EQUITY RESIDENTIAL (EQR) Fundamental Analysis & Valuation

NYSE:EQR • US29476L1070

Current stock price

58.75 USD
-0.76 (-1.28%)
At close:
58.75 USD
0 (0%)
After Hours:

This EQR fundamental analysis includes valuation metrics, fair value assessment, financial health analysis, profitability trends, growth metrics and dividend sustainability analysis.

7

1. EQR Profitability Analysis

1.1 Basic Checks

  • In the past year EQR was profitable.
  • In the past year EQR had a positive cash flow from operations.
  • Each year in the past 5 years EQR has been profitable.
  • In the past 5 years EQR always reported a positive cash flow from operatings.
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 2025 0 1B 2B 3B 4B

1.2 Ratios

  • The Return On Assets of EQR (5.39%) is better than 85.00% of its industry peers.
  • EQR has a Return On Equity of 10.13%. This is in the better half of the industry: EQR outperforms 75.00% of its industry peers.
  • EQR's Return On Invested Capital of 3.45% is amongst the best of the industry. EQR outperforms 85.00% of its industry peers.
  • EQR had an Average Return On Invested Capital over the past 3 years of 3.49%. This is in line with the industry average of 2.73%.
Industry RankSector Rank
ROA 5.39%
ROE 10.13%
ROIC 3.45%
ROA(3y)4.83%
ROA(5y)4.92%
ROE(3y)9%
ROE(5y)9.21%
ROIC(3y)3.49%
ROIC(5y)3.23%
EQR Yearly ROA, ROE, ROICEQR Yearly ROA, ROE, ROICYearly ROA, ROE, ROIC 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 10 20 30 40

1.3 Margins

  • With an excellent Profit Margin value of 36.16%, EQR belongs to the best of the industry, outperforming 90.00% of the companies in the same industry.
  • In the last couple of years the Profit Margin of EQR has remained more or less at the same level.
  • With an excellent Operating Margin value of 28.11%, EQR belongs to the best of the industry, outperforming 85.00% of the companies in the same industry.
  • EQR's Operating Margin has declined in the last couple of years.
  • EQR has a Gross Margin of 62.88%. This is in the better half of the industry: EQR outperforms 80.00% of its industry peers.
  • EQR's Gross Margin has been stable in the last couple of years.
Industry RankSector Rank
OM 28.11%
PM (TTM) 36.16%
GM 62.88%
OM growth 3Y-1.79%
OM growth 5Y-1.66%
PM growth 3Y8.52%
PM growth 5Y0.42%
GM growth 3Y-0.63%
GM growth 5Y-0.47%
EQR Yearly Profit, Operating, Gross MarginsEQR Yearly Profit, Operating, Gross MarginsYearly Profit, Operating, Gross Margins 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 50 100 150

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3

2. EQR Health Analysis

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 has been reduced compared to 1 year ago.
  • EQR has more shares outstanding than it did 5 years ago.
  • 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 2025 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 2025 5B 10B 15B 20B

2.2 Solvency

  • Based on the Altman-Z score of 1.68, we must say that EQR is in the distress zone and has some risk of bankruptcy.
  • With an excellent Altman-Z score value of 1.68, EQR belongs to the best of the industry, outperforming 90.00% of the companies in the same industry.
  • EQR has a debt to FCF ratio of 15.46. This is a negative value and a sign of low solvency as EQR would need 15.46 years to pay back of all of its debts.
  • EQR has a Debt to FCF ratio of 15.46. This is in the better half of the industry: EQR outperforms 75.00% of its industry peers.
  • A Debt/Equity ratio of 0.74 indicates that EQR is somewhat dependend on debt financing.
  • EQR has a better Debt to Equity ratio (0.74) than 85.00% of its industry peers.
Industry RankSector Rank
Debt/Equity 0.74
Debt/FCF 15.46
Altman-Z 1.68
ROIC/WACC0.47
WACC7.34%
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 2025 0 2B 4B 6B 8B 10B

2.3 Liquidity

  • A Current Ratio of 0.05 indicates that EQR may have some problems paying its short term obligations.
  • The Current ratio of EQR (0.05) is worse than 85.00% of its industry peers.
  • EQR has a Quick Ratio of 0.05. 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 worse Quick ratio (0.05) than 75.00% of its industry peers.
Industry RankSector Rank
Current Ratio 0.05
Quick Ratio 0.05
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 2025 200M 400M 600M 800M 1B

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

3

3. EQR Growth Analysis

3.1 Past

  • The Earnings Per Share has been growing slightly by 7.72% 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 3.64% on average per year.
  • The Revenue has been growing slightly by 3.82% in the past year.
  • The Revenue has been growing slightly by 3.77% on average over the past years.
EPS 1Y (TTM)7.72%
EPS 3Y12.46%
EPS 5Y3.64%
EPS Q2Q%-9.09%
Revenue 1Y (TTM)3.82%
Revenue growth 3Y4.19%
Revenue growth 5Y3.77%
Sales Q2Q%1.97%

