Equity Residential (EQR) AI Stock Analysis

• Market Cap: $23.23B
• Dividend Yield: 4.54%
• Average Volume (3M): 2.48M
• Price to Earnings (P/E): 20.3
• Beta (1Y): 0.63
• Revenue Growth: 4.78%
• EPS Growth: 24.74%
• Country: US
• Employees: 2,500
• Sector: Real Estate
• Sector Strength: 53
• Industry: REIT - Residential
• EPS (TTM): 0.76
• Shares Outstanding: 380,474,730
• 10 Day Avg. Volume: 1,946,870
• 30 Day Avg. Volume: 2,475,209
• PEG Ratio: 1.09
• Price to Book (P/B): 2.46
• Price to Sales (P/S): 9.12
• P/FCF Ratio: 21.66
• Enterprise Value/Market Cap: 1.48
• Enterprise Value/Revenue: 11.16
• Enterprise Value/Gross Profit: 17.71
• Enterprise Value/Ebitda: 16.46
• 1Y Price Target: $72.15
• Price Target Upside: 19.06% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 16
• EPS Forecast (FY): N/A
• Revenue Forecast (FY): N/A

• Rating: 70 Outperform
• Price Target: $65.00 ▲(7.26% Upside)

Equity Residential's strong financial performance and reasonable valuation are offset by technical weakness and mixed earnings call results. The stock's bearish technical indicators and reduced revenue guidance weigh on the overall score.

Positive Factors

Resident Retention

High resident retention and occupancy rates indicate strong demand and customer satisfaction, supporting stable revenue streams and reducing turnover costs.

AI-Driven Innovations

AI-driven innovations enhance operational efficiency and improve tenant experience, potentially reducing costs and increasing competitive advantage.

Market Performance

Strong performance in key markets with limited supply supports revenue growth and pricing power, bolstering long-term profitability.

Negative Factors

Demand Weakness in Washington D.C.

Demand weakness in Washington D.C. due to macroeconomic factors could lead to lower occupancy and revenue, affecting overall market stability.

Challenges in Expansion Markets

Increased supply in expansion markets pressures pricing and occupancy rates, potentially hindering revenue growth and market expansion efforts.

Reduced Revenue Guidance

Lowered revenue guidance reflects potential challenges in meeting growth targets, impacting investor confidence and future financial performance.

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 generates revenue primarily through the leasing of residential apartments to tenants. The company earns rental income from its vast portfolio of properties, which includes both market-rate and affordable housing units. Additionally, EQR may benefit from ancillary income sources such as application fees, late fees, and revenue generated from services and amenities offered to residents. The company's performance is influenced by factors such as occupancy rates, rental pricing, and overall demand for residential housing in its targeted markets. Strategic partnerships with property management firms and local businesses can also enhance operational efficiencies and tenant services, contributing to the company's revenue growth.

Equity Residential Financial Statement Overview

Summary

Equity Residential demonstrates strong financial health with robust revenue and profit growth, efficient cash flow management, and a stable balance sheet. However, rising debt levels and cost management issues need attention.

Income Statement

Equity Residential shows strong revenue growth with a TTM (Trailing-Twelve-Months) increase of 11.9%, indicating a positive trajectory. The gross profit margin remains robust at 63%, and the net profit margin has improved to 37.6%, reflecting enhanced profitability. However, the EBIT margin has slightly decreased over the years, suggesting potential cost management issues.

Balance Sheet

The company maintains a healthy debt-to-equity ratio of 0.79, indicating moderate leverage. The return on equity is stable at 10.5%, showing effective use of equity to generate profits. The equity ratio stands at 53.8%, reflecting a solid equity base. However, the increasing debt levels could pose a risk if not managed carefully.

Cash Flow

Operating cash flow has grown consistently, with a strong coverage ratio of 2.88, indicating good cash generation relative to net income. Free cash flow growth is impressive at 25.1%, and the free cash flow to net income ratio is high at 95.3%, suggesting efficient cash flow management. However, the reliance on free cash flow for net income could be a concern if cash flows fluctuate.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	3.08B	2.98B	2.87B	2.74B	2.46B	2.57B
Gross Profit	1.94B	1.89B	1.83B	1.75B	1.52B	1.66B
EBITDA	2.09B	1.84B	1.78B	1.71B	1.46B	1.61B
Net Income	1.16B	1.04B	835.44M	776.91M	1.33B	913.64M
Balance Sheet
Total Assets	21.07B	20.83B	20.03B	20.22B	21.17B	20.29B
Cash, Cash Equivalents and Short-Term Investments	93.09M	62.30M	50.74M	53.87M	123.83M	42.59M
Total Debt	8.74B	8.43B	7.70B	7.73B	8.65B	8.37B
Total Liabilities	9.60B	9.25B	8.46B	8.52B	9.48B	9.18B
Stockholders Equity	11.08B	11.04B	11.09B	11.17B	10.95B	10.53B
Cash Flow
Free Cash Flow	1.29B	1.25B	1.20B	1.22B	1.09B	1.10B
Operating Cash Flow	1.62B	1.57B	1.53B	1.45B	1.26B	1.27B
Investing Cash Flow	-435.97M	-1.18B	-409.50M	107.79M	-434.62M	663.59M
Financing Cash Flow	-1.11B	-376.95M	-1.12B	-1.79B	-565.06M	-1.95B

Equity Residential Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 60.60
• 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 60.6 is above the 20-day moving average (MA) of 60.44, below the 50-day MA of 61.30, and below the 200-day MA of 65.29, indicating a neutral trend. The MACD of 0.12 indicates Negative momentum. The RSI at 47.47 is Neutral, neither overbought nor oversold. The STOCH value of 47.45 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	74 Outperform	$25.21B	21.73	9.79%	3.91%	7.06%	12.05%
CPT	73 Outperform	$14.66B	42.01	5.79%	3.96%	1.41%	-21.93%
MAA	71 Outperform	$15.82B	27.90	9.41%	4.63%	0.91%	6.55%
EQR	70 Outperform	$23.23B	20.33	10.55%	4.54%	4.78%	24.74%
ESS	69 Neutral	$17.02B	19.42	15.30%	3.98%	6.92%	53.76%
Sector *	65 Neutral	$2.17B	12.19	3.79%	4.94%	3.15%	1.96%
UDR	64 Neutral	$18.67B	80.55	4.41%	4.92%	2.38%	17.42%

Equity Residential Corporate Events

Equity Residential Secures New $2.5 Billion Credit Agreement

On December 3, 2025, Equity Residential‘s ERP Operating Limited Partnership entered into a new $2.5 billion unsecured revolving credit agreement with Bank of America, replacing its existing facility set to mature in 2027. This new agreement, maturing in 2030, allows for potential borrowing increases and features interest rates tied to SOFR, with fees dependent on the credit rating of the partnership’s long-term debt, potentially impacting its financial flexibility and market positioning.

Equity Residential Shares Investor Presentation Materials

On December 1, 2025, Equity Residential announced that it has posted presentation materials on its website for upcoming investor meetings in December 2025. This move indicates the company’s efforts to engage with investors and provide transparency about its operations, potentially impacting its market perception and stakeholder relations.

Equity Residential CEO to Speak at Real Estate Conference

On September 8, 2025, Equity Residential announced that its President and CEO, Mark J. Parrell, will participate in a roundtable discussion at the Bank of America 2025 Global Real Estate Conference on September 10, 2025. This participation highlights the company’s active engagement in industry events, which may influence its market positioning and stakeholder relations.