📊 ELME Key Takeaways
Is Elme Communities (ELME) a Good Investment?
Elme Communities exhibits severe operational deterioration with negative operating income ($-122.2M) and inability to cover interest obligations from operations (interest coverage of -14.5x), creating acute refinancing risk. Despite positive free cash flow, the absence of profitability across all metrics indicates fundamental business distress for a REIT dependent on stable cash generation. Material data quality issues (balance sheet non-reconciliation) further elevate analytical risk.
Elme Communities shows strong operating and free cash flow alongside modest reported long-term debt, but substantial operating and net losses indicate weak underlying profitability. The absence of growth comparisons and major accounting inconsistencies— including gross profit exceeding revenue and equity exceeding assets—make the fundamentals unreliable and warrant a cautious stance.
Elme Communities Key Strengths (ELME)
- Positive free cash flow generation of $61.9M despite operating losses
- Conservative debt/equity ratio of 0.10x provides some leverage flexibility
- Maintains $41.3M cash position for near-term liquidity needs
- Operating cash flow of $62.24M remains positive despite the net loss
- Free cash flow of $61.93M indicates strong reported cash conversion
- Long-term debt of $91.91M is modest relative to reported equity
ELME Stock Risks: Elme Communities Investment Risks
- Negative operating income of $122.2M indicates fundamental operational failure
- Negative interest coverage (-14.5x) signals inability to service debt from operations; acute refinancing risk
- Negative ROE (-2.5%) and ROA (-4.9%) demonstrate sustained shareholder value destruction
- Critical data quality issues: balance sheet assets ($460.4M) do not reconcile with liabilities ($292.8M) + equity ($887.5M)
- For REITs, operating losses suggest severe portfolio deterioration, asset impairments, or distressed properties
- Operating loss of $122.21M and negative interest coverage indicate severe earnings weakness
- Negative ROE and ROA show poor returns on the reported capital base
- Internally inconsistent financial figures and unavailable year-over-year comparisons materially reduce analytical reliability
Key Metrics to Watch
- Operating income trend and path to profitability (must return to positive)
- Interest coverage ratio stability (currently unsustainable at -14.5x)
- Operating cash flow vs. total interest expense and principal repayment obligations
- Property-level performance: occupancy rates, rental rates, NOI by property/segment
- Balance sheet reconciliation and audit findings on data quality anomalies
- Normalized funds from operations and operating cash flow
- Reconciled assets, liabilities, equity, and debt balances
Elme Communities (ELME) Financial Metrics & Key Ratios
💡 AI Analyst Insight
The 299.7% free cash flow margin provides substantial flexibility for dividends, buybacks, and strategic investments. The current ratio below 1.0x warrants monitoring of short-term liquidity.
ELME Profit Margin, ROE & Profitability Analysis
ELME vs Real Estate Sector: How Elme Communities Compares
How Elme Communities compares to Real Estate sector averages
Sector benchmarks are approximate industry averages. Actual sector performance may vary.
Is Elme Communities Stock Overvalued? ELME Valuation Analysis 2026
Based on fundamental analysis, Elme Communities has mixed fundamental signals relative to the Real Estate sector in 2026.
Note: This is a fundamental analysis based on SEC filings. For P/E ratio, price targets, and market-based valuation, consult financial data providers. This is not investment advice.
Elme Communities Balance Sheet: ELME Debt, Cash & Liquidity
ELME Revenue & Earnings Growth: 5-Year Financial Trend
5-Year Trend Summary: Elme Communities's revenue has grown significantly by 37% over the 5-year period, indicating strong business expansion. The most recent EPS of $-0.61 indicates the company is currently unprofitable.
ELME Revenue Growth, EPS Growth & YoY Performance
ELME Quarterly Earnings & Performance
| Quarter | Revenue | Net Income | EPS |
|---|---|---|---|
| Q2 2026 | $62.1M | N/A | $-0.04 |
| Q1 2026 | $61.5M | -$4.7M | $-0.05 |
| Q3 2025 | $61.1M | -$3.0M | $-0.03 |
| Q2 2025 | $60.1M | -$3.5M | $-0.04 |
| Q1 2025 | $59.5M | -$3.6M | $-0.04 |
| Q3 2024 | $56.7M | -$3.0M | $-0.03 |
| Q2 2024 | $56.6M | -$2.6M | $-0.03 |
| Q1 2024 | $55.8M | -$3.6M | $-0.04 |
Data sourced from SEC EDGAR 10-Q quarterly filings. Figures may represent quarterly or cumulative values.
Elme Communities Dividends, Buybacks & Capital Allocation
ELME SEC Filings: Latest 10-K & 10-Q Analysis
Access official SEC EDGAR filings for Elme Communities (CIK: 0000104894)
📋 Recent SEC Filings
❓ Frequently Asked Questions about ELME
What is the AI rating for ELME?
Elme Communities (ELME) has a Combined AI Grade of C from Claude (C) and ChatGPT (B) with 57% combined confidence, based on fundamental analysis of SEC EDGAR filings.
What are ELME's key strengths?
Claude: Positive free cash flow generation of $61.9M despite operating losses. Conservative debt/equity ratio of 0.10x provides some leverage flexibility. ChatGPT: Operating cash flow of $62.24M remains positive despite the net loss. Free cash flow of $61.93M indicates strong reported cash conversion.
What are the risks of investing in ELME?
Claude: Negative operating income of $122.2M indicates fundamental operational failure. Negative interest coverage (-14.5x) signals inability to service debt from operations; acute refinancing risk. ChatGPT: Operating loss of $122.21M and negative interest coverage indicate severe earnings weakness. Negative ROE and ROA show poor returns on the reported capital base.
What is ELME's revenue and growth?
Elme Communities reported revenue of $20.7M.
Does ELME pay dividends?
Elme Communities pays dividends, with $63.7M distributed to shareholders in the trailing twelve months.
Where can I find ELME SEC filings?
Official SEC filings for Elme Communities (CIK: 0000104894) including 10-K, 10-Q, and 8-K reports are available on SEC EDGAR.
What is ELME's EPS?
Elme Communities has a diluted EPS of $-0.25.
How is the AI analysis conducted?
Two independent AI systems — Claude (Anthropic) and ChatGPT (OpenAI) — analyze SEC EDGAR filings including 10-K annual reports and 10-Q quarterly reports. Each AI evaluates financial health, profitability ratios, balance sheet strength, and growth metrics. The combined grade reflects both perspectives for balanced insights.
What is ELME's fundamental grade?
Based on our AI fundamental analysis in August 2026, Elme Communities has a C grade with 57% confidence. Review the strengths and risks sections above for full context. This is not investment advice.
Is ELME stock overvalued or undervalued?
Valuation metrics for ELME: ROE of -2.5% (sector avg: 8%), net margin of -108.4% (sector avg: 20%). Compare these metrics with sector averages to assess valuation.
What is ELME's AI grade for 2026?
Our dual AI analysis gives Elme Communities a combined C grade for 2026. Revenue is data pending, with profitability at or below sector average. Always conduct your own research.
What is ELME's free cash flow?
Elme Communities's operating cash flow is $62.2M, with capital expenditures of $317.0K. FCF margin is 299.7%.
How does ELME compare to other Real Estate stocks?
Vs Real Estate sector averages: Net margin -108.4% (avg: 20%), ROE -2.5% (avg: 8%), current ratio N/A (avg: 1.5).