3.2 Future

  • EQR is expected to show a decrease in Earnings Per Share. In the coming years, the EPS will decrease by -9.21% yearly.
  • Based on estimates for the next years, EQR will show a small growth in Revenue. The Revenue will grow by 4.07% on average per year.
EPS Next Y-50.25%
EPS Next 2Y-26.23%
EPS Next 3Y-16.4%
EPS Next 5Y-9.21%
Revenue Next Year2.97%
Revenue Next 2Y3.04%
Revenue Next 3Y3.31%
Revenue Next 5Y4.07%

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 stable.
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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4

4. EQR Valuation Analysis

4.1 Price/Earnings Ratio

  • The Price/Earnings ratio is 20.05, which indicates a rather expensive current valuation of EQR.
  • 90.00% of the companies in the same industry are more expensive than EQR, based on the Price/Earnings ratio.
  • EQR's Price/Earnings ratio indicates a similar valuation than the S&P500 average which is at 24.88.
  • Based on the Price/Forward Earnings ratio of 40.30, the valuation of EQR can be described as expensive.
  • Based on the Price/Forward Earnings ratio, EQR is valued a bit cheaper than the industry average as 70.00% of the companies are valued more expensively.
  • EQR's Price/Forward Earnings ratio indicates a rather expensive valuation when compared to the S&P500 average which is at 22.19.
Industry RankSector Rank
PE 20.05
Fwd PE 40.3
EQR Price Earnings VS Forward Price EarningsEQR Price Earnings VS Forward Price Earnings ChartPrice Earnings - Forward Price Earnings PE FPE 20 40 60 80

4.2 Price Multiples

  • 70.00% of the companies in the same industry are more expensive than EQR, based on the Enterprise Value to EBITDA ratio.
  • Based on the Price/Free Cash Flow ratio, EQR is valued a bit cheaper than the industry average as 65.00% of the companies are valued more expensively.
Industry RankSector Rank
P/FCF 41.95
EV/EBITDA 15.96
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 -16.40% in the coming years. This may justify a cheaper valuation.
PEG (NY)N/A
PEG (5Y)5.5
EPS Next 2Y-26.23%
EPS Next 3Y-16.4%

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

4

5. EQR Dividend Analysis

5.1 Amount

  • With a Yearly Dividend Yield of 4.72%, EQR is a good candidate for dividend investing.
  • EQR's Dividend Yield is slightly below the industry average, which is at 46.64.
  • Compared to an average S&P500 Dividend Yield of 1.90, EQR pays a better dividend.
Industry RankSector Rank
Dividend Yield 4.72%

5.2 History

  • The dividend of EQR has a limited annual growth rate of 3.02%.
  • EQR has been paying a dividend for at least 10 years, so it has a reliable track record.
Dividend Growth(5Y)3.02%
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

  • 93.65% 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.
DP93.65%
EPS Next 2Y-26.23%
EPS Next 3Y-16.4%
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 2025 0 1B 2B 3B 4B
EQR Dividend Payout.EQR Dividend Payout, showing the Payout Ratio.EQR Dividend Payout.PayoutRetained Earnings

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EQR Fundamentals: All Metrics, Ratios and Statistics

EQUITY RESIDENTIAL

NYSE:EQR (3/27/2026, 8:14:01 PM)

After market: 58.75 0 (0%)

58.75

-0.76 (-1.28%)

