EQUITY LIFESTYLE PROPERTIES INC

Where It Passes

Where It Falls Short

• Debt & Leverage0% pass✗ 15▾

  All 12 investors flag ELS's debt & leverage

  LT Debt vs Net Current Assets

  ✗GrahamLT Debt <= Net Current Assets

  Debt/Equity & Interest CoverageD/E: 1.56, IC: 3.0x

  ✗BuffettD/E < 0.5 AND Interest Coverage > 5x

  Total Debt / Equity1.56

  ✗Lynch< 0.33

  Cash - Long-term Debt

  ✗LynchPositive preferred

  LT Debt / Total Assets Change56.76% -> 58.24%

  ✗PiotroskiDecreased YoY

  Current Assets / Current Liabilities

  ✗Dreman> 1.5✗SchlossCurrent ratio >= 1.50x (app cutoff)

  Total Debt / Shareholders' Equity1.56

  ✗Dreman< 0.8✗Templeton< 1.0 (fixed cap; proxy for below-sector-median leverage)✗SchlossD/E < 1.00x

  Debt Levels1.56

  ✗MungerDebt/Equity < 0.5✗AkreDebt/Equity < 0.3

  Interest Coverage & Debt/EBITDAIC=3.0x, D/EBITDA=5.6x

  ✗MarksInterest Coverage > 3x; Debt/EBITDA < 4x

  Total Debt / Shareholders Equity1.56

  ✗Ackman<= 1.0

  Negative debt-to-equity (higher means less debt)-1.5618; #3620/4210 (top 86.0%)

  ✗AsnessTop 30% of eligible cross-section
• Efficiency0% pass✗ 11▾

  All 8 investors flag ELS's efficiency

  Current Ratio

  ✗Graham>= 2.0

  ROIC (3-5 yr avg)5.4%

  ✗Buffett> 10%

  ROIC - WACC-4.6%

  ✗BuffettPositive (WACC = 10%)

  EBIT / (NWC + Net Fixed Assets)

  ✗Greenblatt> 25%

  Current Ratio Change YoY

  ✗PiotroskiIncreased YoY

  Revenue / Total Assets Change YoY0.27x -> 0.27x

  ✗PiotroskiImproved YoY

  Current Assets / Current Liabilities

  ✗Dreman> 1.5

  Return on Invested Capital7.3%

  ✗Munger> 15%

  ROIC (high and growing)FY2023: ROIC=5.1%; FY2024: ROIC=6.1%; FY2025: ROIC=6.1%

  ✗AkreLatest 3 consecutive FYs: ROIC > 15% in each

  Reinvestment Rate x ROIC0.0% (RR=0% x ROIC=7.3%)

  ✗AkreReinvestment Rate * ROIC > 10%

  ROIC (5-year)0/5 years above 12% (latest 6.1%)

  ✗SleepROIC > 12% in a majority of years
• Valuation models14% pass✓ 1✗ 6▾

  Models split on ELS at $62.12 — fair values range $14.83–$67.78

  Graham fair value$20.24

  ✗Graham-206.9% margin vs $62.12

  Lynch fair value$20.03

  ✗Lynch-210.1% margin vs $62.12

  Greenblatt fair value$14.83

  ✗Greenblatt-318.9% margin vs $62.12

  Dreman fair value$28.30

  ✗Dreman-119.5% margin vs $62.12

  Pabrai fair value$23.83

  ✗Pabrai-160.7% margin vs $62.12

  Akre fair value$67.78

  ✓Akre+8.4% margin vs $62.12

  Templeton fair value$25.86

  ✗Templeton-140.2% margin vs $62.12
• Valuation15% pass✓ 4✗ 21▾

  11 of 13 flag ELS's valuation — Graham, Lynch, Greenblatt +8 more

  Price / FFO per Share19.7x

  ✗Graham<= 15x✗Dreman< 12x✓Ackman<= 25

  Basic earnings-growth PEG (dividends excluded)3.10

  ✗Lynch< 1.0 (ideally < 0.5)

  EBIT / Enterprise Value2.5%

  ✗Greenblatt> 10%

  Earnings Yield + ROC AssessmentEY=2.5%, ROC=None

  ✗GreenblattBoth EY > 10% and ROC > 25%

  Price / (CFO / Shares)21.1x

  ✗Dreman< 8x

  Valuation ReasonablenessP/E=30.9x, OE Yield=5.1%

  ✓MungerP/E < 25 or Owner Earnings Yield > 5%

  P/FFO or FFO YieldP/FFO=19.7x, FFO Yield=4.9%

  ✗PabraiP/FFO < 15 or FFO Yield > 10%

  P/B or P/E vs. Historical AverageP/E=30.9x, P/B=6.9x

  ✗MarksP/E < 15 or P/B < 2.0

  Discount to Intrinsic Value-119.5% (IV=$28.30 vs Price=$62.12)

