Equity Residential (EQR) AI Stock Analysis

• Market Cap: $28.73B
• Dividend Yield: 3.68%
• Average Volume (3M): 1.65M
• Price to Earnings (P/E): 27.0
• Beta (1Y): 0.77
• Revenue Growth: 3.80%
• EPS Growth: 24.08%
• Country: US
• Employees: 2,500
• Sector: Real Estate
• Sector Strength: 72
• Industry: REITs
• EPS (TTM): 2.66
• Shares Outstanding: 379,705,230
• 10 Day Avg. Volume: 1,588,661
• 30 Day Avg. Volume: 1,645,167
• PEG Ratio: 1.12
• Price to Book (P/B): N/A
• Price to Sales (P/S): 9.36
• Price to Cash Flow (P/CF): 19.70
• P/FCF Ratio: 152.60
• Enterprise Value/Market Cap: N/A
• Enterprise Value/Revenue: N/A
• Enterprise Value/Gross Profit: N/A
• Enterprise Value/Ebitda: N/A
• 1Y Price Target: $78.05
• Price Target Upside: 8.54% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 18

Equity Residential receives a strong overall stock score, driven by its robust financial health, strategic expansion plans, and positive technical indicators. However, challenges such as declining revenue and market-specific issues temper the outlook. The stock's moderate valuation and healthy dividend yield offer additional investor appeal.

Positive Factors

Financial Performance

EQR's low leverage, strong liquidity, and well-laddered balance sheet leaves capacity to fund more aggressive capital deployment, including portfolio acquisitions.

Market Demand

Management sees a forward path with limited supply, undersupply of housing, and strong future growth for multifamily demand from growing Gen Z population and longer-term lifestyle trends.

Negative Factors

Debt Refinancing

Debt refinancing should partially offset strong SS NOI growth, and EQR was not convincing on why it should be growing in the Sunbelt.

Equity Residential Business Overview & Revenue Model

Company Description

Equity Residential (EQR) is a leading publicly traded real estate investment trust (REIT) specializing in the acquisition, development, and management of high-quality apartment properties in urban and high-density suburban markets across the United States. The company focuses on providing upscale living spaces, catering primarily to affluent, long-term renters and young professionals seeking modern, well-located housing solutions.

How the Company Makes Money

Equity Residential makes money primarily through the rental income generated from its extensive portfolio of residential properties. The company's revenue model is based on leasing apartments to tenants, who pay rent on a monthly basis. This rental income is the core revenue stream for EQR, and it is supplemented by ancillary income from services such as parking fees, pet fees, and other tenant-related charges. The company strategically invests in and manages properties in markets with strong demand and limited supply to ensure stable occupancy rates and the potential for rent growth. Additionally, EQR may engage in property sales and acquisitions to optimize its portfolio, generating capital gains from the sale of properties that have appreciated in value. Equity Residential's earnings are further supported by its ability to maintain high occupancy levels and implement rent increases in line with market conditions.

Equity Residential Financial Statement Overview

Summary

Equity Residential demonstrates a strong financial position with a debt-free balance sheet and robust cash flows, reducing financial risk. While operational margins are efficient, declining revenue and moderate net income margins pose challenges for future growth.

Income Statement

The Gross Profit Margin for TTM is approximately 42.31%, indicating healthy profitability. However, the Net Profit Margin is lower at 27.94%, showing some pressure on net income. Revenue has decreased from $2.87 billion in 2023 to $2.19 billion TTM, reflecting a negative growth trend. The EBIT Margin is 30.02%, and the EBITDA Margin is 61.56%, both indicating efficiency in operations, though overall revenue contraction is a concern.

Balance Sheet

Equity Residential has a strong Balance Sheet with zero debt in the TTM period, showcasing excellent financial stability. The Equity Ratio stands at 53.00%, reflecting a stable capital structure. Return on Equity (ROE) is 5.56%, indicating moderate returns to shareholders. The lack of debt reduces financial risk significantly.

