Equity Residential Profitability Analysis

EQR
 Stock
  

USD 73.18  0.03  0.041%   

For Equity Residential profitability analysis, we use financial ratios and fundamental drivers that measure the ability of Equity Residential to generate income relative to revenue, assets, operating costs, and current equity. These fundamental indicators attest to how well Equity Residential utilizes its assets to generate profit and value for its shareholders. The profitability module also shows relationships between Equity Residential's most relevant fundamental drivers. It provides multiple suggestions of what could affect the performance of Equity Residential over time as well as its relative position and ranking within its peers. Continue to Investing Opportunities.
  
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As of 06/28/2022, Sales per Share is likely to grow to 7.35, while Price to Sales Ratio is likely to drop 13.08. Equity Residential Operating Income is relatively stable at the moment as compared to the past year. Equity Residential reported last year Operating Income of 603.66 Million. As of 06/28/2022, Preferred Dividends Income Statement Impact is likely to grow to about 3.9 M, while Accumulated Other Comprehensive Income is likely to drop (37 M).

Equity Residential Revenues

2.68 Billion

Share
Is Equity Residential's industry expected to grow? Or is there an opportunity to expand the business' product line in the future? Factors like these will boost the valuation of Equity Residential. If investors know Equity will grow in the future, the company's valuation will be higher. The financial industry is built on trying to define current growth potential and future valuation accurately. All the valuation information about Equity Residential listed above have to be considered, but the key to understanding future value is determining which factors weigh more heavily than others.
Quarterly Earnings Growth YOY
0.22
Market Capitalization
28.6 B
Quarterly Revenue Growth YOY
0.093
Return On Assets
0.0194
Return On Equity
0.13
The market value of Equity Residential is measured differently than its book value, which is the value of Equity that is recorded on the company's balance sheet. Investors also form their own opinion of Equity Residential's value that differs from its market value or its book value, called intrinsic value, which is Equity Residential's true underlying value. Investors use various methods to calculate intrinsic value and buy a stock when its market value falls below its intrinsic value. Because Equity Residential's market value can be influenced by many factors that don't directly affect Equity Residential's underlying business (such as a pandemic or basic market pessimism), market value can vary widely from intrinsic value.
Please note, there is a significant difference between Equity Residential's value and its price as these two are different measures arrived at by different means. Investors typically determine Equity Residential value by looking at such factors as earnings, sales, fundamental and technical indicators, competition as well as analyst projections. However, Equity Residential's price is the amount at which it trades on the open market and represents the number that a seller and buyer find agreeable to each party.

Equity Residential Current Valuation vs. Price to Earning Fundamental Analysis

Comparative valuation techniques use various fundamental indicators to help in determining Equity Residential's current stock value. Our valuation model uses many indicators to compare Equity Residential value to that of its competitors to determine the firm's financial worth.
Equity Residential is rated below average in price to earning category among related companies. It is rated below average in current valuation category among related companies reporting about  1,547,397,047  of Current Valuation per Price to Earning. . Comparative valuation analysis is a catch-all model that can be used if you cannot value Equity Residential by discounting back its dividends or cash flows. This model doesn't attempt to find an intrinsic value for Equity Residential's Stock . Still, instead, it compares the stock's price multiples to a benchmark or nearest competition to determine if the stock is relatively undervalued or overvalued. The reason why the comparable model can be used in almost all circumstances is due to the vast number of multiples that can be utilized, such as the price-to-earnings (P/E), price-to-book (P/B), price-to-sales (P/S), price-to-cash flow (P/CF), and many others. The P/E ratio is the most commonly used of these ratios because it focuses on the Equity Residential's earnings, one of the primary drivers of an investment's value.

