EQUITY RESIDENTIAL (EQR) Stock Fundamental Analysis
USA - NYSE:EQR - US29476L1070 - REIT
58.92 USD
-0.26 (-0.44%)
We assign a fundamental rating of 4 out of 10 to EQR. EQR was compared to 20 industry peers in the Residential REITs industry. While EQR is still in line with the averages on profitability rating, there are concerns on its financial health. EQR has a correct valuation and a medium growth rate.
1. Profitability
1.1 Basic Checks
EQR had positive earnings in the past year.
EQR had a positive operating cash flow in the past year.
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
With a decent Return On Assets value of 5.49%, EQR is doing good in the industry, outperforming 80.00% of the companies in the same industry.
Looking at the Return On Equity, with a value of 10.43%, EQR is in the better half of the industry, outperforming 80.00% 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.
EQR had an Average Return On Invested Capital over the past 3 years of 3.44%. This 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.
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.
EQR's Operating Margin has declined in the last couple of years.
With an excellent Gross Margin value of 63.01%, EQR belongs to the best of the industry, outperforming 85.00% of the companies in the same industry.
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.
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
EQR has an Altman-Z score of 1.63. This is a bad value and indicates that EQR is not financially healthy and even has some risk of bankruptcy.
EQR has a better Altman-Z score (1.63) than 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'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.
A Debt/Equity ratio of 0.76 indicates that EQR is somewhat dependend on debt financing.
EQR's Debt to Equity ratio of 0.76 is fine compared to the rest 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
WACC7.13%
2.3 Liquidity
A Current Ratio of 0.07 indicates that EQR may have some problems paying its short term obligations.
EQR's Current ratio of 0.07 is on the low side compared to the rest of the industry. EQR is outperformed by 85.00% of its industry peers.
A Quick Ratio of 0.07 indicates that EQR may have some problems paying its short term obligations.
The Quick ratio of EQR (0.07) is worse than 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.
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.
The Revenue has been growing slightly by 1.99% on average over the past years.
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.
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.
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
With a Price/Earnings ratio of 19.45, EQR is valued on the expensive side.
90.00% of the companies in the same industry are more expensive than EQR, based on the Price/Earnings ratio.
The average S&P500 Price/Earnings ratio is at 25.46. EQR is valued slightly cheaper when compared to this.
EQR is valuated quite expensively with a Price/Forward Earnings ratio of 40.37.
Compared to the rest of the industry, the Price/Forward Earnings ratio of EQR indicates a somewhat cheap valuation: EQR is cheaper than 75.00% of the companies listed in the same industry.
Compared to an average S&P500 Price/Forward Earnings ratio of 35.39, EQR is valued at the same level.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 19.45 | ||
| Fwd PE | 40.37 |
4.2 Price Multiples
Compared to the rest of the industry, the Enterprise Value to EBITDA ratio of EQR indicates a rather cheap valuation: EQR is cheaper than 95.00% of the companies listed in the same industry.
EQR's Price/Free Cash Flow ratio is in line with the industry average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 84.89 | ||
| EV/EBITDA | 16.05 |
4.3 Compensation for Growth
EQR has a very decent profitability rating, which may justify a higher PE ratio.
A cheap valuation may be justified as EQR's earnings are expected to decrease with -15.63% in the coming years.
PEG (NY)N/A
PEG (5Y)19.76
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.
Compared to an average industry Dividend Yield of 7.22, 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 2.44.
| 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 paid a dividend for at least 10 years, which is 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%
NYSE:EQR (11/19/2025, 2:58:22 PM)
58.92
-0.26 (-0.44%)
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 Change8.56%
Ins Owners0.52%
Ins Owner Change3.43%
Market Cap22.50B
Revenue(TTM)3.08B
Net Income(TTM)1.16B
Analysts71.72
Price Target74.89 (27.1%)
Short Float %1.5%
Short Ratio2.34
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)9.53%
EPS NY rev (1m)1.11%
EPS NY rev (3m)22.26%
Revenue NQ rev (1m)0.09%
Revenue NQ rev (3m)-0.18%
Revenue NY rev (1m)0.03%
Revenue NY rev (3m)-0.13%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 19.45 | ||
| Fwd PE | 40.37 | ||
| P/S | 7.31 | ||
| P/FCF | 84.89 | ||
| P/OCF | 13.92 | ||
| P/B | 2.03 | ||
| P/tB | 2.03 | ||
| EV/EBITDA | 16.05 |
EPS(TTM)3.03
EY5.14%
EPS(NY)1.46
Fwd EY2.48%
FCF(TTM)0.69
FCFY1.18%
OCF(TTM)4.23
OCFY7.18%
SpS8.06
BVpS29.03
TBVpS29.03
PEG (NY)N/A
PEG (5Y)19.76
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
WACC7.13%
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 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 19.45 and the Price/Book (PB) ratio is 2.03.
How financially healthy is EQUITY RESIDENTIAL?
The financial health rating of EQUITY RESIDENTIAL (EQR) is 3 / 10.