US29476L1070 - REIT

We assign a fundamental rating of **5** out of 10 to **EQR**. **EQR** was compared to 21 industry peers in the **Residential REITs** industry. **EQR** has an excellent profitability rating, but there are some minor concerns on its financial health. **EQR** has a valuation in line with the averages, but it does not seem to be growing.

Each year in the past 5 years **EQR** has been profitable.

The **Return On Invested Capital** of **EQR** (**3.62%**) is better than **90.48%** of its industry peers.

The last **Return On Invested Capital** (**3.62%**) for **EQR** is above the 3 year average (**3.09%**), which is a sign of increasing profitability.

Industry Rank | Sector Rank | ||
---|---|---|---|

ROA | 3.38% | ||

ROE | 6.14% | ||

ROIC | 3.62% |

ROA(3y)4.75%

ROA(5y)4.66%

ROE(3y)8.86%

ROE(5y)8.92%

ROIC(3y)3.09%

ROIC(5y)3.19%

The **Profit Margin** of **EQR** (**23.88%**) is better than **71.43%** 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 **63.96%**, **EQR** is in the better half of the industry, outperforming **76.19%** 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 Rank | Sector Rank | ||
---|---|---|---|

OM | 31.04% | ||

PM (TTM) | 23.88% | ||

GM | 63.96% |

OM growth 3Y-0.02%

OM growth 5Y-1.71%

PM growth 3Y-6.48%

PM growth 5Y2.67%

GM growth 3Y-0.4%

GM growth 5Y-0.7%

With a Return on Invested Capital (ROIC) below the Cost of Capital (WACC), **EQR** is destroying value.

Compared to 1 year ago, **EQR** has more shares outstanding

An Altman-Z score of **1.85** indicates that **EQR** is not a great score, but indicates only limited risk for bankruptcy at the moment.

Looking at the **Altman-Z score**, with a value of **1.85**, **EQR** belongs to the top of the industry, outperforming **85.71%** of the companies in the same industry.

The Debt to FCF ratio of **EQR** is **9.37**, which is on the high side as it means it would take **EQR**, **9.37** years of fcf income to pay off all of its debts.

Industry Rank | Sector Rank | ||
---|---|---|---|

Debt/Equity | 0.68 | ||

Debt/FCF | 9.37 | ||

Altman-Z | 1.85 |

ROIC/WACC0.5

WACC7.3%

Looking at the **Current ratio**, with a value of **0.03**, **EQR** is doing worse than **90.48%** of the companies in the same industry.

The **Quick ratio** of **EQR** (**0.03**) is worse than **90.48%** of its industry peers.

Industry Rank | Sector Rank | ||
---|---|---|---|

Current Ratio | 0.03 | ||

Quick Ratio | 0.03 |

The earnings per share for **EQR** have decreased strongly by **-40.79%** in the last year.

Measured over the past years, **EQR** shows a small growth in **Revenue**. The Revenue has been growing by **2.20%** on average per year.

EPS 1Y (TTM)-40.79%

EPS 3Y-0.96%

EPS 5Y5.86%

EPS growth Q2Q-47.67%

Revenue 1Y (TTM)6.18%

Revenue growth 3Y3.77%

Revenue growth 5Y2.2%

Revenue growth Q2Q4.17%

EPS Next Y-33.76%

EPS Next 2Y-14.86%

EPS Next 3Y-4.23%

EPS Next 5Y0.2%

Revenue Next Year2.96%

Revenue Next 2Y3.54%

Revenue Next 3Y5.31%

Revenue Next 5Y5.5%

The EPS growth rate is decreasing: in the next years the growth will be less than in the last years.

The Revenue growth rate is accelerating: in the next years the growth will be better than in the last years.

A **Price/Earnings** ratio of **33.73** indicates a quite expensive valuation of **EQR**.

Based on the **Price/Earnings** ratio, **EQR** is valued a bit cheaper than the industry average as 66.67% of the companies are valued more expensively.

The average S&P500 **Price/Earnings** ratio is at **26.00**. **EQR** is valued slightly more expensive when compared to this.

A **Price/Forward Earnings** ratio of **38.51** indicates a quite expensive valuation of **EQR**.

Industry Rank | Sector Rank | ||
---|---|---|---|

PE | 33.73 | ||

Fwd PE | 38.51 |

66.67% of the companies in the same industry are more expensive than **EQR**, based on the **Enterprise Value to EBITDA** ratio.

76.19% of the companies in the same industry are more expensive than **EQR**, based on the **Price/Free Cash Flow** ratio.

Industry Rank | Sector Rank | ||
---|---|---|---|

P/FCF | 28.84 | ||

EV/EBITDA | 17.14 |

The decent profitability rating of **EQR** may justify a higher PE ratio.

PEG (NY)N/A

PEG (5Y)5.75

EPS Next 2Y-14.86%

EPS Next 3Y-4.23%

Compared to an average S&P500 **Dividend Yield** of **2.48**, **EQR** pays a better dividend.

Industry Rank | Sector Rank | ||
---|---|---|---|

Dividend Yield | 4.39% |

The dividend of **EQR** has a limited annual growth rate of **4.14%**.