Cash Flow

The Operating Cash Flow to Net Income Ratio is 1.98, indicating strong cash generation relative to net income. However, the Free Cash Flow has decreased slightly from $1.20 billion in 2023 to $977 million TTM, showing a reduction in cash available after capital expenditures. The Free Cash Flow to Net Income Ratio is 1.59, suggesting good cash conversion.

Breakdown
Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement		Total Revenue
2.98B	2.87B	2.74B	2.46B	2.57B
	Gross Profit
2.55B	1.83B	1.75B	1.52B	1.66B
	EBIT
2.49B	1.16B	791.52M	618.08M	765.67M
	EBITDA
2.33B	1.78B	1.71B	2.52B	2.13B
	Net Income Common Stockholders
1.04B	835.44M	776.91M	1.33B	913.64M
Balance Sheet		Cash, Cash Equivalents and Short-Term Investments
62.30M	50.74M	53.87M	123.83M	42.59M
	Total Assets
20.83B	20.03B	20.22B	21.17B	20.29B
	Total Debt
8.43B	7.70B	7.73B	8.65B	8.37B
	Net Debt
8.36B	7.65B	7.68B	8.53B	8.33B
	Total Liabilities
9.25B	8.46B	8.52B	9.48B	9.18B
	Stockholders Equity
11.04B	11.09B	11.17B	10.95B	10.53B
Cash Flow		Free Cash Flow
1.57B	1.20B	1.22B	1.09B	1.10B
	Operating Cash Flow
1.57B	1.53B	1.45B	1.26B	1.27B
	Investing Cash Flow
-1.18B	-409.50M	107.79M	-434.62M	663.59M
	Financing Cash Flow
0.00	-1.12B	-1.79B	-565.06M	-1.95B

Equity Residential Technical Analysis

• Technical Analysis Sentiment: Neutral
• Last Price: 71.91
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Negative
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For EQR, the sentiment is Neutral. The current price of 71.91 is below the 20-day moving average (MA) of 72.25, above the 50-day MA of 70.76, and above the 200-day MA of 70.56, indicating a neutral trend. The MACD of 0.77 indicates Negative momentum. The RSI at 49.29 is Neutral, neither overbought nor oversold. The STOCH value of 40.82 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Neutral sentiment for EQR.

Equity Residential Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
AVB	80 Outperform	$31.72B	29.36	9.10%	3.03%	4.85%	16.04%
EQR	78 Outperform	$28.73B	27.03	9.36%	3.68%	3.80%	24.08%
ESS	71 Outperform	$20.52B	26.71	13.53%	3.18%	6.29%	82.88%
UDR	71 Outperform	$15.03B	176.82	2.41%	3.75%	2.72%	-80.72%
CPT	69 Neutral	$13.16B	82.06	3.38%	3.31%	0.55%	-59.48%
Sector *	61 Neutral	$4.91B	18.99	-3.12%	7.77%	6.71%	-19.69%
MAA	61 Neutral	$20.17B	37.49	8.73%	3.48%	1.98%	-4.78%

Equity Residential Corporate Events

Equity Residential Announces Investor Day for 2025

On February 25, 2025, Equity Residential announced it will hold an Investor Day featuring presentations by its management team. The event will focus on the company’s portfolio optimization strategy, innovative operating platform, and strong balance sheet, highlighting positive trends in multifamily demand and supply in its markets. This initiative underscores Equity Residential’s strategic positioning for growth and its commitment to fostering thriving communities.

Equity Residential Expands Severance Plan and Paper Program

Equity Residential has implemented an Executive Severance Plan to offer standardized severance benefits for its management employees, excluding change in control situations. This plan is intended to aid in executive retention and recruitment, while providing the company with protections and minimizing potential costs from disputes. Additionally, ERP Operating Limited Partnership, the company’s operating partnership, has raised its commercial paper program limit from $1 billion to $1.5 billion, enhancing its capacity to issue unsecured notes in the U.S. market.