Revenue minus cost of goods sold. Graham's ≥40% threshold identifies businesses with durable pricing power. Note: software and financial companies naturally exceed this; retailers and manufacturers rarely reach it due to their cost structures.
Operating Margin28.1%
Profit after operating costs before interest and taxes. A consistent ≥15% operating margin signals a business with real competitive advantages. Capital-intensive industries (airlines, auto, commodities) rarely hit this threshold due to their structural cost base — compare within industry for context.
Net Income Margin36.2%
Bottom-line profit as a percentage of revenue. The ≥20% target reflects Buffett's preference for highly profitable businesses. Financial engineering (buybacks, tax optimisation) can inflate this temporarily — look for consistency across multiple years rather than a single strong result.
Financial Health
F
Years to Pay Off Debt7.6 yrs
Total Debt ÷ Net Income. Lower = stronger balance sheet. Important caveat: utilities, telecoms, REITs, and infrastructure companies carry large structural debt by design — their bond-like cash flows service it comfortably at ratios that would alarm Graham. Compare within sector.
Working Capital vs Long-Term Debt-$8.5B
Working Capital minus Long-Term Debt. Negative results are common and expected in capital-return-focused businesses like Apple, Domino's, and McDonald's — where aggressive buybacks and dividends intentionally reduce book equity. This does not indicate financial distress in high-FCF businesses.
Working Capital-$878M
Current Assets minus Current Liabilities. Negative working capital can be a deliberate efficiency strategy in businesses that collect cash before paying suppliers (retailers, fast food franchises, subscription businesses). Assess alongside free cash flow generation for full context.
Valuation
N/A
Cash Flow
B
Free Cash Flow$1.3B
Operating cash flow minus capital expenditures. Buffett's most important metric — cash a business actually generates for its owners after maintaining and growing its asset base. Consistently positive FCF is one of the strongest indicators of a durable, well-run business regardless of accounting profits.
CapEx % of Net Income32.1%
Capital expenditure as a share of net income. Low CapEx signals a capital-light business that doesn't need heavy reinvestment to sustain earnings — Buffett's ideal. High CapEx is structurally necessary in manufacturing, airlines, telecoms, and semiconductors. For these industries, a high reading reflects the business model, not poor management.
Owner Earnings$2.5B
Net Income + Depreciation & Amortisation − Capital Expenditures. Buffett's preferred measure of a company's true annual earning power — what could theoretically be distributed to owners without impairing the business. More reliable than reported EPS because it accounts for the capital cost of maintaining the business.
Metric Explanations
What each dimension measures and where the thresholds come from.
Gross Profit Margin
Revenue minus cost of goods sold. Graham's ≥40% threshold identifies businesses with durable pricing power. Note: software and financial companies naturally exceed this; retailers and manufacturers rarely reach it due to their cost structures.
Operating Margin
Profit after operating costs before interest and taxes. A consistent ≥15% operating margin signals a business with real competitive advantages. Capital-intensive industries (airlines, auto, commodities) rarely hit this threshold due to their structural cost base — compare within industry for context.
Net Income Margin
Bottom-line profit as a percentage of revenue. The ≥20% target reflects Buffett's preference for highly profitable businesses. Financial engineering (buybacks, tax optimisation) can inflate this temporarily — look for consistency across multiple years rather than a single strong result.
Years to Pay Off Debt
Total Debt ÷ Net Income. Lower = stronger balance sheet. Important caveat: utilities, telecoms, REITs, and infrastructure companies carry large structural debt by design — their bond-like cash flows service it comfortably at ratios that would alarm Graham. Compare within sector.
Working Capital vs Long-Term Debt
Working Capital minus Long-Term Debt. Negative results are common and expected in capital-return-focused businesses like Apple, Domino's, and McDonald's — where aggressive buybacks and dividends intentionally reduce book equity. This does not indicate financial distress in high-FCF businesses.
