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
- Looking at the Return On Assets, with a value of 5.39%, EQR belongs to the top of the industry, outperforming 85.00% of the companies in the same industry.
- 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.
- With an excellent Return On Invested Capital value of 3.45%, EQR belongs to the best of the industry, outperforming 85.00% of the companies in the same industry.
- 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
- EQR has a better Profit Margin (36.16%) than 90.00% of its industry peers.
- In the last couple of years the Profit Margin of EQR has remained more or less at the same level.
- The Operating Margin of EQR (28.11%) is better than 85.00% of its industry peers.
- In the last couple of years the Operating Margin of EQR has declined.
- EQR has a Gross Margin of 62.88%. This is in the better half of the industry: EQR outperforms 80.00% of its industry peers.
- 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
- EQR has a worse debt/assets ratio than last year.
2.2 Solvency
- EQR has an Altman-Z score of 1.70. This is a bad value and indicates that EQR is not financially healthy and even has some risk of bankruptcy.
- The Altman-Z score of EQR (1.70) is better than 90.00% of its industry peers.
- EQR has a debt to FCF ratio of 15.46. This is a negative value and a sign of low solvency as EQR would need 15.46 years to pay back of all of its debts.
- Looking at the Debt to FCF ratio, with a value of 15.46, EQR is in the better half of 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.
- With an excellent Debt to Equity ratio value of 0.74, EQR belongs to the best of the industry, outperforming 85.00% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.74 | ||
| Debt/FCF | 15.46 | ||
| Altman-Z | 1.7 |
ROIC/WACC0.47
WACC7.29%
2.3 Liquidity
- A Current Ratio of 0.05 indicates that EQR may have some problems paying its short term obligations.
- EQR's Current ratio of 0.05 is on the low side compared to the rest of the industry. EQR is outperformed by 85.00% of its industry peers.
- 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
- EQR shows a small growth in Earnings Per Share. In the last year, the EPS has grown by 7.72%.
- EQR shows a small growth in Earnings Per Share. Measured over the last years, the EPS has been growing by 3.64% yearly.
- The Revenue has been growing slightly by 3.82% in the past year.
- EQR shows a small growth in Revenue. Measured over the last years, the Revenue has been growing by 3.77% yearly.
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
- Based on estimates for the next years, EQR will show a decrease in Earnings Per Share. The EPS will decrease by -9.21% on average per year.
- EQR is expected to show a small growth in Revenue. In the coming years, the Revenue will grow by 4.07% yearly.
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
- When comparing the EPS growth rate of the last years to the growth rate of the upcoming years, we see that the growth is decreasing.
- 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
- EQR is valuated rather expensively with a Price/Earnings ratio of 20.87.
- Based on the Price/Earnings ratio, EQR is valued cheaply inside the industry as 90.00% of the companies are valued more expensively.
- Compared to an average S&P500 Price/Earnings ratio of 26.78, EQR is valued a bit cheaper.
- With a Price/Forward Earnings ratio of 41.94, EQR can be considered very expensive at the moment.
- 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.
- 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.
- EQR's Price/Free Cash Flow ratio is a bit cheaper when compared to the industry. EQR is cheaper than 65.00% of the companies 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
- With a Yearly Dividend Yield of 4.65%, EQR is a good candidate for dividend investing.
- Compared to an average industry Dividend Yield of 44.72, EQR is paying slightly less dividend.
- EQR's Dividend Yield is rather good when compared to the S&P500 average which is at 1.83.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 4.65% |
5.2 History
- The dividend of EQR has a limited annual growth rate of 3.02%.
- EQR has paid a dividend for at least 10 years, which is a reliable track record.
- EQR has decreased its dividend 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 Owners96.13%
Inst Owner Change0%
Ins Owners0.53%
Ins Owner Change4.13%
Market Cap23.08B
Revenue(TTM)3.09B
Net Income(TTM)1.12B
Analysts70
Price Target71.04 (16.19%)
Short Float %2.42%
Short Ratio3.35
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 4.65% |
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.