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EQR : NYSE : Financial
$64.55 | %
Today's Range: 64.16 - 66.36
Avg. Daily Volume: 2,431,800
08/26/16 - 4:00 PM ET

Financial Analysis


EQUITY RESIDENTIAL's gross profit margin for the second quarter of its fiscal year 2016 has increased when compared to the same period a year ago. Sales and net income have dropped, underperforming the average competitor within its industry.

During the same period, stockholders' equity ("net worth") has increased by 6.28% from the same quarter last year.

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Income Statement Q2 FY16 Q2 FY15
Net Sales ($mil)650.88698.06
EBITDA ($mil)0.00.0
EBIT ($mil)261.74265.2
Net Income ($mil)218.84286.42


Balance Sheet Q2 FY16 Q2 FY15
Cash & Equiv. ($mil)559.55144.97
Total Assets ($mil)21229.9223081.83
Total Debt ($mil)8510.9910827.91
Equity ($mil)11160.5810500.76


Profitability Q2 FY16 Q2 FY15
Gross Profit Margin43.0240.23
EBITDA Margin0.00.0
Operating Margin40.2137.99
Sales Turnover0.130.12
Return on Assets19.823.93
Return on Equity37.678.61
Debt Q2 FY16 Q2 FY15
Current Ratio0.00.0
Debt/Capital0.430.51
Interest Expense103.02128.5
Interest Coverage2.542.06


Share Data Q2 FY16 Q2 FY15
Shares outstanding (mil)365.55364.05
Div / share0.50.55
EPS0.590.78
Book value / share30.5328.84
Institutional Own % n/a n/a
Avg Daily Volume2408673.01976478.0

Valuation


BUY. EQUITY RESIDENTIAL's P/E ratio indicates a significant discount compared to an average of 60.55 for the Real Estate Investment Trusts (REITs) industry and a significant discount compared to the S&P 500 average of 25.13. To use another comparison, its price-to-book ratio of 2.15 indicates a discount versus the S&P 500 average of 2.82 and a significant discount versus the industry average of 3.83. The price-to-sales ratio is well above both the S&P 500 average and the industry average, indicating a premium. Upon assessment of these and other key valuation criteria, EQUITY RESIDENTIAL proves to trade at a discount to investment alternatives within the industry.


Price/Earnings
1 2 3 4 5
premium   discount
  Price/Cash Flow
1 2 3 4 5
premium   discount
EQR 5.74 Peers 60.55   EQR 20.73 Peers 21.63

Discount. A lower P/E ratio than its peers can signify a less expensive stock or lower growth expectations.

EQR is trading at a significant discount to its peers.

 

Average. The P/CF ratio, a stock’s price divided by the company's cash flow from operations, is useful for comparing companies with different capital requirements or financing structures.

EQR is trading at a valuation on par to its peers.

 
Price/Projected
Earnings
1 2 3 4 5
premium   discount
  Price to
Earnings/Growth
1 2 3 4 5
premium   discount
EQR 47.03 Peers 60.43   EQR 0.02 Peers 3.65

Discount. A lower price-to-projected earnings ratio than its peers can signify a less expensive stock or lower future growth expectations.

EQR is trading at a significant discount to its peers.

 

Discount. The PEG ratio is the stock’s P/E divided by the consensus estimate of long-term earnings growth. Faster growth can justify higher price multiples.

EQR trades at a significant discount to its peers.

 
Price/Book
1 2 3 4 5
premium   discount
  Earnings Growth
1 2 3 4 5
lower   higher
EQR 2.15 Peers 3.83   EQR 362.75 Peers 8.94

Discount. A lower price-to-book ratio makes a stock more attractive to investors seeking stocks with lower market values per dollar of equity on the balance sheet.

EQR is trading at a significant discount to its peers.

 

Higher. Elevated earnings growth rates can lead to capital appreciation and justify higher price-to-earnings ratios.

EQR is expected to have an earnings growth rate that significantly exceeds its peers.

 
Price/Sales
1 2 3 4 5
premium   discount
  Sales Growth
1 2 3 4 5
premium   discount
EQR 8.98 Peers 8.42   EQR -1.02 Peers 14.96

Average. In the absence of P/E and P/B multiples, the price-to-sales ratio can display the value investors are placing on each dollar of sales.

EQR is trading at a valuation on par with its industry on this measurement.

 

Lower. A sales growth rate that trails the industry implies that a company is losing market share.

EQR significantly trails its peers on the basis of sales growth

 

 

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