Equity Residential logged a 0.8% change during today's afternoon session, and is now trading at a price of $67.07 per share.
Equity Residential is committed to creating communities where people thrive. Based in Chicago, IL, the large-cap Real Estate company has 2,400 full time employees. Equity Residential has offered a 3.8% dividend yield over the last 12 months.
The Company May Be Profitable, but Its Balance Sheet Is Highly Leveraged:
| 2019-12-31 | 2020-12-31 | 2021-12-31 | 2022-12-31 | |
|---|---|---|---|---|
| Revenue (MM) | $2,701 | $2,572 | $2,464 | $2,735 |
| Operating Margins | 33.6% | 30.6% | 25.2% | 29.7% |
| Net Margins | 35.93% | 35.53% | 54.09% | 28.4% |
| Net Income (MM) | $970 | $914 | $1,333 | $777 |
| Net Interest Expense (MM) | -399 | -368 | -256 | -289 |
| Net Interest Expense (MM) | -$399 | -$368 | -$256 | -$289 |
| Depreciation & Amort. (MM) | -$831 | -$821 | -$838 | -$882 |
| Earnings Per Share | $2.6 | $2.45 | $3.54 | $2.4 |
| EPS Growth | n/a | -5.77% | 44.49% | -32.2% |
| Diluted Shares (MM) | 386 | 386 | 388 | 379 |
| Free Cash Flow (MM) | $1,267 | $1,099 | $1,092 | $1,223 |
| Capital Expenditures (MM) | -$190 | -$166 | -$169 | -$232 |
| Net Current Assets (MM) | -$10,048 | -$9,085 | -$9,123 | -$8,380 |
| Current Ratio | 0.08 | 0.12 | 0.5 | 0.26 |
| Long Term Debt (MM) | $8,019 | $7,629 | $8,026 | $7,296 |
| Net Debt / EBITDA | 4.09 | 3.8 | 3.39 | 3.78 |
Equity Residential has stable revenues and increasing reinvestment in the business, a steady stream of strong cash flows, and average operating margins with a stable trend. However, the firm suffers from declining EPS growth and a highly leveraged balance sheet.
Equity Residential's Valuation Is in Line With Its Sector Averages:
Equity Residential has a trailing twelve month P/E ratio of 26.3, compared to an average of 24.81 for the Real Estate sector. Based on its EPS guidance of $1.63, the company has a forward P/E ratio of 38.8. The -8.9% compound average growth rate of Equity Residential's historical and projected earnings per share yields a PEG ratio of -2.95. This indicates that its shares are overvalued.The market is placing a fair value on Equity Residential's equity, since its P/B ratio of 2.29 is comparable to its sector average of 2.24. The company's shares are currently trading 57.5% above their Graham number.
There's an Analyst Consensus of Some Upside Potential for Equity Residential:
The 17 analysts following Equity Residential have set target prices ranging from $62.0 to $95.0 per share, for an average of $69.09 with a hold rating. As of April 2023, the company is trading -8.5% away from its average target price, indicating that there is an analyst consensus of some upside potential.
Equity Residential has an average amount of shares sold short because 2.1% of the company's shares are sold short. Institutions own 93.3% of the company's shares, and the insider ownership rate stands at 1.71%, suggesting a large amount of insider shareholders. The largest shareholder is the Vanguard Group, Inc., whose 15% stake in the company is worth $3,891,437,264.
