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ZYBERNO

Stock Report

Updated Aug 21, 2026

ELME COMMUNITIES (ELME)

Financial Services • NYSE

$1.68

Professional Investment Analysis

ZYBERNO SCORE →

Is it a great business? Is it getting better?

38.0/100

WEAK BUSINESS

ELME COMMUNITIES (ELME) scores 38/100 — weak fundamentals with mixed indicators requiring careful analysis before acting.

📊 How is the Zyberno Score calculated? +

The Zyberno Score answers one question: "Is this a quality business worth owning?" It's a 0-100 investment grade that evaluates business fundamentals across four critical dimensions, based on principles from Warren Buffett, Benjamin Graham, Peter Lynch, and Charlie Munger.

The 4 Core Categories (25 points each):

1. PROFITABILITY (25 pts)

Metrics: ROE, ROIC, Net Margin, Operating Margin
Thresholds: ROE >20% excellent • ROIC >20% excellent • Net Margin >20% excellent • Operating Margin >25% excellent

2. FINANCIAL STRENGTH (25 pts)

Metrics: Debt-to-Equity, Current Ratio, Interest Coverage, Altman Z-Score
Thresholds: D/E <0.3 excellent • Current Ratio >2.5 excellent • Interest Coverage >10x excellent • Altman Z >3.0 safe

3. CASH FLOW QUALITY (25 pts)

Metrics: Free Cash Flow, OCF vs Net Income, FCF Margin
Thresholds: Positive & growing FCF excellent • OCF/NI >1.2x excellent (cash earnings exceed accounting)

4. GROWTH & CONSISTENCY (25 pts)

Metrics: Revenue Growth, Net Income Growth, FCF Growth, Piotroski F-Score
Thresholds: Growth via log-linear regression • Piotroski 8-9 excellent, 6-7 good

Score Interpretation:

75-100

GREAT BUSINESS

65-74

GOOD BUSINESS

50-64

AVERAGE BUSINESS

30-49

WEAK BUSINESS

0-29

POOR BUSINESS

→ View full ELME quality analysis & detailed breakdown

VALUATION SIGNAL

MARGIN OF SAFETY

Is this stock cheap or expensive relative to what the business has historically generated for owners?

+80.4%

Undervalued

Growth gap unavailable — insufficient data for reverse DCF calculation.

🎯 Expected Annual Return →

56.1%

Margin of Safety convergence — your return if the market re-prices to intrinsic value (5-yr annualised)

18.9%

Yield + growth — what the business alone earns you, even if the market never re-rates

💰 How is Margin of Safety calculated? +

Margin of Safety measures how much discount or premium you're paying relative to a stock's intrinsic value. It's Benjamin Graham's core principle: the larger the margin, the lower your downside risk.

Formula: (Intrinsic Value − Current Price) ÷ Intrinsic Value × 100%

How We Calculate Intrinsic Value (DCF Method):

Step 1: Calculate current Owner Earnings (OCF − Maintenance CapEx)

Step 2: Calculate company-specific growth rate using log-linear regression on 16 quarters of Owner Earnings

Step 3: Project 10 years forward using the calculated growth rate

Step 4: Discount each year's cash flow to present value using 10% discount rate

Step 5: Calculate terminal value using 3% perpetual growth rate

Step 6: Sum all discounted cash flows = Intrinsic Value

What The Percentages Mean:

+50% or more

EXCELLENT — Very undervalued

+25% to +50%

GOOD — Attractive discount

0% to +25%

FAIR — Reasonable value

0% to -25%

CAUTION — Slight premium

-25% or worse

POOR — Overvalued

"Price is what you pay, value is what you get." — Warren Buffett

→ View full ELME valuation analysis · → View full ELME Brina Gap analysis

📈 How is Brina Gap calculated? +

Brina Gap measures the difference between the growth a business can fundamentally sustain and the growth the market is already pricing in.

Formula: Fundamental Growth Rate − Market-Implied Growth Rate

The Two Components:

Fundamental Growth Rate = ROIC × Reinvestment Rate

What the business can sustainably grow at based on how much it reinvests and what return it earns on that capital. Grounded in historical financials.

Market-Implied Growth Rate = Reverse DCF

The growth rate the current Enterprise Value implicitly assumes. Calculated by back-solving a 10-year DCF model (10% WACC, 3% terminal growth) until the present value of projected cash flows equals EV.

What The Gap Means:

Gap > +5% Market Underestimates — potential upside

+2% to +5% Slight Underestimate

-2% to +2% Fairly Priced — market consensus matches fundamentals

-5% to -2% Slight Overestimate

Gap < -5% Market Overestimates — price embeds optimism fundamentals don't support

A positive gap (market underestimates) combined with a positive Margin of Safety is the strongest combined signal — the business is both cheap historically and forward economics are stronger than the price suggests.

