📊 ELME Key Takeaways
Is Elme Communities (ELME) a Good Investment?
Elme Communities exhibits severe operational deterioration with -$122.2M operating losses on minimal $20.7M revenue, indicating substantial write-downs or impairment charges affecting its real estate portfolio. The company cannot cover interest expenses from operations (interest coverage ratio of -14.5x) and reports negative profitability across all metrics, despite positive cash flow suggesting accounting adjustments rather than operational health.
Elme Communities shows a mixed fundamental profile: operating and net profitability are weak, but operating cash flow remains positive and leverage appears modest based on reported long-term debt. The balance sheet and margin data contain notable inconsistencies, so the company looks financially stable enough to avoid an outright bearish view, but not fundamentally strong enough to justify a bullish rating.
Elme Communities Key Strengths (ELME)
- Positive operating cash flow of $62.2M indicates some underlying cash generation
- Low leverage with Debt/Equity ratio of 0.10x provides financial flexibility
- Adequate liquidity with $39.3M cash position relative to debt obligations
- Positive operating cash flow and free cash flow generation despite reported net losses
- Low reported long-term debt relative to equity, suggesting limited balance-sheet leverage
- Large reported cash balance provides liquidity support if accurate
ELME Stock Risks: Elme Communities Investment Risks
- Catastrophic operating loss of -$122.2M with negative net income of -$22.4M indicates fundamental business deterioration
- Unable to service interest obligations from operating earnings (interest coverage ratio of -14.5x)
- Significant non-cash charges suggesting potential real estate portfolio impairments or fair value adjustments that may continue
- Abnormal margin ratios and balance sheet inconsistencies suggest accounting distress or restructuring activity
- Severely negative operating and net margins indicate weak underlying profitability
- Reported financials show major data inconsistencies, reducing confidence in ratio-based conclusions
- Liabilities remain high relative to assets and equity, which could pressure flexibility if cash flow weakens
Key Metrics to Watch
- Operating income trend and sources of non-cash charges
- Interest coverage improvement - must return to positive territory
- Real estate portfolio valuations and impairment triggers
- Sustainability of operating cash flow - verify if from operations or asset sales
- Normalized funds from operations or recurring operating cash flow
- Occupancy, rental revenue growth, and same-store NOI trend
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 |
|---|---|---|---|
| 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 |
| Q3 2023 | $54.6M | -$10.7M | $-0.12 |
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 (D) and ChatGPT (B) with 73% combined confidence, based on fundamental analysis of SEC EDGAR filings.
What are ELME's key strengths?
Claude: Positive operating cash flow of $62.2M indicates some underlying cash generation. Low leverage with Debt/Equity ratio of 0.10x provides financial flexibility. ChatGPT: Positive operating cash flow and free cash flow generation despite reported net losses. Low reported long-term debt relative to equity, suggesting limited balance-sheet leverage.
What are the risks of investing in ELME?
Claude: Catastrophic operating loss of -$122.2M with negative net income of -$22.4M indicates fundamental business deterioration. Unable to service interest obligations from operating earnings (interest coverage ratio of -14.5x). ChatGPT: Severely negative operating and net margins indicate weak underlying profitability. Reported financials show major data inconsistencies, reducing confidence in ratio-based conclusions.
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 June 2026, Elme Communities has a C grade with 73% 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).