EQUITY RESIDENTIAL (EQR) Fundamental Analysis & Valuation

NYSE:EQR • US29476L1070

Current stock price

58.75 USD
-0.76 (-1.28%)
At close:
58.75 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

  • In the past year EQR was profitable.
  • 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.
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.
  • The Return On Invested Capital of EQR (3.45%) is better 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 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

  • EQR's Profit Margin of 36.16% is amongst the best of the industry. EQR outperforms 90.00% of its industry peers.
  • EQR's Profit Margin has been stable in the last couple of years.
  • Looking at the Operating Margin, with a value of 28.11%, EQR belongs to the top 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.
  • EQR has a better Gross Margin (62.88%) than 80.00% 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 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

  • EQR has a Return on Invested Capital (ROIC), which is below the Cost of Capital (WACC), which means it is destroying value.
  • EQR has less shares outstanding than it did 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.
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 1.66. 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 1.66 is amongst the best of 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.
  • 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.
  • A Debt/Equity ratio of 0.74 indicates that 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 RankSector Rank
Debt/Equity 0.74
Debt/FCF 15.46
Altman-Z 1.66
ROIC/WACC0.47
WACC7.34%
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.
  • The Current ratio of EQR (0.05) is worse than 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's Quick ratio of 0.05 is on the low side compared to the rest of the industry. EQR is outperformed by 75.00% of its industry peers.
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.
  • The Earnings Per Share has been growing slightly by 3.64% on average over the past years.
  • The Revenue has been growing slightly by 3.82% in the past 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

  • 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 Year2.97%
Revenue Next 2Y3.04%
Revenue Next 3Y3.31%
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.
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

  • Based on the Price/Earnings ratio of 20.05, 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.
  • The average S&P500 Price/Earnings ratio is at 24.89. EQR is around the same levels.
  • EQR is valuated quite expensively with a Price/Forward Earnings ratio of 40.30.
  • 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.
  • When comparing the Price/Forward Earnings ratio of EQR to the average of the S&P500 Index (22.19), we can say EQR is valued expensively.
Industry RankSector Rank
PE 20.05
Fwd PE 40.3
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

  • Based on the Enterprise Value to EBITDA ratio, EQR is valued a bit cheaper than the industry average as 70.00% of the companies are valued more expensively.
  • 65.00% of the companies in the same industry are more expensive than EQR, based on the Price/Free Cash Flow ratio.
Industry RankSector Rank
P/FCF 41.95
EV/EBITDA 15.8
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.
  • A cheap valuation may be justified as EQR's earnings are expected to decrease with -16.40% in the coming years.
PEG (NY)N/A
PEG (5Y)5.5
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 4.72%, which is a nice return.
  • Compared to an average industry Dividend Yield of 46.72, 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 4.72%

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.
Dividend Growth(5Y)3.02%
Div Incr Years0
Div Non Decr Years0
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

  • 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 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 (3/27/2026, 8:14:01 PM)

After market: 58.75 0 (0%)

58.75

-0.76 (-1.28%)

Chartmill FA Rating
GICS SectorReal Estate
GICS IndustryGroupEquity Real Estate Investment Trusts (REITs)
GICS IndustryResidential REITs
Earnings (Last)02-05
Earnings (Next)04-27
Inst Owners95.94%
Inst Owner Change-2.4%
Ins Owners0.53%
Ins Owner Change4.13%
Market Cap22.18B
Revenue(TTM)3.09B
Net Income(TTM)1.12B
Analysts69.66
Price Target70.94 (20.75%)
Short Float %2.7%
Short Ratio3.8
Dividend
Industry RankSector Rank
Dividend Yield 4.72%
Yearly Dividend2.77
Dividend Growth(5Y)3.02%
DP93.65%
Div Incr Years0
Div Non Decr Years0
Ex-Date01-02
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)-0.73%
EPS NQ rev (3m)0.93%
EPS NY rev (1m)0.29%
EPS NY rev (3m)2.29%
Revenue NQ rev (1m)-0.1%
Revenue NQ rev (3m)-0.79%
Revenue NY rev (1m)-0.15%
Revenue NY rev (3m)-0.59%
Valuation
Industry RankSector Rank
PE 20.05
Fwd PE 40.3
P/S 7.17
P/FCF 41.95
P/OCF 13.45
P/B 2.01
P/tB 2.01
EV/EBITDA 15.8
EPS(TTM)2.93
EY4.99%
EPS(NY)1.46
Fwd EY2.48%
FCF(TTM)1.4
FCFY2.38%
OCF(TTM)4.37
OCFY7.43%
SpS8.19
BVpS29.25
TBVpS29.25
PEG (NY)N/A
PEG (5Y)5.5
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 1.66
F-Score7
WACC7.34%
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 Year2.97%
Revenue Next 2Y3.04%
Revenue Next 3Y3.31%
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.


How profitable is EQUITY RESIDENTIAL (EQR) stock?

EQUITY RESIDENTIAL (EQR) has a profitability rating of 7 / 10.


Can you provide the PE and PB ratios for EQR stock?

The Price/Earnings (PE) ratio for EQUITY RESIDENTIAL (EQR) is 20.05 and the Price/Book (PB) ratio is 2.01.


What is the earnings growth outlook for EQUITY RESIDENTIAL?

The Earnings per Share (EPS) of EQUITY RESIDENTIAL (EQR) is expected to decline by -50.25% in the next year.