NYSE:EQC

Stock Analysis Report

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

Fundamentals

Flawless balance sheet with proven track record.

Risks

  • Equity Commonwealth is covered by less than 3 analysts.

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


Market Performance


7 Day Return

-0.03%

NYSE:EQC

-0.9%

US REITs

1.1%

US Market


1 Year Return

5.1%

NYSE:EQC

9.9%

US REITs

4.7%

US Market

EQC underperformed the REITs industry which returned 9.3% over the past year.

EQC matched the United States of America Market (4.8%) over the past year.


Share holder returns

EQCIndustryMarket
7 Day-0.03%-0.9%1.1%
30 Day-2.1%-0.2%4.3%
90 Day5.5%4.6%2.9%
1 Year14.0%5.1%14.8%9.9%7.0%4.7%
3 Year22.3%12.8%19.7%4.2%47.4%37.7%
5 Year33.8%23.4%57.5%24.4%61.6%43.6%

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 based on future cash flows and its price relative to the stock market?

14.01x

Price to Earnings (PE) ratio


Intrinsic Value Based on Future Cash Flows

Equity Commonwealth's share price is above the future cash flow value, it's not available at a moderate discount (< 20%).

Equity Commonwealth's share price is above the future cash flow value, it's not available at a substantial discount (< 40%).


Price Based on Earnings

Equity Commonwealth is good value based on earnings compared to the US REITs industry average.

Equity Commonwealth is good value based on earnings compared to the United States of America market.


Price Based on Expected Growth

Equity Commonwealth earnings are not expected to grow next year, we can't assess if its growth is good value.


Price Based on Value of Assets

Equity Commonwealth is good value based on assets compared to the US REITs industry average.


Next Steps

Future Growth

How is Equity Commonwealth expected to perform in the next 1 to 3 years based on estimates from 2 analysts?

-78.4%

Forecasted annual earnings growth


Earnings and Revenue Growth Estimates


Future Annual Growth Analysis

Equity Commonwealth's revenue is expected to decrease over the next 1-3 years, this is not considered high growth.

Equity Commonwealth's earnings are expected to decrease over the next 1-3 years, this is not considered high growth.

Equity Commonwealth's revenues are expected to decrease over the next 1-3 years, this is below the United States of America market average.

Equity Commonwealth's earnings are expected to decrease over the next 1-3 years, this is below the United States of America market average.

Equity Commonwealth's earnings are expected to decrease over the next 1-3 years, this is below the low risk savings rate of 2.7%.


Earnings per Share Growth Estimates


Future Return on Equity

Unable to establish if Equity Commonwealth will efficiently use shareholders’ funds in the future without estimates of Return on Equity.


Next Steps

Past Performance

How has Equity Commonwealth performed over the past 5 years?

46.6%

Historical annual earnings growth


Earnings and Revenue History


Past Earnings Growth Analysis

Equity Commonwealth has delivered over 20% year on year earnings growth in the past 5 years.

Equity Commonwealth's 1-year earnings growth exceeds its 5-year average (55.2% vs 46.6%)

Equity Commonwealth's earnings growth has exceeded the US REITs industry average in the past year (55.2% vs 16%).


Return on Equity

Equity Commonwealth has not efficiently used shareholders’ funds last year (Return on Equity less than 20%).


Return on Assets

Equity Commonwealth used its assets more efficiently than the US REITs industry average last year based on Return on Assets.


Return on Capital Employed

Equity Commonwealth's use of capital deteriorated last year versus 3 years ago (Return on Capital Employed).


Next Steps

Financial Health

How is Equity Commonwealth's financial position?


Financial Position Analysis

Equity Commonwealth is able to meet its short term (1 year) commitments with its holdings of cash and other short term assets.

Equity Commonwealth's cash and other short term assets cover its long term commitments.


Debt to Equity History and Analysis

Equity Commonwealth's level of debt (8.1%) compared to net worth is satisfactory (less than 40%).

The level of debt compared to net worth has been reduced over the past 5 years (90.3% vs 8.1% today).

Debt is well covered by operating cash flow (37.3%, greater than 20% of total debt).

Equity Commonwealth earns more interest than it pays, coverage of interest payments is not a concern.


Balance Sheet

Low level of unsold assets.

Debt is covered by short term assets, assets are 11.3x debt.


