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ELME vs SEVN

ELME
Elme Communities
BEARISH
Price
$2.13
Market Cap
$189.3M
Sector
Real Estate
AI Confidence
95%
SEVN
Seven Hills Realty Trust
BEARISH
Price
$8.54
Market Cap
$193.0M
Sector
Real Estate
AI Confidence
85%

Valuation

P/E Ratio
ELME
--
SEVN
8.46
Forward P/E
ELME
-19.36
SEVN
7.62
P/B Ratio
ELME
0.21
SEVN
0.59
P/S Ratio
ELME
0.76
SEVN
6.61
EV/EBITDA
ELME
10.98
SEVN
--

Profitability

Gross Margin
ELME
59.25%
SEVN
92.22%
Operating Margin
ELME
-3.44%
SEVN
60.81%
Profit Margin
ELME
-74.7%
SEVN
52.89%
ROE
ELME
--
SEVN
5.16%
ROA
ELME
--
SEVN
2.04%

Growth

Revenue Growth
ELME
1.7%
SEVN
-24.6%
Earnings Growth
ELME
--
SEVN
-12.6%

Financial Health

Debt/Equity
ELME
0.78
SEVN
1.48
Current Ratio
ELME
--
SEVN
5.77
Quick Ratio
ELME
--
SEVN
5.76

Dividends

Dividend Yield
ELME
33.8%
SEVN
13.09%
Payout Ratio
ELME
196.72%
SEVN
122.76%

AI Verdict

ELME BEARISH

ELME presents a classic value trap scenario, characterized by a stable Piotroski F-Score of 4/9 but catastrophic operational performance. The company has experienced a massive price collapse from a 52-week high of $17.68 to $2.13, coinciding with severe earnings misses (average surprise of -1540.20% over the last 4 quarters). While the Price-to-Book ratio of 0.21 suggests deep asset undervaluation, the unsustainable dividend payout ratio of 196.72% and negative profit margins of -74.71% indicate a critical lack of fundamental viability.

Strengths
Extremely low Price-to-Book ratio (0.21) suggesting assets are priced far below book value
Manageable Debt/Equity ratio (0.78) relative to the sector average of 2.70
Strong Gross Margin (59.25%) indicating core product viability before overhead
Risks
Unsustainable dividend policy with a payout ratio of 196.72%
Severe and consistent earnings misses over the last 4 quarters
Extreme price volatility and downward trend (0/100 Technical Trend)
SEVN BEARISH

SEVN exhibits classic 'value trap' characteristics, anchored by a weak Piotroski F-Score of 3/9 indicating deteriorating financial health. While the stock trades at a significant discount to its Graham Number ($18.18) and book value (P/B 0.59), these metrics are offset by negative revenue growth (-24.60%) and an unsustainable dividend payout ratio of 122.76%. The disconnect between the 'Strong Buy' analyst consensus and the 0/100 technical trend suggests a fundamental misalignment between market expectations and current performance.

Strengths
Deeply undervalued relative to book value (P/B 0.59)
Strong liquidity position with a Current Ratio of 5.77
High operating margins (60.81%) and profit margins (52.89%)
Risks
Unsustainable dividend payout ratio (122.76%) suggesting an imminent cut
Significant contraction in YoY revenue (-24.60%) and earnings (-12.60%)
Weak financial health as evidenced by a Piotroski F-Score of 3/9

Compare Another Pair

ELME vs SEVN: Head-to-Head Comparison

This page compares Elme Communities (ELME) and Seven Hills Realty Trust (SEVN) across key fundamental metrics including valuation ratios, profitability margins, growth rates, financial health indicators, and dividend metrics. Each metric highlights the better-performing stock so you can quickly identify relative strengths and weaknesses.

Our AI engine independently analyzes each company's financials, competitive position, and market conditions to produce a verdict (Bullish, Neutral, or Bearish) along with key strengths and risks. Use this comparison alongside your own research to make informed investment decisions.

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