EQUITY RESIDENTIAL (EQR) Stock Fundamental Analysis

USA • New York Stock Exchange • NYSE:EQR • US29476L1070

61.75 USD
-1.33 (-2.11%)
Last: Feb 5, 2026, 12:02 PM
Fundamental Rating

4

We assign a fundamental rating of 4 out of 10 to EQR. EQR was compared to 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 is quite expensive at the moment. It does show a decent growth rate.


Dividend Valuation Growth Profitability Health

6

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.
  • EQR had a positive operating cash flow in each of the past 5 years.
EQR Yearly Net Income VS EBIT VS OCF VS FCFEQR Yearly Net Income VS EBIT VS OCF VS FCFYearly Net Income VS EBIT VS OCF VS FCF 2016 2017 2018 2019 2020 2021 2022 2023 2024 0 1B 2B 3B 4B

1.2 Ratios

  • Looking at the Return On Assets, with a value of 5.49%, EQR is in the better half of the industry, outperforming 80.00% of the companies in the same industry.
  • 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.
  • With a decent Return On Invested Capital value of 3.36%, EQR is doing good in the industry, outperforming 80.00% of the companies in the same industry.
  • 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 RankSector 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%
EQR Yearly ROA, ROE, ROICEQR Yearly ROA, ROE, ROICYearly ROA, ROE, ROIC 2016 2017 2018 2019 2020 2021 2022 2023 2024 10 20 30 40

1.3 Margins

  • EQR has a better Profit Margin (37.54%) than 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.
  • 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 RankSector 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%
EQR Yearly Profit, Operating, Gross MarginsEQR Yearly Profit, Operating, Gross MarginsYearly Profit, Operating, Gross Margins 2016 2017 2018 2019 2020 2021 2022 2023 2024 50 100 150

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3

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
  • The debt/assets ratio for EQR is higher compared to a year ago.
EQR Yearly Shares OutstandingEQR Yearly Shares OutstandingYearly Shares Outstanding 2016 2017 2018 2019 2020 2021 2022 2023 2024 100M 200M 300M
EQR Yearly Total Debt VS Total AssetsEQR Yearly Total Debt VS Total AssetsYearly Total Debt VS Total Assets 2016 2017 2018 2019 2020 2021 2022 2023 2024 5B 10B 15B 20B

2.2 Solvency

  • Based on the Altman-Z score of 1.72, we must say that EQR is in the distress zone and has some risk of bankruptcy.
  • The Altman-Z score of EQR (1.72) is better 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.
  • The Debt to FCF ratio of EQR (31.82) is better 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.
  • Looking at the Debt to Equity ratio, with a value of 0.76, EQR is in the better half of the industry, outperforming 75.00% of the companies in the same industry.
Industry RankSector Rank
Debt/Equity 0.76
Debt/FCF 31.82
Altman-Z 1.72
ROIC/WACC0.46
WACC7.33%
EQR Yearly LT Debt VS Equity VS FCFEQR Yearly LT Debt VS Equity VS FCFYearly LT Debt VS Equity VS FCF 2016 2017 2018 2019 2020 2021 2022 2023 2024 0 2B 4B 6B 8B 10B

2.3 Liquidity

  • A Current Ratio of 0.07 indicates that EQR may have some problems paying its short term obligations.
  • The Current ratio of EQR (0.07) is worse 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.
  • Looking at the Quick ratio, with a value of 0.07, EQR is doing worse than 80.00% of the companies in the same industry.
Industry RankSector Rank
Current Ratio 0.07
Quick Ratio 0.07
EQR Yearly Current Assets VS Current LiabilitesEQR Yearly Current Assets VS Current LiabilitesYearly Current Assets VS Current Liabilites 2016 2017 2018 2019 2020 2021 2022 2023 2024 200M 400M 600M 800M 1B

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WACCDebt/EquityHow to determine the health of a companyAltman-Z scoreShow peers with great health

4

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.
  • 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 -8.58% on average per year.
  • Based on estimates for the next years, EQR will show a small growth in Revenue. The Revenue will grow by 4.47% on average per year.
EPS Next Y-18.61%
EPS Next 2Y-27.06%
EPS Next 3Y-16.51%
EPS Next 5Y-8.58%
Revenue Next Year4.47%
Revenue Next 2Y3.94%
Revenue Next 3Y3.73%
Revenue Next 5Y4.47%

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.
EQR Yearly Revenue VS EstimatesEQR Yearly Revenue VS EstimatesYearly Revenue VS Estimates 2015 2017 2019 2021 2023 2025 2027 2029 2031 2033 1B 2B 3B 4B
EQR Yearly EPS VS EstimatesEQR Yearly EPS VS EstimatesYearly EPS VS Estimates 2015 2017 2019 2021 2023 2025 2027 2029 2031 2033 2 4 6 8 10

