EQUITY RESIDENTIAL (EQR) Stock Fundamental Analysis
USA - NYSE:EQR - US29476L1070 - REIT
59.71 USD
+1.01 (+1.72%)
59.71 USD
0 (0%)
Overall EQR gets a fundamental rating of 5 out of 10. We evaluated EQR against 20 industry peers in the Residential REITs industry. While EQR belongs to the best of the industry regarding profitability, there are concerns on its financial health. EQR has a correct valuation and a medium growth rate.
1. Profitability
1.1 Basic Checks
In the past year EQR was profitable.
EQR had a positive operating cash flow in the past year.
EQR had positive earnings in each of the past 5 years.
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 5.49%, EQR belongs to the top of the industry, outperforming 85.00% of the companies in the same industry.
With an excellent Return On Equity value of 10.43%, EQR belongs to the best of the industry, outperforming 85.00% of the companies in the same industry.
EQR has a Return On Invested Capital of 3.36%. This is in the better half of the industry: EQR outperforms 80.00% of its industry peers.
The Average Return On Invested Capital over the past 3 years for EQR is in line with the industry average of 2.61%.
| 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
Looking at the Profit Margin, with a value of 37.54%, EQR belongs to the top 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 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 Gross Margin of 63.01%. This is amongst the best in the industry. EQR outperforms 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 | 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
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 1.62, we must say that EQR is in the distress zone and has some risk of bankruptcy.
Looking at the Altman-Z score, with a value of 1.62, EQR belongs to the top of the industry, outperforming 85.00% of the companies in the same industry.
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.
Looking at the Debt to FCF ratio, with a value of 31.82, EQR is in the better half of the industry, outperforming 65.00% of the companies in the same industry.
A Debt/Equity ratio of 0.76 indicates that 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 | 31.82 | ||
| Altman-Z | 1.62 |
ROIC/WACC0.47
WACC7.14%
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.
With a Current ratio value of 0.07, EQR is not doing good in the industry: 85.00% of the companies in the same industry are doing better.
EQR has a Quick 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.
Looking at the Quick ratio, with a value of 0.07, EQR is doing worse than 80.00% of the companies in the same industry.
| 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.
Looking at the last year, EQR shows a small growth in Revenue. The Revenue has grown by 4.69% in the last year.
EQR shows a small growth in Revenue. Measured over the last years, the Revenue has been growing by 1.99% yearly.
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
The Earnings Per Share is expected to decrease by -9.78% on average over the next years.
The Revenue is expected to grow by 4.80% on average over the next years.
EPS Next Y-28.93%
EPS Next 2Y-26.75%
EPS Next 3Y-15.63%
EPS Next 5Y-9.78%
Revenue Next Year4.44%
Revenue Next 2Y4.06%
Revenue Next 3Y3.99%
Revenue Next 5Y4.8%
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 accelerating.
4. Valuation
4.1 Price/Earnings Ratio
A Price/Earnings ratio of 19.71 indicates a rather expensive valuation of EQR.
Based on the Price/Earnings ratio, EQR is valued cheaply inside the industry as 95.00% of the companies are valued more expensively.
Compared to an average S&P500 Price/Earnings ratio of 25.83, EQR is valued a bit cheaper.
EQR is valuated quite expensively with a Price/Forward Earnings ratio of 40.91.
Based on the Price/Forward Earnings ratio, EQR is valued a bit cheaper than 80.00% of the companies in the same industry.
Compared to an average S&P500 Price/Forward Earnings ratio of 32.68, EQR is valued a bit more expensive.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 19.71 | ||
| Fwd PE | 40.91 |
4.2 Price Multiples
Based on the Enterprise Value to EBITDA ratio, EQR is valued cheaper than 85.00% of the companies in the same industry.
The rest of the industry has a similar Price/Free Cash Flow ratio as EQR.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 86.03 | ||
| EV/EBITDA | 15.95 |
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 -15.63% in the coming years. This may justify a cheaper valuation.
PEG (NY)N/A
PEG (5Y)20.02
EPS Next 2Y-26.75%
EPS Next 3Y-15.63%
5. Dividend
5.1 Amount
EQR has a Yearly Dividend Yield of 4.63%, which is a nice return.
Compared to an average industry Dividend Yield of 7.36, 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 2.39.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 4.63% |
5.2 History
The dividend of EQR has a limited annual growth rate of 3.64%.
EQR has been paying a dividend for at least 10 years, so it has 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-26.75%
EPS Next 3Y-15.63%
59.71
+1.01 (+1.72%)
Chartmill FA Rating
GICS SectorReal Estate
GICS IndustryGroupEquity Real Estate Investment Trusts (REITs)
GICS IndustryResidential REITs
Earnings (Last)
Earnings (Next)
Inst Owners94.18%
Inst Owner Change-0.25%
Ins Owners0.52%
Ins Owner Change2.4%
Market Cap22.80B
Revenue(TTM)3.08B
Net Income(TTM)1.16B
Analysts71.72
Price Target74.89 (25.42%)
Short Float %1.59%
Short Ratio2.78
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 4.63% |
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)-1.09%
PT rev (3m)-4.41%
EPS NQ rev (1m)0%
EPS NQ rev (3m)19.45%
EPS NY rev (1m)0%
EPS NY rev (3m)20.92%
Revenue NQ rev (1m)-0.02%
Revenue NQ rev (3m)-0.12%
Revenue NY rev (1m)-0.03%
Revenue NY rev (3m)-0.19%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 19.71 | ||
| Fwd PE | 40.91 | ||
| P/S | 7.41 | ||
| P/FCF | 86.03 | ||
| P/OCF | 14.11 | ||
| P/B | 2.06 | ||
| P/tB | 2.06 | ||
| EV/EBITDA | 15.95 |
EPS(TTM)3.03
EY5.07%
EPS(NY)1.46
Fwd EY2.44%
FCF(TTM)0.69
FCFY1.16%
OCF(TTM)4.23
OCFY7.09%
SpS8.06
BVpS29.03
TBVpS29.03
PEG (NY)N/A
PEG (5Y)20.02
Graham Number44.48
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 | 1.62 |
F-Score8
WACC7.14%
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-28.93%
EPS Next 2Y-26.75%
EPS Next 3Y-15.63%
EPS Next 5Y-9.78%
Revenue 1Y (TTM)4.69%
Revenue growth 3Y6.54%
Revenue growth 5Y1.99%
Sales Q2Q%4.55%
Revenue Next Year4.44%
Revenue Next 2Y4.06%
Revenue Next 3Y3.99%
Revenue Next 5Y4.8%
EBIT growth 1Y-4.11%
EBIT growth 3Y12%
EBIT growth 5Y-0.83%
EBIT Next Year104.14%
EBIT Next 3Y29.79%
EBIT Next 5Y18.75%
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 5 / 10 to EQR.
What is the valuation status of EQUITY RESIDENTIAL (EQR) stock?
ChartMill assigns a valuation rating of 4 / 10 to EQUITY RESIDENTIAL (EQR). This can be considered as Fairly Valued.
Can you provide the profitability details for EQUITY RESIDENTIAL?
EQUITY RESIDENTIAL (EQR) has a profitability rating of 7 / 10.
What is the valuation of EQUITY RESIDENTIAL based on its PE and PB ratios?
The Price/Earnings (PE) ratio for EQUITY RESIDENTIAL (EQR) is 19.71 and the Price/Book (PB) ratio is 2.06.
How financially healthy is EQUITY RESIDENTIAL?
The financial health rating of EQUITY RESIDENTIAL (EQR) is 3 / 10.