Critical Financial Health Indicators

Return on Equity (Profitability):CRITICAL (-15.8%)

Debt-to-Equity (Solvency Risk):EXCELLENT (0.00x)

Operating Margin (Operational Efficiency):CRITICAL (-59.2%)

Return on Capital (Capital Efficiency):CRITICAL (-10.4%)

📊 Valuation Trilogy

Three interconnected metrics for complete valuation analysis

Click any metric for full methodology and detailed analysis

Zyberno's Verdict

ELME COMMUNITIES (ELME) stock report — Zyberno Score 38/100 (WEAK BUSINESS), Margin of Safety +80.4%, 56% expected annual return. Full financial analysis on Zyberno.

According to Zyberno's DCF model, ELME COMMUNITIES (ELME) trades at $1.68 against an estimated intrinsic value per share of $8.57 — a +80.4% Margin of Safety based on Owner Earnings of $35.32M TTM, projected at 11.9% growth for 10 years with a 2.5% terminal growth rate. Zyberno's model translates this into a 5-year expected return of 56.1% annually.

Over the trailing twelve months, ELME generated $35.32M in Owner Earnings. Capital was deployed as follows: $63.71M paid as dividends, $26.93M invested in capital expenditures. Reinvestment rate: 55.9%. Owner Earnings have grown at 11.9% annually over the trailing five years using log-linear regression.

DIVISION I: EXECUTIVE SUMMARY

A. Market Valuation

Market Price & Capitalization (2)

Current Price:1.68

Market Cap:$147.99M

Valuation Multiples (3)

P/B Ratio:0.17x

P/S Ratio:0.72x

Peg Ratio:-999.00x

Enterprise Metrics (2)

Enterprise Value:$141.41M

Pfcf Ratio:4.04x

Price Action & Momentum (3)

12-1 Momentum:

-30.1% (13th pctile)

📈 Click to view full ELME Momentum analysis →

Momentum Percentile:13 / 100

% of 52-Week High:9.5%

B. Profitability Assessment

Return Metrics (5)

ROE:

-15.8%

📊 Click to view full ELME ROE analysis →

ROA:-12.7%

Roic:

-10.4%

📊 Click to view full ELME ROIC analysis →

Reinvestment Rate:55.9%

Fundamental Growth Rate (g):-5.8%

Margin Analysis (3)

Operating Margin Ttm:-59.2%

Net Margin Ttm:-74.7%

Ebitda Margin:-21.3%

TTM Performance (3)

Gross Margin Ttm:62.9%

Operating Margin Ttm:-59.2%

Net Margin Ttm:-74.7%

Yield Metrics (3)

Earnings Yield:-$108.02

Owner Earnings Yield:$24.75

Dividend Yield:44.6%

C. Log-Linear Regression Growth Trends

Earnings Surprise (SUE) (3)

Earnings Surprise (SUE):

-0.30

📊 Click to view full ELME Earnings Surprise analysis →

EPS Surprise vs Expected:-86.9%

Latest Earnings Filed:2026-02-27

Revenue Growth (Linear) (1)

Revenue Growth Rate (Linear):-11.8%

Cash Flow Growth (Linear) (2)

Free Cash Flow Growth Rate (Linear):11.8%

Operating Cash Flow Growth Rate (Linear):-23.8%

Operating Growth (Linear) (1)

Operating Income Growth Rate (Linear):72.2%

D. Financial Stability

Liquidity Ratios (3)

Current Ratio:1.57x

Quick Ratio:1.57x

Cash Ratio:0.02x

Leverage Analysis (3)

Debt To Equity Ttm:0.00x

Debt-to-Equity Ratio:0.00x

Debt To Ebitda:-999.00x

Coverage Ratios (2)

Interest Coverage Ratio:-3.82x

Times Interest Earned:-3.82

Capital Structure (4)

Working Capital:167,656,000.00

Cash And Cash Equivalents:6,587,000.00

Long Term Debt:$0.00

Net Debt:-$6.59M

DIVISION II: FINANCIAL STATEMENTS ANALYSIS

A. Income Statement Analysis

Revenue Components (2)

Revenue TTM: $206.36M

Linear Growth: -11.8%

📊 Click to view full ELME Revenue analysis & methodology →

Cost Of Revenue Ttm:$76.60M

Profitability Breakdown (2)

Gross profit TTM: $129.76M

Linear Growth: -4.2%

📊 Click to view full ELME Gross Profit analysis & methodology →

Operating income TTM: -$122.21M

Linear Growth: 72.2%

📊 Click to view full ELME Operating Income analysis & methodology →

Bottom Line Performance (3)

-$154.16M

Income Before Tax:$0.00

Ebitda Ttm:-44,046,000.00

Operating Expenses (5)

Operating Expenses:328,568,000.00

R And D Expense:0.00

Sga Expense:54,591,000.00

Income Tax Expense:$0.00

Interest Expense:31,954,000.00

Expense Ratios (3)

R And D To Revenue Percentage:0.0%

Sga To Revenue Percentage:264.2%

Ebitda Margin:-21.3%

B. Balance Sheet Analysis

Asset Composition (5)

