EQUITY RESIDENTIAL (EQR) Stock Fundamental Analysis
USA - NYSE:EQR - US29476L1070 - REIT
64.75 USD
-0.53 (-0.81%)
64.75 USD
0 (0%)
Taking everything into account, EQR scores 4 out of 10 in our fundamental rating. EQR was compared to 20 industry peers in the Residential REITs industry. EQR has an excellent profitability rating, but there are concerns on its financial health. EQR is valued expensive and it does not seem to be growing.
1. Profitability
1.1 Basic Checks
EQR had positive earnings in the past year.
EQR had a positive operating cash flow in the past year.
In the past 5 years EQR has always been profitable.
Each year in the past 5 years EQR had a positive operating cash flow.
1.2 Ratios
EQR has a better Return On Assets (4.80%) than 80.00% of its industry peers.
EQR has a better Return On Equity (9.18%) than 75.00% of its industry peers.
With a decent Return On Invested Capital value of 3.35%, EQR is doing good in the industry, outperforming 80.00% of the companies in the same industry.
EQR had an Average Return On Invested Capital over the past 3 years of 3.44%. This is in line with the industry average of 2.59%.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 4.8% | ||
| ROE | 9.18% | ||
| ROIC | 3.35% |
ROA(3y)4.31%
ROA(5y)4.74%
ROE(3y)7.93%
ROE(5y)8.91%
ROIC(3y)3.44%
ROIC(5y)3.17%
1.3 Margins
With an excellent Profit Margin value of 33.17%, EQR belongs to the best of the industry, outperforming 85.00% of the companies in the same industry.
EQR's Profit Margin has been stable in the last couple of years.
EQR's Operating Margin of 28.12% is fine compared to the rest of the industry. EQR outperforms 80.00% of its industry peers.
In the last couple of years the Operating Margin of EQR has declined.
EQR has a better Gross Margin (63.05%) than 90.00% of its industry peers.
In the last couple of years the Gross Margin of EQR has remained more or less at the same level.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 28.12% | ||
| PM (TTM) | 33.17% | ||
| GM | 63.05% |
OM growth 3Y5.12%
OM growth 5Y-2.76%
PM growth 3Y-13.73%
PM growth 5Y-0.66%
GM growth 3Y0.95%
GM growth 5Y-0.95%
2. Health
2.1 Basic Checks
EQR has a Return on Invested Capital (ROIC), which is below the Cost of Capital (WACC), which means it is destroying value.
EQR has about the same amout of shares outstanding than it did 1 year ago.
Compared to 5 years ago, EQR has more shares outstanding
EQR has a worse debt/assets ratio than last year.
2.2 Solvency
Based on the Altman-Z score of 1.77, we must say that EQR is in the distress zone and has some risk of bankruptcy.
With an excellent Altman-Z score value of 1.77, EQR belongs to the best of the industry, outperforming 85.00% of the companies in the same industry.
EQR has a Debt/Equity ratio of 0.76. This is a neutral value indicating EQR is somewhat dependend on debt financing.
The Debt to Equity ratio of EQR (0.76) is better than 70.00% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.76 | ||
| Debt/FCF | N/A | ||
| Altman-Z | 1.77 |
ROIC/WACC0.47
WACC7.19%
2.3 Liquidity
A Current Ratio of 0.02 indicates that EQR may have some problems paying its short term obligations.
Looking at the Current ratio, with a value of 0.02, EQR is doing worse than 90.00% of the companies in the same industry.
A Quick Ratio of 0.02 indicates that EQR may have some problems paying its short term obligations.
The Quick ratio of EQR (0.02) is worse than 90.00% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 0.02 | ||
| Quick Ratio | 0.02 |
3. Growth
3.1 Past
EQR shows a small growth in Earnings Per Share. In the last year, the EPS has grown by 5.58%.
The Earnings Per Share has been growing slightly by 0.98% on average over the past years.
The Revenue has been growing slightly by 4.40% in the past year.
Measured over the past years, EQR shows a small growth in Revenue. The Revenue has been growing by 1.99% on average per year.
EPS 1Y (TTM)5.58%
EPS 3Y-8.41%
EPS 5Y0.98%
EPS Q2Q%6.38%
Revenue 1Y (TTM)4.4%
Revenue growth 3Y6.54%
Revenue growth 5Y1.99%
Sales Q2Q%4.72%
3.2 Future
EQR is expected to show a decrease in Earnings Per Share. In the coming years, the EPS will decrease by -9.78% yearly.
