Equity Residential (EQR) AI Stock Analysis

• Market Cap: $25.44B
• Dividend Yield: 4.14%
• Average Volume (3M): 1.78M
• Price to Earnings (P/E): 26.2
• Beta (1Y): 0.67
• Revenue Growth: 3.91%
• EPS Growth: 8.78%
• Country: US
• Employees: 2,500
• Sector: Real Estate
• Sector Strength: 56
• Industry: REIT - Residential
• EPS (TTM): 0.67
• Shares Outstanding: 379,943,660
• 10 Day Avg. Volume: 1,461,633
• 30 Day Avg. Volume: 1,776,831
• PEG Ratio: -7.74
• Price to Book (P/B): 2.28
• Price to Sales (P/S): 0.00
• P/FCF Ratio: 19.85
• Enterprise Value/Market Cap: 0.99
• Enterprise Value/Revenue: 2.12
• Enterprise Value/Gross Profit: 15.02
• Enterprise Value/Ebitda: 3.37
• 1Y Price Target: $76.27
• Price Target Upside: 13.36% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 16

• Rating: 74 Outperform
• Price Target: $77.00 ▲(14.45%Upside)

Equity Residential's strong financial stability, driven by a debt-free balance sheet and robust cash flows, is a key strength. The positive earnings call, highlighting strong occupancy and revenue growth, supports a favorable outlook despite some regional challenges and economic uncertainties. Technical indicators suggest a neutral stance, and the valuation is moderately attractive.

Positive Factors

Acquisitions

EQR has agreed to purchase 8 apartment complexes in Atlanta, GA, which represents a strategic expansion of its property portfolio.

Financial Strategy

EQR issued $500M in 7-year unsecured notes, demonstrating the company's ability to secure financing for future growth.

Market Performance

Blended rate growth has been strongest in key markets like San Francisco and New York, showcasing robust market performance for EQR.

Negative Factors

Debt Refinancing

Near-term FFOps growth expected to be dragged by -150bps due to intermediate-term maturities refinanced at higher expected rates.

Guidance

Maintained guidance is below Street expectations, suggesting that simply meeting guidance may not be sufficient this year.

Market Challenges

Expansion markets and Denver experienced a decline in blended rates during the first quarter.

Equity Residential Business Overview & Revenue Model

Company Description

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 residential properties located in and around dynamic cities that attract high quality long-term renters. Equity Residential owns or has investments in 305 properties consisting of 78,568 apartment units, located in Boston, New York, Washington, D.C., Seattle, San Francisco, Southern California and Denver.

How the Company Makes Money

Equity Residential makes money primarily through the leasing of apartment units within its extensive portfolio of residential properties. The company generates revenue from rental income collected from tenants who reside in its properties. This revenue is supplemented by ancillary income streams such as parking fees, pet fees, and other service-related charges. Equity Residential also benefits from strategic acquisitions and development projects that enhance its property portfolio and increase its rental income potential. The company's performance is influenced by factors such as occupancy rates, rental prices, and market demand for residential housing in its operational areas. Additionally, Equity Residential forms partnerships with local developers and property managers to optimize operations and maximize returns on its investments.

Equity Residential Financial Statement Overview

Summary

Equity Residential demonstrates strong financial stability with a debt-free balance sheet and robust cash flows. Operational margins are healthy, but declining revenue and moderate net income margins present concerns 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	1.89B	1.83B	1.75B	1.52B	1.66B
EBITDA	1.84B	1.78B	1.71B	1.46B	1.61B
Net Income	1.04B	835.44M	776.91M	1.33B	913.64M
Balance Sheet
Total Assets	20.83B	20.03B	20.22B	21.17B	20.29B
Cash, Cash Equivalents and Short-Term Investments	62.30M	50.74M	53.87M	123.83M	42.59M
Total Debt	8.43B	7.70B	7.73B	8.65B	8.37B
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: Neutral
• Last Price: 67.28
• 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 Neutral. The current price of 67.28 is above the 20-day moving average (MA) of 67.11, below the 50-day MA of 68.19, and below the 200-day MA of 69.44, indicating a neutral trend. The MACD of -0.37 indicates Negative momentum. The RSI at 49.40 is Neutral, neither overbought nor oversold. The STOCH value of 47.22 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	78 Outperform	$28.74B	25.17	9.67%	3.47%	5.61%	19.66%
EQR	74 Outperform	$25.44B	26.25	9.01%	4.14%	3.91%	8.78%
INVH	73 Outperform	$19.74B	93.89	4.92%	3.60%	6.11%	-37.43%
UDR	70 Neutral	$13.47B	113.71	3.40%	4.23%	2.35%	-73.89%
ESS	68 Neutral	$19.07B	27.47	12.09%	3.59%	7.61%	27.83%
Sector *	63 Neutral	$6.98B	18.44	-1.93%	6.77%	4.67%	-25.44%
MAA	57 Neutral	$18.06B	31.36	9.37%	4.03%	1.55%	0.73%

Equity Residential Corporate Events

Equity Residential Elects Trustees at Annual Meeting

On June 26, 2025, Equity Residential held its Annual Meeting of Shareholders where all ten nominees for Trustees were elected for a one-year term. Additionally, the shareholders ratified the selection of Ernst & Young LLP as the independent registered public accounting firm for 2025 and approved the executive compensation on an advisory basis.

The most recent analyst rating on (EQR) stock is a Hold with a $80.00 price target. To see the full list of analyst forecasts on Equity Residential stock, see the EQR Stock Forecast page.

Equity Residential Announces Leadership Transition

On June 30, 2025, Equity Residential announced a leadership transition with Alexander Brackenridge stepping down as Chief Investment Officer on August 7, 2025, and retiring at the end of the year. He will be succeeded by Robert A. Garechana, the current Chief Financial Officer, while Bret D. McLeod will join as the new Chief Financial Officer. These changes are part of the company’s strategic succession planning, aiming to continue advancing its capital allocation strategy and transformational initiatives.

The most recent analyst rating on (EQR) stock is a Hold with a $80.00 price target. To see the full list of analyst forecasts on Equity Residential stock, see the EQR Stock Forecast page.

Equity Residential to Present at Nareit REITweek 2025

On May 28, 2025, Equity Residential announced its participation in the Nareit REITweek 2025 Investor Conference, with senior management, including CEO Mark J. Parrell, presenting at a roundtable on June 3. The company has also released an updated investor presentation with operating and transaction updates, available on their website.

The most recent analyst rating on (EQR) stock is a Hold with a $68.00 price target. To see the full list of analyst forecasts on Equity Residential stock, see the EQR Stock Forecast page.

Equity Residential Extends ATM Program for Flexibility

On May 15, 2025, Equity Residential announced a continuation of its existing ATM Program, allowing for the sale of up to 13,000,000 common shares through a Distribution Agreement with several financial institutions. This strategic move is part of the company’s efforts to enhance its financial flexibility and operational capacity by leveraging forward sale agreements, although it will not initially receive proceeds from these transactions. The company also filed an automatic shelf registration statement to replace the one expiring on May 17, 2025, maintaining its ability to issue securities and manage its share repurchase program.

The most recent analyst rating on (EQR) stock is a Hold with a $68.00 price target. To see the full list of analyst forecasts on Equity Residential stock, see the EQR Stock Forecast page.