ELME (Elme Communities) Beneish M-Score: -3.86 (As of Jun. 25, 2026)

What is Elme Communities Beneish M-Score?

Elme Communities ELME -33.17% 36 Beneish M-Score is -3.86 as of Jun. 25, 2026. GuruFocus rates ELME with a GF Score™ of 36/100 and a GF Value™ of $8.33 (Possible Value Trap). The stock has 7 warning signs investors should review. Among 765 REITs companies, Elme Communities ranks better than 97.39% on this metric.

The zones of discrimination for M-Score is as such:

An M-Score of equal or less than -1.78 suggests that the company is unlikely to be a manipulator.
An M-Score of greater than -1.78 signals that the company is likely to be a manipulator.

Good Sign:

Beneish M-Score -3.86 no higher than -1.78, which implies that the company is unlikely to be a manipulator.

The historical rank and industry rank for Elme Communities's Beneish M-Score or its related term are showing as below:

ELME' s Beneish M-Score Range Over the Past 10 Years
Min: -3.94 Med: -2.69 Max: -1.63
Current: -3.86

During the past 13 years, the highest Beneish M-Score of Elme Communities was -1.63. The lowest was -3.94. And the median was -2.69.

Elme Communities Beneish M-Score Related Terms

Elme Communities Beneish M-Score Historical Data

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The historical data trend for Elme Communities's Beneish M-Score 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.

Elme Communities Beneish M-Score Chart

Elme Communities Annual Data

Trend

Dec16

Dec17

Dec18

Dec19

Dec20

Dec21

Dec22

Dec23

Dec24

Dec25

Beneish M-Score

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-2.05

-2.56

-2.68

-2.99

-3.94

Elme Communities Quarterly Data
	Jun21	Sep21	Dec21	Mar22	Jun22	Sep22	Dec22	Mar23	Jun23	Sep23	Dec23	Mar24	Jun24	Sep24	Dec24	Mar25	Jun25	Sep25	Dec25	Mar26
Beneish M-Score	Get a 7-Day Free Trial															-2.81	-2.81	-2.85	-3.94	-3.86

ELME vs FREVS, BRT, MRTI: Beneish M-Score Comparison

For the REIT - Residential subindustry, Elme Communities's Beneish M-Score, along with its competitors' market caps and Beneish M-Score 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 Beneish M-Score vs REITs Industry

For the REITs industry and Real Estate sector, Elme Communities's Beneish M-Score distribution charts can be found below:

* The bar in red indicates where Elme Communities's Beneish M-Score falls into.

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Elme Communities ELME

Beneish M-Score is just one metric. See GF Score™, valuation, warning signs, and more.

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Elme Communities Beneish M-Score Calculation

The M-score was created by Professor Messod Beneish. Instead of measuring the bankruptcy risk (Altman Z-Score) or business trend (Piotroski F-Score), M-score can be used to detect the risk of earnings manipulation. This is the original research paper on M-score.

The M-Score Variables:

The M-score of Elme Communities for today is based on a combination of the following eight different indices:

-4.84

0.92 * DSRI

0.528 * GMI

0.404 * AQI

0.892 * SGI

0.115 * DEPI

-4.84

0.92 * 0.2748

0.528 * 1.0204

0.404 * 0.9409

0.892 * 0.5092

0.115 * 1

0.172 * SGAI

4.679 * TATA

0.327 * LVGI

0.172 * 1.5256

4.679 * -0.104439

0.327 * 0.0254

-3.86

This Year (Mar26) TTM:

Last Year (Mar25) TTM:

Total Receivables was $1.7 Mil.
Revenue was 0 + 0 + 62.103 + 62.099 = $124.2 Mil.
Gross Profit was 0 + 0 + 35.701 + 37.181 = $72.9 Mil.
Total Current Assets was $41.0 Mil.
Total Assets was $585.2 Mil.
Property, Plant and Equipment(Net PPE) was $0.0 Mil.
Depreciation, Depletion and Amortization(DDA) was $47.3 Mil.
Selling, General, & Admin. Expense(SGA) was $21.8 Mil.
Total Current Liabilities was $6.2 Mil.
Long-Term Debt & Capital Lease Obligation was $0.0 Mil.
Net Income was 0 + 0 + -123.514 + -3.566 = $-127.1 Mil.
Non Operating Income was 0 + 0 + -111.719 + 0 = $-111.7 Mil.
Cash Flow from Operations was 0 + 0 + 15.912 + 29.848 = $45.8 Mil.

