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EQR (Equity Residential) Piotroski F-Score : 8 (As of Oct. 31, 2024)


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What is Equity Residential Piotroski F-Score?

Good Sign:

Piotroski F-Score is 8, indicates a very healthy situation.

The zones of discrimination were as such:

Good or high score = 7, 8, 9
Bad or low score = 0, 1, 2, 3

Equity Residential has an F-score of 8. It is a good or high score, which usually indicates a very healthy situation.

The historical rank and industry rank for Equity Residential's Piotroski F-Score or its related term are showing as below:

EQR' s Piotroski F-Score Range Over the Past 10 Years
Min: 3   Med: 6   Max: 8
Current: 8

During the past 13 years, the highest Piotroski F-Score of Equity Residential was 8. The lowest was 3. And the median was 6.


Equity Residential Piotroski F-Score Historical Data

The historical data trend for Equity Residential's Piotroski F-Score can be seen below:

* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD.
* For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.

* Premium members only.

Equity Residential Piotroski F-Score Chart

Equity Residential Annual Data
Trend Dec14 Dec15 Dec16 Dec17 Dec18 Dec19 Dec20 Dec21 Dec22 Dec23
Piotroski F-Score
Get a 7-Day Free Trial Premium Member Only Premium Member Only 7.00 6.00 4.00 6.00 6.00

Equity Residential Quarterly Data
Dec19 Mar20 Jun20 Sep20 Dec20 Mar21 Jun21 Sep21 Dec21 Mar22 Jun22 Sep22 Dec22 Mar23 Jun23 Sep23 Dec23 Mar24 Jun24 Sep24
Piotroski F-Score Get a 7-Day Free Trial Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only 6.00 6.00 7.00 8.00 -

Competitive Comparison of Equity Residential's Piotroski F-Score

For the REIT - Residential subindustry, Equity Residential's Piotroski F-Score, along with its competitors' market caps and Piotroski F-Score data, can be viewed below:

* Competitive companies are chosen from companies within the same industry, with headquarter located in same country, with closest market capitalization; x-axis shows the market cap, and y-axis shows the term value; the bigger the dot, the larger the market cap. Note that "N/A" values will not show up in the chart.


Equity Residential's Piotroski F-Score Distribution in the REITs Industry

For the REITs industry and Real Estate sector, Equity Residential's Piotroski F-Score distribution charts can be found below:

* The bar in red indicates where Equity Residential's Piotroski F-Score falls into.


How is the Piotroski F-Score calculated?

* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD.
* For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.

This Year (Jun24) TTM:Last Year (Jun23) TTM:
Net Income was 172.508 + 311.692 + 295.787 + 177.483 = $957 Mil.
Cash Flow from Operations was 442.544 + 344.274 + 421.031 + 396.937 = $1,605 Mil.
Revenue was 724.067 + 727.5 + 730.818 + 734.163 = $2,917 Mil.
Gross Profit was 463.953 + 475.365 + 451.803 + 468.583 = $1,860 Mil.
Average Total Assets from the begining of this year (Jun23)
to the end of this year (Jun24) was
(20145.729 + 20108.975 + 20034.564 + 19894.797 + 19779.568) / 5 = $19992.7266 Mil.
Total Assets at the begining of this year (Jun23) was $20,146 Mil.
Long-Term Debt & Capital Lease Obligation was $7,295 Mil.
Total Current Assets was $138 Mil.
Total Current Liabilities was $615 Mil.
Net Income was 323.025 + 159.02 + 212.035 + 139.203 = $833 Mil.

Revenue was 695.099 + 699.703 + 705.088 + 717.309 = $2,817 Mil.
Gross Profit was 444.961 + 468.333 + 429.374 + 458.779 = $1,801 Mil.
Average Total Assets from the begining of last year (Jun22)
to the end of last year (Jun23) was
(20574.345 + 20265.405 + 20218.262 + 20102.526 + 20145.729) / 5 = $20261.2534 Mil.
Total Assets at the begining of last year (Jun22) was $20,574 Mil.
Long-Term Debt & Capital Lease Obligation was $7,572 Mil.
Total Current Assets was $125 Mil.
Total Current Liabilities was $628 Mil.

*Note: If the latest quarterly/semi-annual/annual total assets data is 0, then we will use previous quarterly/semi-annual/annual data for all the items in the balance sheet.