Working Capital
Current Assets minus Current Liabilities. Negative working capital can be a deliberate efficiency strategy in businesses that collect cash before paying suppliers (retailers, fast food franchises, subscription businesses). Assess alongside free cash flow generation for full context.
Free Cash Flow
Operating cash flow minus capital expenditures. Buffett's most important metric — cash a business actually generates for its owners after maintaining and growing its asset base. Consistently positive FCF is one of the strongest indicators of a durable, well-run business regardless of accounting profits.
CapEx % of Net Income
Capital expenditure as a share of net income. Low CapEx signals a capital-light business that doesn't need heavy reinvestment to sustain earnings — Buffett's ideal. High CapEx is structurally necessary in manufacturing, airlines, telecoms, and semiconductors. For these industries, a high reading reflects the business model, not poor management.
Owner Earnings
Net Income + Depreciation & Amortisation − Capital Expenditures. Buffett's preferred measure of a company's true annual earning power — what could theoretically be distributed to owners without impairing the business. More reliable than reported EPS because it accounts for the capital cost of maintaining the business.
Market Data
Key Margins
Gross Profit62.9%
Operating Margin28.1%
Net Margin36.2%
Company Info
Showing Key Metrics
Income Highlights
Metric
2025
2024
2023
2022
2021
Gross Profit %
62.9%▼
63.3%▼
63.6%▼
64.1%•
N/A
Operating Margin %
28.1%▼
29.3%▼
30.6%▲
29.7%•
N/A
Net Income %
36.2%▲
34.8%▲
29.1%▲
28.4%•
N/A
Diluted EPS
2.94▲
2.72▲
2.20▲
2.05•
N/A
Balance Sheet Highlights
Metric
2025
2024
2023
2022
2021
Total Assets
$20.7B
$20.8B
$20.0B
$20.2B
N/A
Total Debt
$8.5B▲
$8.4B▲
$7.7B▼
$7.7B•
N/A
Working Capital
-$878M▼
-$821M▼
-$681M▼
-$400M•
N/A
Years to Pay Debt
7.57
8.14
9.22
9.96
N/A
Cash Flow Highlights
Metric
2025
2024
2023
2022
2021
Free Cash Flow
$1.3B▲
$1.3B▲
$1.2B▼
$1.2B•
N/A
Owner Earnings
$2.5B
$2.3B
$2.1B
$1.9B
N/A
CapEx % of Net Income
32.1%
30.8%
39.9%
29.9%
N/A
Income Statement
2025
2024
2023
2022
2021
Tax Effect Of Unusual Items
847
635
371
337
Tax Rate For Calcs
0
0
0
0
Normalized EBITDA
1,876,174
1,786,882
1,763,535
1,685,846
Total Unusual Items
626,388
546,797
282,539
304,325
Total Unusual Items Excluding Goodwill
626,388
546,797
282,539
304,325
Net Income From Continuing Operation Net Minority Interest
1,120,169
1,035,831
835,438
776,911
Reconciled Depreciation
1,023,235
966,739
901,504
894,325
Reconciled Cost Of Revenue
1,135,692
1,080,017
1,033,698
970,424
EBITDA
2,502,562
2,333,679
2,046,074
1,990,171
EBIT
1,479,327
1,366,940
1,144,570
1,095,846
Net Interest Income
-263,126
-263,240
-256,152
-289,456
Interest Expense
306,798
285,735
269,556
282,920
Interest Income
52,440
30,329
22,345
2,193
Normalized Income
494,628
489,669
553,270
472,923
Net Income From Continuing And Discontinued Operation
1,120,169
1,035,831
835,438
776,911
Total Expenses
2,224,207
2,108,409
1,995,918
1,923,459
Total Operating Income As Reported
1,160,585
1,116,046
1,675,841
Diluted Average Shares
390,411