Total Receivables was $12.2 Mil.
Revenue was 61.493 + 61.264 + 61.055 + 60.103 = $243.9 Mil.
Gross Profit was 37.253 + 36.289 + 36.562 + 35.946 = $146.1 Mil.
Total Current Assets was $21.2 Mil.
Total Assets was $1,827.6 Mil.
Property, Plant and Equipment(Net PPE) was $0.0 Mil.
Depreciation, Depletion and Amortization(DDA) was $94.2 Mil.
Selling, General, & Admin. Expense(SGA) was $28.0 Mil.
Total Current Liabilities was $235.0 Mil.
Long-Term Debt & Capital Lease Obligation was $523.1 Mil.

1. DSRI = Days Sales in Receivables Index

Measured as the ratio of Revenue in Total Receivables in year t to year t-1.

A large increase in DSR could be indicative of revenue inflation.

DSRI	=	(Receivables_t / Revenue_t)	/	(Receivables_t-1 / Revenue_t-1)
	=	(1.708 / 124.202)	/	(12.206 / 243.915)
	=	0.013752	/	0.050042
	=	0.2748

2. GMI = Gross Margin Index

Measured as the ratio of gross margin in year t-1 to gross margin in year t.

Gross margin has deteriorated when this index is above 1. A firm with poorer prospects is more likely to manipulate earnings.

GMI	=	GrossMargin_t-1	/	GrossMargin_t
	=	(GrossProfit_t-1 / Revenue_t-1)	/	(GrossProfit_t / Revenue_t)
	=	(146.05 / 243.915)	/	(72.882 / 124.202)
	=	0.598774	/	0.586802
	=	1.0204

3. AQI = Asset Quality Index

AQI is the ratio of asset quality in year t to year t-1.

Asset quality is measured as the ratio of non-current assets other than Property, Plant and Equipment to Total Assets.

AQI	=	(1 - (CurrentAssets_t + PPE_t) / TotalAssets_t)	/	(1 - (CurrentAssets_t-1 + PPE_t-1) / TotalAssets_t-1)
	=	(1 - (40.981 + 0) / 585.231)	/	(1 - (21.158 + 0) / 1827.579)
	=	0.929975	/	0.988423
	=	0.9409

4. SGI = Sales Growth Index

Ratio of Revenue in year t to sales in year t-1.

Sales growth is not itself a measure of manipulation. However, growth companies are likely to find themselves under pressure to manipulate in order to keep up appearances.

SGI	=	Sales_t	/	Sales_t-1
	=	Revenue_t	/	Revenue_t-1
	=	124.202	/	243.915
	=	0.5092

5. DEPI = Depreciation Index

Measured as the ratio of the rate of Depreciation, Depletion and Amortization in year t-1 to the corresponding rate in year t.

DEPI greater than 1 indicates that assets are being depreciated at a slower rate. This suggests that the firm might be revising useful asset life assumptions upwards, or adopting a new method that is income friendly.

DEPI	=	(Depreciation_t-1 / (Depreciaton_t-1 + PPE_t-1))	/	(Depreciation_t / (Depreciaton_t + PPE_t))
	=	(94.231 / (94.231 + 0))	/	(47.331 / (47.331 + 0))
	=	1	/	1
	=	1

Note: If the Depreciation, Depletion and Amortization data is not available, we assume that the depreciation rate is constant and set the Depreciation Index to 1.

6. SGAI = Sales, General and Administrative expenses Index

The ratio of Selling, General, & Admin. Expense(SGA) to Sales in year t relative to year t-1.

