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EQR : NYSE : Financial
$70.32 | %
Today's Range: 69.64 - 70.58
Avg. Daily Volume: 2,231,200
07/22/16 - 4:03 PM ET

Financial Analysis


EQUITY RESIDENTIAL's gross profit margin for the first quarter of its fiscal year 2016 has increased when compared to the same period a year ago. Even though sales decreased, the net income has increased, representing an increase to the bottom line.

During the same period, stockholders' equity ("net worth") has increased by 7.08% from the same quarter last year.

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Income Statement Q1 FY16 Q1 FY15
Net Sales ($mil)621.04669.5
EBITDA ($mil)0.00.0
EBIT ($mil)218.58221.3
Net Income ($mil)3587.76182.52


Balance Sheet Q1 FY16 Q1 FY15
Cash & Equiv. ($mil)427.4100.08
Total Assets ($mil)21301.2923029.05
Total Debt ($mil)8583.8210859.51
Equity ($mil)11063.7710331.36


Profitability Q1 FY16 Q1 FY15
Gross Profit Margin37.8936.03
EBITDA Margin0.00.0
Operating Margin35.233.05
Sales Turnover0.130.11
Return on Assets20.073.19
Return on Equity38.617.06
Debt Q1 FY16 Q1 FY15
Current Ratio0.00.0
Debt/Capital0.440.51
Interest Expense120.67126.51
Interest Coverage1.811.75


Share Data Q1 FY16 Q1 FY15
Shares outstanding (mil)365.5363.97
Div / share8.50.55
EPS9.760.49
Book value / share30.2728.39
Institutional Own % n/a n/a
Avg Daily Volume2231660.02040046.0

Valuation


BUY. EQUITY RESIDENTIAL's P/E ratio indicates a significant discount compared to an average of 50.69 for the Real Estate Investment Trusts (REITs) industry and a significant discount compared to the S&P 500 average of 25.03. To use another comparison, its price-to-book ratio of 2.33 indicates a discount versus the S&P 500 average of 2.80 and a significant discount versus the industry average of 4.06. 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 6.06 Peers 50.69   EQR 21.26 Peers 23.97

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.

 

Discount. 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 discount 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 43.49 Peers 55.51   EQR 0.02 Peers 4.97

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 2.33 Peers 4.06   EQR 481.00 Peers 60.24

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 9.47 Peers 8.76   EQR 2.67 Peers 47.02

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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