  ✗Marks>= 20% below intrinsic value

  Price / EPS30.9x

  ✗Templeton< 12x (fixed ceiling; proxy for the market's cheapest 40%)

  Price vs. Trailing Low106% of trailing low ($58.71)

  ✓Templeton<= 120% of trailing low (certified split-adjusted live window)

  Price / Book Value per Share6.9x

  ✗Templeton< 1.5x✗SchlossP/B <= 0.80x (app cutoff)

  Net income / market capitalization+3.23%; #2295/6340 (top 36.2%)

  ✗AsnessTop 30% of eligible cross-section✗OshaughnessyTop 10% of eligible cross-section

  Positive book equity / market capitalization+0.1399; #4527/6449 (top 70.2%)

  ✗AsnessTop 30% of eligible cross-section

  Price / Diluted EPS30.9x

  ✗NeffP/E <= 15x (app proxy for a P/E 40%-60% below the market)

  (EPS CAGR % + Dividend Yield %) / P/E0.43

  ✗Neff> 0.7 (Neff's published traditional edge)

  Price / Tangible Book Value per Share7.08x

  ✗SchlossP/TBV <= 1.00x (app cutoff)

  Book Value per Share Change+33.8%

  ✓SchlossLatest BVPS >= earliest BVPS over >= 3 years (app rule)

  Revenue / market capitalization+0.1263; #4194/5247 (top 79.9%)

  ✗OshaughnessyTop 10% of eligible cross-section

  (Operating cash flow - capex) / market capitalization

  ✗OshaughnessyTop 10% of eligible cross-section

  Trailing six-month price return through the evaluation date-3.03%; #3010/6202 (top 48.5%)

  ✗OshaughnessyTop 10% of eligible cross-section
• Verdicts17% pass✓ 2✗ 10▾

  Split decision: 10 FAIL · 4 NEUTRAL · 2 PASS

  Overall verdict

  ✗GrahamFAIL (2/7)✗BuffettFAIL (3/9)✗LynchFAIL (4/7)•GreenblattNot ranked✓PiotroskiPASS (F-Score 4)✗DremanFAIL (2/10)✓MungerPASS (2/4)✗PabraiFAIL (0/3)✗AkreFAIL (1/6)✗MarksFAIL (2/5)•AckmanNEUTRAL (7/9)•TempletonNEUTRAL (5/8)✗SleepFAIL (2/6)•AsnessNEUTRAL (Not ranked)✗NeffFAIL (3/6)✗SchlossFAIL (3/7)•OshaughnessyNEUTRAL (Not ranked)
• Profitability38% pass✓ 20✗ 15▾

  10 of 16 flag ELS's profitability — Graham, Buffett, Lynch +7 more

  Positive EPS (10 years)18/24 years positive

  ✗GrahamPositive EPS every year for 10 years

  EPS Growth (3-yr avg, 10-yr window)

  ✗Graham>= 33% growth

  Net Income Positive (10+ years)24/24 years positive

  ✓BuffettPositive every year for 10+ years

  ROE (up to 5-year arithmetic mean)21.7%

  ✓Buffett> 15% arithmetic mean (app rule)

  Operating Margin (10-yr trend)25.6% (latest)

  ✗BuffettStable or rising over 10 years

  Free Cash Flow Proxy$368.4M

  ✓BuffettPositive and growing

  Earnings Variance (10-yr CoV)

  ✗BuffettCoV < 0.3

  Retained Earnings Effectiveness

  ✗Buffett$1 retained -> > $1 market value created

  Basic earnings-growth PEG (dividends excluded)3.10

  ✗Lynch< 1.0 (ideally < 0.5)

  3-5 Year EPS CAGR10.0%

  ✓Lynch15-30% (Fast Grower); > 0% to pass

  ROE23.1%

  ✓Lynch> 15%

  EBIT / Enterprise Value2.5%

  ✗Greenblatt> 10%

  Earnings Yield + ROC AssessmentEY=2.5%, ROC=None

  ✗GreenblattBoth EY > 10% and ROC > 25%

  Net Income / Total Assets7.00%

  ✓PiotroskiROA > 0

  ROA Change YoY6.82% -> 7.00% (delta: +0.18%)