Next Steps

Dividend

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


Dividend Yield and Payments Analysis

Unable to evaluate Equity Commonwealth's dividend yield against the bottom 25% of dividend payers as the company has not reported any payouts.

Unable to evaluate Equity Commonwealth's dividend against the top 25% market benchmark as the company has not reported any payouts.

Unable to perform a dividend volatility check as Equity Commonwealth has not reported any payouts.

Unable to verify if Equity Commonwealth's dividend has been increasing as the company has not reported any payouts.


Current Payout to Shareholders

Unable to calculate sustainability of dividends as Equity Commonwealth has not reported any payouts.


Future Payout to Shareholders

No need to calculate the sustainability of Equity Commonwealth's dividends in 3 years as they are not expected to pay a notable one for United States of America.


Next Steps

Management

What is the CEO of Equity Commonwealth's salary, the management and board of directors tenure and is there insider trading?

5.2yrs

Average management tenure


CEO

David Helfand (54yo)

5.2yrs

Tenure

US$6,260,516

Compensation

Mr. David A. Helfand has been the Chief Executive Officer and President at Equity Commonwealth since May 2014. Mr. Helfand has been a Co-President at Equity Group Investments since January 2012 where he ha ...


CEO Compensation Analysis

David's remuneration is about average for companies of similar size in United States of America.

David's compensation has been consistent with company performance over the past year, both up more than 20%.


Management Age and Tenure

5.2yrs

Average Tenure

53yo

Average Age

The average tenure for the Equity Commonwealth management team is over 5 years, this suggests they are a seasoned and experienced team.


Board Age and Tenure

5.2yrs

Average Tenure

62.5yo

Average Age

The tenure for the Equity Commonwealth board of directors is about average.


Insider Trading

Equity Commonwealth individual insiders have only sold shares in the past 3 months.


Recent Insider Transactions

SellUS$399,50013 May 19
Adam Markman
EntityIndividual
Role
Executive VP
Shares12,500
Max PriceUS$31.96
SellUS$194,76020 Feb 19
James Lozier
EntityIndividual
Role
Member of the Board of Directors
Shares6,000
Max PriceUS$32.46

Ownership Breakdown


Management Team

  • David Helfand (54yo)

    President

    • Tenure: 5.2yrs
    • Compensation: $6.26m
  • Adam Markman (54yo)

    Executive VP

    • Tenure: 5.0yrs
    • Compensation: $2.91m
  • Jeff Brown (53yo)

    Chief Accounting Officer & Senior VP

    • Tenure: 5.0yrs
  • Sarah Byrnes

    Vice President of Investor Relations & Capital Markets

  • David Weinberg (50yo)

    Executive VP & COO

    • Tenure: 5.2yrs
    • Compensation: $3.38m
  • Orrin Shifrin (52yo)

    Executive VP

    • Tenure: 5.2yrs
    • Compensation: $2.54m

Board Members

  • Marty Edelman (77yo)

    • Tenure: 5.0yrs
    • Compensation: $166.00k
  • Sam Zell (77yo)

    Chairman of the Board

    • Tenure: 5.2yrs
    • Compensation: $2.33m
  • Ed Glickman (62yo)

    • Tenure: 5.2yrs
    • Compensation: $168.00k
  • James Star (58yo)

    • Tenure: 5.0yrs
    • Compensation: $175.00k
  • Peter Linneman (68yo)

    Lead Independent Trustee

    • Compensation: $198.00k
  • Mary Robertson (65yo)

    • Tenure: 5.0yrs
    • Compensation: $180.00k
  • Jim Lozier (63yo)

    • Tenure: 5.2yrs
    • Compensation: $166.00k
  • Kenneth Shea (61yo)

    • Tenure: 5.2yrs
    • Compensation: $175.00k
  • David Helfand (54yo)

    President

    • Tenure: 5.2yrs
    • Compensation: $6.26m
  • Jim Corl (52yo)

    • Tenure: 5.2yrs
    • Compensation: $166.00k

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$4.007b
  • Market Cap: US$4.032b
  • Shares outstanding: 121.94m
  • Website: Click here

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 April 29,2019, EQC’ ...


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2019/07/15 23:38
End of Day Share Price2019/07/15 00:00
Earnings2019/03/31
Annual Earnings2018/12/31


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.