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%)
We assign a fundamental rating of 4 out of 10 to EQR. EQR was compared to 20 industry peers in the Residential REITs industry. While EQR is still in line with the averages on profitability rating, there are concerns on its financial health. EQR has a decent growth rate and is not valued too expensively.
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.
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.
1.2 Ratios
Looking at the Return On Assets, with a value of 5.49%, EQR is in the better half of the industry, outperforming 80.00% of the companies in the same industry.
EQR has a better Return On Equity (10.43%) than 80.00% of its industry peers.
EQR's Return On Invested Capital of 3.36% is fine compared to the rest of the industry. EQR outperforms 80.00% of its industry peers.
The Average Return On Invested Capital over the past 3 years for EQR 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
The Profit Margin of EQR (37.54%) is better than 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.
EQR's Gross Margin of 63.01% is amongst the best of the industry. EQR outperforms 85.00% of its industry peers.
EQR's Gross Margin has been stable in the last couple of years.
| 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.
Compared to 5 years ago, EQR has more shares outstanding
The debt/assets ratio for EQR is higher compared to a year ago.
2.2 Solvency
EQR has an Altman-Z score of 1.71. This is a bad value and indicates that EQR is not financially healthy and even has some risk of bankruptcy.
EQR has a Altman-Z score of 1.71. 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.
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.
A Debt/Equity ratio of 0.76 indicates that 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 | 1.71 |
ROIC/WACC0.47
WACC7.22%
2.3 Liquidity
A Current Ratio of 0.07 indicates that EQR may have some problems paying its short term obligations.
The Current ratio of EQR (0.07) is worse than 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 worse Quick ratio (0.07) than 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.
Looking at the last year, EQR shows a small growth in Revenue. The Revenue has grown by 4.69% in the last year.
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
EQR is expected to show a decrease in Earnings Per Share. In the coming years, the EPS will decrease by -9.78% yearly.
EQR is expected to show a small growth in Revenue. In the coming years, the Revenue will grow by 4.52% yearly.
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
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
Based on the Price/Earnings ratio of 20.70, the valuation of EQR can be described as rather expensive.
Based on the Price/Earnings ratio, EQR is valued cheaply inside the industry as 90.00% of the companies are valued more expensively.
Compared to an average S&P500 Price/Earnings ratio of 26.59, EQR is valued a bit cheaper.
With a Price/Forward Earnings ratio of 43.86, EQR can be considered very expensive at the moment.
Based on the Price/Forward Earnings ratio, EQR is valued a bit 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
EQR's Enterprise Value to EBITDA ratio is rather cheap when compared to the industry. EQR is cheaper than 85.00% of the companies in the same industry.
EQR's Price/Free Cash Flow ratio is in line with the industry average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 90.04 | ||
| EV/EBITDA | 16.72 |
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 -16.74% in the coming years.
PEG (NY)N/A
PEG (5Y)21.03
EPS Next 2Y-27.49%
EPS Next 3Y-16.74%
5. Dividend
5.1 Amount
With a Yearly Dividend Yield of 4.46%, EQR is a good candidate for dividend investing.
Compared to an average industry Dividend Yield of 11.45, EQR has a dividend in line with its industry peers.
EQR's Dividend Yield is rather good when compared to the S&P500 average which is at 1.88.
| 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 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-27.49%
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 | 16.72 |
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 | 1.71 |
F-Score8
WACC7.22%
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-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.