EQUITY RESIDENTIAL (EQR) Stock Fundamental Analysis
USA - NYSE:EQR - US29476L1070 - REIT
59.05 USD
-0.37 (-0.62%)
59.05 USD
0 (0%)
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. While EQR has a great profitability rating, there are quite some concerns on its financial health. 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.
EQR had a positive operating cash flow in each of the past 5 years.
1.2 Ratios
The Return On Assets of EQR (5.49%) is better than 85.00% of its industry peers.
The Return On Equity of EQR (10.43%) is better than 85.00% of its industry peers.
Looking at the Return On Invested Capital, with a value of 3.36%, EQR is in the better half of the industry, outperforming 80.00% 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 2.60%.
| 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 an excellent Profit Margin value of 37.54%, EQR belongs to the best of the industry, outperforming 85.00% of the companies in the same industry.
EQR's Profit Margin has been stable in the last couple of years.
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'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
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
The debt/assets ratio for EQR is higher compared to a year ago.
2.2 Solvency
Based on the Altman-Z score of 1.64, we must say that EQR is in the distress zone and has some risk of bankruptcy.
EQR's Altman-Z score of 1.64 is amongst the best of the industry. EQR outperforms 85.00% of its industry peers.
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 has a better Debt to FCF ratio (31.82) than 65.00% of its industry peers.
A Debt/Equity ratio of 0.76 indicates that 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 Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.76 | ||
| Debt/FCF | 31.82 | ||
| Altman-Z | 1.64 |
ROIC/WACC0.47
WACC7.15%
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.
EQR has a Quick 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.
EQR's Quick ratio of 0.07 is on the low side compared to the rest of the industry. EQR is outperformed by 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
EQR is expected to show a decrease in Earnings Per Share. In the coming years, the EPS will decrease by -9.78% yearly.
The Revenue is expected to grow by 4.80% on average over the next years.
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
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
With a Price/Earnings ratio of 19.49, EQR is valued on the expensive side.
Based on the Price/Earnings ratio, EQR is valued cheaper than 95.00% of the companies in the same industry.
EQR's Price/Earnings ratio indicates a valuation a bit cheaper than the S&P500 average which is at 25.56.
With a Price/Forward Earnings ratio of 40.46, EQR can be considered very expensive at the moment.
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 is valuated at similar levels of the S&P average when we compare the Price/Forward Earnings ratio to 34.62, which is the current average of the S&P500 Index.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 19.49 | ||
| Fwd PE | 40.46 |
4.2 Price Multiples
100.00% of the companies in the same industry are more expensive than EQR, based on the Enterprise Value to EBITDA ratio.
EQR's Price/Free Cash Flow is on the same level as the industry average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 85.07 | ||
| EV/EBITDA | 16.09 |
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 -15.63% in the coming years. This may justify a cheaper valuation.
PEG (NY)N/A
PEG (5Y)19.8
EPS Next 2Y-26.75%
EPS Next 3Y-15.63%
5. Dividend
5.1 Amount
With a Yearly Dividend Yield of 4.67%, EQR is a good candidate for dividend investing.
EQR's Dividend Yield is comparable with the industry average which is at 7.22.
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
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-26.75%
EPS Next 3Y-15.63%
59.05
-0.37 (-0.62%)
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 Cap22.55B
Revenue(TTM)3.08B
Net Income(TTM)1.16B
Analysts71.72
Price Target74.89 (26.82%)
Short Float %1.59%
Short Ratio2.78
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 | 19.49 | ||
| Fwd PE | 40.46 | ||
| P/S | 7.32 | ||
| P/FCF | 85.07 | ||
| P/OCF | 13.96 | ||
| P/B | 2.03 | ||
| P/tB | 2.03 | ||
| EV/EBITDA | 16.09 |
EPS(TTM)3.03
EY5.13%
EPS(NY)1.46
Fwd EY2.47%
FCF(TTM)0.69
FCFY1.18%
OCF(TTM)4.23
OCFY7.17%
SpS8.06
BVpS29.03
TBVpS29.03
PEG (NY)N/A
PEG (5Y)19.8
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 | 1.64 |
F-Score8
WACC7.15%
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 5 / 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 7 / 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 19.49 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.