Investment Thesis
EQR demonstrates strong operational cash flow generation ($399M FCF, 58.5% FCF margin) and excellent debt service capability (15.0x interest coverage), supporting fundamental viability as a REIT. However, severe data quality anomalies (703K% revenue growth with flat net income), critically low cash reserves ($34.7M against $9.5B liabilities), and extremely poor capital returns (0.8% ROE, 0.4% ROA) raise significant concerns about either reporting integrity or operational efficiency.
Strengths
- Strong free cash flow generation at $399M with healthy 58.5% FCF margin
- Excellent debt service coverage with 15.0x interest coverage ratio
- Moderate leverage position at 0.77x debt-to-equity ratio
Risks
- Data integrity concerns: implausible 703K% YoY revenue growth contradicted by 0.1% net income growth
- Critically low liquidity: $34.7M cash against $9.5B liabilities poses refinancing risk
- Severely depressed capital returns: 0.8% ROE and 0.4% ROA indicate poor capital deployment efficiency
Key Metrics to Watch
- Cash position and liquidity ratio trend (current level is dangerously low)
- Return on equity sustainability (0.8% is substantially below cost of capital)
- Operating cash flow consistency (verify $400.5M operating CF sustainability)
Financial Metrics
Revenue
682.3M
Net Income
90.1M
EPS (Diluted)
$0.24
Free Cash Flow
399.0M
Total Assets
20.5B
Cash
34.7M
Profitability Ratios
Gross Margin
45.7%
Operating Margin
170.1%
Net Margin
13.2%
ROE
0.8%
ROA
0.4%
FCF Margin
58.5%
Balance Sheet & Liquidity
Current Ratio
N/A
Quick Ratio
N/A
Debt/Equity
0.77x
Debt/Assets
46.3%
Interest Coverage
15.00x
Long-term Debt
8.2B
Disclaimer: This analysis is generated by AI based on publicly available SEC EDGAR filings.
It does not include stock price data and should not be considered financial advice.
All fundamental data is sourced from SEC public domain filings.
Always conduct your own research before making investment decisions.
Data Source: SEC EDGAR |
Analysis Date: 2026-05-06T12:59:45.900176 |
Data as of: 2026-03-31 |
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