The Revenue is expected to grow by 4.80% on average over the next years.
EPS Next Y-30.81%
EPS Next 2Y-24.68%
EPS Next 3Y-11.43%
EPS Next 5Y-9.78%
Revenue Next Year4.34%
Revenue Next 2Y4.17%
Revenue Next 3Y4.08%
Revenue Next 5Y4.8%
3.3 Evolution
The EPS growth rate is decreasing: in the next years the growth will be less than in the last years.
The Revenue growth rate is accelerating: in the next years the growth will be better than in the last years.
4. Valuation
4.1 Price/Earnings Ratio
The Price/Earnings ratio is 24.43, which indicates a rather expensive current valuation of EQR.
Based on the Price/Earnings ratio, EQR is valued cheaply inside the industry as 90.00% of the companies are valued more expensively.
When comparing the Price/Earnings ratio of EQR to the average of the S&P500 Index (27.20), we can say EQR is valued inline with the index average.
EQR is valuated quite expensively with a Price/Forward Earnings ratio of 41.96.
EQR's Price/Forward Earnings ratio is a bit cheaper when compared to the industry. EQR is cheaper than 75.00% of the companies in the same industry.
EQR is valuated expensively when we compare the Price/Forward Earnings ratio to 22.71, which is the current average of the S&P500 Index.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 24.43 | ||
| Fwd PE | 41.96 |
4.2 Price Multiples
75.00% of the companies in the same industry are more expensive than EQR, based on the Enterprise Value to EBITDA ratio.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | N/A | ||
| EV/EBITDA | 17.51 |
4.3 Compensation for Growth
The decent profitability rating of EQR may justify a higher PE ratio.
A cheap valuation may be justified as EQR's earnings are expected to decrease with -11.43% in the coming years.
PEG (NY)N/A
PEG (5Y)24.82
EPS Next 2Y-24.68%
EPS Next 3Y-11.43%
5. Dividend
5.1 Amount
With a Yearly Dividend Yield of 4.14%, EQR is a good candidate for dividend investing.
Compared to an average industry Dividend Yield of 4.68, EQR has a dividend in line with its industry peers.
EQR's Dividend Yield is rather good when compared to the S&P500 average which is at 2.38.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 4.14% |
5.2 History
The dividend of EQR has a limited annual growth rate of 3.64%.
EQR has paid a dividend for at least 10 years, which is a reliable track record.
Dividend Growth(5Y)3.64%
Div Incr Years0
Div Non Decr Years0
5.3 Sustainability
102.28% of the earnings are spent on dividend by EQR. This is not a sustainable payout ratio.
The Dividend Rate of EQR has been growing, while earnings will be declining. This means the dividend growth is most likely not sustainable.
DP102.28%
EPS Next 2Y-24.68%
EPS Next 3Y-11.43%
64.75
-0.53 (-0.81%)
Chartmill FA Rating
GICS SectorReal Estate
GICS IndustryGroupEquity Real Estate Investment Trusts (REITs)
GICS IndustryResidential REITs
Earnings (Last)
Earnings (Next)
Inst Owners95.24%
Inst Owner Change-6.98%
Ins Owners0.51%
Ins Owner Change2.34%
Market Cap24.73B
Analysts72.41
Price Target75.72 (16.94%)
Short Float %1.47%
Short Ratio2.78