Total Assets:$460.41M

Current Assets:$460.41M

Ppe Net:0.00

Goodwill:0.00

Intangible Assets:$0.00

Liability Structure (4)

Total Liabilities:-427,077,000.00

Current Liabilities:292,754,000.00

Long Term Debt:$0.00

Short Term Debt:$0.00

Equity & Capital (3)

Equity:$887.49M

Retained Earnings:$0.00

Common Stock:150,000,000.00

Working Capital Items (3)

Accounts Receivable:0.00

Inventory:0.00

Accounts Payable:5,098,000.00

Special Items (2)

Contract Liabilities:0.00

Stock Based Compensation:597,000.00

C. Cash Flow Analysis

Operating Activities (2)

Operating cash flow TTM: $62.24M

Linear Growth: -23.8%

Free cash flow TTM: $35.32M

Linear Growth: 11.8%

📊 Click to view full ELME Free Cash Flow analysis & methodology →

Investment Activities (2)

Investing Cash Flow:-$3.85M

Capital Expenditures Ttm:26,925,000.00

Financing Activities (3)

Financing Cash Flow:$3.06M

Dividends Paid Ttm:63,707,000.00

Stock Repurchase:0.00

Capital Transactions (3)

Common Stock Issuance:0.00

Long Term Debt Issuance:$0.00

Long Term Debt Repayments:$0.00

Non-Cash Items (1)

Depreciation Amortization Ttm:78,162,000.00

DIVISION III: OPERATIONAL METRICS

A. Per Share Analysis

Earnings Per Share (3)

EPS (Basic TTM):-1.75

-$1.75

Earnings Per Share Ttm:-$1.75

Revenue & Cash Per Share (3)

Sales Per Share Ttm:2.34

Operating Cash Flow Per Share:$0.71

Fcf Per Share Ttm:0.40

Book Value & Capital (2)

Book Value Per Share:$10.07

Cash Per Share:0.07

Dividend Policy (1)

Dividend Payout Ratio:-999.00x

B. Operational Efficiency

Asset Utilization (2)

Asset Turnover Ttm:0.17x

Working Capital Turnover Ttm:1.23x

Receivables Management (2)

Receivables Turnover Ttm:-999.00x

Days Sales Outstanding Ttm:-999.00

Inventory Management (2)

Inventory Turnover Ttm:-999.00x

Days Inventory Outstanding Ttm:-999.00

Payables & Cash Cycle (2)

Days Payable Outstanding:24.29

Cash Conversion Cycle:-2,022.29

C. Quality & Risk Metrics

Financial Quality Scores (2)

Financial Strength Score:100.00

Quality Score:55.00

Market Metrics (2)

Beta:0.00x

Volatility Category:unknown

DIVISION IV: INVESTMENT ANALYSIS

A. Value Investment Framework

Owner Earnings Analysis (3)

Owner earnings TTM: $35.32M

Linear Growth: 11.9%

📊 Click to view full ELME Owner Earnings analysis & methodology →

Owner Earnings Per Share:$0.40

Owner Earnings Yield:$24.75

Growth Assessment (1)

Owner Earnings Growth Rate:$11.88

Damodaran Growth Analysis (2)

Reinvestment Rate:55.9%

Fundamental Growth Rate (g):-5.8%

Intrinsic Value Models (1)

Intrinsic Value:

$755.27M

📊 Click to view full ELME DCF valuation →

Margin of Safety (1)

Margin Of Safety:

80.4%

📊 Click to view full ELME valuation analysis →

Return Scenarios (2)

Theoretical 5-Year Return:

56.1%

📊 Click to view full ELME expected return analysis →

Forward Expected Return (Yield + Growth):

18.9%

📊 Click to view full ELME expected return analysis →

Investment Assessment (1)

Buffett Assessment:Excellent margin of safety

B. Log-Linear Regression Growth Analysis

Growth Rates (Log-Linear Regression) (2)

Revenue Growth Rate (Linear):-11.8%

Operating Income Growth Rate (Linear):72.2%

Cash Flow Growth Rates (2)

Free Cash Flow Growth Rate (Linear):11.8%

Operating Cash Flow Growth Rate (Linear):-23.8%

Other Growth Rates (3)

Gross Profit Growth Rate (Linear):-4.2%

Book Value Growth Rate (Linear):-8.4%

Owner Earnings Growth Rate:$11.88

C. Company Profile & Context

Corporate Information (6)

Symbol:ELME

Company Name:ELME COMMUNITIES

Sector:Financial Services

Industry:Real Estate

Exchange:NYSE

Country:United States

Market Classification (3)

Market Cap Category:N/A

Price Category:low

Volume Category:N/A

Share Structure (3)

Shares Outstanding:88.09M

Shares Outstanding Basic:88.09M

Shares Outstanding Diluted:88.09M

Data Processing Info (3)

Processing Version:v3.0

Last Updated:2026-08-21 18:00:44 UTC

Data Timestamp:2026-08-19T00:57:52.098797