NYSE:EQR

Stock Analysis Report

Executive Summary

Equity Residential is committed to creating communities where people thrive.

Snowflake

Fundamentals

Average dividend payer with acceptable track record.


Similar Companies

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 has not had significant price volatility in the past 3 months.


Market Performance


7 Day Return

-3.3%

EQR

-1.8%

US REITs

0.3%

US Market


1 Year Return

23.7%

EQR

13.1%

US REITs

12.5%

US Market

Return vs Industry: EQR exceeded the US REITs industry which returned 13.1% over the past year.

Return vs Market: EQR exceeded the US Market which returned 12.5% over the past year.


Shareholder returns

EQRIndustryMarket
7 Day-3.3%-1.8%0.3%
30 Day-4.0%-2.0%4.1%
90 Day4.0%1.3%5.6%
1 Year27.5%23.7%17.8%13.1%15.0%12.5%
3 Year51.6%38.0%37.7%20.7%49.1%39.4%
5 Year65.1%20.7%56.5%23.7%62.8%44.7%

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?

39.16x

Price to Earnings (PE) ratio


Share Price vs. Fair Value

Below Fair Value: EQR ($84.16) is trading above our estimate of fair value ($70.42)

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


Price To Earnings Ratio

PE vs Industry: EQR is poor value based on its PE Ratio (39.2x) compared to the REITs industry average (38.8x).

PE vs Market: EQR is poor value based on its PE Ratio (39.2x) compared to the US market (18.3x).


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 (3.1x) compared to the US REITs industry average (2x).


Next Steps

Future Growth

How is Equity Residential forecast to perform in the next 1 to 3 years based on estimates from 19 analysts?

-9.8%

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 (-9.8% per year).

Earnings vs Market: EQR's earnings are forecast to decline over the next 3 years (-9.8% per year).

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

Revenue vs Market: EQR's revenue (2.6% per year) is forecast to grow slower than the US market (7.2% per year).

High Growth Revenue: EQR's revenue (2.6% 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 (6.1%).


Next Steps

Past Performance

How has Equity Residential performed over the past 5 years?

-13.9%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: EQR has large one-off items impacting its financial results.

Growing Profit Margin: EQR's current net profit margins (29.8%) are higher than last year (25.9%).


Past Earnings Growth Analysis

Earnings Trend: EQR's earnings have declined by -13.9% per year over the past 5 years.

Accelerating Growth: EQR's earnings growth over the past year (19.9%) exceeds its 5-year average (-13.9% per year).

Earnings vs Industry: EQR earnings growth over the past year (19.9%) exceeded the REITs industry 8.3%.


Return on Equity

High ROE: EQR's Return on Equity (7.6%) is considered low.


Return on Assets


Return on Capital Employed


Next Steps

Financial Health

How is Equity Residential's financial position? (This company is analysed differently as a bank or financial institution)


Financial Position Analysis


Debt to Equity History and Analysis


Balance Sheet

Inventory Level: EQR has a high level of physical assets or inventory.

Debt Coverage by Assets: EQR's debt is not covered by short term assets (assets are 0x debt).


Financial Institutions Analysis

Asset Level: EQR's level of assets compared to its equity is low.

Allowance for Bad Loans: Insufficient data to determine if EQR has a sufficient allowance for bad loans.

Low Risk Liabilities: EQR reports no customer deposits, loans are made up entirely of externally borrowed funds.

Loan Level: Insufficient data to determine if EQR has an acceptable proportion of non-loan assets held.

Low Risk Deposits: EQR has advanced significantly more loans than the customer deposits it holds.

Level of Bad Loans: Insufficient data to determine if EQR has an appropriate level of bad loans.


Next Steps

Dividend

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

2.70%

Current Dividend Yield


Dividend Yield vs Market

company2.7%marketbottom25%1.4%markettop25%3.7%industryaverage3.7%forecastin3Years2.8%

Current dividend yield vs market & industry

Notable Dividend: EQR's dividend (2.7%) is higher than the bottom 25% of dividend payers in the US market (1.42%).

High Dividend: EQR's dividend (2.7%) is low compared to the top 25% of dividend payers in the US market (3.67%).


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: With its reasonable payout ratio (63.4%), EQR's dividend payments are covered by earnings.


Future Payout to Shareholders

Future Dividend Coverage: EQR's dividends in 3 years are forecast to be thoroughly covered by earnings (0.2% payout ratio).


Next Steps

Management

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

1.8yrs

Average management tenure


CEO

Mark Parrell (52yo)

0.8yrs

Tenure

US$4,047,571

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 ($USD4.05M) is below average for companies of similar size in the US market ($USD11.12M).

Compensation vs Earnings: Mark's compensation has increased by more than 20% in the past year.


Management Age and Tenure

1.8yrs

Average Tenure

52yo

Average Age

Experienced Management: EQR's management team is not considered experienced ( 1.8 years average tenure), which suggests a new team.


Board Age and Tenure

9.9yrs

Average Tenure

63yo

Average Age

Experienced Board: EQR's board of directors are considered experienced (9.9 years average tenure).


Insider Trading

Insider Buying: EQR insiders have only sold shares in the past 3 months.