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 4.14% |
Yearly Dividend2.69
Dividend Growth(5Y)3.64%
DP102.28%
Div Incr Years0
Div Non Decr Years0
Ex-Date
Surprises & Revisions
EPS beat(2)2
Avg EPS beat(2)79.82%
Min EPS beat(2)35.13%
Max EPS beat(2)124.52%
EPS beat(4)3
Avg EPS beat(4)77.31%
Min EPS beat(4)-10.24%
Max EPS beat(4)159.82%
EPS beat(8)7
Avg EPS beat(8)70.17%
EPS beat(12)10
Avg EPS beat(12)64.86%
EPS beat(16)13
Avg EPS beat(16)79.94%
Revenue beat(2)0
Avg Revenue beat(2)-1.49%
Min Revenue beat(2)-1.81%
Max Revenue beat(2)-1.17%
Revenue beat(4)1
Avg Revenue beat(4)-0.74%
Min Revenue beat(4)-1.81%
Max Revenue beat(4)0.43%
Revenue beat(8)1
Avg Revenue beat(8)-0.81%
Revenue beat(12)1
Avg Revenue beat(12)-0.87%
Revenue beat(16)4
Avg Revenue beat(16)-0.51%
PT rev (1m)-2.93%
PT rev (3m)-4.3%
EPS NQ rev (1m)13.17%
EPS NQ rev (3m)28.02%
EPS NY rev (1m)19.03%
EPS NY rev (3m)37.43%
Revenue NQ rev (1m)-0.2%
Revenue NQ rev (3m)-0.18%
Revenue NY rev (1m)-0.22%
Revenue NY rev (3m)-0.35%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 24.43 | ||
| Fwd PE | 41.96 | ||
| P/S | 8.12 | ||
| P/FCF | N/A | ||
| P/OCF | 16.05 | ||
| P/B | 2.25 | ||
| P/tB | 2.25 | ||
| EV/EBITDA | 17.51 |
EPS(TTM)2.65
EY4.09%
EPS(NY)1.54
Fwd EY2.38%
FCF(TTM)-2.5
FCFYN/A
OCF(TTM)4.03
OCFY6.23%
SpS7.97
BVpS28.82
TBVpS28.82
PEG (NY)N/A
PEG (5Y)24.82
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 4.8% | ||
| ROE | 9.18% | ||
| ROCE | 4.41% | ||
| ROIC | 3.35% | ||
| ROICexc | 3.36% | ||
| ROICexgc | 3.4% | ||
| OM | 28.12% | ||
| PM (TTM) | 33.17% | ||
| GM | 63.05% | ||
| FCFM | N/A |
ROA(3y)4.31%
ROA(5y)4.74%
ROE(3y)7.93%
ROE(5y)8.91%
ROIC(3y)3.44%
ROIC(5y)3.17%
ROICexc(3y)3.45%
ROICexc(5y)3.18%
ROICexgc(3y)3.5%
ROICexgc(5y)3.23%
ROCE(3y)4.43%
ROCE(5y)4.09%
ROICexcg growth 3Y12.87%
ROICexcg growth 5Y-0.44%
ROICexc growth 3Y12.89%
ROICexc growth 5Y-0.48%
OM growth 3Y5.12%
OM growth 5Y-2.76%
PM growth 3Y-13.73%
PM growth 5Y-0.66%
GM growth 3Y0.95%
GM growth 5Y-0.95%
F-Score3
Asset Turnover0.14
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.76 | ||
| Debt/FCF | N/A | ||
| Debt/EBITDA | 4.51 | ||
| Cap/Depr | 249.68% | ||
| Cap/Sales | 81.98% | ||
| Interest Coverage | 3.37 | ||
| Cash Conversion | 83.02% | ||
| Profit Quality | N/A | ||
| Current Ratio | 0.02 | ||
| Quick Ratio | 0.02 | ||
| Altman-Z | 1.77 |
F-Score3
WACC7.19%
ROIC/WACC0.47
Cap/Depr(3y)115.1%
Cap/Depr(5y)129.08%
Cap/Sales(3y)36.55%
Cap/Sales(5y)42.13%
Profit Quality(3y)N/A
Profit Quality(5y)N/A
High Growth Momentum
Growth
EPS 1Y (TTM)5.58%
EPS 3Y-8.41%
EPS 5Y0.98%
EPS Q2Q%6.38%
EPS Next Y-30.81%
EPS Next 2Y-24.68%
EPS Next 3Y-11.43%
EPS Next 5Y-9.78%
Revenue 1Y (TTM)4.4%
Revenue growth 3Y6.54%
Revenue growth 5Y1.99%
Sales Q2Q%4.72%
Revenue Next Year4.34%
Revenue Next 2Y4.17%
Revenue Next 3Y4.08%
Revenue Next 5Y4.8%
EBIT growth 1Y-4.68%
EBIT growth 3Y12%
EBIT growth 5Y-0.83%
EBIT Next Year103.93%
EBIT Next 3Y30.57%
EBIT Next 5Y18.75%
FCF growth 1Y-201.06%
FCF growth 3YN/A
FCF growth 5YN/A
OCF growth 1Y2.04%
OCF growth 3Y7.68%
OCF growth 5Y1.55%