Elme CommunitiesELME -33.17%36 Interest Coverage is No Debt (1) as of Mar. 2026, which is 100% below its 10-year median of 0.73. GuruFocus rates ELME with a GF Scoreâ„¢ of 36/100 and a GF Valueâ„¢ of $8.33 (Possible Value Trap). The stock has 7 warning signs investors should review. Among 701 REITs companies, Elme Communities ranks worse than 97.29% on this metric.
Interest Coverage is a ratio that determines how easily a company can pay interest expenses on outstanding debt. It is calculated by dividing a company's
Operating Income
by its Interest Expense. Elme Communities's
Operating Income
for the
three
months ended in Mar. 2026 was $0.0 Mil. Elme Communities's Interest Expense for the
three
months ended in Mar. 2026 was $0.0 Mil.
Elme Communities has no debt.
The higher the ratio, the stronger the company's financial strength is.
Warning Sign:
Ben Graham prefers companies' interest coverage to be at least 5. Elme Communitiess earnings cannot cover its interest expense. If the situation continues, the company may have to issue more debt.
(1) Note: For Interest Coverage, "No debt" indicates no long-term debt. An indication of "No Debt" does not necessarily mean that the company has no long-term debt obligations; it could be due to missing data in the quarterly or annual report. Use caution when interpreting this information.
The historical rank and industry rank for Elme Communities's Interest Coverage or its related term are showing as below:
ELME'
s Interest Coverage Range Over the Past 10 Years
Min: 0.06 Med: 0.73 Max: 1.32
Current: 0.3
ELME's Interest Coverage is ranked worse than 97.29% of 701
companies
in the REITs industry
Industry Median: 3.12
vs ELME: 0.30
Ben Graham requires that a company has a minimum interest coverage of 5 with the companies he invested. If the interest coverage is less than 2, the company is burdened by debt. Any business slow or recession may drag the company into a situation where it cannot pay the interest on its debt.
Interest Coverage is an important factor when GuruFocus ranks a company's overage Financial Strength .
Elme Communities Interest Coverage Related Terms
Elme Communities Interest Coverage Historical Data
* Premium members only.
The historical data trend for Elme Communities's Interest Coverage can be seen below:
* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD. * For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.
Note: For Interest Coverage, "No debt" indicates no long-term debt. An indication of "No Debt" does not necessarily mean that the company has no long-term debt obligations; it could be due to missing data in the quarterly or annual report. Use caution when interpreting this information.
ELME vs FREVS, BRT, MRTI: Interest Coverage Comparison
For the REIT - Residential subindustry, Elme Communities's Interest Coverage, along with its competitors' market caps and Interest Coverage data, can be viewed below:
* Competitive companies are chosen from companies within the same industry, with headquarter located in same country, with closest market capitalization; x-axis shows the market cap, and y-axis shows the term value; the bigger the dot, the larger the market cap. Note that "N/A" values will not show up in the chart.
Elme Communities Interest Coverage vs REITs Industry
For the REITs industry and Real Estate sector, Elme Communities's Interest Coverage distribution charts can be found below:
* The bar in red indicates where Elme Communities's Interest Coverage falls into.
Interest Coverage is a ratio that determines how easily a company can pay interest expenses on outstanding debt. It is calculated by dividing a company's Operating Income (EBIT) by its Interest Expense:
* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD. * For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.
What does a Interest Coverage of No Debt <sup>(1)</sup> mean?
Elme Communities (ELME) has a Interest Coverage of No Debt (1) as of Mar. 2026. Interest Coverage measures a company's capability to pay interest expenses on its debt. View historical data on Elme Communities and its competitors. This is 37% above median its historical median of 0.73. Over the past decade, Elme Communities' Interest Coverage has ranged from 0.06 to 1.32. According to the industry distribution chart, Elme Communities ranks #682 out of 701 companies in the REITs industry, placing it in the top 97.3%.
Is Elme Communities' Interest Coverage too high?
Elme Communities' current Interest Coverage of No Debt (1) is 37% above median its 10-year median of 0.73. Over the past 10 years, this metric has ranged from a low of 0.06 to a high of 1.32. Based on the distribution chart, Elme Communities ranks #682 out of 701 companies in the REITs industry, which is in the bottom quartile relative to peers. Overall, Elme Communities has a GF Scoreâ„¢ of 36/100 and is considered Possible Value Trap, reflecting its overall financial health beyond just this single metric.
How does Elme Communities' Interest Coverage compare to FREVS and BRT?
According to the REITs industry distribution chart, Elme Communities ranks #682 out of 701 companies for Interest Coverage. This places Elme Communities in the lower half of its industry. The industry median Interest Coverage is 3.12. Historically, Elme Communities' own Interest Coverage has ranged from 0.06 to 1.32 over the past decade. See the competitive comparison table and distribution chart on this page for a detailed peer-by-peer breakdown.
What is a good Interest Coverage for a REITs company?
The median Interest Coverage among REITs companies is 3.12, based on 701 companies in the industry. Companies in the top quartile (top 25%) have a Interest Coverage significantly above this median, while those in the bottom quartile fall well below. However, Interest Coverage should not be evaluated in isolation — investors should consider it alongside profitability, growth, and financial strength metrics. Use the industry distribution chart on this page to see where any company falls relative to its peers.
What does a high Interest Coverage mean?
A high Interest Coverage can signal that a stock is expensive relative to its fundamentals. Interest Coverage measures a company's capability to pay interest expenses on its debt. View historical data on Elme Communities and its competitors. For the REITs industry, the median Interest Coverage is 3.12 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Elme Communities's current Interest Coverage is No Debt (1), which is 37% above median its own 10-year median of 0.73. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Elme Communities stock overvalued right now?
Based on GuruFocus' analysis, Elme Communities (ELME) is currently considered Possible Value Trap. The stock's GF Value™ is $8.33, compared to a current price of $1.35 — trading 83.8% below its estimated fair value. The current Interest Coverage is No Debt (1), which is 37% above median its 10-year median of 0.73. Elme Communities' overall GF Score™ is 36/100 with 7 warning signs to review. Investors should evaluate multiple metrics — including profitability, growth, and financial strength — before making a decision.
How is Interest Coverage calculated?
Interest Coverage is calculated from a company's financial statements. For Elme Communities (ELME), the current Interest Coverage is No Debt (1) as of Mar. 2026. GuruFocus calculates this using data sourced from SEC filings and annual reports. See the calculation section and 30-year financial data on this page for the full breakdown.
Is Elme Communities (ELME) Overvalued in 2026?
Based on GuruFocus' analysis, Elme Communities stock appears to be undervalued.
The current stock price of $1.35 is trading 83.8% below its estimated GF Value™ of $8.33.
GuruFocus considers Elme Communities to be Possible Value Trap.
Key valuation signals for ELME:
Interest Coverage: No Debt (1) (37% above median its 10-year median of 0.73)
GF Value™: $8.33 vs. price of $1.35 (83.8% below fair value)
No single metric tells the full story. See the ELME stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
Elme Communities is a real estate investment trust engaged in owning and operating properties in the greater Washington DC metropolitan area. The company's real estate portfolio is comprised of office, retail, and multifamily properties located near transportation nodes. It derives nearly all of its income in the form of rental revenue from tenants organized into long-term leases. The company's office assets contribute the majority of this income, while the rest is split fairly evenly between its retail and multifamily locations. Elme Communities' tenants are banking, consulting, law, and financial services firms. The company operates in a single reportable segment which includes the ownership, development, redevelopment and acquisition of apartment communities.
36GF Score
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