NYSE:EQR

Stock Analysis Report

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Executive Summary

Equity Residential is committed to creating communities where people thrive.


Snowflake Analysis

Established dividend payer and good value.


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's share price has been volatile over the past 3 months.


Market Performance


7 Day Return

-1.2%

EQR

-0.5%

US REITs

2.6%

US Market


1 Year Return

-34.0%

EQR

-9.2%

US REITs

15.4%

US Market

Return vs Industry: EQR underperformed the US REITs industry which returned -7.4% over the past year.

Return vs Market: EQR underperformed the US Market which returned 16.2% over the past year.


Shareholder returns

EQRIndustryMarket
7 Day-1.2%-0.5%2.6%
30 Day-7.4%3.0%6.1%
90 Day-17.0%8.8%16.6%
1 Year-31.8%-34.0%-5.5%-9.2%17.8%15.4%
3 Year-12.3%-20.5%16.9%3.1%43.9%34.7%
5 Year-4.5%-30.6%43.7%14.3%76.2%57.3%

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?

31.7%

Undervalued compared to fair value


Share Price vs. Fair Value

Below Fair Value: EQR ($53.32) is trading below our estimate of fair value ($78.02)

Significantly Below Fair Value: EQR is trading below fair value by more than 20%.


Price To Earnings Ratio

PE vs Industry: EQR is good value based on its PE Ratio (17.6x) compared to the US REITs industry average (31.2x).

PE vs Market: EQR is good value based on its PE Ratio (17.6x) 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 (1.9x) compared to the US REITs industry average (1.4x).


Next Steps

Future Growth

How is Equity Residential forecast to perform in the next 1 to 3 years based on estimates from 18 analysts?

-11.6%

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 (-11.6% per year).

Earnings vs Market: EQR's earnings are forecast to decline over the next 3 years (-11.6% per year).

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

Revenue vs Market: EQR's revenue (3.2% per year) is forecast to grow slower than the US market (9.4% per year).

High Growth Revenue: EQR's revenue (3.2% 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 (4.3%).


Next Steps

Past Performance

How has Equity Residential performed over the past 5 years?

-26.2%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: EQR has a large one-off gain of $668.6M impacting its June 30 2020 financial results.

Growing Profit Margin: EQR's current net profit margins (41.5%) are higher than last year (28.2%).


Past Earnings Growth Analysis

Earnings Trend: EQR's earnings have declined by 26.2% per year over the past 5 years.

Accelerating Growth: EQR's earnings growth over the past year (51.2%) exceeds its 5-year average (-26.2% per year).

Earnings vs Industry: EQR earnings growth over the past year (51.2%) exceeded the REITs industry 1.4%.


Return on Equity

High ROE: EQR's Return on Equity (10.6%) is considered low.


Next Steps

Financial Health

How is Equity Residential's financial position?


Financial Position Analysis

Short Term Liabilities: EQR's short term assets ($245.5M) do not cover its short term liabilities ($409.6M).

Long Term Liabilities: EQR's short term assets ($245.5M) do not cover its long term liabilities ($9.1B).


Debt to Equity History and Analysis

Debt Level: EQR's debt to equity ratio (75.4%) is considered high.

Reducing Debt: EQR's debt to equity ratio has reduced from 95.6% to 75.4% over the past 5 years.

Debt Coverage: EQR's debt is not well covered by operating cash flow (17.4%).

Interest Coverage: EQR's interest payments on its debt are not well covered by EBIT (2.5x coverage).


Balance Sheet


Next Steps

Dividend

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

4.52%

Current Dividend Yield


Dividend Yield vs Market

Notable Dividend: EQR's dividend (4.52%) is higher than the bottom 25% of dividend payers in the US market (1.65%).

High Dividend: EQR's dividend (4.52%) is in the top 25% of dividend payers in the US market (4.48%)


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 (62.5%), 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 covered by earnings (69.1% payout ratio).


Next Steps

Management

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

3.6yrs

Average management tenure


CEO

Mark Parrell (53 yo)

1.58yrs

Tenure

US$6,588,161

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 ($USD6.59M) is below average for companies of similar size in the US market ($USD11.29M).

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


Leadership Team

NamePositionTenureCompensationOwnership
Samuel Zell
Founder & Chairman27.42yrsUS$3.25m0.97%
$ 199.9m
Mark Parrell
President1.58yrsUS$6.59m0.0069%
$ 1.4m
Robert Garechana
Executive VP & CFO1.92yrsUS$2.23m0.0069%
$ 1.4m
Michael Manelis
COO & Executive VP2.08yrsUS$2.80m0.0069%
$ 1.4m
Alan George
Executive VP & Chief Investment Officer18.58yrsUS$4.65m0.015%
$ 3.2m
Scott Fenster
Executive VP2.58yrsUS$1.62m0.0081%
$ 1.7m
Ian Kaufman
Senior VP & Chief Accounting Officer13.75yrsno data0.0051%
$ 1.0m
Martin McKenna
First Vice President of Investor & Public Relationsno datano datano data
Christa Sorenson
Executive VP & Chief Human Resources Officer4.67yrsno data0.0012%
$ 242.3k
John Lennox
Senior Vice President of Financial Planning & Analysisno datano datano data
Catherine Carraway
Senior Vice President of Human Resourcesno datano datano data
Barry Altshuler
Executive VP of Investments5.5yrsno data0.012%
$ 2.5m

3.6yrs

Average Tenure

56yo

Average Age

Experienced Management: EQR's management team is considered experienced (3.6 years average tenure).


Board Members

NamePositionTenureCompensationOwnership
Samuel Zell
Founder & Chairman27.42yrsUS$3.25m0.97%
$ 199.9m
Mark Parrell
President1.58yrsUS$6.59m0.0069%
$ 1.4m
Bradley Keywell
Independent Trustee9.33yrsUS$249.99k0.0074%
$ 1.5m
Stephen Sterrett
Lead Independent Director0.17yrUS$263.99k0.0053%
$ 1.1m
David Neithercut
14.58yrsUS$420.69k0.017%
$ 3.5m
Linda Bynoe
Independent Trustee10.67yrsUS$272.49k0.0087%
$ 1.8m
Mary Haben
Independent Trustee9.08yrsUS$277.49k0.0056%
$ 1.2m
John Neal
Independent Trustee14.08yrsUS$274.00k0.0083%
$ 1.7m
Connie Duckworth
Independent Trustee4.67yrsUS$257.49k0.0033%
$ 675.0k
Mark Shapiro
Independent Trustee10.58yrsUS$257.49k0.0054%
$ 1.1m
Raymond Bennett
Independent Trustee1.83yrsUS$249.99k0.0012%
$ 242.3k
Tahsinul Huque
Independent Trustee0.75yrUS$105.98k0.00031%
$ 64.2k

9.2yrs

Average Tenure

64yo

Average Age

Experienced Board: EQR's board of directors are considered experienced (9.2 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 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$20.706b
  • Market Cap: US$19.478b
  • Shares outstanding: 386.09m
  • 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
E1QR34BOVESPA (Bolsa de Valores de Sao Paulo)BDR EACH 2 REPR 1 COM USD0.01BRBRLJan 2020

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 Analysis2020/08/06 00:07
End of Day Share Price2020/08/05 00:00
Earnings2020/06/30
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.