EQUITY RESIDENTIAL (EQR) Fundamental Analysis & Valuation
NYSE:EQR • US29476L1070
Current stock price
61.14 USD
+0.68 (+1.12%)
At close:
61.14 USD
0 (0%)
After Hours:
This EQR fundamental analysis includes valuation metrics, fair value assessment, financial health analysis, profitability trends, growth metrics and dividend sustainability analysis.
1. EQR Profitability Analysis
1.1 Basic Checks
- EQR had positive earnings in the past year.
- EQR had a positive operating cash flow in the past year.
- Each year in the past 5 years EQR has been profitable.
- In the past 5 years EQR always reported a positive cash flow from operatings.
1.2 Ratios
- EQR's Return On Assets of 5.39% is amongst the best of the industry. EQR outperforms 85.00% of its industry peers.
- With a decent Return On Equity value of 10.13%, EQR is doing good in the industry, outperforming 75.00% of the companies in the same industry.
- EQR has a better Return On Invested Capital (3.45%) than 85.00% of its industry peers.
- EQR had an Average Return On Invested Capital over the past 3 years of 3.49%. This is in line with the industry average of 2.73%.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 5.39% | ||
| ROE | 10.13% | ||
| ROIC | 3.45% |
ROA(3y)4.83%
ROA(5y)4.92%
ROE(3y)9%
ROE(5y)9.21%
ROIC(3y)3.49%
ROIC(5y)3.23%
1.3 Margins
- With an excellent Profit Margin value of 36.16%, EQR belongs to the best of the industry, outperforming 90.00% of the companies in the same industry.
- EQR's Profit Margin has been stable in the last couple of years.
- With an excellent Operating Margin value of 28.11%, EQR belongs to the best of the industry, outperforming 85.00% of the companies in the same industry.
- EQR's Operating Margin has declined in the last couple of years.
- With a decent Gross Margin value of 62.88%, EQR is doing good in the industry, outperforming 80.00% of the companies in the same industry.
- EQR's Gross Margin has been stable in the last couple of years.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 28.11% | ||
| PM (TTM) | 36.16% | ||
| GM | 62.88% |
OM growth 3Y-1.79%
OM growth 5Y-1.66%
PM growth 3Y8.52%
PM growth 5Y0.42%
GM growth 3Y-0.63%
GM growth 5Y-0.47%
2. EQR Health Analysis
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.
- The number of shares outstanding for EQR has been reduced compared to 1 year ago.
- Compared to 5 years ago, EQR has more shares outstanding
- The debt/assets ratio for EQR is higher compared to a year ago.
2.2 Solvency
- Based on the Altman-Z score of 1.70, we must say that EQR is in the distress zone and has some risk of bankruptcy.
- EQR has a Altman-Z score of 1.70. This is amongst the best in the industry. EQR outperforms 90.00% of its industry peers.
- The Debt to FCF ratio of EQR is 15.46, which is on the high side as it means it would take EQR, 15.46 years of fcf income to pay off all of its debts.
- With a decent Debt to FCF ratio value of 15.46, EQR is doing good in the industry, outperforming 75.00% of the companies in the same industry.
- EQR has a Debt/Equity ratio of 0.74. This is a neutral value indicating EQR is somewhat dependend on debt financing.
- EQR has a better Debt to Equity ratio (0.74) than 85.00% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.74 | ||
| Debt/FCF | 15.46 | ||
| Altman-Z | 1.7 |
ROIC/WACC0.47
WACC7.29%
2.3 Liquidity
- EQR has a Current Ratio of 0.05. This is a bad value and indicates that EQR is not financially healthy enough and could expect problems in meeting its short term obligations.
- With a Current ratio value of 0.05, EQR is not doing good in the industry: 85.00% of the companies in the same industry are doing better.
- A Quick Ratio of 0.05 indicates that EQR may have some problems paying its short term obligations.
- EQR has a worse Quick ratio (0.05) than 75.00% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 0.05 | ||
| Quick Ratio | 0.05 |
3. EQR Growth Analysis
3.1 Past
- The Earnings Per Share has been growing slightly by 7.72% over the past year.
- EQR shows a small growth in Earnings Per Share. Measured over the last years, the EPS has been growing by 3.64% yearly.
- Looking at the last year, EQR shows a small growth in Revenue. The Revenue has grown by 3.82% in the last year.
- The Revenue has been growing slightly by 3.77% on average over the past years.
EPS 1Y (TTM)7.72%
EPS 3Y12.46%
EPS 5Y3.64%
EPS Q2Q%-9.09%
Revenue 1Y (TTM)3.82%
Revenue growth 3Y4.19%
Revenue growth 5Y3.77%
Sales Q2Q%1.97%
3.2 Future
- EQR is expected to show a decrease in Earnings Per Share. In the coming years, the EPS will decrease by -9.21% yearly.
- The Revenue is expected to grow by 4.07% on average over the next years.
