NYSE:EQC

Stock Analysis Report

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Executive Summary

Equity Commonwealth (NYSE: EQC) is a Chicago based, internally managed and self-advised real estate investment trust (REIT) with commercial office properties in the United States.


Snowflake Analysis

Flawless balance sheet with proven track record.


Similar Companies

Share Price & News

How has Equity Commonwealth's share price performed over time and what events caused price changes?


Latest Share Price and Events

Stable Share Price: EQC has not had significant price volatility in the past 3 months.


Market Performance


7 Day Return

-3.3%

EQC

-2.5%

US REITs

2.3%

US Market


1 Year Return

-5.5%

EQC

-11.6%

US REITs

6.7%

US Market

Return vs Industry: EQC exceeded the US REITs industry which returned -11.6% over the past year.

Return vs Market: EQC underperformed the US Market which returned 6.7% over the past year.


Shareholder returns

EQCIndustryMarket
7 Day-3.3%-2.5%2.3%
30 Day-5.6%-2.5%6.0%
90 Day-5.5%3.3%18.9%
1 Year5.2%-5.5%-8.0%-11.6%9.0%6.7%
3 Year18.6%-1.8%12.1%-1.7%36.6%27.7%
5 Year39.8%15.8%39.4%10.8%64.2%46.1%

Price Volatility Vs. Market

How volatile is Equity Commonwealth's share price compared to the market and industry in the last 5 years?


Simply Wall St News

Valuation

Is Equity Commonwealth undervalued compared to its fair value and its price relative to the market?

5.46x

Price to Earnings (PE) ratio


Share Price vs. Fair Value

Below Fair Value: EQC ($31.25) is trading above our estimate of fair value ($5.63)

Significantly Below Fair Value: EQC is trading above our estimate of fair value.


Price To Earnings Ratio

PE vs Industry: EQC is good value based on its PE Ratio (5.5x) compared to the US REITs industry average (27.2x).

PE vs Market: EQC is good value based on its PE Ratio (5.5x) compared to the US market (16.2x).


Price to Earnings Growth Ratio

PEG Ratio: EQC's earnings are forecast to decline next year, so we can't calculate its PEG ratio.


Price to Book Ratio

PB vs Industry: EQC is good value based on its PB Ratio (1.1x) compared to the US REITs industry average (1.3x).


Next Steps

Future Growth

How is Equity Commonwealth forecast to perform in the next 1 to 3 years based on estimates from 1 analyst?

-96.3%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: EQC's earnings are forecast to decline over the next 3 years (-96.3% per year).

Earnings vs Market: EQC's earnings are forecast to decline over the next 3 years (-96.3% per year).

High Growth Earnings: EQC's earnings are forecast to decline over the next 3 years.

Revenue vs Market: EQC's revenue is expected to decline over the next 3 years (-8.8% per year).

High Growth Revenue: EQC's revenue is forecast to decline over the next 3 years (-8.8% per year).


Earnings per Share Growth Forecasts


Future Return on Equity

Future ROE: Insufficient data to determine if EQC's Return on Equity is forecast to be high in 3 years time


Next Steps

Past Performance

How has Equity Commonwealth performed over the past 5 years?

49.1%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: EQC has a high level of non-cash earnings.

Growing Profit Margin: EQC's current net profit margins are higher than last year .


Past Earnings Growth Analysis

Earnings Trend: EQC has become profitable over the past 5 years, growing earnings by 49.1% per year.

Accelerating Growth: EQC's earnings growth over the past year (141%) exceeds its 5-year average (49.1% per year).

Earnings vs Industry: EQC earnings growth over the past year (141%) exceeded the REITs industry 5.3%.


Return on Equity

High ROE: EQC's Return on Equity (19.4%) is considered low.


Next Steps

Financial Health

How is Equity Commonwealth's financial position?


Financial Position Analysis

Short Term Liabilities: EQC's short term assets ($3.4B) exceed its short term liabilities ($32.3M).

Long Term Liabilities: EQC's short term assets ($3.4B) exceed its long term liabilities ($27.2M).


Debt to Equity History and Analysis

Debt Level: EQC's debt to equity ratio (0.7%) is considered satisfactory.

Reducing Debt: EQC's debt to equity ratio has reduced from 66.6% to 0.7% over the past 5 years.

Debt Coverage: EQC's debt is well covered by operating cash flow (398.1%).

Interest Coverage: EQC earns more interest than it pays, so coverage of interest payments is not a concern.


Balance Sheet


Next Steps

Dividend

What is Equity Commonwealth current dividend yield, its reliability and sustainability?

8.32%

Forecast Dividend Yield


Dividend Yield vs Market

Notable Dividend: Unable to evaluate EQC's dividend yield against the bottom 25% of dividend payers, as the company has not reported any recent payouts.

High Dividend: Unable to evaluate EQC's dividend yield against the top 25% of dividend payers, as the company has not reported any recent payouts.