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3

4. Valuation

4.1 Price/Earnings Ratio

  • The Price/Earnings ratio is 20.38, which indicates a rather expensive current valuation of EQR.
  • 80.00% of the companies in the same industry are more expensive than EQR, based on the Price/Earnings ratio.
  • When comparing the Price/Earnings ratio of EQR to the average of the S&P500 Index (28.25), we can say EQR is valued slightly cheaper.
  • With a Price/Forward Earnings ratio of 42.67, EQR can be considered very expensive at the moment.
  • Based on the Price/Forward Earnings ratio, EQR is valued a bit cheaper than 65.00% 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 27.50.
Industry RankSector Rank
PE 20.38
Fwd PE 42.67
EQR Price Earnings VS Forward Price EarningsEQR Price Earnings VS Forward Price Earnings ChartPrice Earnings - Forward Price Earnings PE FPE 20 40 60

4.2 Price Multiples

  • Based on the Enterprise Value to EBITDA ratio, EQR is valued a bit cheaper than 75.00% of the companies in the same industry.
  • EQR's Price/Free Cash Flow is on the same level as the industry average.
Industry RankSector Rank
P/FCF 88.63
EV/EBITDA 16.79
EQR Per share dataEQR EPS, Sales, OCF, FCF, BookValue per sharePer Share Data Per Share 5 10 15 20 25

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 -16.51% in the coming years. This may justify a cheaper valuation.
PEG (NY)N/A
PEG (5Y)20.7
EPS Next 2Y-27.06%
EPS Next 3Y-16.51%

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Price/EarningsPrice/FCFFCF per shareEV/EBITDAPEG RATIOShow best valued peers

5

5. Dividend

5.1 Amount

  • With a Yearly Dividend Yield of 4.48%, EQR is a good candidate for dividend investing.
  • Compared to an average industry Dividend Yield of 41.00, 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 1.82.
Industry RankSector Rank
Dividend Yield 4.48%

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
EQR Yearly Dividends per shareEQR Yearly Dividends per shareYearly Dividends per share 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 2026 0.5 1 1.5 2 2.5

5.3 Sustainability

  • 89.99% of the earnings are spent on dividend by EQR. 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-27.06%
EPS Next 3Y-16.51%
EQR Yearly Income VS Free CF VS DividendEQR Yearly Income VS Free CF VS DividendYearly Income VS Free CF VS Dividend 2016 2017 2018 2019 2020 2021 2022 2023 2024 0 1B 2B 3B 4B
EQR Dividend Payout.EQR Dividend Payout, showing the Payout Ratio.EQR Dividend Payout.PayoutRetained Earnings

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EQUITY RESIDENTIAL

NYSE:EQR (2/5/2026, 12:02:08 PM)

61.75

-1.33 (-2.11%)

Chartmill FA Rating
GICS SectorReal Estate
GICS IndustryGroupEquity Real Estate Investment Trusts (REITs)
GICS IndustryResidential REITs
Earnings (Last)10-28
Earnings (Next)02-05
Inst Owners96.32%
Inst Owner Change-10.25%
Ins Owners0.51%
Ins Owner Change3.04%
Market Cap23.49B
Revenue(TTM)3.08B
Net Income(TTM)1.16B
Analysts72.14
Price Target71.27 (15.42%)
Short Float %2.07%
Short Ratio3.35
Dividend
Industry RankSector Rank
Dividend Yield 4.48%
Yearly Dividend2.69
Dividend Growth(5Y)3.64%
DP89.99%
Div Incr Years0
Div Non Decr Years0
Ex-Date01-02
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)-0.41%
PT rev (3m)-4.84%
EPS NQ rev (1m)-4.81%
EPS NQ rev (3m)-5.82%
EPS NY rev (1m)8.99%
EPS NY rev (3m)15.79%
Revenue NQ rev (1m)-0.03%
Revenue NQ rev (3m)0.11%
Revenue NY rev (1m)-0.06%
Revenue NY rev (3m)0.1%
Valuation
Industry RankSector Rank
PE 20.38
Fwd PE 42.67
P/S 7.63
P/FCF 88.63
P/OCF 14.54
P/B 2.12
P/tB 2.12
EV/EBITDA 16.79
EPS(TTM)3.03
EY4.91%
EPS(NY)1.45
Fwd EY2.34%
FCF(TTM)0.7
FCFY1.13%
OCF(TTM)4.25
OCFY6.88%
SpS8.09
BVpS29.13
TBVpS29.13
PEG (NY)N/A
PEG (5Y)20.7
Graham Number44.57
Profitability
Industry RankSector 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 RankSector 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 1.72
F-Score8
WACC7.33%
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-18.61%
EPS Next 2Y-27.06%
EPS Next 3Y-16.51%
EPS Next 5Y-8.58%
Revenue 1Y (TTM)4.69%
Revenue growth 3Y6.54%
Revenue growth 5Y1.99%
Sales Q2Q%4.55%
Revenue Next Year4.47%
Revenue Next 2Y3.94%
Revenue Next 3Y3.73%
Revenue Next 5Y4.47%
EBIT growth 1Y-4.11%
EBIT growth 3Y12%
EBIT growth 5Y-0.83%
EBIT Next Year101.6%
EBIT Next 3Y29.27%
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 20.38 and the Price/Book (PB) ratio is 2.12.


What is the earnings growth outlook for EQUITY RESIDENTIAL?

The Earnings per Share (EPS) of EQUITY RESIDENTIAL (EQR) is expected to decline by -18.61% in the next year.