Equity Current Valuation vs. Price to Earning

Price to Earnings ratio is typically used for current valuation of a company and is one of the most popular ratios that investors monitor daily. Holding a low PE stock is less risky because when a company's profitability falls, it is likely that earnings will also go down as well. In other words, if you start from a lower position, your downside risk is limited. There are also some investors who believe that low Price to Earnings ratio reflects the low pricing because a given company is in trouble. On the other hand, a higher PE ratio means that investors are paying more for each unit of profit.
Equity Residential 
P/E 
 = 
Market Value Per Share 
Earnings Per Share 
25.74 X
Generally speaking, the Price to Earnings ratio gives investors an idea of what the market is willing to pay for the company's current earnings.
Enterprise Value is a firm valuation proxy that approximates the current market value of a company. It is typically used to determine the takeover or merger price of a firm. Unlike Market Cap, this measure takes into account the entire liquid asset, outstanding debt, and exotic equity instruments that the company has on its balance sheet. When a takeover occurs, the parent company will have to assume the target company's liabilities but will take possession of all cash and cash equivalents.
Equity Residential 
Enterprise Value 
 = 
Market Cap + Debt 
-  
Cash 
39.83 B
Enterprise Value can be a useful tool to compare companies with different capital structures. Long term liability and current cash or cash equivalents can have a huge impact on market valuation of a given company.

Equity Current Valuation vs Competition

Equity Residential is rated below average in current valuation category among related companies. After adjusting for long-term liabilities, total market size of REIT—Residential industry is currently estimated at about 3.1 Trillion. Equity Residential claims roughly 39.83 Billion in current valuation contributing just under 2% to equities listed under REIT—Residential industry.

Equity Residential Profitability Projections

The most important aspect of a successful company is its ability to generate a profit. For investors in Equity Residential, profitability is also one of the essential criteria for including it into their portfolios because, without profit, Equity Residential will eventually generate negative long term returns. The profitability progress is the general direction of Equity Residential's change in net profit over the period of time. It can combine multiple indicators of Equity Residential, where stable trends show no significant progress. An accelerating trend is seen as positive, while a decreasing one is unfavorable. A rising trend means that profits are rising, and operational efficiency may be rising as well. A decreasing trend is a sign of poor performance and may indicate upcoming losses.
Last ReportedProjected for 2022
Accumulated Other Comprehensive Income-34.3 M-37 M
Consolidated Income1.4 B1.3 B
Net Income1.3 B1.2 B
Net Income Common Stock1.3 B1.2 B
Net Loss Income from Discontinued Operations-595.7 K-642.7 K
Net Income to Non Controlling Interests45.9 M45.2 M
Operating Income603.7 M751.3 M
Preferred Dividends Income Statement Impact2.8 M3.9 M
Income Tax Expense915 K755.5 K
Net Income Per Employee555.4 K460.5 K
Equity Residential is committed to creating communities where people thrive. Equity Residential owns or has investments in 305 properties consisting of 78,568 apartment units, located in Boston, New York, Washington, D.C., Seattle, San Francisco, Southern California and Denver. Equity Residential operates under REITResidential classification in the United States and is traded on New York Stock Exchange. It employs 2400 people.

Equity Profitability Driver Comparison

Profitability drivers are factors that can directly affect your investment outlook on Equity Residential. Investors often realize that things won't turn out the way they predict. There are maybe way too many unforeseen events and contingencies during the holding period of Equity Residential position where the market behavior may be hard to predict, tax policy changes, gold or oil price hikes, calamities change, and many others. The question is, are you prepared for these unexpected events? Although some of these situations are obviously beyond your control, you can still follow the important profit indicators to know where you should focus on when things like this occur. Below are some of the Equity Residential's important profitability drivers and their relationship over time.

Equity Residential Profitability Trends

Equity Residential profitability trend refers to the progression of profit or loss within a business. An upward trend means that Equity Residential's profit has generally increased over time, and a downward profitability trend means profits are declining. Recognizing problems early in profitability trends allows investors to address revenue and cost issues in advance. Investors and analysts usually monitor three types of profitability trends: gross, operating, and net. Gross profit is the difference between revenue and costs of goods sold. Operating profit is Equity Residential's gross profit minus its overhead. After you account for other unusual revenue, expenses, and costs, you get net profit. Gross profit trends are often a good indicator of future profitability. If you have high gross profit margins, you have a better chance to cover overhead and make money.

Equity Residential Profitability Drivers Correlations

One of the toughest challenges investors face today is learning how to quickly synthesize and read into endless financial statements and information provided by the company, SEC reporting, and various external parties. Understanding the correlation between Equity Residential different financial indicators related to revenue and profit generation helps investors identify and prioritize their investing strategies towards Equity Residential in a much-optimized way. Analyzing correlations between profit drivers that are directly associated with dollar figures is the most effective way to break down Equity Residential's future profitability.