390,740
390,897
389,450
Basic Average Shares
379,610
378,795
378,773
376,209
Diluted EPS
0
0
0
0
Basic EPS
0
0
0
0
Diluted NI Availto Com Stockholders
1,146,072
1,061,706
859,058
773,821
Average Dilution Earnings
27,405
28,932
26,710
Net Income Common Stockholders
1,118,667
1,032,774
832,348
773,821
Otherunder Preferred Stock Dividend
0
1,444
0
0
Preferred Stock Dividends
1,422
1,613
3,090
3,090
Net Income
1,120,089
1,035,831
835,438
776,911
Minority Interests
-31,860
-35,144
-33,050
-30,084
Net Income Including Noncontrolling Interests
1,151,949
1,070,975
868,488
806,995
Net Income From Tax Loss Carryforward
0
0
5
Net Income Extraordinary
-80
0
0
0
Net Income Continuous Operations
1,152,029
1,070,975
868,488
806,995
Earnings From Equity Interest Net Of Tax
-18,915
-8,974
-5,378
-5,031
Tax Provision
1,585
1,256
1,148
900
Pretax Income
1,172,529
1,081,205
875,014
812,926
Other Income Expense
565,903
472,746
253,120
290,661
Other Non Operating Income Expenses
-60,485
-74,051
-29,419
-13,664
Special Income Charges
0
0
-16,769
Impairment Of Capital Assets
0
0
16,769
Gain On Sale Of Security
626,388
546,797
282,539
304,325
Net Non Operating Interest Income Expense
-263,126
-263,240
-256,152
-289,456
Total Other Finance Cost
8,768
7,834
8,941
8,729
Interest Expense Non Operating
306,798
285,735
269,556
282,920
Interest Income Non Operating
52,440
30,329
22,345
2,193
Operating Income
869,752
871,699
878,046
811,721
Operating Expense
1,075,680
1,013,844
949,425
940,878
Depreciation Amortization Depletion Income Statement
1,010,400
952,191
888,709
882,168
Depreciation And Amortization In Income Statement
1,010,400
952,191
888,709
882,168
Depreciation Income Statement
1,010,400
952,191
888,709
882,168
Selling General And Administration
65,280
61,653
60,716
58,710
General And Administrative Expense
65,280
61,653
60,716
58,710
Other Gand A
65,280
61,653
60,716
58,710
Gross Profit
1,945,432
1,885,543
1,827,471
1,752,599
Cost Of Revenue
1,148,527
1,094,565
1,046,493
982,581
Total Revenue
3,093,959
2,980,108
2,873,964
2,735,180
Operating Revenue
3,093,959
2,980,108
2,873,964
2,735,180
Balance Sheet
2025
2024
2023
2022
2021
Ordinary Shares Number
377,806
379,475
379,291
378,430
Share Issued
377,806
379,475
379,291
378,430
Net Debt
8,119,106
8,059,443
7,339,707
7,371,853
Total Debt
8,479,585
8,426,642
7,702,090
7,734,470
Tangible Book Value
11,024,344
11,027,405
11,048,548
11,136,159
Invested Capital
19,199,354
19,149,150
18,438,998
18,561,881
Working Capital
-878,327
-820,530
-681,460
-399,742
Net Tangible Assets
11,041,499
11,044,560
11,085,828
11,173,439
Capital Lease Obligations
304,575
304,897
311,640
308,748
Common Stock Equity
11,024,344
11,027,405
11,048,548
11,136,159
Preferred Stock Equity
17,155
17,155
37,280
37,280
Total Capitalization
18,629,861
18,622,626
18,067,147
18,469,206
Total Equity Gross Minority Interest
11,409,134
11,584,347
11,578,376
11,700,952
Minority Interest
367,635
539,787
492,548
527,513
Stockholders Equity
11,041,499
11,044,560
11,085,828
11,173,439
Gains Losses Not Affecting Retained Earnings
2,175
4,214
5,704
-2,547
Other Equity Adjustments
2,175
4,214
5,704
-2,547
