EQUITY RESIDENTIAL (EQR) Stock Fundamental Analysis
USA - New York Stock Exchange - NYSE:EQR - US29476L1070 - REIT
60.95 USD
+0.32 (+0.53%)
60.95 USD
0 (0%)
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 decent growth rate and is not valued too expensively.
1. Profitability
1.1 Basic Checks
In the past year EQR was profitable.
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
EQR's Return On Assets of 5.49% is fine compared to the rest of the industry. EQR outperforms 80.00% of its industry peers.
The Return On Equity of EQR (10.43%) is better than 80.00% of its industry peers.
EQR has a better Return On Invested Capital (3.36%) 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
With a decent Profit Margin value of 37.54%, EQR is doing good in the industry, outperforming 80.00% of the companies in the same industry.
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.
In the last couple of years the Operating Margin of EQR has declined.
EQR's Gross Margin of 63.01% is amongst the best of the industry. EQR outperforms 85.00% of its industry peers.
EQR's Gross Margin has been stable in the last couple of years.
| 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.
EQR has more shares outstanding than it did 5 years ago.
EQR has a worse debt/assets ratio than last year.
2.2 Solvency
EQR has an Altman-Z score of 1.66. This is a bad value and indicates that EQR is not financially healthy and even has some risk of bankruptcy.
With an excellent Altman-Z score value of 1.66, EQR belongs to the best of the industry, outperforming 85.00% of the companies in the same industry.
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.
A Debt/Equity ratio of 0.76 indicates that EQR is somewhat dependend on debt financing.
With a decent Debt to Equity ratio value of 0.76, EQR is doing good in the industry, outperforming 75.00% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.76 | ||
| Debt/FCF | 31.82 | ||
| Altman-Z | 1.66 |
ROIC/WACC0.47
WACC7.22%
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.
Looking at the Current ratio, with a value of 0.07, EQR is doing worse than 85.00% of the companies in the same industry.
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.
The Earnings Per Share has been growing slightly by 0.98% on average over the past years.
EQR shows a small growth in Revenue. In the last year, the Revenue has grown by 4.69%.
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
The Earnings Per Share is expected to decrease by -9.78% on average over the next years.
EQR is expected to show a small growth in Revenue. In the coming years, the Revenue will grow by 4.52% yearly.
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.
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 20.12, which indicates a rather expensive current valuation of EQR.
Based on the Price/Earnings ratio, EQR is valued cheaper than 90.00% of the companies in the same industry.
EQR is valuated rather cheaply when we compare the Price/Earnings ratio to 26.54, which is the current average of the S&P500 Index.
A Price/Forward Earnings ratio of 42.62 indicates a quite expensive valuation of EQR.
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.
EQR is valuated expensively when we compare the Price/Forward Earnings ratio to 23.78, which is the current average of the S&P500 Index.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 20.12 | ||
| Fwd PE | 42.62 |
4.2 Price Multiples
Based on the Enterprise Value to EBITDA ratio, EQR is valued cheaply inside the industry as 90.00% of the companies are valued more expensively.
The rest of the industry has a similar Price/Free Cash Flow ratio as EQR.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 87.48 | ||
| EV/EBITDA | 16.29 |
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 -16.74% in the coming years.
PEG (NY)N/A
PEG (5Y)20.44
EPS Next 2Y-27.49%
EPS Next 3Y-16.74%
5. Dividend
5.1 Amount
With a Yearly Dividend Yield of 4.57%, 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.
EQR's Dividend Yield is rather good when compared to the S&P500 average which is at 2.27.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 4.57% |
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-27.49%
EPS Next 3Y-16.74%
60.95
+0.32 (+0.53%)
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 Cap23.19B
Revenue(TTM)3.08B
Net Income(TTM)1.16B
Analysts71.72
Price Target71.62 (17.51%)
Short Float %1.91%
Short Ratio2.98
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 4.57% |
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 | 20.12 | ||
| Fwd PE | 42.62 | ||
| P/S | 7.53 | ||
| P/FCF | 87.48 | ||
| P/OCF | 14.35 | ||
| P/B | 2.09 | ||
| P/tB | 2.09 | ||
| EV/EBITDA | 16.29 |
EPS(TTM)3.03
EY4.97%
EPS(NY)1.43
Fwd EY2.35%
FCF(TTM)0.7
FCFY1.14%
OCF(TTM)4.25
OCFY6.97%
SpS8.09
BVpS29.13
TBVpS29.13
PEG (NY)N/A
PEG (5Y)20.44
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 | 1.66 |
F-Score8
WACC7.22%
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 20.12 and the Price/Book (PB) ratio is 2.09.
How financially healthy is EQUITY RESIDENTIAL?
The financial health rating of EQUITY RESIDENTIAL (EQR) is 3 / 10.