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Elme Communities (ELMES) AI Stock Analysis

ELMES

Elme Communities

(Other OTC:ELMES)

Select Model
Rating:54Neutral
Price Target:$0.05â–²(2.04% Upside)
Action:reiterated
Date:10/29/26

The overall score is constrained by a distressed valuation, reflected in a negative P/E ratio and a likely unsustainable dividend yield due to a very low share price. Financial performance is a relative bright spot, driven by revenue growth and strong cash flows, but is undermined by persistent net losses and declining equity. Technical trends are bearish, with the stock price trading well below all major moving averages, confirming negative market sentiment.

Positive Factors
Recurring Multifamily Rental ModelElme’s ownership and operation of apartment communities provides a recurring rental-income model rather than reliance on one-time product sales. Lease-based revenue can support durable cash generation over the next several quarters when occupancy, renewals, and property-level operations remain stable.
Negative Factors
Severe 2025 Operating DeteriorationThe shift to zero reported revenue and a very large net loss in 2025 is a major deterioration from the preceding revenue-generating years. Unless the disruption or charges are reversed, this inflection threatens the durability of earnings and weakens the company’s operating foundation.

Elme Communities Key Performance Indicators (KPIs)

Multifamily Homes by Geography

0.002500.005000.007500.00Mar 22Jun 22Sep 22Dec 22Mar 23Jun 23Sep 23Dec 23Mar 24Jun 24Sep 24Dec 24Mar 25Jun 25Sep 25
Chart Insights
Data provided by:The Fly

Elme Communities (ELMES) vs. SPDR S&P 500 ETF (SPY)

-1000%0%1000%2000%3000%4000%5000%ELMES+13.95%SPY+11.79%Dec '25Jan '26Feb '26Mar '26Apr '26May '26Jun '26Jul '26Aug '26Sep '26Oct '26
Market Cap
$2.67M
Dividend Yield
33489.80%
Average Volume (3M)
1.63M
Price to Earnings (P/E)
-0.0
Beta (1Y)
0.68
Revenue Growth
―
EPS Growth
―
Country
US
Employees
255
Sector
Real Estate
Sector Strength
65
Industry
REIT - Residential

Elme Communities Business Overview & Revenue Model

Company Description

Elme Communities is a prominent owner and operator of distinctive real estate assets strategically located throughout the Washington D.C. metropolitan region. Leveraging a foundation built on decades of deep experience, specialized expertise, and for...

How the Company Makes Money

Elme Communities makes money primarily by leasing apartments in the multifamily communities it owns and operates. Its core revenue stream is residential rental income (monthly rent paid by tenants) recognized over the lease term. In addition to base...

Elme Communities Financial Statement Overview

Summary

Revenue growth and a return to operating profitability are positive, supported by strong cash flow generation and high free cash flow conversion. However, persistent net losses due to depreciation, declining shareholder equity, and negative return on equity weigh on the overall financial health, resulting in a moderately positive score.

Income Statement

68Positive

Balance Sheet

52Neutral

Cash Flow

72Positive
Financial statement breakdown
BreakdownTTMDec 2025Dec 2024Dec 2023Dec 2022Dec 2021
Income Statement
Total Revenue00241.94M227.91M209.38M169.15M
Gross Profit-53.04M-76.60M144.37M139.97M127.94M102.24M
EBITDA2.06M-44.05M120.67M66.40M85.79M85.10M
Net Income-154.16M-154.16M-13.10M-52.98M-30.87M-21.79M
Balance Sheet
Total Assets2.11B2.11B1.85B1.90B1.87B1.88B
Cash, Cash Equivalents and Short-Term Investments1.33B1.33B6.14M5.98M8.39M233.60M
Total Debt520.00M520.00M698.95M679.35M552.36M496.95M
Total Liabilities1.88B1.88B763.68M745.68M608.82M558.93M
Stockholders Equity238.91M238.91M1.08B1.15B1.26B1.32B
Cash Flow
Free Cash Flow62.18M62.24M95.03M84.26M71.47M89.11M
Operating Cash Flow62.24M62.24M95.24M84.67M73.21M89.16M
Investing Cash Flow-26.99M-26.99M-43.74M-146.22M-241.16M702.17M
Financing Cash Flow-34.97M-34.97M-51.43M60.24M-56.42M-565.40M

Elme Communities Technical Analysis

Technical Analysis SentimentNegative
Last Price0.05

Price Trends

50DMA0.07Negative
100DMA0.05Positive
200DMA0.04Positive

Market Momentum

MACD0.03Positive
RSI48.47Neutral
STOCH1.42Positive

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For ELMES, the sentiment is Negative. The current price of 0.05 is below the 20-day moving average (MA) of 0.12, below the 50-day MA of 0.07, and above the 200-day MA of 0.04, indicating a neutral trend. The MACD of 0.03 indicates Positive momentum. The RSI at 48.47 is Neutral, neither overbought nor oversold. The STOCH value of 1.42 is Positive, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for ELMES.

Elme Communities Risk Analysis

Elme Communities disclosed 29 risk factors in its most recent earnings report. Elme Communities reported the most risks in the "Finance & Corporate" category.

Higher RiskSector Avg.Lower RiskFinance & CorporateTech & InnovationLegal & RegulatoryProductionAbility to SellMacro & Political
Finance & Corporate - Financial and accounting risks. Risks related to the execution of corporate activity and strategy

Latest Risks Added

0 New Risks

Elme Communities Peers Comparison

Overall Rating

UnderperformOutperform
Sector (65)

Financial Indicators

ELMES against its peers
NameOverall RatingMarket CapP/E RatioROEDividend YieldRevenue GrowthEPS Growth
UDRUDR73Outperform$19.33B22.4816.33%4.07%1.54%310.22%
Sector *65Neutral$2.17B12.193.79%4.94%3.15%1.96%
IRTIRT61Neutral$3.56B80.171.27%4.76%3.46%51.40%
ELMESELMES54Neutral$4.43M-0.02-40.59%33489.80%――
BRTBRT50Neutral$243.94M-18.54-7.46%7.70%1.18%-39.73%
AIVAIV47Neutral$228.02M0.40134.77%317.20%-16.20%99.72%
CLPRCLPR42Neutral$52.19M-3.4738.31%11.76%-1.72%8.74%

* Real Estate Sector Average

Performance Comparison

0%1000%2000%3000%4000%ELMESAIVUDRIRTBRTCLPRDec '25Jan '26Feb '26Mar '26Apr '26May '26Jun '26Jul '26Aug '26Sep '26Oct '26
ELMES and its peers over the selected period
Show on chartTickerCompany NamePriceChange% Change
ELMESElme Communities0.050.0116.67%
AIVApartment Investment And Management1.57-1.18-42.93%
UDRUDR (UDR)35.523.059.41%
IRTIndependence Realty Trust14.72-0.59-3.85%
BRTBrt Apartments Corp.12.98-0.78-5.66%
CLPRClipper Realty Inc.3.23-0.10-2.86%
Glossary
BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.

Disclaimer

This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.

Date of analysis: Oct 29, 2026