EQUITY RESIDENTIAL (EQR) Stock Fundamental Analysis
USA - New York Stock Exchange - NYSE:EQR - US29476L1070 - REIT
62.73 USD
+0.4 (+0.64%)
62.73 USD
0 (0%)
EQR gets a fundamental rating of 4 out of 10. The analysis compared the fundamentals 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 correct valuation and a medium 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.
In the past 5 years EQR always reported a positive cash flow from operatings.
1.2 Ratios
EQR has a better Return On Assets (5.49%) than 80.00% of its industry peers.
Looking at the Return On Equity, with a value of 10.43%, EQR is in the better half of the industry, outperforming 80.00% of the companies in the same industry.
EQR has a Return On Invested Capital of 3.36%. This is in the better half of the industry: EQR outperforms 80.00% of its industry peers.
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 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
EQR's Profit Margin of 37.54% is fine compared to the rest of the industry. EQR outperforms 80.00% of its industry peers.
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.
EQR's Operating Margin has declined in the last couple of years.
EQR has a Gross Margin of 63.01%. This is amongst the best in the industry. EQR outperforms 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 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.
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.
Compared to 1 year ago, EQR has a worse debt to assets ratio.
2.2 Solvency
EQR has an Altman-Z score of 1.70. This is a bad value and indicates that EQR is not financially healthy and even has some risk of bankruptcy.
EQR has a better Altman-Z score (1.70) 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.
Looking at the Debt to FCF ratio, with a value of 31.82, EQR is in the better half of the industry, outperforming 65.00% of the companies in the same industry.
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 Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.76 | ||
| Debt/FCF | 31.82 | ||
| Altman-Z | 1.7 |
ROIC/WACC0.46
WACC7.24%
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.
A Quick Ratio of 0.07 indicates that EQR may have some problems paying its short term obligations.
EQR has a Quick ratio of 0.07. This is amonst the worse of the industry: EQR underperforms 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
Based on estimates for the next years, EQR will show a decrease in Earnings Per Share. The EPS will decrease by -9.78% on average per year.
The Revenue is expected to grow by 4.52% on average over the next years.
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
When comparing the EPS growth rate of the last years to the growth rate of the upcoming years, we see that the growth is decreasing.
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
EQR is valuated rather expensively with a Price/Earnings ratio of 20.70.
EQR's Price/Earnings ratio is rather cheap when compared to the industry. EQR is cheaper than 90.00% of the companies in the same industry.
When comparing the Price/Earnings ratio of EQR to the average of the S&P500 Index (26.59), we can say EQR is valued slightly cheaper.
A Price/Forward Earnings ratio of 43.86 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 65.00% of the companies in the same industry.
When comparing the Price/Forward Earnings ratio of EQR to the average of the S&P500 Index (24.03), we can say EQR is valued expensively.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 20.7 | ||
| Fwd PE | 43.86 |
4.2 Price Multiples
85.00% 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 ratio is in line with the industry average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 90.04 | ||
| EV/EBITDA | 16.64 |
4.3 Compensation for Growth
The decent profitability rating of EQR may justify a higher PE ratio.
EQR's earnings are expected to decrease with -16.74% in the coming years. This may justify a cheaper valuation.
PEG (NY)N/A
PEG (5Y)21.03
EPS Next 2Y-27.49%
EPS Next 3Y-16.74%
5. Dividend
5.1 Amount
EQR has a Yearly Dividend Yield of 4.46%, which is a nice return.
EQR's Dividend Yield is comparable with the industry average which is at 11.45.
Compared to an average S&P500 Dividend Yield of 1.87, EQR pays a better dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 4.46% |
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
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-27.49%
EPS Next 3Y-16.74%
62.73
+0.4 (+0.64%)
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 Cap23.87B
Revenue(TTM)3.08B
Net Income(TTM)1.16B
Analysts71.72
Price TargetN/A
Short Float %1.64%
Short Ratio2.53
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 4.46% |
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)-5.42%
EPS NQ rev (1m)-0.47%
EPS NQ rev (3m)-1.4%
EPS NY rev (1m)3.24%
EPS NY rev (3m)6.05%
Revenue NQ rev (1m)-0.04%
Revenue NQ rev (3m)0.08%
Revenue NY rev (1m)0.06%
Revenue NY rev (3m)0.16%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 20.7 | ||
| Fwd PE | 43.86 | ||
| P/S | 7.75 | ||
| P/FCF | 90.04 | ||
| P/OCF | 14.77 | ||
| P/B | 2.15 | ||
| P/tB | 2.15 | ||
| EV/EBITDA | 16.64 |
EPS(TTM)3.03
EY4.83%
EPS(NY)1.43
Fwd EY2.28%
FCF(TTM)0.7
FCFY1.11%
OCF(TTM)4.25
OCFY6.77%
SpS8.09
BVpS29.13
TBVpS29.13
PEG (NY)N/A
PEG (5Y)21.03
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 | 1.7 |
F-Score8
WACC7.24%
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-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 20.7 and the Price/Book (PB) ratio is 2.15.
How financially healthy is EQUITY RESIDENTIAL?
The financial health rating of EQUITY RESIDENTIAL (EQR) is 3 / 10.