Equity Lifestyle Properties Inc. Common Stock (ELS)

FairStock Score: 55/100 — STEADY

Key Financials

Strengths

• High return on equity of 21.9% demonstrating efficient capital deployment
• Attractive 3.5% dividend yield providing steady income returns

Concerns

• Trades significantly above Graham Number ($20) with negative 211% margin of safety—limited downside protection

AI Analysis

Equity Lifestyle Properties Inc. Common Stock is a mid-cap real estate company valued at $12.2 billion. The business generates $1.5 billion in annual revenue with a 7.0% net margin. From a quality standpoint, Equity shows Altman Z-Score of 1.8 in the grey zone and strong 22% ROE. On valuation, the stock is trading at a premium 31.6x earnings, with trades far above its Graham Number ($20) with no margin of safety. Growth dynamics show revenue growing at 3.4% and profit growth of 4.7%. The 3.5% dividend yield adds an income component for patient holders. Our composite FairStock Score of 55/100 reflects mixed fundamentals overall. Investors should weigh the business quality against the current price and their own margin of safety requirements.

Bull Case

Improving fundamentals and sector tailwinds could drive meaningful earnings growth, compressing the effective multiple for patient investors. Operational leverage in the business model means incremental revenue growth could disproportionately boost bottom-line profitability.

Bear Case

At 32x earnings, any growth disappointment triggers rapid multiple compression—a 20% earnings miss plus multiple contraction to 20x implies 40%+ downside. Sluggish 3% growth in a large-cap company leaves the stock vulnerable to de-rating if the market rotates toward higher-growth opportunities.

Data from SEC filings. AI analysis is for educational purposes only — not investment advice. Scoring methodology · Disclaimer