  ✓PiotroskiCurrent ROA > Prior ROA

  (CFO / Total Assets) vs ROACFO/Assets=9.94%, ROA=7.00%

  ✓PiotroskiCFO/Assets > ROA

  Gross Margin Change YoY

  ✗PiotroskiImproved YoY

  Pre-Tax Income / Revenue

  ✗Dreman>= 8%

  Net Income / Shareholders' Equity23.1%

  ✓Dreman> 12%

  Margin of SafetyP/FFO=19.7x

  ✗PabraiP/FFO < 15

  Return on Equity22.7% (3-yr avg)

  ✓AkreROE > 20% (3-year avg)

  Discount to Intrinsic Value-119.5% (IV=$28.30 vs Price=$62.12)

  ✗Marks>= 20% below intrinsic value

  Positive Net Income Frequency24/24 years positive

  ✓MarksPositive net income in >= 7 of last 10 years

  Operating Income / Revenue26.1%

  ✓Ackman>= 15%

  Net Income / Shareholders Equity23.1%

  ✓Ackman>= 15%

  5-Year EPS CAGR10.0% CAGR over 5 years

  ✓Templeton> 0% (5-year EPS CAGR)

  Operating Margin Trend21.5% (2023) -> 25.6% (2025)

  ✓TempletonNon-negative operating-margin trend over 3 years

  Revenue growth vs. gross and operating margin trendrevenue up, operating margin 21.5% -> 25.6%

  ✓SleepRevenue rising; gross margin flat or falling; operating margin holding

  Net income / market capitalization+3.23%; #2295/6340 (top 36.2%)

  ✗AsnessTop 30% of eligible cross-section✗OshaughnessyTop 10% of eligible cross-section

  Gross profit / total assets

  ✗AsnessTop 30% of eligible cross-section

  Net income / positive book equity+23.10%; #670/5226 (top 12.8%)

  ✓AsnessTop 30% of eligible cross-section

  Negative 5-year standard deviation of ROA-0.0072; #628/5884 (top 10.7%)

  ✓AsnessTop 30% of eligible cross-section

  3-5 Year Diluted EPS CAGR10.0% over 5 years

  ✓Neff7%-20% annualized

  Positive Diluted-EPS Years10/10 years positive

  ✓Schloss>= 70% positive over 5-10 observed years (app rule)
• Growth38% pass✓ 7✗ 6▾

  5 of 8 flag ELS's growth — Graham, Lynch, Dreman +2 more

  EPS Growth (3-yr avg, 10-yr window)

  ✗Graham>= 33% growth

  Basic earnings-growth PEG (dividends excluded)3.10

  ✗Lynch< 1.0 (ideally < 0.5)

  3-5 Year EPS CAGR10.0%

  ✓Lynch15-30% (Fast Grower); > 0% to pass

  Inventory Growth vs Revenue GrowthN/A (no inventory)

  ✓LynchInventory growth < Revenue growth

  EPS Growth Direction

  ✗DremanPositive over recent years

  EPS CAGR

  ✗Dreman> 5% annualized

  Positive Net Income Frequency24/24 years positive

  ✓MarksPositive net income in >= 7 of last 10 years

  3yr Median Revenue Growth2.5%

  ✗Ackman>= 5%

  Positive EPS Growth Frequency5/5 years with positive EPS growth

  ✓AckmanPositive EPS growth in >= 3 of last 5 years

  5-Year EPS CAGR10.0% CAGR over 5 years

  ✓Templeton> 0% (5-year EPS CAGR)

  Revenue growth vs. gross and operating margin trendrevenue up, operating margin 21.5% -> 25.6%

  ✓SleepRevenue rising; gross margin flat or falling; operating margin holding

  5-year Revenue CAGR6.5%

  ✗SleepCAGR > 7%

  3-5 Year Diluted EPS CAGR10.0% over 5 years

  ✓Neff7%-20% annualized
• Cash Flow50% pass✓ 4✗ 3▾

  3 of 6 pass — Dreman, Neff and Oshaughnessy object

  Free Cash Flow Proxy$368.4M

  ✓BuffettPositive and growing

  Operating Cash Flow$571.1M

  ✓PiotroskiCFO > 0

  (CFO / Total Assets) vs ROACFO/Assets=9.94%, ROA=7.00%

  ✓PiotroskiCFO/Assets > ROA

  Price / (CFO / Shares)21.1x

  ✗Dreman< 8x

  Positive Operating Cash Flow frequency22/22 years positive

  ✓SleepPositive OCF in >= 70% of available years

  Operating Cash Flow - Capital Expenditures

  ✗Neff> $0 (app proxy for a strong fundamental case)

  (Operating cash flow - capex) / market capitalization

  ✗OshaughnessyTop 10% of eligible cross-section