NYSE:EQR

Stock Analysis Report

Executive Summary

Equity Residential is an S&P 500 company focused on the acquisition, development and management of rental apartment properties located in urban and high-density suburban markets where today’s renters want to live, work and play.

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


Market Performance


7 Day Return

1.4%

NYSE:EQR

-0.5%

US REITs

-1.6%

US Market


1 Year Return

22.7%

NYSE:EQR

8.6%

US REITs

-3.0%

US Market

EQR outperformed the REITs industry which returned 8.5% over the past year.

EQR outperformed the Market in United States of America which returned -3% over the past year.


Share holder returns

EQRIndustryMarket
7 Day1.4%-0.5%-1.6%
30 Day6.0%2.6%-5.7%
90 Day7.2%2.2%0.2%
1 Year26.6%22.7%13.5%8.6%-0.8%-3.0%
3 Year47.8%28.2%24.8%8.5%38.1%29.1%
5 Year70.5%24.5%57.4%24.0%50.8%34.1%

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

41.13x

Price to Earnings (PE) ratio


Intrinsic Value Based on Future Cash Flows

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

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


Price Based on Earnings

Equity Residential is overvalued based on earnings compared to the US REITs industry average.

Equity Residential is overvalued based on earnings compared to the United States of America market.


Price Based on Expected Growth

Equity Residential 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 Residential is overvalued based on assets compared to the US REITs industry average.


Next Steps

Future Growth

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

-4.8%

Forecasted annual earnings growth


Earnings and Revenue Growth Estimates


Future Annual Growth Analysis

Equity Residential's revenue is expected to grow by 2.8% yearly, however this is not considered high growth (20% yearly).

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

Equity Residential's revenue growth is positive but not above the United States of America market average.

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

Equity Residential'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

Equity Residential is not expected to efficiently use shareholders’ funds in the future (Return on Equity less than 20%).


Next Steps

Past Performance

How has Equity Residential performed over the past 5 years?

-7.2%

Historical annual earnings growth


Earnings and Revenue History


Past Earnings Growth Analysis

Equity Residential's year on year earnings growth rate was negative over the past 5 years and the most recent earnings are below average.

Equity Residential's 1-year earnings growth exceeds its 5-year average (26.7% vs -7.2%)

Equity Residential's earnings growth has exceeded the US REITs industry average in the past year (26.7% vs 16.9%).


Return on Equity

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


Return on Assets

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


Return on Capital Employed

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


Next Steps

Financial Health

How is Equity Residential's financial position?


Financial Position Analysis

Equity Residential's short term (1 year) commitments are greater than its holdings of cash and other short term assets.

Equity Residential's long term commitments exceed its cash and other short term assets.


Debt to Equity History and Analysis

Equity Residential's level of debt (84.4%) compared to net worth is high (greater than 40%).

The level of debt compared to net worth has been reduced over the past 5 years (100.1% vs 84.4% today).

Debt is not well covered by operating cash flow (14.9%, less than 20% of total debt).

Interest payments on debt are not well covered by earnings (EBIT is 2.2x annual interest expense, ideally 3x coverage).


Balance Sheet

High level of physical assets or inventory.

Debt is not covered by short term assets, assets are 0x debt.


Next Steps

Dividend

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

2.84%

Expected Dividend Yield


Dividend Yield and Payments Analysis

Equity Residential's pays a higher dividend yield than the bottom 25% of dividend payers in United States of America (1.52%).

Equity Residential's dividend is below the markets top 25% of dividend payers in United States of America (3.93%).

Dividends per share have been volatile in the past 10 years (annual drop of over 20%).

Dividends per share have increased over the past 10 years.


Current Payout to Shareholders

Dividends paid are covered by earnings (1.5x coverage).


Future Payout to Shareholders

Dividends after 3 years are expected to be thoroughly covered by earnings (581.4x coverage).


