Equity Residential (EQR) AI Stock Analysis

• Market Cap: $22.47B
• Dividend Yield: 4.65%
• Average Volume (3M): 2.65M
• Price to Earnings (P/E): 19.7
• Beta (1Y): 0.65
• 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: 2,184,889
• 30 Day Avg. Volume: 2,648,567
• 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: 1.53
• Enterprise Value/Revenue: 11.16
• Enterprise Value/Gross Profit: 17.71
• Enterprise Value/Ebitda: 16.46
• 1Y Price Target: $72.88
• Price Target Upside: 23.15% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 15
• EPS Forecast (FY): 2.2
• Revenue Forecast (FY): $3.10B

• Rating: 70 Outperform
• Price Target: $65.00 ▲(9.83% 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 units within its portfolio of apartment communities. The company earns rental income from tenants who occupy its properties, which constitutes the bulk of its revenue. Additionally, EQR may generate ancillary income through fees associated with parking, pet services, and other tenant amenities. The company's revenue model is bolstered by its focus on high-demand markets, which typically experience greater rental demand and the ability to implement rent increases. Furthermore, strategic partnerships with property management firms and local businesses may enhance its operational efficiency and tenant offerings, thereby contributing to its overall earnings.

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: 59.18
• 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 59.18 is below the 20-day moving average (MA) of 60.36, below the 50-day MA of 62.27, and below the 200-day MA of 65.82, indicating a bearish trend. The MACD of -0.89 indicates Negative momentum. The RSI at 40.61 is Neutral, neither overbought nor oversold. The STOCH value of 31.23 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	73 Outperform	$25.13B	21.67	9.79%	3.92%	7.06%	12.05%
ESS	72 Outperform	$16.82B	19.18	15.30%	4.01%	6.92%	53.76%
EQR	70 Outperform	$22.47B	19.66	10.55%	4.65%	4.78%	24.74%
MAA	66 Neutral	$15.65B	27.61	9.41%	4.67%	0.91%	6.55%
Sector *	65 Neutral	$2.17B	12.19	3.79%	4.94%	3.15%	1.96%
UDR	64 Neutral	$18.32B	79.06	4.41%	4.98%	2.38%	17.42%
CPT	60 Neutral	$14.41B	41.31	5.79%	4.10%	1.41%	-21.93%

Equity Residential Corporate Events

Equity Residential’s Mixed Earnings Call: Key Insights

Equity Residential’s recent earnings call presented a mixed sentiment. While the company showcased strong performances in key markets like San Francisco and New York, and highlighted technological advancements in operations, challenges persist in other markets due to high supply and macroeconomic uncertainties. Demand softness in Washington D.C. and reduced revenue guidance further balanced out the positive aspects.

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.

The most recent analyst rating on (EQR) stock is a Buy with a $71.00 price target. To see the full list of analyst forecasts on Equity Residential stock, see the EQR Stock Forecast page.

Equity Residential Updates on Revenue and Occupancy Trends

On September 2, 2025, Equity Residential provided an update on its same store operating trends, indicating that revenue growth remains within the company’s guidance range. The company is concluding its primary leasing season with high physical occupancy and strong retention, expecting same store revenue growth of 2.6% to 3.2% and physical occupancy of 96.4% for the full year of 2025. Additionally, the company reaffirmed its third quarter 2025 blended rate growth guidance of 2.2% to 2.8%.

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