EQUITY RESIDENTIAL (EQR)
US29476L1070 - REIT
Taking everything into account, EQR scores 5 out of 10 in our fundamental rating. EQR was compared to 20 industry peers in the Residential REITs industry. EQR scores excellent on profitability, but there are concerns on its financial health. EQR is quite expensive at the moment. It does show a decent 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.
In the past 5 years EQR has always been profitable.
Each year in the past 5 years EQR had a positive operating cash flow.
1.2 Ratios
EQR has a Return On Assets of 4.42%. This is amongst the best in the industry. EQR outperforms 90.00% of its industry peers.
EQR has a better Return On Equity (8.52%) than 75.00% of its industry peers.
With an excellent Return On Invested Capital value of 3.53%, EQR belongs to the best of the industry, outperforming 85.00% of the companies in the same industry.
Measured over the past 3 years, the Average Return On Invested Capital for EQR is in line with the industry average of 2.61%.
The last Return On Invested Capital (3.53%) for EQR is above the 3 year average (3.09%), which is a sign of increasing profitability.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 4.42% | ||
| ROE | 8.52% | ||
| ROIC | 3.53% |
ROA(3y)4.75%
ROA(5y)4.66%
ROE(3y)8.86%
ROE(5y)8.92%
ROIC(3y)3.09%
ROIC(5y)3.19%
1.3 Margins
The Profit Margin of EQR (31.45%) is better than 90.00% of its industry peers.
EQR's Profit Margin has improved in the last couple of years.
EQR has a Operating Margin of 30.47%. This is amongst the best in the industry. EQR outperforms 85.00% of its industry peers.
EQR's Operating Margin has declined in the last couple of years.
EQR has a better Gross Margin (63.64%) 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 Rank | Sector Rank | ||
|---|---|---|---|
| OM | 30.47% | ||
| PM (TTM) | 31.45% | ||
| GM | 63.64% |
OM growth 3Y-0.02%
OM growth 5Y-1.71%
PM growth 3Y-6.48%
PM growth 5Y2.67%
GM growth 3Y-0.4%
GM growth 5Y-0.7%
2. Health
2.1 Basic Checks
The Return on Invested Capital (ROIC) is below the Cost of Capital (WACC), so EQR is destroying value.
EQR has more shares outstanding than it did 1 year ago.
Compared to 5 years ago, EQR has more shares outstanding
EQR has a worse debt/assets ratio than last year.
2.2 Solvency
An Altman-Z score of 1.88 indicates that EQR is not a great score, but indicates only limited risk for bankruptcy at the moment.
With an excellent Altman-Z score value of 1.88, EQR belongs to the best of the industry, outperforming 85.00% of the companies in the same industry.
EQR has a Debt/Equity ratio of 0.77. This is a neutral value indicating EQR is somewhat dependend on debt financing.
Looking at the Debt to Equity ratio, with a value of 0.77, EQR is in the better half of the industry, outperforming 70.00% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.77 | ||
| Debt/FCF | N/A | ||
| Altman-Z | 1.88 |
ROIC/WACC0.45
WACC7.79%
2.3 Liquidity
A Current Ratio of 0.02 indicates that EQR may have some problems paying its short term obligations.
With a Current ratio value of 0.02, EQR is not doing good in the industry: 90.00% of the companies in the same industry are doing better.
EQR has a Quick Ratio of 0.02. 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 has a Quick ratio of 0.02. This is amonst the worse of the industry: EQR underperforms 90.00% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 0.02 | ||
| Quick Ratio | 0.02 |
3. Growth
3.1 Past
The Earnings Per Share has grown by an impressive 35.56% over the past year.
Measured over the past 5 years, EQR shows a small growth in Earnings Per Share. The EPS has been growing by 4.21% on average per year.
EQR shows a small growth in Revenue. In the last year, the Revenue has grown by 3.33%.
Measured over the past years, EQR shows a small growth in Revenue. The Revenue has been growing by 2.20% on average per year.
EPS 1Y (TTM)35.56%
EPS 3Y-3.52%
EPS 5Y4.21%
EPS Q2Q%-15.56%
Revenue 1Y (TTM)3.33%
Revenue growth 3Y3.77%
Revenue growth 5Y2.2%
Sales Q2Q%3.35%
3.2 Future
EQR is expected to show a decrease in Earnings Per Share. In the coming years, the EPS will decrease by -2.90% yearly.