Retained Earnings
1,193,931
1,407,570
1,437,185
1,658,837
Additional Paid In Capital
9,824,460
9,611,826
9,601,866
9,476,085
Capital Stock
20,933
20,950
41,073
41,064
Common Stock
3,778
3,795
3,793
3,784
Preferred Stock
17,155
17,155
37,280
37,280
Total Liabilities Net Minority Interest
9,336,889
9,249,829
8,456,188
8,517,310
Total Non Current Liabilities Net Minority Interest
8,299,708
8,269,133
7,634,733
7,980,396
Other Non Current Liabilities
406,771
386,170
341,774
375,881
Preferred Securities Outside Stock Equity
498,977
Long Term Debt And Capital Lease Obligation
7,892,937
7,882,963
7,292,959
7,604,515
Long Term Capital Lease Obligation
304,575
304,897
311,640
308,748
Long Term Debt
7,588,362
7,578,066
6,981,319
7,295,767
Current Liabilities
1,037,181
980,696
821,455
536,914
Current Debt And Capital Lease Obligation
586,648
543,679
409,131
129,955
Current Debt
586,648
543,679
409,131
129,955
Commercial Paper
586,648
543,679
Payables And Accrued Expenses
450,533
437,017
412,324
406,959
Current Accrued Expenses
73,860
74,176
65,716
66,310
Interest Payable
73,860
74,176
65,716
66,310
Payables
376,673
362,841
346,608
340,649
Dividends Payable
267,508
263,494
259,231
244,621
Accounts Payable
109,165
99,347
87,377
96,028
Total Assets
20,746,023
20,834,176
20,034,564
20,218,262
Total Non Current Assets
20,587,169
20,674,010
19,894,569
20,081,090
Other Non Current Assets
367,365
273,706
252,953
278,206
Investments And Advances
325,939
386,531
282,049
279,024
Long Term Equity Investment
325,939
386,531
282,049
279,024
Investmentsin Joint Venturesat Cost
325,939
386,531
282,049
279,024
Investment Properties
19,438,949
19,558,328
18,902,301
19,060,904
Net PPE
454,916
455,445
457,266
462,956
Gross PPE
454,916
455,445
457,266
462,956
Other Properties
454,916
455,445
457,266
Buildings And Improvements
38,745
34,767
36,897
Land And Improvements
418,521
428,189
437,816
Current Assets
158,854
160,166
139,995
137,172
Restricted Cash
102,950
97,864
89,252
83,303
Cash Cash Equivalents And Short Term Investments
55,904
62,302
50,743
53,869
Cash And Cash Equivalents
55,904
62,302
50,743
53,869
Cash Flow
2025
2024
2023
2022
2021
Free Cash Flow
1,289,704
1,254,918
1,199,258
1,222,515
Repurchase Of Capital Stock
-280,720
-60,043
-49,105
0
Repayment Of Debt
-48,360,056
-33,382,735
-6,783,506
-7,013,474
Issuance Of Debt
48,403,919
34,106,257
6,696,964
6,084,137
Issuance Of Capital Stock
0
0
139,623
0
Capital Expenditure
-359,059
-318,689
-333,540
-232,241
Interest Paid Supplemental Data
241,034
248,990
267,612
252,838
Income Tax Paid Supplemental Data
1,339
1,091
748
1,179
End Cash Position
158,854
160,166
139,995
137,172
Beginning Cash Position
160,166
139,995
137,172
360,236
Changes In Cash
-1,312
20,171
2,823
-223,064
Financing Cash Flow
-1,328,713
-376,952
-1,120,471
-1,785,612
Cash Flow From Continuing Financing Activities
-1,328,713
-376,952
-1,120,471
-1,785,612
Net Other Financing Charges
-52,406
-45,517
-18,735
-91,044
Proceeds From Stock Option Exercised
8,219
26,522
27,149
29,247
Cash Dividends Paid
-1,047,669
-1,021,436
-993,238
-934,101
Preferred Stock Dividend Paid
-1,422
-2,386
-3,090
-2,318
