Equity Residential (EQR) AI Stock Analysis

• Market Cap: $24.96B
• Dividend Yield: 4.26%
• Average Volume (3M): 1.74M
• Price to Earnings (P/E): 23.5
• Beta (1Y): 0.82
• Revenue Growth: 3.80%
• EPS Growth: 24.08%
• Country: US
• Employees: 2,500
• Sector: Real Estate
• Sector Strength: 74
• Industry: REIT - Residential
• EPS (TTM): 2.66
• Shares Outstanding: 379,705,230
• 10 Day Avg. Volume: 1,594,976
• 30 Day Avg. Volume: 1,736,437
• PEG Ratio: 0.98
• Price to Book (P/B): N/A
• Price to Sales (P/S): 8.89
• Price to Cash Flow (P/CF): 18.70
• P/FCF Ratio: 145.00
• 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: $78.27
• Price Target Upside: 25.19% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 18

Equity Residential is a stable investment with a strong balance sheet and good cash flow, providing a solid foundation. However, declining revenue and moderate growth prospects weigh on the score. Technical indicators suggest neutral momentum, and while the valuation is fair, it does not present a compelling discount. Positive sentiment from recent earnings calls and strategic initiatives support a cautiously optimistic outlook.

Positive Factors

Earnings Potential

EQR believes it can generate 4-5% average intermediate-term 'normalized' FFO/sh growth with 'above-trend' ssNOI.

Market Position

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

Operational Efficiency

EQR outlined expectations for $100M+ of NOI savings from technology initiatives and drive margins to ~72%.

Negative Factors

Competitive Positioning

EQR has been a bit behind peers like AVB and UDR, which have outlined specific initiatives, as well as spend and return expectations for technology spend and ancillary revenue initiatives.

Debt Refinancing

Near-term FFOps growth expected to be +4-5% as it will be dragged -150bps from intermediate-term maturities refinanced at higher expected rates.

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 maintains a strong financial position with a debt-free balance sheet and robust cash flows, reducing financial risk. However, challenges include declining revenue and moderate net income margins.

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
1.25B	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
-376.95M	-1.12B	-1.79B	-565.06M	-1.95B

Equity Residential Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 62.52
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Negative
• 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 Negative. The current price of 62.52 is below the 20-day moving average (MA) of 69.09, below the 50-day MA of 70.20, and below the 200-day MA of 70.53, indicating a bearish trend. The MACD of 0.10 indicates Negative momentum. The RSI at 55.45 is Neutral, neither overbought nor oversold. The STOCH value of 61.65 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for EQR.

Equity Residential Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
AVB	75 Outperform	$27.29B	25.24	9.10%	3.57%	4.85%	16.04%
INVH	72 Outperform	$19.94B	95.71	4.67%	3.50%	8.16%	-37.84%
ESS	71 Outperform	$18.05B	23.48	13.53%	3.66%	6.29%	82.88%
UDR	71 Outperform	$13.39B	157.54	2.41%	4.20%	2.72%	-80.72%
EQR	69 Neutral	$24.96B	23.48	9.36%	4.26%	3.80%	24.08%
Sector *	61 Neutral	$4.43B	16.22	-3.23%	11.37%	6.25%	-21.19%
MAA	61 Neutral	$18.37B	34.13	8.73%	3.87%	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.