EQUITY RESIDENTIAL (EQR) Fundamental Analysis & Valuation

NYSE:EQR • US29476L1070

Current stock price

60.27 USD
+0.72 (+1.21%)
At close:
60.27 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.

7

1. EQR Profitability Analysis

1.1 Basic Checks

  • EQR had positive earnings in the past year.
  • In the past year EQR had a positive cash flow from operations.
  • In the past 5 years EQR has always been profitable.
  • EQR had a positive operating cash flow in each of the past 5 years.
EQR Yearly Net Income VS EBIT VS OCF VS FCFEQR Yearly Net Income VS EBIT VS OCF VS FCFYearly Net Income VS EBIT VS OCF VS FCF 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 0 1B 2B 3B 4B

1.2 Ratios

  • With an excellent Return On Assets value of 5.39%, EQR belongs to the best 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.
  • EQR's Return On Invested Capital of 3.45% is amongst the best of the industry. EQR outperforms 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 RankSector 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%
EQR Yearly ROA, ROE, ROICEQR Yearly ROA, ROE, ROICYearly ROA, ROE, ROIC 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 10 20 30 40

1.3 Margins

  • Looking at the Profit Margin, with a value of 36.16%, EQR belongs to the top of the industry, outperforming 90.00% of the companies in the same industry.
  • In the last couple of years the Profit Margin of EQR has remained more or less at the same level.
  • EQR's Operating Margin of 28.11% is amongst the best of the industry. EQR outperforms 85.00% of its industry peers.
  • EQR's Operating Margin has declined in the last couple of years.
  • The Gross Margin of EQR (62.88%) is better than 80.00% of its industry peers.
  • EQR's Gross Margin has been stable in the last couple of years.
Industry RankSector 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%
EQR Yearly Profit, Operating, Gross MarginsEQR Yearly Profit, Operating, Gross MarginsYearly Profit, Operating, Gross Margins 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 50 100 150

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3

2. EQR Health Analysis

2.1 Basic Checks

  • The Return on Invested Capital (ROIC) is below the Cost of Capital (WACC), so EQR is destroying value.
  • Compared to 1 year ago, EQR has less shares outstanding
  • Compared to 5 years ago, EQR has more shares outstanding
  • The debt/assets ratio for EQR is higher compared to a year ago.
EQR Yearly Shares OutstandingEQR Yearly Shares OutstandingYearly Shares Outstanding 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 100M 200M 300M
EQR Yearly Total Debt VS Total AssetsEQR Yearly Total Debt VS Total AssetsYearly Total Debt VS Total Assets 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 5B 10B 15B 20B

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.
  • 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.
  • 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.
  • EQR has a better Debt to FCF ratio (15.46) than 75.00% of its industry peers.
  • EQR has a Debt/Equity ratio of 0.74. This is a neutral value indicating EQR is somewhat dependend on debt financing.
  • EQR's Debt to Equity ratio of 0.74 is amongst the best of the industry. EQR outperforms 85.00% of its industry peers.
Industry RankSector Rank
Debt/Equity 0.74
Debt/FCF 15.46
Altman-Z 1.7
ROIC/WACC0.47
WACC7.31%
EQR Yearly LT Debt VS Equity VS FCFEQR Yearly LT Debt VS Equity VS FCFYearly LT Debt VS Equity VS FCF 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 0 2B 4B 6B 8B 10B

2.3 Liquidity

  • A Current Ratio of 0.05 indicates that EQR may have some problems paying its short term obligations.
  • EQR has a Current ratio of 0.05. This is amonst the worse of the industry: EQR underperforms 85.00% of its industry peers.
  • EQR has a Quick 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 Quick ratio value of 0.05, EQR is not doing good in the industry: 75.00% of the companies in the same industry are doing better.
Industry RankSector Rank
Current Ratio 0.05
Quick Ratio 0.05
EQR Yearly Current Assets VS Current LiabilitesEQR Yearly Current Assets VS Current LiabilitesYearly Current Assets VS Current Liabilites 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 200M 400M 600M 800M 1B

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3

3. EQR Growth Analysis

3.1 Past

  • The Earnings Per Share has been growing slightly by 7.72% over the past year.
  • Measured over the past 5 years, EQR shows a small growth in Earnings Per Share. The EPS has been growing by 3.64% on average per year.
  • EQR shows a small growth in Revenue. In the last year, the Revenue has grown by 3.82%.
  • 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