Common Stock Dividend Paid
-1,046,247
-1,019,050
-990,148
-931,783
Net Preferred Stock Issuance
0
-21,569
0
0
Preferred Stock Payments
0
-21,569
0
0
Net Common Stock Issuance
-280,720
-38,474
-49,105
139,623
Common Stock Payments
-280,720
-38,474
-49,105
0
Common Stock Issuance
0
0
139,623
0
Net Issuance Payments Of Debt
43,863
723,522
-86,542
-929,337
Net Short Term Debt Issuance
42,969
134,548
279,176
-185,075
Short Term Debt Payments
-47,862,370
-33,373,755
-5,844,892
-6,221,158
Short Term Debt Issuance
47,905,339
33,508,303
6,124,068
6,036,083
Net Long Term Debt Issuance
894
588,974
-365,718
-744,262
Long Term Debt Payments
-497,686
-8,980
-938,614
-792,316
Long Term Debt Issuance
498,580
597,954
572,896
48,054
Investing Cash Flow
-321,362
-1,176,484
-409,504
107,792
Cash Flow From Continuing Investing Activities
-321,362
-1,176,484
-409,504
107,792
Net Other Investing Changes
-56,755
Interest Received Cfi
-15,932
Dividends Received Cfi
13,880
1,409
42
300
Net Investment Purchase And Sale
790
15,041
542
1,523
Sale Of Investment
1,040
15,041
3,042
3,584
Purchase Of Investment
-250
0
-2,500
-2,061
Net Investment Properties Purchase And Sale
333,857
-764,524
-28,676
497,911
Sale Of Investment Properties
1,107,259
960,398
374,018
720,302
Purchase Of Investment Properties
-773,402
-1,724,922
-402,694
-222,391
Net Business Purchase And Sale
-254,075
-109,721
-47,872
-159,701
Sale Of Business
0
2,108
0
0
Purchase Of Business
-254,075
-109,721
-49,980
-159,701
Net PPE Purchase And Sale
-4,583
-2,766
-1,851
-4,050
Purchase Of PPE
-4,583
-2,766
-1,851
-4,050
Capital Expenditure Reported
-354,476
-315,923
-331,689
-228,191
Operating Cash Flow
1,648,763
1,573,607
1,532,798
1,454,756
Cash Flow From Continuing Operating Activities
1,648,763
1,573,607
1,532,798
1,454,756
Dividend Received Cfo
4,540
555
559
398
Change In Working Capital
46,300
39,134
2,159
-4,692
Change In Other Current Liabilities
33,929
32,805
3,807
-14,918
Change In Other Current Assets
-8,745
-11,813
-10,203
10,893
Change In Payables And Accrued Expense
15,052
11,709
8,317
-3,466
Change In Accrued Expense
-316
8,460
-594
-3,200
Change In Interest Payable
-316
8,460
-594
-3,200
Change In Payable
15,368
3,249
8,911
-266
Change In Account Payable
15,368
3,249
8,911
-266
Change In Prepaid Assets
6,064
6,433
238
2,799
Other Non Cash Items
14,036
12,985
13,032
13,733
Stock Based Compensation
32,210
31,287
31,815
29,513
Unrealized Gain Loss On Investment Securities
-25,399
-19,880
-13,466
-2,061
Asset Impairment Charge
7,735
5,155
3,647
4,780
Depreciation Amortization Depletion
1,023,235
966,739
901,504
894,325
Depreciation And Amortization
1,023,235
966,739
901,504
894,325
Amortization Cash Flow
0
0
-154
Amortization Of Intangibles
0
0
-154
Depreciation
1,023,235
966,739
901,504
894,325
Operating Gains Losses
-605,843
-533,343
-274,940
-288,235
Earnings Losses From Equity Investments
18,915
8,974
5,378
5,031
Gain Loss On Investment Securities
-624,758
-542,317
-280,318
-293,266
Net Income From Continuing Operations
1,151,949
1,070,975
868,488
806,995
3/5
Graham Score
Speculative Investor
Fails most of Graham's safety criteria. Treat with caution.
