Equity Residential (EQR) AI Stock Analysis

• Market Cap: $24.09B
• Dividend Yield: 4.36%
• Average Volume (3M): 2.17M
• Price to Earnings (P/E): 24.0
• Beta (1Y): 0.70
• Revenue Growth: 4.74%
• EPS Growth: 5.87%
• Country: US
• Employees: 2,500
• Sector: Real Estate
• Sector Strength: 53
• Industry: REIT - Residential
• EPS (TTM): 0.50
• Shares Outstanding: 379,943,660
• 10 Day Avg. Volume: 2,622,436
• 30 Day Avg. Volume: 2,167,660
• 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: 11.69
• Enterprise Value/Gross Profit: 21.20
• Enterprise Value/Ebitda: 17.73
• 1Y Price Target: $76.92
• Price Target Upside: 22.74% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 15

• Rating: 78 Outperform
• Price Target: $67.00 ▲(6.91% Upside)

Equity Residential's overall score reflects its strong financial stability with a debt-free balance sheet and robust cash flows, despite facing bearish technical signals and a high P/E ratio. The dividend yield adds some support, but declining revenue trends and potential economic challenges pose risks.

Positive Factors

Financial Performance

A strong 1.3% normalized FFO guidance raise is considered the best among peers.

Market Expansion

EQR has agreed to purchase 8 apartment complexes in Atlanta, GA containing 2,064 units for $535M, representing a high-4% in-place cap rate and a low-5% expected cap rate upon realization of EQR operating platform benefits.

Revenue Growth

The same-store revenue guidance has been raised due to higher expected occupancy, which is likely the primary driver of the increase.

Negative Factors

Demand Weakness

Equity Residential experienced weak demand in Southern California, with new lease rates down -3.2%.

Lease Growth

The market may view the -0.1% new lease growth in the quarter as modestly disappointing.

Market Expectations

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

Equity Residential Business Overview & Revenue Model

Company Description

Equity Residential (EQR) is a leading real estate investment trust (REIT) focused on the acquisition, development, and management of high-quality apartment properties in urban and high-density suburban locations. The company operates primarily in major cities across the United States, offering rental housing solutions to a diverse range of residents. Equity Residential's portfolio includes a wide array of residential properties designed to meet the needs of modern living, emphasizing quality, sustainability, and community engagement.

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 maintains a robust financial position with strong cash flows and a debt-free balance sheet, enhancing financial stability. Operational margins are healthy, but a declining revenue trend and moderate net income margins present potential growth challenges.

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	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	3.04B	2.98B	2.87B	2.74B	2.46B	2.57B
Gross Profit	1.68B	1.89B	1.83B	1.75B	1.52B	1.66B
EBITDA	2.01B	1.84B	1.78B	1.71B	1.46B	1.61B
Net Income	1.01B	1.04B	835.44M	776.91M	1.33B	913.64M
Balance Sheet
Total Assets	21.03B	20.83B	20.03B	20.22B	21.17B	20.29B
Cash, Cash Equivalents and Short-Term Investments	31.28M	62.30M	50.74M	53.87M	123.83M	42.59M
Total Debt	8.67B	8.43B	7.70B	7.73B	8.65B	8.37B
Total Liabilities	9.50B	9.25B	8.46B	8.52B	9.48B	9.18B
Stockholders Equity	11.01B	11.04B	11.09B	11.17B	10.95B	10.53B
Cash Flow
Free Cash Flow	956.79M	1.25B	1.20B	1.22B	1.09B	1.10B
Operating Cash Flow	1.18B	1.57B	1.53B	1.45B	1.26B	1.27B
Investing Cash Flow	-872.59M	-1.18B	-409.50M	107.79M	-434.62M	663.59M
Financing Cash Flow	-101.26M	-376.95M	-1.12B	-1.79B	-565.06M	-1.95B

Equity Residential Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 62.67
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Negative
• MACD: Positive
• RSI: Neutral
• STOCH: Positive

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 62.67 is below the 20-day moving average (MA) of 66.25, below the 50-day MA of 67.27, and below the 200-day MA of 69.09, indicating a bearish trend. The MACD of -1.06 indicates Positive momentum. The RSI at 36.02 is Neutral, neither overbought nor oversold. The STOCH value of 18.15 is Positive, 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
EQR	78 Outperform	$24.09B	24.02	9.20%	4.36%	4.74%	5.87%
AVB	70 Outperform	$26.52B	22.92	9.67%	3.70%	6.87%	37.67%
UDR	70 Neutral	$12.77B	99.03	3.74%	4.44%	2.29%	-4.89%
MAA	69 Neutral	$17.02B	29.21	9.58%	4.30%	1.19%	10.52%
ESS	68 Neutral	$17.16B	20.69	14.40%	3.91%	7.56%	54.15%
INVH	66 Neutral	$18.67B	67.90	5.65%	3.78%	4.41%	-0.16%
Sector *	53 Neutral	$1.19B	3.49	-2.19%	6.01%	-2.24%	-167.40%

Equity Residential Corporate Events

Equity Residential Appoints Chris Carr as Trustee

On July 24, 2025, Equity Residential announced the appointment of Chris Carr as a Trustee, expanding the Board of Trustees from 10 to 11 members. Carr, who is independent under NYSE standards, will serve on the Audit and Corporate Governance Committees. His appointment aligns with the company’s strategy to refresh its board with new perspectives while maintaining experienced oversight, having added five new trustees in the past six years.

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 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.