EQUITY RESIDENTIAL (EQR) Stock Fundamental Analysis
USA - New York Stock Exchange - NYSE:EQR - US29476L1070 - REIT
61.125 USD
-0.23 (-0.37%)
EQR gets a fundamental rating of 4 out of 10. The analysis compared the fundamentals against 20 industry peers in the Residential REITs industry. There are concerns on the financial health of EQR while its profitability can be described as average. EQR has a decent growth rate and is not valued too expensively.
1. Profitability
1.1 Basic Checks
- In the past year EQR was profitable.
- In the past year EQR had a positive cash flow from operations.
- Each year in the past 5 years EQR has been profitable.
- EQR had a positive operating cash flow in each of the past 5 years.
1.2 Ratios
- The Return On Assets of EQR (5.49%) is better than 80.00% of its industry peers.
- EQR's Return On Equity of 10.43% is fine compared to the rest of the industry. EQR outperforms 80.00% of its industry peers.
- 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
- EQR has a Profit Margin of 37.54%. This is in the better half of the industry: EQR outperforms 80.00% of its industry peers.
- In the last couple of years the Profit Margin of EQR has remained more or less at the same level.
- 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.
- EQR's Operating Margin has declined in the last couple of years.
- The Gross Margin of EQR (63.01%) is better than 85.00% 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
- The Return on Invested Capital (ROIC) is below the Cost of Capital (WACC), so 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 1.68, we must say that EQR is in the distress zone and has some risk of bankruptcy.
- With an excellent Altman-Z score value of 1.68, EQR belongs to the best of the industry, outperforming 85.00% of the companies in the same industry.
- EQR has a debt to FCF ratio of 31.82. This is a negative value and a sign of low solvency as EQR would need 31.82 years to pay back of all of its debts.
- EQR has a better Debt to FCF ratio (31.82) than 65.00% of its industry peers.
- A Debt/Equity ratio of 0.76 indicates that 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 | 1.68 |
ROIC/WACC0.46
WACC7.31%
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.
- 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.
- EQR's Quick ratio of 0.07 is on the low side compared to the rest of the industry. EQR is outperformed by 80.00% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 0.07 | ||
| Quick Ratio | 0.07 |
3. Growth
3.1 Past
- EQR shows a strong growth in Earnings Per Share. In the last year, the EPS has been growing by 24.18%, which is quite impressive.
- The Earnings Per Share has been growing slightly by 0.98% on average over the past years.
- Looking at the last year, EQR shows a small growth in Revenue. The Revenue has grown by 4.69% in the last year.
- 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
- The Earnings Per Share is expected to decrease by -8.58% on average over the next years.
- The Revenue is expected to grow by 4.47% on average over the next years.
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 2Y3.96%
Revenue Next 3Y3.76%
Revenue Next 5Y4.47%
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.
- 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 20.17, which indicates a rather expensive current valuation of EQR.
- EQR's Price/Earnings ratio is rather cheap when compared to the industry. EQR is cheaper than 90.00% of the companies in the same industry.
- Compared to an average S&P500 Price/Earnings ratio of 27.32, EQR is valued a bit cheaper.
- Based on the Price/Forward Earnings ratio of 42.89, the valuation of EQR can be described as expensive.
- Based on the Price/Forward Earnings ratio, EQR is valued a bit cheaper than the industry average as 70.00% of the companies are valued more expensively.
- The average S&P500 Price/Forward Earnings ratio is at 24.30. EQR is valued rather expensively when compared to this.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 20.17 | ||
| Fwd PE | 42.89 |
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.
- The rest of the industry has a similar Price/Free Cash Flow ratio as EQR.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 87.73 | ||
| EV/EBITDA | 16.44 |
4.3 Compensation for Growth
- EQR has a very decent profitability rating, which may justify a higher PE ratio.
- EQR's earnings are expected to decrease with -16.97% in the coming years. This may justify a cheaper valuation.
PEG (NY)N/A
PEG (5Y)20.5
EPS Next 2Y-27.62%
EPS Next 3Y-16.97%
5. Dividend
5.1 Amount
- EQR has a Yearly Dividend Yield of 4.53%, which is a nice return.
- EQR's Dividend Yield is comparable with the industry average which is at 30.96.
- EQR's Dividend Yield is rather good when compared to the S&P500 average which is at 1.86.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 4.53% |
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-27.62%
EPS Next 3Y-16.97%
NYSE:EQR (1/22/2026, 11:31:57 AM)
61.125
-0.23 (-0.37%)
Chartmill FA Rating
GICS SectorReal Estate
GICS IndustryGroupEquity Real Estate Investment Trusts (REITs)
GICS IndustryResidential REITs
Earnings (Last)10-28 2025-10-28/amc
Earnings (Next)02-05 2026-02-05/amc
Inst Owners96.32%
Inst Owner Change0.12%
Ins Owners0.51%
Ins Owner Change1.47%
Market Cap23.26B
Revenue(TTM)3.08B
Net Income(TTM)1.16B
Analysts72.14
Price Target71.27 (16.6%)
Short Float %1.95%
Short Ratio3.25
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 4.53% |
Yearly Dividend2.69
Dividend Growth(5Y)3.64%
DP89.99%
Div Incr Years0
Div Non Decr Years0
Ex-Date01-02 2026-01-02 (0.6925)
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)-0.49%
PT rev (3m)-5.75%
EPS NQ rev (1m)0.13%
EPS NQ rev (3m)-3.07%
EPS NY rev (1m)1.77%
EPS NY rev (3m)6.23%
Revenue NQ rev (1m)-0.02%
Revenue NQ rev (3m)0.03%
Revenue NY rev (1m)0.03%
Revenue NY rev (3m)0.13%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 20.17 | ||
| Fwd PE | 42.89 | ||
| P/S | 7.55 | ||
| P/FCF | 87.73 | ||
| P/OCF | 14.39 | ||
| P/B | 2.1 | ||
| P/tB | 2.1 | ||
| EV/EBITDA | 16.44 |
EPS(TTM)3.03
EY4.96%
EPS(NY)1.43
Fwd EY2.33%
FCF(TTM)0.7
FCFY1.14%
OCF(TTM)4.25
OCFY6.95%
SpS8.09
BVpS29.13
TBVpS29.13
PEG (NY)N/A
PEG (5Y)20.5
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 | 1.68 |
F-Score8
WACC7.31%
ROIC/WACC0.46
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 2Y3.96%
Revenue Next 3Y3.76%
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 20.17 and the Price/Book (PB) ratio is 2.1.
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.