EQR Investment Analysis Report & Stock Research, Equity Residential

Equity Residential (EQR)

EQR Stock Report

2-Year Price History

View Larger EQR Chart
NYSE:EQR
$32.51
(2/9 3:33PM)
+0.2%
Open$32.84 Mkt Cap$9.0 Billion
High$32.96 52Wk High$36.38
Low$32.12 52Wk Low$15.68
Volume2.8 Million Avg Vol 10D3.3 Million

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EQR Revenue

For a long time, value investors have used the current share price relative to sales per share levels as an important valuation tool. We utilize a historical weighted average methodology that treats recent years more importantly in the calculation. When looking at EQR through this framework, we can see that our weighted average historical high and low Price to Sales per share ratios over the last 10 years are 6.28x and 3.75x respectively.

Utilizing this range we can see that EQR’s current Price to Sales per share ratio of 4.68x is somewhat below its historical weighted average by 7%. Given this level of sales per share, we suggest a neutral share price forecast. To the extent there is a further drop in the Price to Sales ratio from current levels, which would occur through some combination of increased sales per share or a decline in share price, we would only become more positive about the Price to Sales ratio outlook.

EQR Cash Earnings

Cash Earnings is always one of the most important factors to review for a company and, more importantly, an investment in a stock. EQR is above their historical average multiples of Cash Earnings, as calculated by our proprietary analysis. It is incredibly important to understand that for EQR, the current level of Cash Earnings compared to its historical levels helps identify where EQR is in relation to what the investing community was willing to pay for this level of Cash Earnings in the past. With a historical high Cash Earnings per share ratio of 34.79 and a historical low Cash Earnings per share ratio of 20.11, an investor can relate where value becomes optimal.

Given this range of ratios per share, EQR at its current price of $32.97 and a Price to Cash Earnings ratio of 31.40 is 14% above its average historical Price to Cash Earnings ratio. Obviously this makes us more hesitant about EQR because cash earnings would need to rise to improve the valuation. Likewise, a decline in Price to Cash Earnings to below the average of 27.45 would significantly improve our outlook for EQR given the current profit levels.

EQR Dividends

A positive Ockham rating does not require a company to pay out an inviting dividend or a dividend at all. However, we believe dividends provide a useful measure of a company's inherent expectations.

Comparable to our analysis of Sales and Cash Earnings per share, we examine dividend yields from EQR against the historic high and low levels over an available data range. Because EQR has an established history of paying a dividend to shareholders, there is value in comparing recent dividends to historical dividends. In EQR’s case, the estimated annual dividend is $1.35 producing a current dividend yield of 4.09%. The highest dividend yield from EQR in recent history was 10.46% while the lowest dividend yield was 3.12%. With that range in mind, EQR’s current dividend yield is a full 39.76% below its median dividend yield historically. This is a negative from our perspective.

Peer Comparison

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Equity Residential Industry Grouping

(2/8/2010)
Company Ticker Market Cap (Ml) Latest
Price
Price/Cash Earnings Price/Sales 5-Yr. Rev.
Growth Rate
5-Yr.
Avg. ROE.
Current 10-Yr. Range* Current 10-Yr. Range*
Peer Company Averages (not including EQR) 80.56 7.38 » 98.73 5.48 1.98 » 8.86 24.38% 16.02%
*10 year range does not include current year values
Vornado Realty Trust VNO $11.3 Billion $62.87 207.32 10.48 » 238.58 4.21 1.38 » 6.59 9.59% 13.44%
Annaly Capital Management, Inc. NLY $9.9 Billion $17.88 14.06 5.34 » 40.21 2.91 1.72 » 5.42 52.64% 6.68%
Equity Residential EQR $9.0 Billion $32.44 31.40 9.52 » 105.42 4.68 1.92 » 8.22 3.15% 12.54%
Boston Properties, Inc. BXP $8.7 Billion $62.90 93.52 7.04 » 104.68 5.79 2.18 » 9.66 -0.56% 18.32%
HCP, Inc. HCP $8.0 Billion $27.28 63.70 8.47 » 76.02 7.58 2.75 » 12.11 24.27% 13.76%
Ventas, Inc. VTR $6.5 Billion $41.21 24.18 5.55 » 34.17 6.93 1.87 » 10.52 35.98% 27.92%
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7:19A, Feb. 04,2010 EQR $33.35 Equity Residential
Seeking Alpha Wall St Breakfast

Equity Residential (EQR) Discussed on Seeking Alpha's Seeking Alpha Wall St Breakfast

Equity Residential is in the news. Find out how this impacts EQR trading on Ockham Research.