Chartmill FA Rating
GICS SectorReal Estate
GICS IndustryGroupEquity Real Estate Investment Trusts (REITs)
GICS IndustryResidential REITs
Earnings (Last)02-05
Earnings (Next)04-27
Inst Owners95.94%
Inst Owner Change-2.4%
Ins Owners0.53%
Ins Owner Change4.13%
Market Cap22.18B
Revenue(TTM)3.09B
Net Income(TTM)1.12B
Analysts69.66
Price Target70.94 (20.75%)
Short Float %2.7%
Short Ratio3.8
Dividend
Industry RankSector Rank
Dividend Yield 4.72%
Yearly Dividend2.77
Dividend Growth(5Y)3.02%
DP93.65%
Div Incr Years0
Div Non Decr Years0
Ex-Date01-02
Surprises & Revisions
EPS beat(2)2
Avg EPS beat(2)113.73%
Min EPS beat(2)71.8%
Max EPS beat(2)155.66%
EPS beat(4)4
Avg EPS beat(4)96.78%
Min EPS beat(4)35.13%
Max EPS beat(4)155.66%
EPS beat(8)7
Avg EPS beat(8)85.98%
EPS beat(12)10
Avg EPS beat(12)71.04%
EPS beat(16)13
Avg EPS beat(16)67.72%
Revenue beat(2)0
Avg Revenue beat(2)-1.28%
Min Revenue beat(2)-1.77%
Max Revenue beat(2)-0.8%
Revenue beat(4)0
Avg Revenue beat(4)-1.39%
Min Revenue beat(4)-1.81%
Max Revenue beat(4)-0.8%
Revenue beat(8)1
Avg Revenue beat(8)-0.86%
Revenue beat(12)1
Avg Revenue beat(12)-0.86%
Revenue beat(16)2
Avg Revenue beat(16)-0.84%
PT rev (1m)0.05%
PT rev (3m)-1.05%
EPS NQ rev (1m)-0.73%
EPS NQ rev (3m)0.93%
EPS NY rev (1m)0.29%
EPS NY rev (3m)1.93%
Revenue NQ rev (1m)-0.1%
Revenue NQ rev (3m)-0.76%
Revenue NY rev (1m)-0.15%
Revenue NY rev (3m)-0.59%
Valuation
Industry RankSector Rank
PE 20.05
Fwd PE 40.3
P/S 7.17
P/FCF 41.95
P/OCF 13.45
P/B 2.01
P/tB 2.01
EV/EBITDA 15.96
EPS(TTM)2.93
EY4.99%
EPS(NY)1.46
Fwd EY2.48%
FCF(TTM)1.4
FCFY2.38%
OCF(TTM)4.37
OCFY7.43%
SpS8.19
BVpS29.25
TBVpS29.25
PEG (NY)N/A
PEG (5Y)5.5
Graham Number43.91
Profitability
Industry RankSector Rank
ROA 5.39%
ROE 10.13%
ROCE 4.5%
ROIC 3.45%
ROICexc 3.46%
ROICexgc 3.52%
OM 28.11%
PM (TTM) 36.16%
GM 62.88%
FCFM 17.09%
ROA(3y)4.83%
ROA(5y)4.92%
ROE(3y)9%
ROE(5y)9.21%
ROIC(3y)3.49%
ROIC(5y)3.23%
ROICexc(3y)3.5%
ROICexc(5y)3.24%
ROICexgc(3y)3.55%
ROICexgc(5y)3.28%
ROCE(3y)4.53%
ROCE(5y)4.17%
ROICexgc growth 3Y1.63%
ROICexgc growth 5Y1.63%
ROICexc growth 3Y1.52%
ROICexc growth 5Y1.58%
OM growth 3Y-1.79%
OM growth 5Y-1.66%
PM growth 3Y8.52%
PM growth 5Y0.42%
GM growth 3Y-0.63%
GM growth 5Y-0.47%
F-Score7
Asset Turnover0.15
Health
Industry RankSector Rank
Debt/Equity 0.74
Debt/FCF 15.46
Debt/EBITDA 4.35
Cap/Depr 110.85%
Cap/Sales 36.2%
Interest Coverage 3.17
Cash Conversion 87.69%
Profit Quality 47.27%
Current Ratio 0.05
Quick Ratio 0.05
Altman-Z 1.68
F-Score7
WACC7.34%
ROIC/WACC0.47
Cap/Depr(3y)135.14%
Cap/Depr(5y)140.64%
Cap/Sales(3y)43.16%
Cap/Sales(5y)45.98%
Profit Quality(3y)N/A
Profit Quality(5y)N/A
High Growth Momentum
Growth
EPS 1Y (TTM)7.72%
EPS 3Y12.46%
EPS 5Y3.64%
EPS Q2Q%-9.09%
EPS Next Y-50.25%
EPS Next 2Y-26.23%
EPS Next 3Y-16.4%
EPS Next 5Y-9.21%
Revenue 1Y (TTM)3.82%
Revenue growth 3Y4.19%
Revenue growth 5Y3.77%
Sales Q2Q%1.97%
Revenue Next Year2.97%
Revenue Next 2Y3.04%
Revenue Next 3Y3.31%
Revenue Next 5Y4.07%
EBIT growth 1Y-0.22%
EBIT growth 3Y2.33%
EBIT growth 5Y2.04%
EBIT Next Year110.91%
EBIT Next 3Y31.49%
EBIT Next 5Y20.09%
FCF growth 1Y216.08%
FCF growth 3Y-19.33%
FCF growth 5Y-8.63%
OCF growth 1Y4.78%
OCF growth 3Y4.26%
OCF growth 5Y5.43%

EQUITY RESIDENTIAL / EQR Fundamental Analysis 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 7 / 10.


Can you provide the PE and PB ratios for EQR stock?

The Price/Earnings (PE) ratio for EQUITY RESIDENTIAL (EQR) is 20.05 and the Price/Book (PB) ratio is 2.01.


What is the earnings growth outlook for EQUITY RESIDENTIAL?

The Earnings per Share (EPS) of EQUITY RESIDENTIAL (EQR) is expected to decline by -50.25% in the next year.