Recent Insider Transactions

SellUS$1,181,65304 Nov 19
Alan George
EntityIndividual
Role
Chief Investment Officer
Executive VP & Chief Investment Officer
Shares13,277
Max PriceUS$89.00
SellUS$922,42528 Oct 19
Charles Atwood
EntityIndividual
Role
Lead Director
Lead Trustee
Shares10,500
Max PriceUS$87.85
SellUS$846,00004 Sep 19
Alan George
EntityIndividual
Role
Chief Investment Officer
Executive VP & Chief Investment Officer
Shares10,000
Max PriceUS$84.60
SellUS$56,51112 Aug 19
Christa Sorenson
EntityIndividual
Role
Head of Human Resources
Executive VP of Human Resources
Shares700
Max PriceUS$80.73
SellUS$1,232,27012 Aug 19
Alan George
EntityIndividual
Role
Chief Investment Officer
Executive VP & Chief Investment Officer
Shares15,302
Max PriceUS$80.53
SellUS$31,33208 Aug 19
Christa Sorenson
EntityIndividual
Role
Head of Human Resources
Executive VP of Human Resources
Shares400
Max PriceUS$78.33
SellUS$927,68306 Aug 19
Alexander Brackenridge
EntityIndividual
Shares11,612
Max PriceUS$79.89
SellUS$111,57328 May 19
Michael Manelis
EntityIndividual
Role
Chief Operating Officer
COO & Executive VP
Shares1,449
Max PriceUS$77.00
SellUS$470,46721 Feb 19
Alexander Brackenridge
EntityIndividual
Shares6,421
Max PriceUS$73.27
SellUS$22,74707 Feb 19
Christa Sorenson
EntityIndividual
Role
Head of Human Resources
Executive VP of Human Resources
Shares315
Max PriceUS$72.21
SellUS$49,39307 Feb 19
Michael Manelis
EntityIndividual
Role
Chief Operating Officer
COO & Executive VP
Shares684
Max PriceUS$72.21
SellUS$67,30207 Feb 19
Ian Kaufman
EntityIndividual
Role
Chief Accounting Officer
Senior VP & Chief Accounting Officer
Shares932
Max PriceUS$72.21
SellUS$49,61007 Feb 19
Robert Garechana
EntityIndividual
Role
Chief Financial Officer
Executive VP & CFO
Shares687
Max PriceUS$72.21
SellUS$34,30107 Feb 19
Scott Fenster
EntityIndividual
Role
Chief Legal Officer
Executive VP
Shares475
Max PriceUS$72.21
SellUS$144,64107 Feb 19
Alexander Brackenridge
EntityIndividual
Shares2,003
Max PriceUS$72.21
SellUS$99,72507 Feb 19
Barry Altshuler
EntityIndividual
Shares1,381
Max PriceUS$72.21

Ownership Breakdown

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


Management Team

  • Alan George (61yo)

    Executive VP & Chief Investment Officer

    • Tenure: 17.8yrs
    • Compensation: US$3.80m
  • Sam Zell (77yo)

    Founder & Chairman

    • Tenure: 26.7yrs
    • Compensation: US$3.25m
  • Ian Kaufman (51yo)

    Senior VP & Chief Accounting Officer

    • Tenure: 13yrs
  • John Lennox (65yo)

    Senior Vice President of Financial Planning & Analysis

    • Tenure: 0yrs
  • Mark Parrell (52yo)

    President

    • Tenure: 0.8yrs
    • Compensation: US$4.05m
  • Catherine Carraway

    Senior Vice President of Human Resources

    • Tenure: 0yrs
  • Christa Sorenson (58yo)

    Executive VP of Human Resources

    • Tenure: 3.9yrs
  • Michael Manelis (50yo)

    COO & Executive VP

    • Tenure: 1.3yrs
    • Compensation: US$1.65m
  • Scott Fenster (43yo)

    Executive VP

    • Tenure: 1.8yrs
  • Robert Garechana (40yo)

    Executive VP & CFO

    • Tenure: 1.2yrs
    • Compensation: US$1.17m

Board Members

  • Brad Keywell (49yo)

    Independent Trustee

    • Tenure: 8.6yrs
    • Compensation: US$247.67k
  • Steve Sterrett (63yo)

    Independent Trustee

    • Tenure: 4.8yrs
    • Compensation: US$253.11k
  • David Neithercut (63yo)

    • Tenure: 13.8yrs
    • Compensation: US$11.00m
  • Linda Bynoe (67yo)

    Independent Trustee

    • Tenure: 9.9yrs
    • Compensation: US$270.17k
  • Chuck Atwood (70yo)

    Lead Trustee

    • Tenure: 10.7yrs
    • Compensation: US$289.17k
  • Mary Haben (63yo)

    Independent Trustee

    • Tenure: 8.3yrs
    • Compensation: US$275.17k
  • Sam Zell (77yo)

    Founder & Chairman

    • Tenure: 26.7yrs
    • Compensation: US$3.25m
  • Jack Neal (69yo)

    Independent Trustee

    • Tenure: 13.3yrs
    • Compensation: US$271.72k
  • Mark Shapiro (49yo)

    Independent Trustee

    • Tenure: 9.8yrs
    • Compensation: US$255.16k
  • Mark Parrell (52yo)

    President

    • Tenure: 0.8yrs
    • Compensation: US$4.05m

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$32.341b
  • Market Cap: US$31.253b
  • Shares outstanding: 385.10m
  • Website: https://www.equityapartments.com

Number of Employees


Location

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

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
EQRNYSE (New York Stock Exchange)YesCommon SharesUSUSDAug 1993
EQRDB (Deutsche Boerse AG)YesCommon SharesDEEURAug 1993
0IIBLSE (London Stock Exchange)YesCommon SharesGBUSDAug 1993
EQR *BMV (Bolsa Mexicana de Valores)YesCommon SharesMXMXNAug 1993

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 rental apartment properties l ...


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2019/11/11 23:33
End of Day Share Price2019/11/11 00:00
Earnings2019/09/30
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.