2,000-3,000 to the workforce and expects Q3 sales up 23-26% - implying $10B-10.3B vs. $9.5B. (MW). Shares +1.1% AH. (PR, earnings call transcript) EQUITY RESIDENTIAL (EQR): Q4 FFO of $0.43 misses by $0.01. Revenue of $483M (-4%) vs. $480M. (PR) Fidelity National Financial (FNF): Q4 EPS of $0.30 beats by $0.08. Revenue of $1.5B (+46%) vs. $1.3B. Shares +0.07% AH. (PR) Kimco Realty (KIM): Q4 FFO of $0.31 beats by $0.02. Rental revenue of

“… (PR, earnings call transcript) EQUITY RESIDENTIAL (EQR): Q4 FFO of $0. 43 misses by $0. 01. Revenue of $483M (-4%) vs. $480M. …”

1:16P, Dec. 28,2009 EQR $36.34 Equity Residential
Power Lunch

Discussion Turns to EQR and Merger Talk on Power Lunch

While we do not know the details relating to EQR and any possible deal, our RazorWire news analytics has noticed a mention of the stock near a conversation about M&A activity.

When taking into account the amount of news coverage each stock normally sees as a percentage of the total, Equity Residential has actually sunk a bit in comparison to the others. Interestingly, overall sentiment looks bearish according to the Motley Fool's CAPS survey, as most of their users see Equity Residential underperforming. The Ockham valuation currently has a Fairly Valued stance on EQR because it trades within the price range that we would expect given current market conditions and fundamentals.

“… EQUITY RESIDENTIAL, aiv,(x plum creek, one of the biggest private land owners rallying today all 15 members in the reit index looked at trading higher today. …”

3:37P, Jul. 30,2009 EQR $23.69 Equity Residential
Countdown to the Closing Bell

Equity Residential (EQR) Discussed on Fox Business's Countdown to the Closing Bell

Equity Residential is in the news. Find out how this impacts EQR trading on Ockham Research.

Market could be rallying today in anticipation of a decent >> liz: okay, robert gray? Real estate shgz, liz, keeping an eye on real estate. One of the largest markets for, wait for it, EQUITY RESIDENTIAL, check out eq, getting an 8% pop better than expected earnings and the pricey penthouses are full and seems at that demand is still pretty strong here for their apartments. Take a look, by the way, an etf

“… ed earnings and the pricey penthouses are full and seems at that demand is still pretty strong here for their apartments. Take a look, by the way, an etf …”

10:51A, May. 27,2009 EQR $23.20 Equity Residential
Fox Business

Equity Residential (EQR) Discussed on Fox Business's Fox Business

Equity Residential is in the news. Find out how this impacts EQR trading on Ockham Research.

Take advantage of the opportunistic pricing going to be happening down the road. >> who are the survivors? There you've got your eye on a couple. >> oh yeah, yeah, I mean, definitely in the apartment sector, EQUITY RESIDENTIAL, we do have a buy on, very well capitalized. Kre small development pipeline they have to worry about, avalon bay is another one. Although they have a much larger

“… ell capitalized. Kre small development pipeline they have to worry about, avalon bay is another one. Although they have a much larger …”

12:14P, May. 14,2009 EQR $22.49 Equity Residential
Power Lunch

Equity Residential (EQR) Discussed on CNBC's Power Lunch

Equity Residential is in the news. Find out how this impacts EQR trading on Ockham Research.

This is a group heavily shorted. 11% short interest at last check more than double, almost triple what the broader market is facing and we're seeing a sharp pullback up here today. EQUITY RESIDENTIAL, 8% short. Boston properties a 10% short interest rate there. These stocks muscling back in the face of it. >> the role politics has been playing in the markets lately.

“… there. These stocks muscling back in the face of it. >> the role politics has been playing in the markets lately. …”

5:43P, Feb. 05,2009 EQR $21.39 Equity Residential
Fast Money

Equity Residential (EQR) Discussed on CNBC's Fast Money

Equity Residential is in the news. Find out how this impacts EQR trading on Ockham Research.

>> abercrombie & fitch, 10% to move higher. What's the score? >> they lowered it so low they were able to boat the bar and because of that abercrombie had >> EQUITY RESIDENTIAL, % to move ask lower the direction right in the wheel house. >> also avalon bay and all of the commercial -- I mean, these

“… y and all of the commercial -- I mean, these …”

View All Equity Residential Stock News

Key Fundamentals

EQR - Equity Residential Fundamentals
Price (2/9 3:33PM) $32.51
Volume (2/9 3:33PM) 2.8 Million
Last Close Price $32.44
10 Day Average Volume 3.3 Million
13 Week Price Range $30.67 - $36.38
52 Week Price Range $15.68 - $36.38
LTM Revenue $1.9 Billion
 
Shares Outstanding (12/2009) 276.1 Million
Market Capitalization $9.0 Billion
Shares Held By Institutions 255.9 Million
Institutional Holders 509
% Shares Held By Institutions 93.40%
Earnings Per Share (EPS) $0.05
P/E Ratio 648.80
Book Value Per Share $17.20
 
Gross Margin n/a%
Annual Dividend 1.35
Dividend Yield 4.20%
Beta 1.40
Fiscal Year Ends December

About Equity Residential

Equity Residential is considered to operate in the Financial sector. They specifically operate in the Reit - Residential business segment contained within the Real Estate industry.

A Maryland real estate investment trust company focused on the acquisition, development and management of quality apartment properties in top United States growth markets.