Equity Residential Fundamental Analysis (NYSE: EQR)
Equity Residential (NYSE: EQR) shows weak financial fundamentals with a PE ratio of 227.36, profit margin of -4.19%, and ROE of -0.88%. The company generates $2.3B in annual revenue with moderate year-over-year growth of 4.06%.
Key Strengths
Areas of Concern
The stock receives a Fundamental Health Score of 22.7/100 based on profitability, valuation, growth, and balance sheet metrics. The F grade reflects weak fundamentals and significant financial concerns.
Fundamental Health Score
We analyze EQR's fundamental strength across five key dimensions:
Efficiency Score
WeakEQR struggles to generate sufficient returns from assets.
Valuation Score
ModerateEQR shows balanced valuation metrics.
Growth Score
WeakEQR faces weak or negative growth trends.
Financial Health Score
ModerateEQR shows balanced financial health with some risks.
Profitability Score
WeakEQR struggles to sustain strong margins.
Key Financial Metrics
Is EQR Expensive or Cheap?
P/E Ratio
EQR trades at 227.36 times earnings. This suggests a premium valuation.
PEG Ratio
When adjusting for growth, EQR's PEG of -2.50 indicates potential undervaluation.
Price to Book
The market values Equity Residential at 1.04 times its book value. This may indicate undervaluation.
EV/EBITDA
Enterprise value stands at 10.65 times EBITDA. This signals the market has high growth expectations.
How Well Does EQR Make Money?
Net Profit Margin
For every $100 in sales, Equity Residential keeps $-4.19 as profit after all expenses.
Operating Margin
Core operations generate 35.73 in profit for every $100 in revenue, before interest and taxes.
ROE
Management delivers $-0.88 in profit for every $100 of shareholder equity.
ROA
Equity Residential generates $-0.27 in profit for every $100 in assets, demonstrating efficient asset deployment.
Following the Money - Real Cash Generation
Operating Cash Flow
Equity Residential generates strong operating cash flow of $915.14M, reflecting robust business health.
Free Cash Flow
Equity Residential generates strong free cash flow of $677.28M, providing ample flexibility for dividends, buybacks, or growth.
FCF Per Share
Each share generates $1.81 in free cash annually.
FCF Yield
EQR converts 4.43% of its market value into free cash.
Financial Ratios Analysis
Valuation Ratios
P/E Ratio
Price to earnings ratio
227.36
vs 25 benchmark
PEG Ratio
Price/earnings to growth ratio
-2.50
vs 25 benchmark
P/B Ratio
Price to book value ratio
1.04
vs 25 benchmark
P/S Ratio
Price to sales ratio
6.72
vs 25 benchmark
Financial Health
Debt/Equity
Total debt to shareholders' equity
0.00
vs 25 benchmark
Current Ratio
Current assets to current liabilities
0.00
vs 25 benchmark
Efficiency Ratios
ROE
Return on equity percentage
-0.01
vs 25 benchmark
ROA
Return on assets percentage
-0.00
vs 25 benchmark
ROCE
Return on capital employed
0.02
vs 25 benchmark
How EQR Stacks Against Its Sector Peers
| Metric | EQR Value | Sector Average | Performance |
|---|---|---|---|
| P/E Ratio | 227.36 | 25.31 | Worse (Expensive) |
| ROE | -0.88% | 699.00% | Weak |
| Net Margin | -4.19% | 2278.00% | Weak |
| Debt/Equity | 0.00 | -37.86 (disorted) | Distorted |
| Current Ratio | 0.00 | 91.23 | Weak Liquidity |
| ROA | -0.27% | 272.00% | Weak |
EQR outperforms its industry in 0 out of 6 key metrics, but lagging in P/E Ratio.
Historical Growth Performance
5-Year Growth Trajectory
This section reviews Equity Residential's 5-year compound annual growth rate (CAGR) and compares its performance against the typical investment style of its industry.
Revenue CAGR
18.25%
Industry Style: Income, Inflation Hedge, REIT
High GrowthEPS CAGR
20.23%
Industry Style: Income, Inflation Hedge, REIT
High GrowthFCF CAGR
27.76%
Industry Style: Income, Inflation Hedge, REIT
High Growth