Profitability

Question 1. Return on Assets (ROA)

Net income before extraordinary items for the year divided by Total Assets at the beginning of the year.

Score 1 if positive, 0 if negative.

Equity Residential's current Net Income (TTM) was 957. ==> Positive ==> Score 1.

Question 2. Cash Flow Return on Assets (CFROA)

Net cash flow from operating activities (operating cash flow) divided by Total Assets at the beginning of the year.

Score 1 if positive, 0 if negative.

Equity Residential's current Cash Flow from Operations (TTM) was 1,605. ==> Positive ==> Score 1.

Question 3. Change in Return on Assets

Compare this year's return on assets (1) to last year's return on assets.

Score 1 if it's higher, 0 if it's lower.

ROA (This Year)=Net Income/Total Assets (Jun23)
=957.47/20145.729
=0.0475272

ROA (Last Year)=Net Income/Total Assets (Jun22)
=833.283/20574.345
=0.04050107

Equity Residential's return on assets of this year was 0.0475272. Equity Residential's return on assets of last year was 0.04050107. ==> This year is higher. ==> Score 1.

Question 4. Quality of Earnings (Accrual)

Compare Cash flow return on assets (2) to return on assets (1)

Score 1 if CFROA > ROA, 0 if CFROA <= ROA.

Equity Residential's current Net Income (TTM) was 957. Equity Residential's current Cash Flow from Operations (TTM) was 1,605. ==> 1,605 > 957 ==> CFROA > ROA ==> Score 1.

Funding

Question 5. Change in Gearing or Leverage

Compare this year's gearing (long-term debt divided by average total assets) to last year's gearing.

Score 0 if this year's gearing is higher, 1 otherwise.

Gearing (This Year: Jun24)=Long-Term Debt & Capital Lease Obligation/Average Total Assets from Jun23 to Jun24
=7295.481/19992.7266
=0.36490676

Gearing (Last Year: Jun23)=Long-Term Debt & Capital Lease Obligation/Average Total Assets from Jun22 to Jun23
=7572.308/20261.2534
=0.37373344

Equity Residential's gearing of this year was 0.36490676. Equity Residential's gearing of last year was 0.37373344. ==> This year is lower or equal to last year. ==> Score 1.

Question 6. Change in Working Capital (Liquidity)

Compare this year's current ratio (current assets divided by current liabilities) to last year's current ratio.

Score 1 if this year's current ratio is higher, 0 if it's lower

Current Ratio (This Year: Jun24)=Total Current Assets/Total Current Liabilities
=138.421/614.55
=0.22523961

Current Ratio (Last Year: Jun23)=Total Current Assets/Total Current Liabilities
=124.642/627.869
=0.19851593

Equity Residential's current ratio of this year was 0.22523961. Equity Residential's current ratio of last year was 0.19851593. ==> This year's current ratio is higher. ==> Score 1.

Question 7. Change in Shares in Issue

Compare the number of shares in issue this year, to the number in issue last year.

Score 0 if there is larger number of shares in issue this year, 1 otherwise.

Equity Residential's number of shares in issue this year was 390.542. Equity Residential's number of shares in issue last year was 391.187. ==> There is smaller number of shares in issue this year, or the same. ==> Score 1.

Efficiency

Question 8. Change in Gross Margin

Compare this year's gross margin (Gross Profit divided by sales) to last year's.

Score 1 if this year's gross margin is higher, 0 if it's lower.

Gross Margin (This Year: TTM)=Gross Profit/Revenue
=1859.704/2916.548
=0.63763874

Gross Margin (Last Year: TTM)=Gross Profit/Revenue
=1801.447/2817.199
=0.63944613

Equity Residential's gross margin of this year was 0.63763874. Equity Residential's gross margin of last year was 0.63944613. ==> Last year's gross margin is higher ==> Score 0.

Question 9. Change in asset turnover

Compare this year's asset turnover (total sales for the year divided by total assets at the beginning of the year) to last year's asset turnover ratio.

Score 1 if this year's asset turnover ratio is higher, 0 if it's lower

Asset Turnover (This Year)=Revenue/Total Assets at the Beginning of This Year (Jun23)
=2916.548/20145.729
=0.14477252

Asset Turnover (Last Year)=Revenue/Total Assets at the Beginning of Last Year (Jun22)
=2817.199/20574.345
=0.13692776

Equity Residential's asset turnover of this year was 0.14477252. Equity Residential's asset turnover of last year was 0.13692776. ==> This year's asset turnover is higher. ==> Score 1.

