EQUITY RESIDENTIAL (EQR) Fundamental Analysis & Valuation

NYSE:EQR • US29476L1070

Current stock price

60.46 USD
-0.34 (-0.56%)
At close:
60.46 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

  • EQR had positive earnings in the past year.
  • EQR had a positive operating cash flow in the past year.
  • EQR had positive earnings in each of the past 5 years.
  • Each year in the past 5 years EQR had a positive operating cash flow.
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

  • EQR's Return On Assets of 5.39% is amongst the best of the industry. EQR outperforms 85.00% of its industry peers.
  • EQR's Return On Equity of 10.13% is fine compared to the rest of the industry. EQR outperforms 75.00% of its industry peers.
  • The Return On Invested Capital of EQR (3.45%) is better than 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

  • EQR has a better Profit Margin (36.16%) than 90.00% of its industry peers.
  • EQR's Profit Margin has been stable in the last couple of years.
  • EQR has a better Operating Margin (28.11%) than 85.00% of its industry peers.
  • In the last couple of years the Operating Margin of EQR has declined.
  • Looking at the Gross Margin, with a value of 62.88%, EQR is in the better half of the industry, outperforming 80.00% of the companies in the same industry.
  • In the last couple of years the Gross Margin of EQR has remained more or less at the same level.
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

  • 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 less shares outstanding
  • 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

  • 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 90.00% of its industry peers.
  • The Debt to FCF ratio of EQR is 15.46, which is on the high side as it means it would take EQR, 15.46 years of fcf income to pay off all of its debts.
  • Looking at the Debt to FCF ratio, with a value of 15.46, EQR is in the better half of the industry, outperforming 75.00% of the companies in the same industry.
  • EQR has a Debt/Equity ratio of 0.74. This is a neutral value indicating EQR is somewhat dependend on debt financing.
  • With an excellent Debt to Equity ratio value of 0.74, EQR belongs to the best of the industry, outperforming 85.00% of the companies in the same industry.
Industry RankSector Rank
Debt/Equity 0.74
Debt/FCF 15.46
Altman-Z 1.7
ROIC/WACC0.47
WACC7.27%
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.
  • Looking at the Current ratio, with a value of 0.05, EQR is doing worse than 85.00% of the companies in the same industry.
  • 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

  • EQR shows a small growth in Earnings Per Share. In the last year, the EPS has grown by 7.72%.
  • The Earnings Per Share has been growing slightly by 3.64% on average over the past years.
  • EQR shows a small growth in Revenue. In the last year, the Revenue has grown by 3.82%.
  • Measured over the past years, EQR shows a small growth in Revenue. The Revenue has been growing by 3.77% on average per year.
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

  • Based on estimates for the next years, EQR will show a decrease in Earnings Per Share. The EPS will decrease by -9.21% on average per year.
  • Based on estimates for the next years, EQR will show a small growth in Revenue. The Revenue will grow by 4.07% 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 Year2.88%
Revenue Next 2Y3.01%
Revenue Next 3Y3.35%
Revenue Next 5Y4.07%

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.
  • The Revenue growth rate is stable: in the next years the growth will be about the same than in the last years.
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

  • A Price/Earnings ratio of 20.63 indicates a rather expensive valuation of EQR.
  • Based on the Price/Earnings ratio, EQR is valued 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 (26.91), we can say EQR is valued slightly cheaper.
  • Based on the Price/Forward Earnings ratio of 41.47, the valuation of EQR can be described as expensive.
  • Based on the Price/Forward Earnings ratio, EQR is valued a bit cheaper than 75.00% of the companies in the same industry.
  • EQR is valuated expensively when we compare the Price/Forward Earnings ratio to 23.68, which is the current average of the S&P500 Index.
Industry RankSector Rank
PE 20.63
Fwd PE 41.47
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

  • Based on the Enterprise Value to EBITDA ratio, EQR is valued a bit cheaper than the industry average as 70.00% of the companies are valued more expensively.
  • Based on the Price/Free Cash Flow ratio, EQR is valued a bit cheaper than 65.00% of the companies in the same industry.
Industry RankSector Rank
P/FCF 43.17
EV/EBITDA 16.15
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

  • The decent profitability rating of EQR 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)5.66
EPS Next 2Y-26.23%
EPS Next 3Y-16.4%

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4

5. EQR Dividend Analysis

5.1 Amount

  • EQR has a Yearly Dividend Yield of 4.78%, which is a nice return.
  • Compared to an average industry Dividend Yield of 46.12, EQR is paying slightly less dividend.
  • EQR's Dividend Yield is rather good when compared to the S&P500 average which is at 1.89.
Industry RankSector Rank
Dividend Yield 4.78%

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.
  • The dividend of EQR decreased recently.
Dividend Growth(5Y)3.02%
Div Incr Years1
Div Non Decr Years1
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

  • EQR pays out 93.65% 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.
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 (4/9/2026, 8:25:17 PM)

After market: 60.46 0 (0%)

60.46

-0.34 (-0.56%)

Chartmill FA Rating
GICS SectorReal Estate
GICS IndustryGroupEquity Real Estate Investment Trusts (REITs)
GICS IndustryResidential REITs
Earnings (Last)02-05
Earnings (Next)04-28
Inst Owners95.94%
Inst Owner Change0%
Ins Owners0.53%
Ins Owner Change4.13%
Market Cap22.83B
Revenue(TTM)3.09B
Net Income(TTM)1.12B
Analysts70
Price Target70.94 (17.33%)
Short Float %2.42%
Short Ratio3.35
Dividend
Industry RankSector Rank
Dividend Yield 4.78%
Yearly Dividend2.77
Dividend Growth(5Y)3.02%
DP93.65%
Div Incr Years1
Div Non Decr Years1
Ex-Date03-30
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)0.1%
PT rev (3m)-0.87%
EPS NQ rev (1m)-0.34%
EPS NQ rev (3m)1.33%
EPS NY rev (1m)0%
EPS NY rev (3m)2.29%
Revenue NQ rev (1m)-0.16%
Revenue NQ rev (3m)-0.85%
Revenue NY rev (1m)-0.25%
Revenue NY rev (3m)-0.68%
Valuation
Industry RankSector Rank
PE 20.63
Fwd PE 41.47
P/S 7.38
P/FCF 43.17
P/OCF 13.84
P/B 2.07
P/tB 2.07
EV/EBITDA 16.15
EPS(TTM)2.93
EY4.85%
EPS(NY)1.46
Fwd EY2.41%
FCF(TTM)1.4
FCFY2.32%
OCF(TTM)4.37
OCFY7.22%
SpS8.19
BVpS29.25
TBVpS29.25
PEG (NY)N/A
PEG (5Y)5.66
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 1.7
F-Score7
WACC7.27%
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 Year2.88%
Revenue Next 2Y3.01%
Revenue Next 3Y3.35%
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.


What is the profitability of EQR stock?

EQUITY RESIDENTIAL (EQR) has a profitability rating of 7 / 10.


What are the PE and PB ratios of EQUITY RESIDENTIAL (EQR) stock?

The Price/Earnings (PE) ratio for EQUITY RESIDENTIAL (EQR) is 20.63 and the Price/Book (PB) ratio is 2.07.


What is the financial health of EQUITY RESIDENTIAL (EQR) stock?

The financial health rating of EQUITY RESIDENTIAL (EQR) is 3 / 10.