Based on estimates for the next years, EQR will show a small growth in Revenue. The Revenue will grow by 4.25% on average per year.
EPS Next Y-4.51%
EPS Next 2Y-12.86%
EPS Next 3Y-5.91%
EPS Next 5Y-2.9%
Revenue Next Year3.1%
Revenue Next 2Y3.57%
Revenue Next 3Y3.97%
Revenue Next 5Y4.25%
3.3 Evolution
The EPS growth rate is decreasing: in the next years the growth will be less than in the last years.
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
Based on the Price/Earnings ratio of 29.24, the valuation of EQR can be described as expensive.
Based on the Price/Earnings ratio, EQR is valued cheaply inside the industry as 90.00% of the companies are valued more expensively.
EQR is valuated at similar levels of the S&P average when we compare the Price/Earnings ratio to 27.73, which is the current average of the S&P500 Index.
EQR is valuated quite expensively with a Price/Forward Earnings ratio of 42.71.
EQR's Price/Forward Earnings ratio is a bit cheaper when compared to the industry. EQR is cheaper than 75.00% of the companies in the same industry.
EQR's Price/Forward Earnings ratio indicates a rather expensive valuation when compared to the S&P500 average which is at 22.83.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 29.24 | ||
| Fwd PE | 42.71 |
4.2 Price Multiples
Based on the Enterprise Value to EBITDA ratio, EQR is valued a bit cheaper than 65.00% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | N/A | ||
| EV/EBITDA | 19.11 |
4.3 Compensation for Growth
The excellent 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 -5.91% in the coming years.
PEG (NY)N/A
PEG (5Y)6.94
EPS Next 2Y-12.86%
EPS Next 3Y-5.91%
5. Dividend
5.1 Amount
With a Yearly Dividend Yield of 3.89%, EQR has a reasonable but not impressive dividend return.
Compared to an average industry Dividend Yield of 4.23, 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 2.34.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 3.89% |
5.2 History
The dividend of EQR has a limited annual growth rate of 4.21%.
EQR has been paying a dividend for at least 10 years, so it has a reliable track record.
EQR has not decreased their dividend for at least 10 years, which is a reliable track record.
Dividend Growth(5Y)4.21%
Div Incr Years2
Div Non Decr Years13
5.3 Sustainability
EQR pays out 109.99% 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.
DP109.99%
EPS Next 2Y-12.86%
EPS Next 3Y-5.91%
EQUITY RESIDENTIAL
NYSE:EQR (12/20/2024, 8:07:23 PM)
After market: 71.35 0 (0%)71.35
+1.86 (+2.68%)
Chartmill FA Rating
GICS SectorReal Estate
GICS IndustryGroupEquity Real Estate Investment Trusts (REITs)
GICS IndustryResidential REITs
Earnings (Last)
Earnings (Next)
Inst Owners94.87%
Inst Owner Change-0.21%
Ins Owners0.48%
Ins Owner Change-1.55%
Market Cap27.07B
Analysts71.03
Price Target80.37 (12.64%)
Short Float %1.66%
Short Ratio4.37
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 3.89% |
Dividend Growth(5Y)4.21%
