EQUITY RESIDENTIAL (EQR) Stock Fundamental Analysis
USA - New York Stock Exchange - NYSE:EQR - US29476L1070 - REIT
60.145 USD
-0.11 (-0.19%)
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 a medium profitability rating, but doesn't score so well on its financial health evaluation. EQR has a correct valuation and a medium growth rate.
1. Profitability
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.
In the past 5 years EQR always reported a positive cash flow from operatings.
1.2 Ratios
With a decent Return On Assets value of 5.49%, EQR is doing good in the industry, outperforming 80.00% of the companies in the same industry.
With a decent Return On Equity value of 10.43%, EQR is doing good in the industry, outperforming 80.00% of the companies in the same industry.
The Return On Invested Capital of EQR (3.36%) is better than 80.00% of its industry peers.
Measured over the past 3 years, the Average Return On Invested Capital for EQR is in line with the industry average of 2.59%.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 5.49% | ||
| ROE | 10.43% | ||
| ROIC | 3.36% |
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 a decent Profit Margin value of 37.54%, EQR is doing good in the industry, outperforming 80.00% 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 has a better Operating Margin (27.91%) than 80.00% of its industry peers.
EQR's Operating Margin has declined in the last couple of years.
EQR has a better Gross Margin (63.01%) than 85.00% of its industry peers.
EQR's Gross Margin has been stable in the last couple of years.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 27.91% | ||
| PM (TTM) | 37.54% | ||
| GM | 63.01% |
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
With a Return on Invested Capital (ROIC) below the Cost of Capital (WACC), EQR is destroying value.
Compared to 1 year ago, EQR has about the same amount of shares outstanding.
EQR has more shares outstanding than it did 5 years ago.
The debt/assets ratio for EQR is higher compared to a year ago.
2.2 Solvency
EQR has an Altman-Z score of 1.65. This is a bad value and indicates that EQR is not financially healthy and even has some risk of bankruptcy.
EQR's Altman-Z score of 1.65 is amongst the best of the industry. EQR outperforms 85.00% of its industry peers.
The Debt to FCF ratio of EQR is 31.82, which is on the high side as it means it would take EQR, 31.82 years of fcf income to pay off all of its debts.
EQR's Debt to FCF ratio of 31.82 is fine compared to the rest of the industry. EQR outperforms 65.00% of its industry peers.
A Debt/Equity ratio of 0.76 indicates that EQR is somewhat dependend on debt financing.
EQR's Debt to Equity ratio of 0.76 is fine compared to the rest of the industry. EQR outperforms 75.00% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.76 | ||
| Debt/FCF | 31.82 | ||
| Altman-Z | 1.65 |
ROIC/WACC0.47
WACC7.2%
2.3 Liquidity
EQR has a Current Ratio of 0.07. This is a bad value and indicates that EQR is not financially healthy enough and could expect problems in meeting its short term obligations.
EQR has a Current ratio of 0.07. This is amonst the worse of the industry: EQR underperforms 85.00% of its industry peers.
A Quick Ratio of 0.07 indicates that EQR may have some problems paying its short term obligations.
The Quick ratio of EQR (0.07) is worse than 80.00% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 0.07 | ||
| Quick Ratio | 0.07 |
3. Growth
3.1 Past
The Earnings Per Share has grown by an impressive 24.18% over the past year.
EQR shows a small growth in Earnings Per Share. Measured over the last years, the EPS has been growing by 0.98% yearly.
EQR shows a small growth in Revenue. In the last year, the Revenue has grown by 4.69%.
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)24.18%
EPS 3Y-8.41%
EPS 5Y0.98%
EPS Q2Q%100%
Revenue 1Y (TTM)4.69%
Revenue growth 3Y6.54%
Revenue growth 5Y1.99%
Sales Q2Q%4.55%
3.2 Future
EQR is expected to show a decrease in Earnings Per Share. In the coming years, the EPS will decrease by -8.58% yearly.
EQR is expected to show a small growth in Revenue. In the coming years, the Revenue will grow by 4.47% yearly.
EPS Next Y-25.33%
EPS Next 2Y-27.62%
EPS Next 3Y-16.97%
EPS Next 5Y-8.58%
Revenue Next Year4.54%
Revenue Next 2Y4.02%
Revenue Next 3Y3.83%
Revenue Next 5Y4.47%
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 19.85, 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.
EQR's Price/Earnings ratio indicates a valuation a bit cheaper than the S&P500 average which is at 27.25.
EQR is valuated quite expensively with a Price/Forward Earnings ratio of 42.20.
EQR's Price/Forward Earnings ratio is a bit cheaper when compared to the industry. EQR is cheaper than 70.00% of the companies 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 23.98.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 19.85 | ||
| Fwd PE | 42.2 |
4.2 Price Multiples
EQR's Enterprise Value to EBITDA ratio is rather cheap when compared to the industry. EQR is cheaper than 85.00% of the companies in the same industry.
EQR's Price/Free Cash Flow is on the same level as the industry average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 86.33 | ||
| EV/EBITDA | 16.22 |
4.3 Compensation for Growth
EQR has a very decent profitability rating, which may justify a higher PE ratio.
A cheap valuation may be justified as EQR's earnings are expected to decrease with -16.97% in the coming years.
PEG (NY)N/A
PEG (5Y)20.17
EPS Next 2Y-27.62%
EPS Next 3Y-16.97%
5. Dividend
5.1 Amount
EQR has a Yearly Dividend Yield of 4.41%, which is a nice return.
EQR's Dividend Yield is comparable with the industry average which is at 32.52.
Compared to an average S&P500 Dividend Yield of 1.92, EQR pays a better dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 4.41% |
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
89.99% 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.