Stability and Growth of Payments

Stable Dividend: Insufficient data to determine if EQC's dividends per share have been stable in the past.

Growing Dividend: Insufficient data to determine if EQC's dividend payments have been increasing.


Current Payout to Shareholders

Dividend Coverage: EQC is not paying a notable dividend for the US market.


Future Payout to Shareholders

Future Dividend Coverage: No need to calculate the sustainability of EQC's dividend in 3 years as they are not forecast to pay a notable one for the US market.


Next Steps

Management

How experienced are the management team and are they aligned to shareholders interests?

6.2yrs

Average management tenure


CEO

David Helfand (55yo)

6.17yrs

Tenure

US$6,027,946

Compensation

Mr. David A. Helfand has been the Chief Executive Officer and President at Equity Commonwealth since May 2014. Mr. Helfand has been an Advisor and previously served as a Co-President at Equity Group Invest ...


CEO Compensation Analysis

Compensation vs Market: David's total compensation ($USD6.03M) is about average for companies of similar size in the US market ($USD5.85M).

Compensation vs Earnings: David's compensation has been consistent with company performance over the past year.


Leadership Team

NamePositionTenureCompensationOwnership
David Helfand
President6.17yrsUS$6.03m0.58% $22.0m
Adam Markman
Executive VP6yrsUS$2.85m0.17% $6.5m
David Weinberg
Executive VP & COO6.17yrsUS$3.38m0.19% $7.4m
Orrin Shifrin
Executive VP6.17yrsUS$2.47m0.14% $5.3m
Jeffrey Brown
Chief Accounting Officer & Senior VP6yrsno data0.0080% $306.2k
Sarah Byrnes
Vice President of Investor Relations & Capital Marketsno datano datano data

6.2yrs

Average Tenure

54yo

Average Age

Experienced Management: EQC's management team is seasoned and experienced (6.2 years average tenure).


Board Members

NamePositionTenureCompensationOwnership
David Helfand
President6.17yrsUS$6.03m0.58% $22.0m
Gerald Spector
Independent Trustee6yrsUS$165.99k0.10% $4.0m
Edward Glickman
Independent Trustee6.17yrsUS$167.99k0.025% $942.7k
Martin Edelman
Independent Trustee6yrsUS$165.99k0.017% $628.5k
Peter Linneman
Lead Independent Trusteeno dataUS$197.99k0.025% $942.7k
Mary Robertson
Independent Trustee6yrsUS$179.99k0.024% $920.6k
Samuel Zell
Chairman of the Board6.17yrsUS$2.33m0.58% $22.2m
James Lozier
Independent Trustee6.17yrsUS$165.99k0.015% $566.8k
James Corl
Independent Trustee6.17yrsUS$165.99k0.025% $942.7k
James Star
Independent Trustee6yrsUS$174.99k0.055% $2.1m
Kenneth Shea
Independent Trustee6.17yrsUS$174.99k0.022% $843.0k

6.2yrs

Average Tenure

64yo

Average Age

Experienced Board: EQC's board of directors are considered experienced (6.2 years average tenure).


Ownership

Who are the major shareholders and have insiders been buying or selling?


Insider Trading Volume

Insider Buying: Insufficient data to determine if insiders have bought more shares than they have sold in the past 3 months.


Recent Insider Transactions

Ownership Breakdown

Dilution of Shares: Shareholders have not been meaningfully diluted in the past year.


Top Shareholders

Company Information

Equity Commonwealth's company bio, employee growth, exchange listings and data sources


Key Information

  • Name: Equity Commonwealth
  • Ticker: EQC
  • Exchange: NYSE
  • Founded: 1986
  • Industry: Office REITs
  • Sector: Real Estate
  • Implied Market Cap: US$3.804b
  • Market Cap: US$3.797b
  • Shares outstanding: 121.74m
  • Website: https://www.eqcre.com

Number of Employees


Location

  • Equity Commonwealth
  • Two North Riverside Plaza
  • Suite 2100
  • Chicago
  • Illinois
  • 60606
  • United States

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
EQCNYSE (New York Stock Exchange)YesCommon SharesUSUSDDec 1986
HP5ADB (Deutsche Boerse AG)YesCommon SharesDEEURDec 1986
EQC.PRDNYSE (New York Stock Exchange)CUM PFD S D 6.5%USUSDOct 2006

Biography

Equity Commonwealth (NYSE: EQC) is a Chicago based, internally managed and self-advised real estate investment trust (REIT) with commercial office properties in the United States. As of May 4, 2020, EQC’s same property portfolio comprised 4 properties and 1.5 million square feet. 


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2020/07/13 07:17
End of Day Share Price2020/07/10 00:00
Earnings2020/03/31
Annual Earnings2019/12/31


Unless specified all financial data is based on a yearly period but updated quarterly. This is known as Trailing Twelve Month (TTM) or Last Twelve Month (LTM) Data. Learn more here.