting Officer

        • Tenure: 3.1yrs

      Board Members

      • Tao Huang (57yo)

        Independent Director

        • Tenure: 4.2yrs
        • Compensation: US$146.22k
      • Sheli Rosenberg (77yo)

        Lead Director

        • Tenure: 18yrs
        • Compensation: US$232.47k
      • Tom Heneghan (55yo)

        Vice Chairman of the Board

        • Tenure: 6.9yrs
        • Compensation: US$197.67k
      • Phil Calian (57yo)

        Independent Director

        • Tenure: 14.3yrs
        • Compensation: US$208.04k
      • David Contis (60yo)

        Independent Director

        • Tenure: 10.9yrs
        • Compensation: US$184.95k
      • Sam Zell (77yo)

        Chairman of the Board

        • Tenure: 24.8yrs
        • Compensation: US$4.02m
      • Scott Peppet (50yo)

        Independent Director

        • Tenure: 1.5yrs
        • Compensation: US$71.85k
      • Marguerite Nader (50yo)

        President

        • Tenure: 6.9yrs
        • Compensation: US$4.16m
      • Constance Freedman (44yo)

        Independent Director

        • Tenure: 2.3yrs
        • Compensation: US$168.05k

      Company Information

      Equity LifeStyle Properties, Inc.'s company bio, employee growth, exchange listings and data sources


      Key Information

      • Name: Equity LifeStyle Properties, Inc.
      • Ticker: ELS
      • Exchange: NYSE
      • Founded: 1992
      • Industry: Residential REITs
      • Sector: Real Estate
      • Implied Market Cap: US$13.754b
      • Market Cap: US$13.079b
      • Shares outstanding: 192.57m
      • Website: https://www.equitylifestyleproperties.com

      Number of Employees


      Location

      • Equity LifeStyle Properties, Inc.
      • Two North Riverside Plaza
      • Suite 800
      • Chicago
      • Illinois
      • 60606
      • United States

      Listings

      TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
      ELSNYSE (New York Stock Exchange)YesCommon SharesUSUSDFeb 1993
      MHVDB (Deutsche Boerse AG)YesCommon SharesDEEURFeb 1993

      Biography

      We are a self-administered, self-managed real estate investment trust (“REIT”) with headquarters in Chicago. As of October 21, 2019, we own or have an interest in 413 quality properties in 33 states and British Columbia consisting of 156,081 sites. 


      Company Analysis and Financial Data Status

      All financial data provided by Standard & Poor's Capital IQ.
      DataLast Updated (UTC time)
      Company Analysis2020/01/24 00:16
      End of Day Share Price2020/01/23 00:00
      Earnings2019/09/30
      Annual Earnings2018/12/31


      Unless specified all financial data is based on a yearly period but updated quarterly. This is known as Trailing Twelve Month (TTM) or Last Twelve Month (LTM) Data. Learn more here.