EPS Next Y-50.25%
EPS Next 2Y-26.23%
EPS Next 3Y-16.4%
EPS Next 5Y-9.21%
Revenue Next Year2.88%
Revenue Next 2Y3.01%
Revenue Next 3Y3.35%
Revenue Next 5Y4.07%
3.3 Evolution
- The EPS growth rate is decreasing: in the next years the growth will be less than in the last years.
- When comparing the Revenue growth rate of the last years to the growth rate of the upcoming years, we see that the growth is stable.
4. EQR Valuation Analysis
4.1 Price/Earnings Ratio
- Based on the Price/Earnings ratio of 20.87, the valuation of EQR can be described as rather expensive.
- Based on the Price/Earnings ratio, EQR is valued cheaper than 90.00% of the companies in the same industry.
- When comparing the Price/Earnings ratio of EQR to the average of the S&P500 Index (26.78), we can say EQR is valued slightly cheaper.
- With a Price/Forward Earnings ratio of 41.94, EQR can be considered very expensive at the moment.
- Compared to the rest of the industry, the Price/Forward Earnings ratio of EQR indicates a somewhat cheap valuation: EQR is cheaper than 75.00% of the companies listed in the same industry.
- The average S&P500 Price/Forward Earnings ratio is at 23.54. EQR is valued rather expensively when compared to this.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 20.87 | ||
| Fwd PE | 41.94 |
4.2 Price Multiples
- Compared to the rest of the industry, the Enterprise Value to EBITDA ratio of EQR indicates a somewhat cheap valuation: EQR is cheaper than 70.00% of the companies listed in the same industry.
- Compared to the rest of the industry, the Price/Free Cash Flow ratio of EQR indicates a somewhat cheap valuation: EQR is cheaper than 65.00% of the companies listed in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 43.66 | ||
| EV/EBITDA | 16.15 |
4.3 Compensation for Growth
- The decent profitability rating of EQR may justify a higher PE ratio.
- EQR's earnings are expected to decrease with -16.40% in the coming years. This may justify a cheaper valuation.
PEG (NY)N/A
PEG (5Y)5.73
EPS Next 2Y-26.23%
EPS Next 3Y-16.4%
5. EQR Dividend Analysis
5.1 Amount
- EQR has a Yearly Dividend Yield of 4.78%, which is a nice return.
- EQR's Dividend Yield is slightly below the industry average, which is at 46.12.
- EQR's Dividend Yield is rather good when compared to the S&P500 average which is at 1.89.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 4.78% |
5.2 History
- The dividend of EQR has a limited annual growth rate of 3.02%.
- EQR has been paying a dividend for at least 10 years, so it has a reliable track record.
- The dividend of EQR decreased recently.
Dividend Growth(5Y)3.02%
Div Incr Years1
Div Non Decr Years1
5.3 Sustainability
- EQR pays out 93.65% of its income as dividend. 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.
DP93.65%
EPS Next 2Y-26.23%
EPS Next 3Y-16.4%
EQR Fundamentals: All Metrics, Ratios and Statistics
61.14
+0.68 (+1.12%)
Chartmill FA Rating
GICS SectorReal Estate
GICS IndustryGroupEquity Real Estate Investment Trusts (REITs)
GICS IndustryResidential REITs
Earnings (Last)02-05 2026-02-05/amc
Earnings (Next)04-28 2026-04-28/amc
Inst Owners95.94%
Inst Owner Change0%
Ins Owners0.53%
Ins Owner Change4.13%
Market Cap23.08B
Revenue(TTM)3.09B
Net Income(TTM)1.12B
Analysts70
Price Target70.94 (16.03%)
Short Float %2.42%
Short Ratio3.35
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 4.78% |
Yearly Dividend2.77
Dividend Growth(5Y)3.02%
DP93.65%
Div Incr Years1
Div Non Decr Years1
Ex-Date03-30 2026-03-30 (0.7025)
Surprises & Revisions
EPS beat(2)2
Avg EPS beat(2)113.73%
Min EPS beat(2)71.8%
