What Equity Residential Investors Are Talking About Today.

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.

The above analysis is intended for educational purposes only and was performed on the basis of publicly available data. It is not to be construed as a recommendation to buy or sell any security. Any buy, sell, or other recommendations mentioned in the article are direct quotations of consensus recommendations from the analysts covering the stock, and do not represent the opinions of Market Inference or its writers. Past performance, accounting data, and inferences about market position and corporate valuation are not reliable indicators of future price movements. Market Inference does not provide financial advice. Investors should conduct their own review and analysis of any company of interest before making an investment decision.