SGA expenses index > 1 means that the company is becoming less efficient in generate sales.

SGAI	=	(SGA_t / Sales_t)	/	(SGA_t-1 /Sales_t-1)
	=	(21.753 / 124.202)	/	(28.002 / 243.915)
	=	0.175142	/	0.114802
	=	1.5256

7. LVGI = Leverage Index

The ratio of total debt to Total Assets in year t relative to yeat t-1.

An LVGI > 1 indicates an increase in leverage

LVGI	=	((LTD_t + CurrentLiabilities_t) / TotalAssets_t)	/	((LTD_t-1 + CurrentLiabilities_t-1) / TotalAssets_t-1)
	=	((0 + 6.169) / 585.231)	/	((523.061 + 235.035) / 1827.579)
	=	0.010541	/	0.414809
	=	0.0254

8. TATA = Total Accruals to Total Assets

Total accruals calculated as the change in working capital accounts other than cash less depreciation.

TATA	=	(IncomefromContinuingOperations_t	-	CashFlowsfromOperations_t)	/	TotalAssets_t
	=	(NetIncome_t - NonOperatingIncome_t	-	CashFlowsfromOperations_t)	/	TotalAssets_t
	=	(-127.08 - -111.719	-	45.76)	/	585.231
	=	-0.104439

An M-Score of equal or less than -1.78 suggests that the company is unlikely to be a manipulator. An M-Score of greater than -1.78 signals that the company is likely to be a manipulator.

Elme Communities has a M-score of -3.86 suggests that the company is unlikely to be a manipulator.

Frequently Asked Questions Learn more about Beneish M-Score →

What does a Beneish M-Score of -3.86 mean?

Elme Communities (ELME) has a Beneish M-Score of -3.86 as of Jun. 25, 2026. The Beneish M-score measures the likelihood of earnings manipulation. View historical data on Elme Communities and its competitors. According to the industry distribution chart, Elme Communities ranks #20 out of 765 companies in the REITs industry, placing it in the top 2.6%.

Is Elme Communities' Beneish M-Score too high?

Elme Communities' current Beneish M-Score is -3.86. Based on the distribution chart, Elme Communities ranks #20 out of 765 companies in the REITs industry, which is in the top quartile — a strong position relative to peers. Overall, Elme Communities has a GF Score™ of 36/100 and is considered Possible Value Trap, reflecting its overall financial health beyond just this single metric.

How does Elme Communities' Beneish M-Score compare to FREVS and BRT?

According to the REITs industry distribution chart, Elme Communities ranks #20 out of 765 companies for Beneish M-Score. This places Elme Communities in the top 3% of its industry — outperforming the majority of peers. See the competitive comparison table and distribution chart on this page for a detailed peer-by-peer breakdown.

What is a good Beneish M-Score for a REITs company?

A good Beneish M-Score depends on the REITs industry context. However, Beneish M-Score 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 Beneish M-Score mean?

A high Beneish M-Score can signal that a stock is expensive relative to its fundamentals. The Beneish M-score measures the likelihood of earnings manipulation. View historical data on Elme Communities and its competitors. Elme Communities's current Beneish M-Score is -3.86. 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 Beneish M-Score is -3.86. 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 Beneish M-Score calculated?

Beneish M-Score is calculated from a company's financial statements. For Elme Communities (ELME), the current Beneish M-Score is -3.86 as of Jun. 25, 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:

Beneish M-Score: -3.86
GF Value™: $8.33 vs. price of $1.35 (83.8% below fair value)
GF Score™: 36/100 with 7 warning signs

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 Business Description

Industry Real Estate REITs

Comparable Companies FREVS BRT MRTI CLPR BHM AIV NXRT AVB EQR ESS INVH SUI MAA UDR ELS AMH CPT JAN MRP DFM:DUBAIRESI

Other Exchanges WRI:Germany

Address 7550 Wisconsin Avenue, Suite 900, Bethesda, MD, USA, 20814

Website https://www.elmecommunities.com

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.

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$1.35

Price

$8.33

GF Value

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