Evaluation

Piotroski F-Score= Que. 1+ Que. 2+ Que. 3+Que. 4+Que. 5+Que. 6+Que. 7+Que. 8+Que. 9
=1+1+1+1+1+1+1+0+1
=8

Good or high score = 7, 8, 9
Bad or low score = 0, 1, 2, 3

Equity Residential has an F-score of 8. It is a good or high score, which usually indicates a very healthy situation.

Equity Residential  (NYSE:EQR) Piotroski F-Score Explanation

The developer of the system is Joseph D. Piotroski is relatively unknown accounting professor who shuns publicity and rarely gives interviews.

He graduated from the University of Illinois with a B.S. in accounting in 1989, received an M.B.A. from Indiana University in 1994. Five years later, in 1999, after earning a Ph.D. in accounting from the University of Michigan, he became an associate professor of accounting at the University of Chicago.

In 2000, he wrote a research paper called "Value Investing: The Use of Historical Financial Statement Information to Separate Winners from Losers" (pdf).

He wanted to see if he can develop a system (using a simple nine-point scoring system) that can increase the returns of a strategy of investing in low price to book (referred to in the paper as high book to market) value companies.

What he found was something that exceeded his most optimistic expectations.

Buying only those companies that scored highest (8 or 9) on his nine-point scale, or F-Score as he called it, over the 20 year period from 1976 to 1996 led to an average out-performance over the market of 13.4%.

Even more impressive were the results of a strategy of investing in the highest F-Score companies (8 or 9) and shorting companies with the lowest F-Score (0 or 1).

Over the same period from 1976 to 1996 (20 years) this strategy led to an average yearly return of 23%, substantially outperforming the average S&P 500 index return of 15.83% over the same period.


Equity Residential Piotroski F-Score Related Terms

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Equity Residential Business Description

Traded in Other Exchanges
Address
Two North Riverside Plaza, Chicago, IL, USA, 60606
Equity Residential owns a portfolio of 299 apartment communities with around 80,000 units and is developing three additional properties with 977 units. The company focuses on owning large, high-quality properties in the urban and suburban submarkets of Southern California, San Francisco, Washington, D.C., New York, Seattle, and Boston.
Executives
Catherine Carraway officer: Executive Vice President TWO NORTH RIVERSIDE PLAZA, SUITE 500, CHICAGO IL 60606
Alexander Brackenridge officer: Executive Vice President TWO NORTH RIVERSIDE PLAZA, SUITE 400, CHICAGO IL 60606
Scott Fenster officer: EVP & General Counsel TWO NORTH RIVERSIDE PLAZA, SUITE 400, CHICAGO IL 60606
Ian Kaufman officer: Chief Accounting Officer C/O EQUITY RESIDENTIAL, TWO NORTH RIVERSIDE PLAZA, SUITE 400, CHICAGO IL 60606
Michael L Manelis officer: Executive Vice President TWO NORTH RIVERSIDE PLAZA, SUITE 400, CHICAGO IL 60606
Robert Garechana officer: EVP & Chief Financial Officer TWO NORTH RIVERSIDE PLAZA, SUITE 400, CHICAGO IL 60606
Linda Bynoe director 980 N. MICHIGAN AVE, SUITE 1400, CHICAGO IL 60611
Mary Kay Haben director C/O EQUITY RESIDENTIAL, TWO NORTH RIVERSIDE PLAZA, SUITE 400, CHICAGO IL 60606
David J Neithercut director C/O EQUITY RESIDENTIAL, TWO NORTH RIVERSIDE PLAZA, SUITE 400, CHICAGO IL 60606
Mark S Shapiro director C/O RED ZONE LLC, 21300 REDSKIN PARK DRIVE, ASHBURN VA 20147
Christa L Sorenson officer: Executive Vice President TWO NORTH RIVERSIDE PLAZA, SUITE 400, CHICAGO IL 60606
Angela M Aman director RETAIL PROPERTIES OF AMERICA, INC., 2021 SPRING ROAD, SUITE 200, OAK BROOK IL 60523
Duckworth Connie K director EIGHT WINGS ENTERPRISES, 77 STONE AGTE LANE, LAKE FOREST IL 60045
Bradley A Keywell director
John E Neal director 2020 CALAMOS COURT, NAPERVILLE X1 60563