EQUITY RESIDENTIAL (EQR) Stock Fundamental Analysis
USA - New York Stock Exchange - NYSE:EQR - US29476L1070 - REIT
60.295 USD
+0.25 (+0.41%)
Overall EQR gets a fundamental rating of 4 out of 10. We evaluated EQR 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 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
The Return On Assets of EQR (5.49%) is better than 80.00% of its industry peers.
EQR has a Return On Equity of 10.43%. This is in the better half 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 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.
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.
Compared to 1 year ago, EQR has about the same amount of shares outstanding.
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 1.65, 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 1.65, EQR belongs to the top 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'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.
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 | 1.65 |
ROIC/WACC0.47
WACC7.18%
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.
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.
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
Based on estimates for the next years, EQR will show a decrease in Earnings Per Share. The EPS will decrease by -9.78% on average per year.
The Revenue is expected to grow by 4.52% on average over the next years.
EPS Next Y-26.63%
EPS Next 2Y-27.49%
EPS Next 3Y-16.74%
EPS Next 5Y-9.78%
Revenue Next Year4.51%
Revenue Next 2Y4.02%
Revenue Next 3Y3.85%
Revenue Next 5Y4.52%
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 accelerating.
4. Valuation
4.1 Price/Earnings Ratio
A Price/Earnings ratio of 19.90 indicates a rather expensive valuation of EQR.
Compared to the rest of the industry, the Price/Earnings ratio of EQR indicates a rather cheap valuation: EQR is cheaper than 90.00% of the companies listed in the same industry.
EQR is valuated rather cheaply when we compare the Price/Earnings ratio to 26.29, which is the current average of the S&P500 Index.
Based on the Price/Forward Earnings ratio of 42.16, the valuation of EQR can be described as expensive.
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 (23.51), we can say EQR is valued expensively.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 19.9 | ||
| Fwd PE | 42.16 |
4.2 Price Multiples
EQR's Enterprise Value to EBITDA ratio is a bit cheaper when compared to the industry. EQR is cheaper than 80.00% of the companies in the same industry.
EQR's Price/Free Cash Flow ratio is in line with the industry average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 86.54 | ||
| EV/EBITDA | 16.18 |
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 -16.74% in the coming years. This may justify a cheaper valuation.
PEG (NY)N/A
PEG (5Y)20.22
EPS Next 2Y-27.49%
EPS Next 3Y-16.74%
5. Dividend
5.1 Amount
With a Yearly Dividend Yield of 4.50%, EQR is a good candidate for dividend investing.
Compared to an average industry Dividend Yield of 7.26, EQR has a dividend in line with its industry peers.
Compared to an average S&P500 Dividend Yield of 2.31, EQR pays a better dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 4.5% |
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.
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-27.49%
EPS Next 3Y-16.74%
NYSE:EQR (12/10/2025, 12:40:08 PM)
60.295
+0.25 (+0.41%)
Chartmill FA Rating
GICS SectorReal Estate
GICS IndustryGroupEquity Real Estate Investment Trusts (REITs)
GICS IndustryResidential REITs
Earnings (Last)
Earnings (Next)
Inst Owners96.42%
Inst Owner Change9.11%
Ins Owners0.52%
Ins Owner Change2.4%
Market Cap22.94B
Revenue(TTM)3.08B
Net Income(TTM)1.16B
Analysts71.72
Price Target71.62 (18.78%)
Short Float %1.91%
Short Ratio2.98
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 4.5% |
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)-4.38%
PT rev (3m)-5.89%
EPS NQ rev (1m)-1.17%
EPS NQ rev (3m)-0.13%
EPS NY rev (1m)3.24%
EPS NY rev (3m)6.05%
Revenue NQ rev (1m)-0.04%
Revenue NQ rev (3m)-0.07%
Revenue NY rev (1m)0.06%
Revenue NY rev (3m)-0.03%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 19.9 | ||
| Fwd PE | 42.16 | ||
| P/S | 7.45 | ||
| P/FCF | 86.54 | ||
| P/OCF | 14.2 | ||
| P/B | 2.07 | ||
| P/tB | 2.07 | ||
| EV/EBITDA | 16.18 |
EPS(TTM)3.03
EY5.03%
EPS(NY)1.43
Fwd EY2.37%
FCF(TTM)0.7
FCFY1.16%
OCF(TTM)4.25
OCFY7.04%
SpS8.09
BVpS29.13
TBVpS29.13
PEG (NY)N/A
PEG (5Y)20.22
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
WACC7.18%
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-26.63%
EPS Next 2Y-27.49%
EPS Next 3Y-16.74%
EPS Next 5Y-9.78%
Revenue 1Y (TTM)4.69%
Revenue growth 3Y6.54%
Revenue growth 5Y1.99%
Sales Q2Q%4.55%
Revenue Next Year4.51%
Revenue Next 2Y4.02%
Revenue Next 3Y3.85%
Revenue Next 5Y4.52%
EBIT growth 1Y-4.11%
EBIT growth 3Y12%
EBIT growth 5Y-0.83%
EBIT Next Year101.17%
EBIT Next 3Y29.4%
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 4 / 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 6 / 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 19.9 and the Price/Book (PB) ratio is 2.07.
How financially healthy is EQUITY RESIDENTIAL?
The financial health rating of EQUITY RESIDENTIAL (EQR) is 3 / 10.