Elme Communities EBITDA vs. Return On Equity

ELME Stock  USD 16.94  0.01  0.06%   
Based on Elme Communities' profitability indicators, Elme Communities may not be well positioned to generate adequate gross income at this time. It has a very high probability of underperforming in December. Profitability indicators assess Elme Communities' ability to earn profits and add value for shareholders.
 
EBITDA  
First Reported
2010-12-31
Previous Quarter
66.4 M
Current Value
112.1 M
Quarterly Volatility
52.4 M
 
Credit Downgrade
 
Yuan Drop
 
Covid
At present, Elme Communities' Days Sales Outstanding is projected to decrease significantly based on the last few years of reporting. The current year's Operating Cash Flow Sales Ratio is expected to grow to 0.51, whereas EV To Sales is forecasted to decline to 8.14. At present, Elme Communities' Net Income Per E B T is projected to increase significantly based on the last few years of reporting.
Current ValueLast YearChange From Last Year 10 Year Trend
Gross Profit Margin0.70.6142
Fairly Up
Slightly volatile
For Elme Communities profitability analysis, we use financial ratios and fundamental drivers that measure the ability of Elme Communities to generate income relative to revenue, assets, operating costs, and current equity. These fundamental indicators attest to how well Elme Communities utilizes its assets to generate profit and value for its shareholders. The profitability module also shows relationships between Elme Communities's most relevant fundamental drivers. It provides multiple suggestions of what could affect the performance of Elme Communities over time as well as its relative position and ranking within its peers.
  
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For information on how to trade Elme Stock refer to our How to Trade Elme Stock guide.
Is Multi-Family Residential REITs space expected to grow? Or is there an opportunity to expand the business' product line in the future? Factors like these will boost the valuation of Elme Communities. If investors know Elme will grow in the future, the company's valuation will be higher. The financial industry is built on trying to define current growth potential and future valuation accurately. All the valuation information about Elme Communities listed above have to be considered, but the key to understanding future value is determining which factors weigh more heavily than others.
Dividend Share
0.72
Earnings Share
(0.16)
Revenue Per Share
2.726
Quarterly Revenue Growth
0.078
Return On Assets
0.0078
The market value of Elme Communities is measured differently than its book value, which is the value of Elme that is recorded on the company's balance sheet. Investors also form their own opinion of Elme Communities' value that differs from its market value or its book value, called intrinsic value, which is Elme Communities' true underlying value. Investors use various methods to calculate intrinsic value and buy a stock when its market value falls below its intrinsic value. Because Elme Communities' market value can be influenced by many factors that don't directly affect Elme Communities' underlying business (such as a pandemic or basic market pessimism), market value can vary widely from intrinsic value.
Please note, there is a significant difference between Elme Communities' value and its price as these two are different measures arrived at by different means. Investors typically determine if Elme Communities is a good investment by looking at such factors as earnings, sales, fundamental and technical indicators, competition as well as analyst projections. However, Elme Communities' price is the amount at which it trades on the open market and represents the number that a seller and buyer find agreeable to each party.

Elme Communities Return On Equity vs. EBITDA Fundamental Analysis

Comparative valuation techniques use various fundamental indicators to help in determining Elme Communities's current stock value. Our valuation model uses many indicators to compare Elme Communities value to that of its competitors to determine the firm's financial worth.
Elme Communities is rated below average in ebitda category among its peers. It is rated below average in return on equity category among its peers . At present, Elme Communities' EBITDA is projected to increase significantly based on the last few years of reporting. Comparative valuation analysis is a catch-all technique that is used if you cannot value Elme Communities by discounting back its dividends or cash flows. It compares the stock's price multiples to nearest competition to determine if the stock is relatively undervalued or overvalued.

Elme Return On Equity vs. EBITDA

EBITDA stands for earnings before interest, taxes, depreciation, and amortization. It is a measure of a company operating cash flow based on data from the company income statement and is a very good way to compare companies within industries or across different sectors. However, unlike Operating Cash Flow, EBITDA does not include the effects of changes in working capital.

Elme Communities

EBITDA

 = 

Revenue

-

Basic Expenses

 = 
66.4 M
In a nutshell, EBITDA is calculated by adding back each of the excluded items to the post-tax profit, and can be used to compare companies with very different capital structures.
Return on Equity or ROE tells company stockholders how effectually their money is being utilized or reinvested. It is a useful ratio when analyzing company profitability or the management effectiveness given the capital invested by the shareholders. ROE shows how efficiently a company utilizes investments to generate income.

Elme Communities

Return On Equity

 = 

Net Income

Total Equity

 = 
-0.0116
For most industries, Return on Equity between 10% and 30% are considered desirable to provide dividends to owners and have funds for the future growth of the company. Investors should be very careful using ROE as the only efficiency indicator because ROE can be high if a company is heavily leveraged.

