EQUITY RESIDENTIAL (EQR) Stock Fundamental Analysis
USA - New York Stock Exchange - NYSE:EQR - US29476L1070 - REIT
60.26 USD
-0.18 (-0.3%)
60.5 USD
+0.24 (+0.4%)
We assign a fundamental rating of 4 out of 10 to EQR. EQR was compared to 20 industry peers in the Residential REITs industry. EQR has a medium profitability rating, but doesn't score so well on its financial health evaluation. EQR is not valued too expensively and it also shows a decent growth rate.
1. Profitability
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.
EQR had a positive operating cash flow in each of the past 5 years.
1.2 Ratios
With a decent Return On Assets value of 5.49%, EQR is doing good in the industry, outperforming 80.00% of the companies in the same industry.
EQR's Return On Equity of 10.43% is fine compared to the rest of the industry. EQR outperforms 80.00% of its industry peers.
EQR has a better Return On Invested Capital (3.36%) than 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.
With a decent Operating Margin value of 27.91%, EQR is doing good in the industry, outperforming 80.00% of the companies in the same industry.
In the last couple of years the Operating Margin of EQR has declined.
The Gross Margin of EQR (63.01%) is better than 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
The Return on Invested Capital (ROIC) is below the Cost of Capital (WACC), so EQR is destroying value.
EQR has about the same amout of shares outstanding than it did 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
Based on the Altman-Z score of 1.65, we must say that EQR is in the distress zone and has some risk of bankruptcy.
EQR has a Altman-Z score of 1.65. This is amongst the best in the industry. EQR outperforms 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.
EQR has a better Debt to FCF ratio (31.82) than 65.00% of its industry peers.
EQR has a Debt/Equity ratio of 0.76. This is a neutral value indicating EQR is somewhat dependend on debt financing.
EQR has a better Debt to Equity ratio (0.76) than 75.00% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.76 | ||
| Debt/FCF | 31.82 | ||
| Altman-Z | 1.65 |
ROIC/WACC0.47
WACC7.2%
2.3 Liquidity
EQR has a Current 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.
Looking at the Current ratio, with a value of 0.07, EQR is doing worse than 85.00% of the companies in the same industry.
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.
With a Quick ratio value of 0.07, EQR is not doing good in the industry: 80.00% of the companies in the same industry are doing better.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 0.07 | ||
| Quick Ratio | 0.07 |
3. Growth
3.1 Past
The Earnings Per Share has grown by an impressive 24.18% 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 0.98% on average per year.
Looking at the last year, EQR shows a small growth in Revenue. The Revenue has grown by 4.69% in the last year.
Measured over the past years, EQR shows a small growth in Revenue. The Revenue has been growing by 1.99% on average per year.
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 -8.58% on average per year.
Based on estimates for the next years, EQR will show a small growth in Revenue. The Revenue will grow by 4.47% on average per year.
EPS Next Y-25.33%
EPS Next 2Y-27.62%
EPS Next 3Y-16.97%
EPS Next 5Y-8.58%
Revenue Next Year4.54%
Revenue Next 2Y4.02%
Revenue Next 3Y3.83%
Revenue Next 5Y4.47%
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
A Price/Earnings ratio of 19.89 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.
The average S&P500 Price/Earnings ratio is at 27.25. EQR is valued slightly cheaper when compared to this.
The Price/Forward Earnings ratio is 42.28, which means the current valuation is very expensive for EQR.
Compared to the rest of the industry, the Price/Forward Earnings ratio of EQR indicates a somewhat cheap valuation: EQR is cheaper than 70.00% of the companies listed in the same industry.
Compared to an average S&P500 Price/Forward Earnings ratio of 23.98, EQR is valued quite expensively.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 19.89 | ||
| Fwd PE | 42.28 |
4.2 Price Multiples
Compared to the rest of the industry, the Enterprise Value to EBITDA ratio of EQR indicates a rather cheap valuation: EQR is cheaper than 85.00% of the companies listed in the same industry.
EQR's Price/Free Cash Flow ratio is in line with the industry average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 86.49 | ||
| EV/EBITDA | 16.22 |
4.3 Compensation for Growth
The decent profitability rating of EQR may justify a higher PE ratio.
A cheap valuation may be justified as EQR's earnings are expected to decrease with -16.97% in the coming years.
PEG (NY)N/A
PEG (5Y)20.21
EPS Next 2Y-27.62%
EPS Next 3Y-16.97%
5. Dividend
5.1 Amount
EQR has a Yearly Dividend Yield of 4.41%, which is a nice return.
EQR's Dividend Yield is comparable with the industry average which is at 32.52.
EQR's Dividend Yield is rather good when compared to the S&P500 average which is at 1.92.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 4.41% |
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.
EQR's earnings are declining while the Dividend Rate has been growing. This means the dividend growth is most likely not sustainable.
DP89.99%
EPS Next 2Y-27.62%
EPS Next 3Y-16.97%
60.26
-0.18 (-0.3%)
Chartmill FA Rating
GICS SectorReal Estate
GICS IndustryGroupEquity Real Estate Investment Trusts (REITs)
GICS IndustryResidential REITs
Earnings (Last)
Earnings (Next)
Inst Owners96.32%
Inst Owner Change0.12%
Ins Owners0.51%
Ins Owner Change1.47%
Market Cap22.93B
Revenue(TTM)3.08B
Net Income(TTM)1.16B
Analysts72.14
Price Target71.56 (18.75%)
Short Float %1.66%
Short Ratio2.48
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 4.41% |
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)-0.08%
PT rev (3m)-5.36%
EPS NQ rev (1m)2.2%
EPS NQ rev (3m)-1.07%
EPS NY rev (1m)1.77%
EPS NY rev (3m)6.23%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)0.05%
Revenue NY rev (1m)0.03%
Revenue NY rev (3m)0.13%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 19.89 | ||
| Fwd PE | 42.28 | ||
| P/S | 7.45 | ||
| P/FCF | 86.49 | ||
| P/OCF | 14.19 | ||
| P/B | 2.07 | ||
| P/tB | 2.07 | ||
| EV/EBITDA | 16.22 |
EPS(TTM)3.03
EY5.03%
EPS(NY)1.43
Fwd EY2.36%
FCF(TTM)0.7
FCFY1.16%
OCF(TTM)4.25
OCFY7.05%
SpS8.09
BVpS29.13
TBVpS29.13
PEG (NY)N/A
PEG (5Y)20.21
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 | 1.65 |
F-Score8
WACC7.2%
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-25.33%
EPS Next 2Y-27.62%
EPS Next 3Y-16.97%
EPS Next 5Y-8.58%
Revenue 1Y (TTM)4.69%
Revenue growth 3Y6.54%
Revenue growth 5Y1.99%
Sales Q2Q%4.55%
Revenue Next Year4.54%
Revenue Next 2Y4.02%
Revenue Next 3Y3.83%
Revenue Next 5Y4.47%
EBIT growth 1Y-4.11%
EBIT growth 3Y12%
EBIT growth 5Y-0.83%
EBIT Next Year100.85%
EBIT Next 3Y29.35%
EBIT Next 5Y18.73%
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.
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 6 / 10.
Can you provide the PE and PB ratios for EQR stock?
The Price/Earnings (PE) ratio for EQUITY RESIDENTIAL (EQR) is 19.89 and the Price/Book (PB) ratio is 2.07.
What is the earnings growth outlook for EQUITY RESIDENTIAL?
The Earnings per Share (EPS) of EQUITY RESIDENTIAL (EQR) is expected to decline by -25.33% in the next year.