DP109.99%
Div Incr Years2
Div Non Decr Years13
Ex-Date
Surprises & Revisions
EPS beat(2)1
Avg EPS beat(2)5.58%
Min EPS beat(2)-10.24%
Max EPS beat(2)21.4%
EPS beat(4)3
Avg EPS beat(4)57.53%
Min EPS beat(4)-10.24%
Max EPS beat(4)129.76%
EPS beat(8)6
Avg EPS beat(8)39.09%
EPS beat(12)9
Avg EPS beat(12)63.04%
EPS beat(16)12
Avg EPS beat(16)84.1%
Revenue beat(2)0
Avg Revenue beat(2)-0.71%
Min Revenue beat(2)-1.02%
Max Revenue beat(2)-0.4%
Revenue beat(4)0
Avg Revenue beat(4)-0.62%
Min Revenue beat(4)-1.02%
Max Revenue beat(4)-0.36%
Revenue beat(8)0
Avg Revenue beat(8)-0.84%
Revenue beat(12)2
Avg Revenue beat(12)-0.63%
Revenue beat(16)4
Avg Revenue beat(16)-0.4%
PT rev (1m)1.22%
PT rev (3m)8.37%
EPS NQ rev (1m)0%
EPS NQ rev (3m)4.08%
EPS NY rev (1m)-1.78%
EPS NY rev (3m)0.89%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)0.85%
Revenue NY rev (1m)0.17%
Revenue NY rev (3m)0.3%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 29.24 | ||
| Fwd PE | 42.71 | ||
| P/S | 9.2 | ||
| P/FCF | N/A | ||
| P/OCF | 17.31 | ||
| P/B | 2.49 | ||
| P/tB | 2.49 | ||
| EV/EBITDA | 19.11 |
EPS(TTM)2.44
EY3.42%
EPS(NY)1.67
Fwd EY2.34%
FCF(TTM)-0.49
FCFYN/A
OCF(TTM)4.12
OCFY5.78%
SpS7.75
BVpS28.61
TBVpS28.61
PEG (NY)N/A
PEG (5Y)6.94
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 4.42% | ||
| ROE | 8.52% | ||
| ROCE | 4.65% | ||
| ROIC | 3.53% | ||
| ROICexc | 3.53% | ||
| ROICexgc | 3.58% | ||
| OM | 30.47% | ||
| PM (TTM) | 31.45% | ||
| GM | 63.64% | ||
| FCFM | N/A |
ROA(3y)4.75%
ROA(5y)4.66%
ROE(3y)8.86%
ROE(5y)8.92%
ROIC(3y)3.09%
ROIC(5y)3.19%
ROICexc(3y)3.1%
ROICexc(5y)3.2%
ROICexgc(3y)3.14%
ROICexgc(5y)3.25%
ROCE(3y)3.96%
ROCE(5y)4.09%
ROICexcg growth 3Y4.1%
ROICexcg growth 5Y0.99%
ROICexc growth 3Y4.16%
ROICexc growth 5Y1.14%
OM growth 3Y-0.02%
OM growth 5Y-1.71%
PM growth 3Y-6.48%
PM growth 5Y2.67%
GM growth 3Y-0.4%
GM growth 5Y-0.7%
F-Score5
Asset Turnover0.14
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.77 | ||
| Debt/FCF | N/A | ||
| Debt/EBITDA | 4.62 | ||
| Cap/Depr | 191.4% | ||
| Cap/Sales | 59.54% | ||
| Interest Coverage | 3.73 | ||
| Cash Conversion | 86.34% | ||
| Profit Quality | N/A | ||
| Current Ratio | 0.02 | ||
| Quick Ratio | 0.02 | ||
| Altman-Z | 1.88 |
F-Score5
WACC7.79%
ROIC/WACC0.45
Cap/Depr(3y)126.42%
Cap/Depr(5y)132.13%
Cap/Sales(3y)41.87%
Cap/Sales(5y)42.56%
Profit Quality(3y)N/A
Profit Quality(5y)N/A
High Growth Momentum
Growth
EPS 1Y (TTM)35.56%
EPS 3Y-3.52%
EPS 5Y4.21%
EPS Q2Q%-15.56%
EPS Next Y-4.51%
EPS Next 2Y-12.86%
EPS Next 3Y-5.91%
EPS Next 5Y-2.9%
Revenue 1Y (TTM)3.33%
Revenue growth 3Y3.77%
Revenue growth 5Y2.2%
Sales Q2Q%3.35%
Revenue Next Year3.1%
Revenue Next 2Y3.57%
Revenue Next 3Y3.97%
Revenue Next 5Y4.25%
EBIT growth 1Y1.45%
EBIT growth 3Y3.75%
EBIT growth 5Y0.45%
EBIT Next Year97.31%
EBIT Next 3Y29.47%
EBIT Next 5Y18.38%
FCF growth 1Y-163.25%
FCF growth 3Y-0.86%
FCF growth 5Y21.88%
OCF growth 1Y11.51%
OCF growth 3Y6.6%
OCF growth 5Y2.48%