Elme Return On Equity Comparison

Elme Communities is currently under evaluation in return on equity category among its peers.

Elme Communities Profitability Projections

The most important aspect of a successful company is its ability to generate a profit. For investors in Elme Communities, profitability is also one of the essential criteria for including it into their portfolios because, without profit, Elme Communities will eventually generate negative long term returns. The profitability progress is the general direction of Elme Communities' change in net profit over the period of time. It can combine multiple indicators of Elme Communities, where stable trends show no significant progress. An accelerating trend is seen as positive, while a decreasing one is unfavorable. A rising trend means that profits are rising, and operational efficiency may be rising as well. A decreasing trend is a sign of poor performance and may indicate upcoming losses.
Last ReportedProjected for Next Year
Accumulated Other Comprehensive Income-13 M-13.6 M
Operating Income-23.1 M-21.9 M
Total Other Income Expense Net-29.9 M-31.4 M
Net Loss-53 M-50.3 M
Income Tax Expense18.8 M10.1 M
Income Before Tax-53 M-50.3 M
Net Interest Income-30.4 M-32 M
Net Loss-53 M-50.3 M
Net Loss-27.8 M-26.4 M
Non Operating Income Net Other-4.8 M-5.1 M
Change To Netincome17.7 M18.6 M
Net Loss(0.60)(0.57)
Income Quality(1.60)(1.52)
Net Income Per E B T 2.26  2.38 

Elme Profitability Driver Comparison

Profitability drivers are factors that can directly affect your investment outlook on Elme Communities. Investors often realize that things won't turn out the way they predict. There are maybe way too many unforeseen events and contingencies during the holding period of Elme Communities position where the market behavior may be hard to predict, tax policy changes, gold or oil price hikes, calamities change, and many others. The question is, are you prepared for these unexpected events? Although some of these situations are obviously beyond your control, you can still follow the important profit indicators to know where you should focus on when things like this occur. Below are some of the Elme Communities' important profitability drivers and their relationship over time.

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Our tools can tell you how much better you can do entering a position in Elme Communities without increasing your portfolio risk or giving up the expected return. As an individual investor, you need to find a reliable way to track all your investment portfolios. However, your requirements will often be based on how much of the process you decide to do yourself. In addition to allowing all investors analytical transparency into all their portfolios, our tools can evaluate risk-adjusted returns of your individual positions relative to your overall portfolio.

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Bollinger Bands

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Use Investing Themes to Complement your Elme Communities position

In addition to having Elme Communities in your portfolios, you can quickly add positions using our predefined set of ideas and optimize them against your very unique investing style. A single investing idea is a collection of funds, stocks, ETFs, or cryptocurrencies that are programmatically selected from a pull of investment themes. After you determine your investment opportunity, you can then find an optimal portfolio that will maximize potential returns on the chosen idea or minimize its exposure to market volatility.

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Junk Bonds Funds
Junk Bonds Funds Theme
Funds or Etfs that invest most of their assets into speculative (junk) bonds or to other fixed income instruments with interest rates 3 to 4 percentage points above government issues. The Junk Bonds Funds theme has 39 constituents at this time.
You can either use a buy-and-hold strategy to lock in the entire theme or actively trade it to take advantage of the short-term price volatility of individual constituents. Macroaxis can help you discover thousands of investment opportunities in different asset classes. In addition, you can partner with us for reliable portfolio optimization as you plan to utilize Junk Bonds Funds Theme or any other thematic opportunities.
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When determining whether Elme Communities is a strong investment it is important to analyze Elme Communities' competitive position within its industry, examining market share, product or service uniqueness, and competitive advantages. Beyond financials and market position, potential investors should also consider broader economic conditions, industry trends, and any regulatory or geopolitical factors that may impact Elme Communities' future performance. For an informed investment choice regarding Elme Stock, refer to the following important reports:
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For information on how to trade Elme Stock refer to our How to Trade Elme Stock guide.
You can also try the Portfolio Optimization module to compute new portfolio that will generate highest expected return given your specified tolerance for risk.
To fully project Elme Communities' future profitability, investors should examine all historical financial statements. These statements provide investors with a comprehensive snapshot of the financial position of Elme Communities at a specified time, usually calculated after every quarter, six months, or one year. Three primary documents fall into the category of financial statements. These documents include Elme Communities' income statement, its balance sheet, and the statement of cash flows.
Potential Elme Communities investors and stakeholders can use historical trends found within financial statements to determine how well the company is positioned for the future. Although Elme Communities investors may work on each financial statement separately, they are all related. The changes in Elme Communities's assets and liabilities, for example, are also reflected in the revenues and expenses that we see on Elme Communities's income statement, which results in the company's gains or losses. Cash flows can provide more information regarding cash listed on a balance sheet but not equivalent to net income shown on the income statement. Please read more on our technical analysis and fundamental analysis pages.