Equity Residential (EQR)
Real Estate · $51.7B market cap · SEC CIK 0000906107
fundamentals score out of 100
No earnings date is scheduled in the next few months.
The case for EQR
- Generated $1.6B of free cash flow in FY2025, 61% of revenue.
- 28% of revenue drops through to net profit.
- Pays a 4.3% dividend while you wait.
- Gross margin of 62% absorbs cost shocks.
- Moves less than the market (beta 0.14).
The case against
- Very expensive at 59.1× earnings. Years of growth are already in the price.
- Priced at 16.5× sales, which leaves no room for a stumble.
- Earnings per share fell 12.8%.
- Current liabilities exceed current assets (ratio 0.02).
- Dividend takes 120% of earnings, leaving little cushion.
- Long-term debt of $8.2B against $55.9M of cash.
What the score is made of
Each factor is half a curve over reported figures and half a rank among the other Real Estate companies (momentum is judged against fixed thresholds only), and the five are blended by weight. It describes the last filing and the current price. It is not a forecast.
| Valuewhat you pay for the earnings, sales, assets and cash | 28 |
|---|---|
| Growthhow fast revenue and earnings are moving, this year and over five | 25 |
| Profitabilityhow much of the revenue becomes profit, and how much of that is cash | 64 |
| Momentumhow the price has behaved lately | 46 |
| Stabilityhow violently it moves, what it owes and what it pays you | 80 |
- Each factor except momentum is half fixed thresholds, half rank among the 31 Real Estate companies.
Key numbers
| Price / earnings | 59.1× |
|---|---|
| Price / book | 2.42× |
| Price / sales | 16.5× |
| Revenue growth (YoY) | +2.8% |
| EPS growth (YoY) | -12.8% |
| Gross margin | 62% |
| Operating margin | 41% |
| Net margin | 28% |
| Return on equity | 8% |
| Debt / equity | 0.79× |
| Current ratio | 0.02 |
| Dividend yield | 4.26% |
| Beta | 0.14 |
| 52-week range | $52.58 – $69.45 |
| Position in that range | 76% of the way up |
| 3-month return | -11.6% |
| 1-year return | -9.1% |
Five years of financials, as filed
Pulled from Equity Residential's XBRL filings on SEC EDGAR. Italic rows are derived from the rows above.
| FY2025 | FY2024 | FY2023 | FY2022 | FY2021 | |
|---|---|---|---|---|---|
| Operating income | — | — | $1.2B | $1.1B | $1.7B |
| Net income | $1.1B | $1.0B | $835M | $777M | $1.3B |
| Operating cash flow | $1.6B | $1.6B | $1.5B | $1.5B | $1.3B |
| Total assets | $20.7B | $20.8B | $20.0B | $20.2B | $21.2B |
| Total liabilities | $9.3B | $9.2B | $8.5B | $8.5B | $9.5B |
| Shareholder equity | $11.0B | $11.0B | $11.1B | $11.2B | $11.0B |
| Cash | $55.9M | $62.3M | $50.7M | $53.9M | $124M |
| Long-term debt | $8.2B | $8.2B | $7.5B | $7.5B | $8.4B |
| Operating margin | — | — | — | — | — |
| Net margin | — | — | — | — | — |
| Diluted shares | 390M | 391M | 391M | 389M | 388M |
Share count is essentially flat over 4 years.
What Equity Residential says it does
Equity Residential ("EQR") is committed to creating communities where people thrive. The Company, a member of the S&P 500, owns and manages rental properties in dynamic metro areas across the U.S. ERP Operating Limited Partnership ("ERPOP") is focused on conducting the multifamily property business of EQR. EQR is a Maryland real estate investment trust ("REIT") formed in March 1993 and ERPOP is an Illinois limited partnership formed in May 1993. References to the "Company," "we," "us" or "our" mean collectively EQR, ERPOP and those entities/subsidiaries owned or controlled by EQR and/or ERPOP. References to the "Operating Partnership" mean collectively ERPOP and those entities/subsidiaries owned or controlled by ERPOP. EQR is the general partner of, and as of December 31, 2025 owned an approximate 97.6% ownership interest in, ERPOP. All of the Company’s property ownership, development and related business operations are conducted…