DP89.99%
EPS Next 2Y-27.62%
EPS Next 3Y-16.97%
NYSE:EQR (1/13/2026, 3:43:06 PM)
60.145
-0.11 (-0.19%)
Chartmill FA Rating
GICS SectorReal Estate
GICS IndustryGroupEquity Real Estate Investment Trusts (REITs)
GICS IndustryResidential REITs
Earnings (Last)
Earnings (Next)
Inst Owners96.32%
Inst Owner Change0.12%
Ins Owners0.51%
Ins Owner Change1.47%
Market Cap22.88B
Revenue(TTM)3.08B
Net Income(TTM)1.16B
Analysts72.14
Price Target71.56 (18.98%)
Short Float %1.66%
Short Ratio2.48
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 4.41% |
Yearly Dividend2.69
Dividend Growth(5Y)3.64%
DP89.99%
Div Incr Years0
Div Non Decr Years0
Ex-Date
Surprises & Revisions
EPS beat(2)2
Avg EPS beat(2)53.46%
Min EPS beat(2)35.13%
Max EPS beat(2)71.8%
EPS beat(4)4
Avg EPS beat(4)97.82%
Min EPS beat(4)35.13%
Max EPS beat(4)159.82%
EPS beat(8)7
Avg EPS beat(8)77.67%
EPS beat(12)10
Avg EPS beat(12)58.67%
EPS beat(16)13
Avg EPS beat(16)71.73%
Revenue beat(2)0
Avg Revenue beat(2)-0.99%
Min Revenue beat(2)-1.17%
Max Revenue beat(2)-0.8%
Revenue beat(4)1
Avg Revenue beat(4)-0.84%
Min Revenue beat(4)-1.81%
Max Revenue beat(4)0.43%
Revenue beat(8)1
Avg Revenue beat(8)-0.73%
Revenue beat(12)1
Avg Revenue beat(12)-0.84%
Revenue beat(16)3
Avg Revenue beat(16)-0.69%
PT rev (1m)-0.08%
PT rev (3m)-5.36%
EPS NQ rev (1m)2.2%
EPS NQ rev (3m)-1.07%
EPS NY rev (1m)1.77%
EPS NY rev (3m)6.23%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)0.05%
Revenue NY rev (1m)0.03%
Revenue NY rev (3m)0.13%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 19.85 | ||
| Fwd PE | 42.2 | ||
| P/S | 7.43 | ||
| P/FCF | 86.33 | ||
| P/OCF | 14.16 | ||
| P/B | 2.06 | ||
| P/tB | 2.06 | ||
| EV/EBITDA | 16.22 |
EPS(TTM)3.03
EY5.04%
EPS(NY)1.43
Fwd EY2.37%
FCF(TTM)0.7
FCFY1.16%
OCF(TTM)4.25
OCFY7.06%
SpS8.09
BVpS29.13
TBVpS29.13
PEG (NY)N/A
PEG (5Y)20.17
Graham Number44.57
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 5.49% | ||
| ROE | 10.43% | ||
| ROCE | 4.44% | ||
| ROIC | 3.36% | ||
| ROICexc | 3.38% | ||
| ROICexgc | 3.44% | ||
| OM | 27.91% | ||
| PM (TTM) | 37.54% | ||
| GM | 63.01% | ||
| FCFM | 8.61% |
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)3.49%
ROICexgc(5y)3.23%
ROCE(3y)4.43%
ROCE(5y)4.09%
ROICexgc growth 3Y12.84%
ROICexgc growth 5Y-0.45%
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-Score8
Asset Turnover0.15
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.76 | ||
| Debt/FCF | 31.82 | ||
| Debt/EBITDA | 4.5 | ||
| Cap/Depr | 132.9% | ||
| Cap/Sales | 43.88% | ||
| Interest Coverage | 3.21 | ||
| Cash Conversion | 86.15% | ||
| Profit Quality | 22.94% | ||
| Current Ratio | 0.07 | ||
| Quick Ratio | 0.07 | ||
| Altman-Z | 1.65 |
F-Score8
WACC7.2%
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)24.18%
EPS 3Y-8.41%
EPS 5Y0.98%
EPS Q2Q%100%
EPS Next Y-25.33%
EPS Next 2Y-27.62%
EPS Next 3Y-16.97%
EPS Next 5Y-8.58%
Revenue 1Y (TTM)4.69%
Revenue growth 3Y6.54%
Revenue growth 5Y1.99%
Sales Q2Q%4.55%
Revenue Next Year4.54%
Revenue Next 2Y4.02%
Revenue Next 3Y3.83%
Revenue Next 5Y4.47%
EBIT growth 1Y-4.11%
EBIT growth 3Y12%
EBIT growth 5Y-0.83%
EBIT Next Year100.85%
EBIT Next 3Y29.35%
EBIT Next 5Y18.73%
FCF growth 1Y-66.8%
FCF growth 3YN/A
FCF growth 5YN/A
OCF growth 1Y6.1%
OCF growth 3Y7.68%
OCF growth 5Y1.55%
EQUITY RESIDENTIAL / EQR 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.
How profitable is EQUITY RESIDENTIAL (EQR) stock?
EQUITY RESIDENTIAL (EQR) has a profitability rating of 6 / 10.
Can you provide the PE and PB ratios for EQR stock?
The Price/Earnings (PE) ratio for EQUITY RESIDENTIAL (EQR) is 19.85 and the Price/Book (PB) ratio is 2.06.
What is the earnings growth outlook for EQUITY RESIDENTIAL?
The Earnings per Share (EPS) of EQUITY RESIDENTIAL (EQR) is expected to decline by -25.33% in the next year.