Max EPS beat(2)155.66%
EPS beat(4)4
Avg EPS beat(4)96.78%
Min EPS beat(4)35.13%
Max EPS beat(4)155.66%
EPS beat(8)7
Avg EPS beat(8)85.98%
EPS beat(12)10
Avg EPS beat(12)71.04%
EPS beat(16)13
Avg EPS beat(16)67.72%
Revenue beat(2)0
Avg Revenue beat(2)-1.28%
Min Revenue beat(2)-1.77%
Max Revenue beat(2)-0.8%
Revenue beat(4)0
Avg Revenue beat(4)-1.39%
Min Revenue beat(4)-1.81%
Max Revenue beat(4)-0.8%
Revenue beat(8)1
Avg Revenue beat(8)-0.86%
Revenue beat(12)1
Avg Revenue beat(12)-0.86%
Revenue beat(16)2
Avg Revenue beat(16)-0.84%
PT rev (1m)0.1%
PT rev (3m)-0.87%
EPS NQ rev (1m)-0.34%
EPS NQ rev (3m)1.33%
EPS NY rev (1m)0%
EPS NY rev (3m)2.29%
Revenue NQ rev (1m)-0.16%
Revenue NQ rev (3m)-0.85%
Revenue NY rev (1m)-0.25%
Revenue NY rev (3m)-0.68%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 20.87 | ||
| Fwd PE | 41.94 | ||
| P/S | 7.46 | ||
| P/FCF | 43.66 | ||
| P/OCF | 14 | ||
| P/B | 2.09 | ||
| P/tB | 2.09 | ||
| EV/EBITDA | 16.15 |
EPS(TTM)2.93
EY4.79%
EPS(NY)1.46
Fwd EY2.38%
FCF(TTM)1.4
FCFY2.29%
OCF(TTM)4.37
OCFY7.14%
SpS8.19
BVpS29.25
TBVpS29.25
PEG (NY)N/A
PEG (5Y)5.73
Graham Number43.91
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 5.39% | ||
| ROE | 10.13% | ||
| ROCE | 4.5% | ||
| ROIC | 3.45% | ||
| ROICexc | 3.46% | ||
| ROICexgc | 3.52% | ||
| OM | 28.11% | ||
| PM (TTM) | 36.16% | ||
| GM | 62.88% | ||
| FCFM | 17.09% |
ROA(3y)4.83%
ROA(5y)4.92%
ROE(3y)9%
ROE(5y)9.21%
ROIC(3y)3.49%
ROIC(5y)3.23%
ROICexc(3y)3.5%
ROICexc(5y)3.24%
ROICexgc(3y)3.55%
ROICexgc(5y)3.28%
ROCE(3y)4.53%
ROCE(5y)4.17%
ROICexgc growth 3Y1.63%
ROICexgc growth 5Y1.63%
ROICexc growth 3Y1.52%
ROICexc growth 5Y1.58%
OM growth 3Y-1.79%
OM growth 5Y-1.66%
PM growth 3Y8.52%
PM growth 5Y0.42%
GM growth 3Y-0.63%
GM growth 5Y-0.47%
F-Score7
Asset Turnover0.15
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.74 | ||
| Debt/FCF | 15.46 | ||
| Debt/EBITDA | 4.35 | ||
| Cap/Depr | 110.85% | ||
| Cap/Sales | 36.2% | ||
| Interest Coverage | 3.17 | ||
| Cash Conversion | 87.69% | ||
| Profit Quality | 47.27% | ||
| Current Ratio | 0.05 | ||
| Quick Ratio | 0.05 | ||
| Altman-Z | 1.7 |
F-Score7
WACC7.29%
ROIC/WACC0.47
Cap/Depr(3y)135.14%
Cap/Depr(5y)140.64%
Cap/Sales(3y)43.16%
Cap/Sales(5y)45.98%
Profit Quality(3y)N/A
Profit Quality(5y)N/A
High Growth Momentum
Growth
EPS 1Y (TTM)7.72%
EPS 3Y12.46%
EPS 5Y3.64%
EPS Q2Q%-9.09%
EPS Next Y-50.25%
EPS Next 2Y-26.23%
EPS Next 3Y-16.4%
EPS Next 5Y-9.21%
Revenue 1Y (TTM)3.82%
Revenue growth 3Y4.19%
Revenue growth 5Y3.77%
Sales Q2Q%1.97%
Revenue Next Year2.88%
Revenue Next 2Y3.01%
Revenue Next 3Y3.35%
Revenue Next 5Y4.07%
EBIT growth 1Y-0.22%
EBIT growth 3Y2.33%
EBIT growth 5Y2.04%
EBIT Next Year110.91%
EBIT Next 3Y31.49%
EBIT Next 5Y20.09%
FCF growth 1Y216.08%
FCF growth 3Y-19.33%
FCF growth 5Y-8.63%
OCF growth 1Y4.78%
OCF growth 3Y4.26%
OCF growth 5Y5.43%
EQUITY RESIDENTIAL / EQR Fundamental Analysis FAQ
What is the fundamental rating for EQR stock?
ChartMill assigns a fundamental rating of 4 / 10 to EQR.
Can you provide the valuation status for EQUITY RESIDENTIAL?
ChartMill assigns a valuation rating of 4 / 10 to EQUITY RESIDENTIAL (EQR). This can be considered as Fairly Valued.
What is the profitability of EQR stock?
EQUITY RESIDENTIAL (EQR) has a profitability rating of 7 / 10.
What are the PE and PB ratios of EQUITY RESIDENTIAL (EQR) stock?
The Price/Earnings (PE) ratio for EQUITY RESIDENTIAL (EQR) is 20.87 and the Price/Book (PB) ratio is 2.09.
What is the financial health of EQUITY RESIDENTIAL (EQR) stock?
The financial health rating of EQUITY RESIDENTIAL (EQR) is 3 / 10.