EQUITY RESIDENTIAL (EQR) Fundamental Analysis & Valuation

NYSE:EQR • US29476L1070

Current stock price

65.17 USD
-0.21 (-0.32%)
At close:
64.75 USD
-0.42 (-0.64%)
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.
  • In the past year EQR had a positive cash flow from operations.
  • 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.
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

  • With an excellent Return On Assets value of 5.39%, EQR belongs to the best of the industry, outperforming 85.00% of the companies in the same industry.
  • 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

  • The Profit Margin of EQR (36.16%) is better than 90.00% of its industry peers.
  • EQR's Profit Margin has been stable in the last couple of years.
  • EQR has a Operating Margin of 28.11%. This is amongst the best in the industry. EQR outperforms 85.00% of its industry peers.
  • EQR's Operating Margin has declined in the last couple of years.
  • EQR has a better Gross Margin (62.88%) than 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.
  • 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 1.82. This is not the best score and indicates that EQR is in the grey zone with still only limited risk for bankruptcy at the moment.
  • EQR has a better Altman-Z score (1.82) 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.
  • With a decent Debt to FCF ratio value of 15.46, EQR is doing good in the industry, outperforming 75.00% of the companies in the same industry.
  • A Debt/Equity ratio of 0.74 indicates that 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 1.82
ROIC/WACC0.46
WACC7.45%
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

  • EQR has a Current 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 Current ratio (0.05) 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.
  • The Quick ratio of EQR (0.05) is worse 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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4

3. EQR Growth Analysis

3.1 Past

  • The Earnings Per Share has grown by an impressive 24.05% 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.
  • 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)24.05%
EPS 3Y12.46%
EPS 5Y3.64%
EPS Q2Q%47.76%
Revenue 1Y (TTM)3.82%
Revenue growth 3Y4.19%
Revenue growth 5Y3.77%
Sales Q2Q%2.5%

3.2 Future

  • The Earnings Per Share is expected to decrease by -9.21% on average over the next years.
  • 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-50.79%
EPS Next 2Y-27.88%
EPS Next 3Y-16.73%
EPS Next 5Y-9.21%
Revenue Next Year2.88%
Revenue Next 2Y3.01%
Revenue Next 3Y3.25%
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

  • With a Price/Earnings ratio of 20.05, EQR is valued on the expensive side.
  • 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.
  • EQR's Price/Earnings ratio indicates a valuation a bit cheaper than the S&P500 average which is at 26.64.
  • Based on the Price/Forward Earnings ratio of 42.77, the valuation of EQR can be described as expensive.
  • 70.00% of the companies in the same industry are more expensive than EQR, based on the Price/Forward Earnings ratio.
  • EQR is valuated expensively when we compare the Price/Forward Earnings ratio to 21.36, which is the current average of the S&P500 Index.
Industry RankSector Rank
PE 20.05
Fwd PE 42.77
EQR Price Earnings VS Forward Price EarningsEQR Price Earnings VS Forward Price Earnings ChartPrice Earnings - Forward Price Earnings PE FPE 20 40 60

4.2 Price Multiples

  • 65.00% 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 a bit cheaper when compared to the industry. EQR is cheaper than 65.00% of the companies in the same industry.
Industry RankSector Rank
P/FCF 46.54
EV/EBITDA 17.14
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.
  • A cheap valuation may be justified as EQR's earnings are expected to decrease with -16.73% in the coming years.
PEG (NY)N/A
PEG (5Y)5.5
EPS Next 2Y-27.88%
EPS Next 3Y-16.73%

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

5

5. EQR Dividend Analysis

5.1 Amount

  • EQR has a Yearly Dividend Yield of 4.29%, which is a nice return.
  • Compared to an average industry Dividend Yield of 9.15, EQR has a dividend in line with its industry peers.
  • Compared to an average S&P500 Dividend Yield of 1.82, EQR pays a better dividend.
Industry RankSector Rank
Dividend Yield 4.29%

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.
  • EQR has decreased its dividend 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.
  • 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-27.88%
EPS Next 3Y-16.73%
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 (5/1/2026, 8:23:59 PM)

After market: 64.75 -0.42 (-0.64%)

65.17

-0.21 (-0.32%)

Chartmill FA Rating
GICS SectorReal Estate
GICS IndustryGroupEquity Real Estate Investment Trusts (REITs)
GICS IndustryResidential REITs
Industry Strength25.47
Industry Growth35.4
Earnings (Last)04-28
Earnings (Next)08-03
Inst Owners96.13%
Inst Owner Change0%
Ins Owners0.53%
Ins Owner Change4.13%
Market Cap24.60B
Revenue(TTM)3.09B
Net Income(TTM)1.12B
Analysts70
Price Target70.99 (8.93%)
Short Float %2.77%
Short Ratio4.18
Dividend
Industry RankSector Rank
Dividend Yield 4.29%
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)0.24%
PT rev (3m)-0.32%
EPS NQ rev (1m)0.4%
EPS NQ rev (3m)-0.34%
EPS NY rev (1m)-1.1%
EPS NY rev (3m)-0.37%
Revenue NQ rev (1m)0.09%
Revenue NQ rev (3m)-0.52%
Revenue NY rev (1m)-0.09%
Revenue NY rev (3m)-0.53%
Valuation
Industry RankSector Rank
PE 20.05
Fwd PE 42.77
P/S 7.95
P/FCF 46.54
P/OCF 14.92
P/B 2.23
P/tB 2.23
EV/EBITDA 17.14
EPS(TTM)3.25
EY4.99%
EPS(NY)1.52
Fwd EY2.34%
FCF(TTM)1.4
FCFY2.15%
OCF(TTM)4.37
OCFY6.7%
SpS8.19
BVpS29.25
TBVpS29.25
PEG (NY)N/A
PEG (5Y)5.5
Graham Number46.2445 (-29.04%)
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 1.82
F-Score7
WACC7.45%
ROIC/WACC0.46
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)24.05%
EPS 3Y12.46%
EPS 5Y3.64%
EPS Q2Q%47.76%
EPS Next Y-50.79%
EPS Next 2Y-27.88%
EPS Next 3Y-16.73%
EPS Next 5Y-9.21%
Revenue 1Y (TTM)3.82%
Revenue growth 3Y4.19%
Revenue growth 5Y3.77%
Sales Q2Q%2.5%
Revenue Next Year2.88%
Revenue Next 2Y3.01%
Revenue Next 3Y3.25%
Revenue Next 5Y4.07%
EBIT growth 1Y-0.22%
EBIT growth 3Y2.33%
EBIT growth 5Y2.04%
EBIT Next Year109.94%
EBIT Next 3Y30.96%
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 5 / 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 20.05 and the Price/Book (PB) ratio is 2.23.


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

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