Equity Residential

Equity Residential maintains a capital structure characterized by significant leverage, with long-term debt of $9.13 billion against total equity of $10.32 billion, resulting in a debt-to-equity ratio of 0.89. The company holds minimal cash and equivalents of $45.75 million, leading to a negative net cash position after subtracting total debt. Liquidity is assessed as medium, supported by operating cash flow of $1.46 billion, which covers the interest obligations implied by the debt load. The current ratio is not explicitly provided, but the high debt burden relative to equity suggests reliance on steady cash flows to service liabilities.

Profitability metrics indicate a return on equity of 8.49% and a return on assets of 4.13%. The company generated net income of $970.38 million on revenue of $2.70 billion, yielding a net margin of approximately 35.9%. Operating income stands at $1.36 billion, reflecting an operating margin of roughly 50.2%. These returns are consistent with the capital-intensive nature of residential real estate, where asset appreciation and rental income drive value. The price-to-earnings ratio of 28.07 and EV/EBITDA of 26.48 suggest the market values the company's stable cash flows at a premium, typical for high-quality residential REITs.

Revenue concentration is not detailed by segment or geography in the available data, implying a diversified portfolio across major metropolitan markets. As a residential REIT, the company's revenue is primarily derived from rental income, which is sensitive to local housing market dynamics, occupancy rates, and rental price growth. The lack of specific segment data prevents a granular analysis of geographic exposure, but the industry classification suggests a focus on urban residential properties.

Growth trajectory analysis is limited by the absence of historical period data in the input. However, the current revenue of $2.70 billion and net income of $970.38 million provide a baseline for assessing future performance. The company's ability to grow revenue will depend on rental rate increases, occupancy levels, and potential acquisitions or developments. The stable net income suggests consistent operational performance, but long-term growth visibility requires additional historical context.

Risk factors include medium liquidity risk and low dilution risk. The key flag of negative net cash after subtracting total debt highlights the company's leverage exposure. Interest rate fluctuations could impact borrowing costs and asset valuations, while economic downturns may affect occupancy and rental income. The low dilution risk indicates that the company is not currently issuing significant new shares, preserving existing shareholder value.

Recent events include analyst estimates with a mean price target of $70.89 and a median target of $71.00, suggesting modest upside potential from the current market price of $66.11. The mean recommendation of 2.57 indicates a neutral to slightly positive sentiment among analysts. No significant news events or filing observations are reported, implying a stable operational environment without major disruptions or strategic shifts.

Revenue grew 5.9% annually over four years, reaching $3.09 billion in fiscal 2026.

Return on equity of 8.5% is well above the 2.8% cohort median.

Net income increased 8.1% year-over-year to $1.12 billion in fiscal 2026.

Cash conversion ratio of 1.88 outperforms the 0.74 median for peers.

High credit risk flag indicates significant potential for financial distress or default.

Debt-to-equity ratio of 0.89 is nearly double the 0.46 cohort median.

Net income declined 4.3% annually over the four-year period ending fiscal 2026.

Free cash flow turned negative at -$1.02 billion in fiscal 2025.

Medium liquidity risk suggests potential challenges in meeting short-term obligations.

Revenue $785.0M, +2,1% YoY; Operating income −31,7% YoY.

• ▍Revenue $785.0M, +2,1% YoY
• ▍Operating income −31,7% YoY
• ▍Net income −40,7% YoY
• ▍Net margin 14.5%

Revenue $779.8M, +2,5% YoY; Operating income −38,7% YoY.

• ▍Revenue $779.8M, +2,5% YoY
• ▍Operating income −38,7% YoY
• ▍Net income −64,9% YoY
• ▍Free cash flow −103,9% YoY
• ▍Net margin 11.6%

Revenue $781.9M, +2,0% YoY; Operating income −7,0% YoY.

• ▍Revenue $781.9M, +2,0% YoY
• ▍Operating income −7,0% YoY
• ▍Net income −8,8% YoY
• ▍Free cash flow +294,2% YoY
• ▍Net margin 48.9%

Revenue $782.4M, +4,5% YoY; Operating income +65,5% YoY.

• ▍Revenue $782.4M, +4,5% YoY
• ▍Operating income +65,5% YoY
• ▍Net income +101,5% YoY
• ▍Free cash flow +105,4% YoY
• ▍Net margin 36.9%

Revenue $768.8M; Operating income $284.3M.

• ▍Revenue $768.8M
• ▍Operating income $284.3M
• ▍Net margin 25.0%

Revenue $760.8M; Operating income $348.4M.

• ▍Revenue $760.8M
• ▍Operating income $348.4M
• ▍Net margin 33.7%

Revenue $766.8M; Operating income $531.5M.

• ▍Revenue $766.8M
• ▍Operating income $531.5M
• ▍Net margin 54.7%

Revenue $748.3M; Operating income $223.1M.

• ▍Revenue $748.3M
• ▍Operating income $223.1M
• ▍Net margin 19.2%

Revenue $3.09B, +3,8% YoY; Operating income +5,5% YoY.

• ▍Revenue $3.09B, +3,8% YoY
• ▍Operating income +5,5% YoY
• ▍Net income +8,1% YoY
• ▍Free cash flow +101,2% YoY
• ▍Net margin 36.2%

Revenue $2.98B, +3,7% YoY; Operating income +22,2% YoY.

• ▍Revenue $2.98B, +3,7% YoY
• ▍Operating income +22,2% YoY
• ▍Net income +24,0% YoY
• ▍Free cash flow −2 511,4% YoY
• ▍Net margin 34.8%

Revenue $2.87B, +5,1% YoY; Operating income +4,0% YoY.

• ▍Revenue $2.87B, +5,1% YoY
• ▍Operating income +4,0% YoY
• ▍Net income +7,5% YoY
• ▍Free cash flow −86,3% YoY
• ▍Net margin 29.1%

Revenue $2.74B, +11,0% YoY; Operating income −33,4% YoY.

• ▍Revenue $2.74B, +11,0% YoY
• ▍Operating income −33,4% YoY
• ▍Net income −41,7% YoY
• ▍Free cash flow +141,9% YoY
• ▍Net margin 28.4%