Next Steps

Management

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

1.6yrs

Average management tenure


CEO

Mark Parrell (52yo)

0.6yrs

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

Mark's remuneration is lower than average for companies of similar size in United States of America.

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


Management Age and Tenure

1.6yrs

Average Tenure

52yo

Average Age

The average tenure for the Equity Residential management team is less than 2 years, this suggests a new team.


Board Age and Tenure

9.6yrs

Average Tenure

63yo

Average Age

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


Insider Trading

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


Recent Insider Transactions

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
SellUS$840,59509 Nov 18
David Santee
EntityIndividual
Shares12,499
Max PriceUS$67.25
SellUS$343,83112 Sep 18
Ian Kaufman
EntityIndividual
Role
Chief Accounting Officer
Senior VP & Chief Accounting Officer
Shares5,075
Max PriceUS$67.75
SellUS$45,50112 Sep 18
Michael Manelis
EntityIndividual
Role
Chief Operating Officer
COO & Executive VP
Shares670
Max PriceUS$67.91

Ownership Breakdown


Management Team

  • Alan George (61yo)

    Executive VP & Chief Investment Officer

    • Tenure: 17.6yrs
    • Compensation: US$3.80m
  • Sam Zell (77yo)

    Founder & Chairman

    • Tenure: 26.4yrs
    • Compensation: US$3.25m
  • Ian Kaufman (51yo)

    Senior VP & Chief Accounting Officer

    • Tenure: 12.8yrs
  • John Lennox (65yo)

    Senior Vice President of Financial Planning & Analysis

    • Tenure: 0.0yrs
  • Mark Parrell (52yo)

    President

    • Tenure: 0.6yrs
    • Compensation: US$4.05m
  • Catherine Carraway

    Senior Vice President of Human Resources

    • Tenure: 0.0yrs
  • Christa Sorenson (58yo)

    Executive VP of Human Resources

    • Tenure: 3.7yrs
  • Michael Manelis (50yo)

    COO & Executive VP

    • Tenure: 1.1yrs
    • Compensation: US$1.65m
  • Scott Fenster (43yo)

    Executive VP

    • Tenure: 1.6yrs
  • Robert Garechana (40yo)

    Executive VP & CFO

    • Tenure: 0.9yrs
    • Compensation: US$1.17m

Board Members

  • Brad Keywell (49yo)

    Independent Trustee

    • Tenure: 8.3yrs
    • Compensation: US$247.67k
  • Steve Sterrett (63yo)

    Independent Trustee

    • Tenure: 4.6yrs
    • Compensation: US$253.11k
  • David Neithercut (63yo)

    • Tenure: 13.6yrs
    • Compensation: US$11.00m
  • Linda Bynoe (67yo)

    Independent Trustee

    • Tenure: 9.7yrs
    • Compensation: US$270.17k
  • Chuck Atwood (70yo)

    Lead Trustee

    • Tenure: 10.4yrs
    • Compensation: US$289.17k
  • Mary Haben (63yo)

    Independent Trustee

    • Tenure: 8.1yrs
    • Compensation: US$275.17k
  • Sam Zell (77yo)

    Founder & Chairman

    • Tenure: 26.4yrs
    • Compensation: US$3.25m
  • Jack Neal (69yo)

    Independent Trustee

    • Tenure: 13.1yrs
    • Compensation: US$271.72k
  • Mark Shapiro (49yo)

    Independent Trustee

    • Tenure: 9.6yrs
    • Compensation: US$255.16k
  • Mark Parrell (52yo)

    President

    • Tenure: 0.6yrs
    • 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$31.835b
  • Market Cap: US$30.688b
  • Shares outstanding: 384.71m
  • 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

Biography

Equity Residential is an S&P 500 company focused on the acquisition, development and management of rental apartment properties located in urban and high-density suburban markets where today’s renters want  ...


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2019/08/24 23:36
End of Day Share Price2019/08/23 00:00
Earnings2019/06/30
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.