EQUITY RESIDENTIAL (EQR) Stock Fundamental Analysis
USA - NYSE:EQR - US29476L1070 - REIT
59.42 USD
+0.14 (+0.24%)
59.42 USD
0 (0%)
EQR gets a fundamental rating of 5 out of 10. The analysis compared the fundamentals against 20 industry peers in the Residential REITs industry. EQR has an excellent profitability rating, but there are concerns on its financial health. EQR has a decent growth rate and is not valued too expensively.
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 an excellent Return On Assets value of 5.49%, EQR belongs to the best of the industry, outperforming 85.00% of the companies in the same industry.
EQR has a Return On Equity of 10.43%. This is amongst the best in the industry. EQR outperforms 85.00% of its industry peers.
EQR's Return On Invested Capital of 3.36% is fine compared to the rest of the industry. EQR outperforms 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 2.60%.
| 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
EQR's Profit Margin of 37.54% is amongst the best of the industry. EQR outperforms 85.00% of its industry peers.
EQR's Profit Margin has been stable in the last couple of years.
EQR has a Operating Margin of 27.91%. This is in the better half of the industry: EQR outperforms 80.00% of its industry peers.
In the last couple of years the Operating Margin of EQR has declined.
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
With a Return on Invested Capital (ROIC) below the Cost of Capital (WACC), EQR is destroying value.
The number of shares outstanding for EQR remains at a similar level compared to 1 year ago.
Compared to 5 years ago, EQR has more shares outstanding
Compared to 1 year ago, EQR has a worse debt to assets ratio.
2.2 Solvency
Based on the Altman-Z score of 1.63, we must say that EQR is in the distress zone and has some risk of bankruptcy.
EQR's Altman-Z score of 1.63 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 has a better Debt to FCF ratio (31.82) than 65.00% of its industry peers.
EQR has a Debt/Equity ratio of 0.76. This is a neutral value indicating EQR is somewhat dependend on debt financing.
EQR has a Debt to Equity ratio of 0.76. This is in the better half 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 | 1.63 |
ROIC/WACC0.47
WACC7.15%
2.3 Liquidity
A Current Ratio of 0.07 indicates that EQR may have some problems paying its short term obligations.
EQR has a worse Current ratio (0.07) than 85.00% of its industry peers.
A Quick Ratio of 0.07 indicates that EQR may have some problems paying its short term obligations.
EQR has a Quick ratio of 0.07. This is amonst the worse of the industry: EQR underperforms 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.
The Earnings Per Share has been growing slightly by 0.98% on average over the past years.
The Revenue has been growing slightly by 4.69% in the past 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.
Based on estimates for the next years, EQR will show a small growth in Revenue. The Revenue will grow by 4.80% on average per year.
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
The Price/Earnings ratio is 19.61, which indicates a rather expensive current valuation of EQR.
95.00% of the companies in the same industry are more expensive than EQR, based on the Price/Earnings ratio.
EQR is valuated rather cheaply when we compare the Price/Earnings ratio to 25.89, which is the current average of the S&P500 Index.
The Price/Forward Earnings ratio is 40.71, which means the current valuation is very expensive for EQR.
Based on the Price/Forward Earnings ratio, EQR is valued a bit cheaper than the industry average as 75.00% of the companies are valued more expensively.
Compared to an average S&P500 Price/Forward Earnings ratio of 34.59, EQR is valued at the same level.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 19.61 | ||
| Fwd PE | 40.71 |
4.2 Price Multiples
EQR's Enterprise Value to EBITDA ratio is rather cheap when compared to the industry. EQR is cheaper than 95.00% 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 | 85.61 | ||
| EV/EBITDA | 16.07 |
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)19.92
EPS Next 2Y-26.75%
EPS Next 3Y-15.63%
5. Dividend
5.1 Amount
EQR has a Yearly Dividend Yield of 4.67%, which is a nice return.
EQR's Dividend Yield is comparable with the industry average which is at 7.26.
EQR's Dividend Yield is rather good when compared to the S&P500 average which is at 2.36.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 4.67% |
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
EQR pays out 89.99% of its income as dividend. This is not a sustainable payout ratio.
EQR's earnings are declining while the Dividend Rate has been growing. This means the dividend growth is most likely not sustainable.
DP89.99%
EPS Next 2Y-26.75%
EPS Next 3Y-15.63%
59.42
+0.14 (+0.24%)
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 Change0.12%
Ins Owners0.52%
Ins Owner Change2.4%
Market Cap22.69B
Revenue(TTM)3.08B
Net Income(TTM)1.16B
Analysts71.72
Price Target74.89 (26.04%)
Short Float %1.59%
Short Ratio2.78
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 4.67% |
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)-0.95%
PT rev (3m)-3.99%
EPS NQ rev (1m)-2.05%
EPS NQ rev (3m)21.62%
EPS NY rev (1m)1.11%
EPS NY rev (3m)22.26%
Revenue NQ rev (1m)0.1%
Revenue NQ rev (3m)-0.36%
Revenue NY rev (1m)0.03%
Revenue NY rev (3m)-0.13%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 19.61 | ||
| Fwd PE | 40.71 | ||
| P/S | 7.37 | ||
| P/FCF | 85.61 | ||
| P/OCF | 14.04 | ||
| P/B | 2.05 | ||
| P/tB | 2.05 | ||
| EV/EBITDA | 16.07 |
EPS(TTM)3.03
EY5.1%
EPS(NY)1.46
Fwd EY2.46%
FCF(TTM)0.69
FCFY1.17%
OCF(TTM)4.23
OCFY7.12%
SpS8.06
BVpS29.03
TBVpS29.03
PEG (NY)N/A
PEG (5Y)19.92
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 | 1.63 |
F-Score8
WACC7.15%
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 19.61 and the Price/Book (PB) ratio is 2.05.
How financially healthy is EQUITY RESIDENTIAL?
The financial health rating of EQUITY RESIDENTIAL (EQR) is 3 / 10.