  • 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

  • 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.
EQR Yearly Revenue VS EstimatesEQR Yearly Revenue VS EstimatesYearly Revenue VS Estimates 2015 2017 2019 2021 2023 2025 2027 2029 2031 2033 1B 2B 3B 4B
EQR Yearly EPS VS EstimatesEQR Yearly EPS VS EstimatesYearly EPS VS Estimates 2015 2017 2019 2021 2023 2025 2027 2029 2031 2033 2 4 6 8 10

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4

4. EQR Valuation Analysis

4.1 Price/Earnings Ratio

  • EQR is valuated rather expensively with a Price/Earnings ratio of 20.57.
  • 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 26.17, EQR is valued a bit cheaper.
  • A Price/Forward Earnings ratio of 41.34 indicates a quite expensive valuation of EQR.
  • Compared to the rest of the industry, the Price/Forward Earnings 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/Forward Earnings ratio indicates a rather expensive valuation when compared to the S&P500 average which is at 23.05.
Industry RankSector Rank
PE 20.57
Fwd PE 41.34
EQR Price Earnings VS Forward Price EarningsEQR Price Earnings VS Forward Price Earnings ChartPrice Earnings - Forward Price Earnings PE FPE 20 40 60 80

4.2 Price Multiples

  • EQR's Enterprise Value to EBITDA ratio is a bit cheaper when compared to the industry. EQR is cheaper than 65.00% of the companies 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 RankSector Rank
P/FCF 43.04
EV/EBITDA 16.11
EQR Per share dataEQR EPS, Sales, OCF, FCF, BookValue per sharePer Share Data Per Share 5 10 15 20 25

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)5.65
EPS Next 2Y-26.23%
EPS Next 3Y-16.4%

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Price/EarningsPrice/FCFFCF per shareEV/EBITDAPEG RATIOShow best valued peers

4

5. EQR Dividend Analysis

5.1 Amount

  • EQR has a Yearly Dividend Yield of 4.78%, which is a nice return.
  • Compared to an average industry Dividend Yield of 46.12, EQR is paying slightly less dividend.
  • Compared to an average S&P500 Dividend Yield of 1.89, EQR pays a better dividend.
Industry RankSector 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
EQR Yearly Dividends per shareEQR Yearly Dividends per shareYearly Dividends per share 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 2026 0.5 1 1.5 2 2.5

5.3 Sustainability

  • 93.65% 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.
DP93.65%
EPS Next 2Y-26.23%
EPS Next 3Y-16.4%
EQR Yearly Income VS Free CF VS DividendEQR Yearly Income VS Free CF VS DividendYearly Income VS Free CF VS Dividend 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 0 1B 2B 3B 4B
EQR Dividend Payout.EQR Dividend Payout, showing the Payout Ratio.EQR Dividend Payout.PayoutRetained Earnings

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EQR Fundamentals: All Metrics, Ratios and Statistics

EQUITY RESIDENTIAL

NYSE:EQR (4/2/2026, 8:21:19 PM)

After market: 60.27 0 (0%)

60.27

+0.72 (+1.21%)

Chartmill FA Rating
GICS SectorReal Estate
GICS IndustryGroupEquity Real Estate Investment Trusts (REITs)
GICS IndustryResidential REITs
Earnings (Last)02-05
Earnings (Next)04-28
Inst Owners95.94%
Inst Owner Change0%
Ins Owners0.53%
Ins Owner Change4.13%
Market Cap22.75B
Revenue(TTM)3.09B
Net Income(TTM)1.12B
Analysts70
Price Target70.94 (17.7%)
Short Float %2.42%
Short Ratio3.35
Dividend
Industry RankSector 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
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 RankSector Rank
PE 20.57
Fwd PE 41.34
P/S 7.35
P/FCF 43.04
P/OCF 13.8
P/B 2.06
P/tB 2.06
EV/EBITDA 16.11
EPS(TTM)2.93
EY4.86%
EPS(NY)1.46
Fwd EY2.42%
FCF(TTM)1.4
FCFY2.32%
OCF(TTM)4.37
OCFY7.25%
SpS8.19
BVpS29.25
TBVpS29.25
PEG (NY)N/A
PEG (5Y)5.65
Graham Number43.91
Profitability
Industry RankSector 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 RankSector 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
WACC7.31%
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 20.57 and the Price/Book (PB) ratio is 2.06.


What is the financial health of EQUITY RESIDENTIAL (EQR) stock?

The financial health rating of EQUITY RESIDENTIAL (EQR) is 3 / 10.