NYSE:EQR

Stock Analysis Report

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Market Cap

US$32.6b

Last Updated

2021/07/31 05:25 UTC

Data Sources

Company Financials +

Share Price & News

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


Latest Share Price and Events

Stable Share Price: EQR is less volatile than 75% of US stocks over the past 3 months, typically moving +/- 3% a week.

Volatility Over Time: EQR's weekly volatility (3%) has been stable over the past year.


Market Performance


7 Day Return

-0.8%

EQR

0.1%

US REITs

-0.5%

US Market


1 Year Return

56.9%

EQR

30.6%

US REITs

35.9%

US Market

Return vs Industry: EQR exceeded the US REITs industry which returned 30.6% over the past year.

Return vs Market: EQR exceeded the US Market which returned 35.9% over the past year.


Shareholder returns

EQRIndustryMarket
7 Day-0.8%0.1%-0.5%
30 Day7.8%4.2%0.3%
90 Day13.3%7.3%3.1%
1 Year63.0%56.9%34.9%30.6%38.0%35.9%
3 Year39.4%25.7%44.5%28.3%62.9%52.7%
5 Year55.0%25.1%52.8%23.3%121.7%97.3%

Long-Term Price Volatility Vs. Market

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


Simply Wall St News

Valuation

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

43.83x

Price to Earnings (PE) ratio


Share Price vs. Fair Value

Below Fair Value: EQR ($84.13) is trading above our estimate of fair value ($80)

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


Price To Earnings Ratio

PE vs Industry: EQR is good value based on its PE Ratio (43.8x) compared to the US REITs industry average (46.6x).

PE vs Market: EQR is poor value based on its PE Ratio (43.8x) compared to the US market (18x).


Price to Earnings Growth Ratio

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


Price to Book Ratio

PB vs Industry: EQR is overvalued based on its PB Ratio (3x) compared to the US REITs industry average (1.9x).


Future Growth

How is Equity Residential forecast to perform in the next 1 to 3 years based on estimates from 15 analysts?

-2.1%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: EQR's earnings are forecast to decline over the next 3 years (-2.1% per year).

Earnings vs Market: EQR's earnings are forecast to decline over the next 3 years (-2.1% per year).

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

Revenue vs Market: EQR's revenue (5% per year) is forecast to grow slower than the US market (9.2% per year).

High Growth Revenue: EQR's revenue (5% per year) is forecast to grow slower than 20% per year.


Earnings per Share Growth Forecasts


Future Return on Equity

Future ROE: EQR's Return on Equity is forecast to be low in 3 years time (5.3%).


Past Performance

How has Equity Residential performed over the past 5 years?

-35.4%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: EQR has a large one-off gain of $453.9M impacting its June 30 2021 financial results.

Growing Profit Margin: EQR's current net profit margins (29.4%) are lower than last year (41.5%).


Past Earnings Growth Analysis

Earnings Trend: EQR's earnings have declined by 35.4% per year over the past 5 years.

Accelerating Growth: EQR's has had negative earnings growth over the past year, so it can't be compared to its 5-year average.

Earnings vs Industry: EQR had negative earnings growth (-36.3%) over the past year, making it difficult to compare to the REITs industry average (-8.8%).


Return on Equity

High ROE: EQR's Return on Equity (6.7%) is considered low.


Financial Health

How is Equity Residential's financial position?


Financial Position Analysis

Short Term Liabilities: EQR's short term assets ($431.3M) do not cover its short term liabilities ($1.0B).

Long Term Liabilities: EQR's short term assets ($431.3M) do not cover its long term liabilities ($8.3B).


Debt to Equity History and Analysis

Debt Level: EQR's debt to equity ratio (74.3%) is considered high.

Reducing Debt: EQR's debt to equity ratio has increased from 71.7% to 74.3% over the past 5 years.

Debt Coverage: EQR's debt is not well covered by operating cash flow (14.9%).

Interest Coverage: EQR's interest payments on its debt are not well covered by EBIT (1.9x coverage).


Balance Sheet


Dividend

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

2.86%

Current Dividend Yield


Dividend Yield vs Market

Notable Dividend: EQR's dividend (2.86%) is higher than the bottom 25% of dividend payers in the US market (1.31%).

High Dividend: EQR's dividend (2.86%) is low compared to the top 25% of dividend payers in the US market (3.54%).


Stability and Growth of Payments

Stable Dividend: EQR's dividend payments have been volatile in the past 10 years.

Growing Dividend: EQR's dividend payments have increased over the past 10 years.


Current Payout to Shareholders

Dividend Coverage: At its current payout ratio (79.4%), EQR's payments are covered by earnings.


Future Payout to Shareholders

Future Dividend Coverage: EQR's dividends in 3 years are forecast to be covered by earnings (77.1% payout ratio).


Next Steps

Management

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

2.8yrs

Average management tenure


CEO

Mark Parrell (54 yo)

2.5yrs

Tenure

US$7,600,658

Compensation

Mr. Mark J. Parrell has been the Chief Executive Officer and Trustee at Equity Residential since January 1, 2019 and its President since September 4, 2018. Mr. Parrell served as Chief Financial Officer and...


CEO Compensation Analysis

Compensation vs Market: Mark's total compensation ($USD7.60M) is below average for companies of similar size in the US market ($USD11.17M).

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


Leadership Team

Experienced Management: EQR's management team is considered experienced (2.8 years average tenure).


Board Members

Experienced Board: EQR's board of directors are considered experienced (7.8 years average tenure).


Ownership

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


Insider Trading Volume

Insider Buying: EQR insiders have only sold shares 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 Residential's company bio, employee growth, exchange listings and data sources


Key Information

  • Name: Equity Residential
  • Ticker: EQR
  • Exchange: NYSE
  • Founded: 1966
  • Industry: Residential REITs
  • Sector: Real Estate
  • Implied Market Cap: US$32.587b
  • Market Cap: US$31.494b
  • Shares outstanding: 387.28m
  • Website: https://www.equityapartments.com

Number of Employees


Location

  • Equity Residential
  • Two North Riverside Plaza
  • Suite 400
  • Chicago
  • Illinois
  • 60606
  • United States

Listings


Biography

Equity Residential is committed to creating communities where people thrive. The Company, a member of the S&P 500, is focused on the acquisition, development and management of residential properties locate...


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2021/07/31 05:25
End of Day Share Price2021/07/30 00:00
Earnings2021/06/30
Annual Earnings2020/12/31


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.