Use Equity Residential in pair-trading

One of the main advantages of trading using pair correlations is that every trade hedges away some risk. Because there are two separate transactions required, even if Equity Residential position performs unexpectedly, the other equity can make up some of the losses. Pair trading also minimizes risk from directional movements in the market. For example, if an entire industry or sector drops because of unexpected headlines, the short position in Equity Residential will appreciate offsetting losses from the drop in the long position's value.

Equity Residential Pair Trading

Equity Residential Pair Trading Analysis

The ability to find closely correlated positions to Equity Residential could be a great tool in your tax-loss harvesting strategies, allowing investors a quick way to find a similar-enough asset to replace Equity Residential when you sell it. If you don't do this, your portfolio allocation will be skewed against your target asset allocation. So, investors can't just sell and buy back Equity Residential - that would be a violation of the tax code under the "wash sale" rule, and this is why you need to find a similar enough asset and use the proceeds from selling Equity Residential to buy it.
The correlation of Equity Residential is a statistical measure of how it moves in relation to other equities. This measure is expressed in what is known as the correlation coefficient, which ranges between -1 and +1. A perfect positive correlation (i.e., a correlation coefficient of +1) implies that as Equity Residential moves, either up or down, the other security will move in the same direction. Alternatively, perfect negative correlation means that if Equity Residential moves in either direction, the perfectly negatively correlated security will move in the opposite direction. If the correlation is 0, the equities are not correlated; they are entirely random. A correlation greater than 0.8 is generally described as strong, whereas a correlation less than 0.5 is generally considered weak.
Correlation analysis and pair trading evaluation for Equity Residential can also be used as hedging techniques within a particular sector or industry or even over random equities to generate a better risk-adjusted return on your portfolios.
Pair CorrelationCorrelation Matching

Use Investing Themes to Complement your Equity Residential position

In addition to having Equity Residential in your portfolios, you can quickly add positions using our predefined set of ideas and optimize them against your very unique investing style. A single investing idea is a collection of funds, stocks, ETFs, or cryptocurrencies that are programmatically selected from a pull of investment themes. After you determine your investment opportunity, you can then find an optimal portfolio that will maximize potential returns on the chosen idea or minimize its exposure to market volatility.

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Recycling
Recycling Theme
West management companies as well as entities specializing in pollution control and recycling. The Recycling theme has 30 constituents.
You can either use a buy-and-hold strategy to lock in the entire theme or actively trade it to take advantage of the short-term price volatility of individual constituents. Macroaxis can help you discover thousands of investment opportunities in different asset classes. In addition, you can partner with us for reliable portfolio optimization as you plan to utilize Recycling Theme or any other thematic opportunities.
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Continue to Investing Opportunities. Note that the Equity Residential information on this page should be used as a complementary analysis to other Equity Residential's statistical models used to find the right mix of equity instruments to add to your existing portfolios or create a brand new portfolio. You can also try Bollinger Bands module to use Bollinger Bands indicator to analyze target price for a given investing horizon.

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When running Equity Residential price analysis, check to measure Equity Residential's market volatility, profitability, liquidity, solvency, efficiency, growth potential, financial leverage, and other vital indicators. We have many different tools that can be utilized to determine how healthy Equity Residential is operating at the current time. Most of Equity Residential's value examination focuses on studying past and present price action to predict the probability of Equity Residential's future price movements. You can analyze the entity against its peers and financial market as a whole to determine factors that move Equity Residential's price. Additionally, you may evaluate how the addition of Equity Residential to your portfolios can decrease your overall portfolio volatility.
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To fully project Equity Residential's future profitability, investors should examine all historical financial statements. These statements provide investors with a comprehensive snapshot of the financial position of Equity Residential at a specified time, usually calculated after every quarter, six months, or one year. Three primary documents fall into the category of financial statements. These documents include Equity Residential's income statement, its balance sheet, and the statement of cash flows.
Potential Equity Residential investors and stakeholders can use historical trends found within financial statements to determine how well the company is positioned for the future. Although Equity Residential investors may work on each financial statement separately, they are all related. The changes in Equity Residential's assets and liabilities, for example, are also reflected in the revenues and expenses that we see on Equity Residential's income statement, which results in the company's gains or losses. Cash flows can provide more information regarding cash listed on a balance sheet but not equivalent to net income shown on the income statement. Please read more on our technical analysis and fundamental analysis pages.