EQREQR
US • —
$68.61
P/E
28.02
PEG
—
FCF Yield
—
Rev Growth YoY
+3.4% YoY
Gross Margin
62.8%
Health Score
7/10
D/E Ratio
0.75
Confidence
LOW
Business Snapshot
Equity Residential (EQR) is a publicly traded real estate investment trust (REIT) that owns, develops, and manages multifamily residential properties, focusing primarily on high-quality apartment communities in urban and suburban markets. The company operates within the U.S. multifamily housing sector, a market driven by demographic trends such as urbanization and the renter population, where EQR is one of the largest players with a dominant portfolio concentrated in coastal markets. The company is structured as a REIT, which mandates the distribution of the majority of its taxable income to shareholders in the form of dividends, a defining characteristic that shapes its capital allocation and financial strategy.
Financial Health
Gross margin stands at a healthy 62.8%, though without prior-year data available for comparison, the trend direction is unclear. Net margin is robust at 30.6%, indicating strong profitability per dollar of revenue...
Risk Assessment
- VALUATION — P/E of 28.02x sits at a substantial premium to the sector average of 22x, indicating a potentially overvalued stock.
- EARNINGS QUALITY — While earnings have beaten estimates 3 out of 4 recent quarters, earnings declined 4.0% YoY, signaling that earnings quality is under pressure despite beats.
- DEBT / LIQUIDITY — The current ratio of 0.06x is critically low, exposing the company to liquidity risk in periods of market stress.
- TECHNICALS — RSI, MACD, and moving average data unavailable for this period; momentum cannot be independently confirmed....
Gross margin stands at a healthy 62.8%, though without prior-year data available for comparison, the trend direction is unclear. Net margin is robust at 30.6%, indicating strong profitability per dollar of revenue. The balance sheet appears well-managed with a debt-to-equity ratio of 0.75x, which is moderate for a capital-intensive REIT, but a very low current ratio of 0.06x signals significant liquidity constraints and a reliance on asset sales or capital markets to meet short-term obligations. Free cash flow data is not provided, preventing a direct assessment of the company's cash generation ability and its capacity to fund dividends or growth investments through internal operations alone.
- VALUATION — P/E of 28.02x sits at a substantial premium to the sector average of 22x, indicating a potentially overvalued stock. - EARNINGS QUALITY — While earnings have beaten estimates 3 out of 4 recent quarters, earnings declined 4.0% YoY, signaling that earnings quality is under pressure despite beats. - DEBT / LIQUIDITY — The current ratio of 0.06x is critically low, exposing the company to liquidity risk in periods of market stress. - TECHNICALS — RSI, MACD, and moving average data unavailable for this period; momentum cannot be independently confirmed.
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