📊 AI Stock Rating — Summary

In the most recent quarter ending September 2025, ELS reported revenue of approximately $373 million with a net income of $97 million, resulting in an EPS of $0.50. The company has a robust free cash flow of $251.7 million. Growth appears stable, with consistent dividend payments yearly, reflecting a commitment to returning capital to shareholders. ELS maintains significant assets totaling over $5.7 billion, against liabilities of $3.9 billion, indicating a strong equity base albeit with substantial net debt of $3.26 billion. Operating cash flow remains strong at $147 million, supporting both capital expenditures and dividends, although debt remains a key focus. Despite a lack of share buybacks, the stock's price targets, with a median of $68, suggest market confidence. Analyst forecasts suggest further upside is possible. The company is well-positioned financially, though cautious monitoring of leverage is advised.

AI Score Breakdown

Revenue Growth — Score: 6/10

Revenue growth appeared stable at $373 million this quarter. With steady performance, the main driver continues to be the robust demand for its services. Growth rates remain moderate with consistent market presence.

Profitability — Score: 8/10

With a net margin of approximately 26% and an EPS of $0.50, profitability remains high. The company demonstrates strong operational efficiency and effective cost management.

Cash Flow Quality — Score: 7/10

ELS generated free cash flow of $251.7 million with solid operating cash flow coverage, supporting capital expenditures and dividend payouts. Cash flow quality is robust, though liquidity management is crucial given the debt levels.

Leverage & Balance Sheet — Score: 5/10

The company's debt-to-equity ratio indicates higher leverage, with net debt substantial at $3.26 billion. While equity is strong, careful financial management is necessary to maintain balance sheet resilience.

Shareholder Returns — Score: 7/10

Consistent dividends and a positive price target landscape enhance shareholder returns, though past 1-year price performance data is needed for a comprehensive assessment.

Analyst Sentiment & Valuation — Score: 7/10

Price targets ranging up to $70 reflect positive analyst sentiment, suggesting the stock might be fairly valued or have potential upside. Without precise current valuation metrics, relative attractiveness remains data-limited.

⚠ AI-generated — informational only, not financial advice.