Dividend Growth(5Y)4.14%

Div Incr Years1

Div Non Decr Years5

The dividend of **EQR** is growing, but the earnings are growing slower. This means the dividend growth is not sustainable.

DP143.6%

EPS Next 2Y-14.86%

EPS Next 3Y-4.23%

**EQUITY RESIDENTIAL**

NYSE:EQR (2/22/2024, 11:59:00 AM)

**60.71**

**-0.52 (-0.85%) **

Chartmill FA Rating

GICS SectorReal Estate

GICS IndustryGroupEquity Real Estate Investment Trusts (REITs)

GICS IndustryResidential REITs

Earnings (Last)

Earnings (Next)

Inst Owners

Inst Owner Change

Ins Owners

Ins Owner Change

Market Cap23.03B

Analysts

Price Target

Dividend

Industry Rank | Sector Rank | ||
---|---|---|---|

Dividend Yield | 4.39% |

Dividend Growth(5Y)

DP

Div Incr Years

Div Non Decr Years

Ex-Date

Surprises & Revisions

EPS beat(2)

Avg EPS beat(2)

Min EPS beat(2)

Max EPS beat(2)

EPS beat(4)

Avg EPS beat(4)

Min EPS beat(4)

Max EPS beat(4)

EPS beat(8)

Avg EPS beat(8)

EPS beat(12)

Avg EPS beat(12)

EPS beat(16)

Avg EPS beat(16)

Revenue beat(2)

Avg Revenue beat(2)

Min Revenue beat(2)

Max Revenue beat(2)

Revenue beat(4)

Avg Revenue beat(4)

Min Revenue beat(4)

Max Revenue beat(4)

Revenue beat(8)

Avg Revenue beat(8)

Revenue beat(12)

Avg Revenue beat(12)

Revenue beat(16)

Avg Revenue beat(16)

PT rev (1m)

PT rev (3m)

EPS NQ rev (1m)

EPS NQ rev (3m)

EPS NY rev (1m)

EPS NY rev (3m)

Revenue NQ rev (1m)

Revenue NQ rev (3m)

Revenue NY rev (1m)

Revenue NY rev (3m)

Valuation

Industry Rank | Sector Rank | ||
---|---|---|---|

PE | 33.73 | ||

Fwd PE | 38.51 | ||

P/S | |||

P/FCF | |||

P/OCF | |||

P/B | |||

P/tB | |||

EV/EBITDA |

EPS(TTM)

EY

EPS(NY)

Fwd EY

FCF(TTM)

FCFY

OCF(TTM)

OCFY

SpS

BVpS

TBVpS

PEG (NY)N/A

PEG (5Y)5.75

Profitability

Industry Rank | Sector Rank | ||
---|---|---|---|

ROA | 3.38% | ||

ROE | 6.14% | ||

ROCE | |||

ROIC | |||

ROICexc | |||

ROICexgc | |||

OM | 31.04% | ||

PM (TTM) | 23.88% | ||

GM | 63.96% | ||

FCFM |

ROA(3y)

ROA(5y)

ROE(3y)

ROE(5y)

ROIC(3y)

ROIC(5y)

ROICexc(3y)

ROICexc(5y)

ROICexgc(3y)

ROICexgc(5y)

ROCE(3y)

ROCE(5y)

ROICexcg growth 3Y

ROICexcg growth 5Y

ROICexc growth 3Y

ROICexc growth 5Y

OM growth 3Y

OM growth 5Y

PM growth 3Y

PM growth 5Y

GM growth 3Y

GM growth 5Y

F-Score

Asset Turnover0.14

Health

Industry Rank | Sector Rank | ||
---|---|---|---|

Debt/Equity | 0.68 | ||

Debt/FCF | |||

Debt/EBITDA | |||

Cap/Depr | |||

Cap/Sales | |||

Interest Coverage | |||

Cash Conversion | |||

Profit Quality | |||

Current Ratio | 0.03 | ||

Quick Ratio | 0.03 | ||

Altman-Z |

F-Score

WACC

ROIC/WACC

Cap/Depr(3y)

Cap/Depr(5y)

Cap/Sales(3y)

Cap/Sales(5y)

Profit Quality(3y)

Profit Quality(5y)

Growth

EPS 1Y (TTM)-40.79%

EPS 3Y-0.96%

EPS 5Y

EPS growth Q2Q

EPS Next Y-33.76%

EPS Next 2Y

EPS Next 3Y

EPS Next 5Y

Revenue 1Y (TTM)6.18%

Revenue growth 3Y3.77%

Revenue growth 5Y

Revenue growth Q2Q

Revenue Next Year

Revenue Next 2Y

Revenue Next 3Y

Revenue Next 5Y

EBIT growth 1Y

EBIT growth 3Y

EBIT growth 5Y

EBIT Next Year

EBIT Next 3Y

EBIT Next 5Y

FCF growth 1Y

FCF growth 3Y

FCF growth 5Y

OCF growth 1Y

OCF growth 3Y

OCF growth 5Y