Graham's Fair Value
N/A
N/A — requires
positive EPS and positive book value per share. Check the Financials tab for earnings history.
Margin of Safety
—
Market Cap / Net Assets
N/A
Net Assets: $11.4B
Warren's Owner Earnings
$2.5B
Latest fiscal year
Graham's 7 Criteria
Defensive Investor Checklist
3/5 — Speculative Investor
✅
Adequate Size
Graham required companies large enough to withstand economic downturns. This threshold ($1.5B) is inflation-adjusted from Graham's original $100M — virtually all S&P 500 companies pass this today.
$3.1B
vs > $1.5B revenue
❌
Strong Financial Condition
Current assets must be at least twice current liabilities. Note: highly profitable companies (Apple, Domino's) often run negative or low working capital deliberately — they collect cash fast and stretch payables. A failing score here is not always a warning sign.
0.15x
vs Current Ratio > 2.0x
✅
Earnings Stability
Graham required uninterrupted positive earnings. Any loss year is a red flag for defensive investors. Growth companies and cyclicals may show occasional losses during investment cycles or downturns without being fundamentally unsound.
No loss years (4 yrs data)
vs No negative EPS years
❌
Dividend Record
Graham valued dividends as evidence of financial discipline and shareholder alignment. Many excellent modern businesses (Alphabet, Amazon, Berkshire Hathaway) pay no dividend, preferring to reinvest cash at high rates of return. Failing this criterion does not indicate a poor business — it may indicate a high-growth one.
No dividend
vs Uninterrupted dividends
✅
Earnings Growth
EPS grew from $2.05 to $2.94 over 3 years. Graham's 33% threshold was set over a 10-year period. Measured over fewer years (as here), the bar is proportionally lower. Share buybacks can also inflate EPS growth without reflecting underlying business improvement.
+43.4% EPS growth
vs > 33% EPS growth
Graham's 7 Criteria — Explained
What each criterion measures and why it matters.
✅ Adequate Size — $3.1Bvs > $1.5B revenue
Graham required companies large enough to withstand economic downturns. This threshold ($1.5B) is inflation-adjusted from Graham's original $100M — virtually all S&P 500 companies pass this today.
"The minimum size of an enterprise should be not less than $100 million of annual sales."
❌ Strong Financial Condition — 0.15xvs Current Ratio > 2.0x
Current assets must be at least twice current liabilities. Note: highly profitable companies (Apple, Domino's) often run negative or low working capital deliberately — they collect cash fast and stretch payables. A failing score here is not always a warning sign.
"For industrial companies, current assets should be at least twice current liabilities."
✅ Earnings Stability — No loss years (4 yrs data)vs No negative EPS years
Graham required uninterrupted positive earnings. Any loss year is a red flag for defensive investors. Growth companies and cyclicals may show occasional losses during investment cycles or downturns without being fundamentally unsound.
"The company should have shown no deficit in the past ten years."
❌ Dividend Record — No dividendvs Uninterrupted dividends
Graham valued dividends as evidence of financial discipline and shareholder alignment. Many excellent modern businesses (Alphabet, Amazon, Berkshire Hathaway) pay no dividend, preferring to reinvest cash at high rates of return. Failing this criterion does not indicate a poor business — it may indicate a high-growth one.
"Some current dividend payments — for at least the past 20 years."
EPS grew from $2.05 to $2.94 over 3 years. Graham's 33% threshold was set over a 10-year period. Measured over fewer years (as here), the bar is proportionally lower. Share buybacks can also inflate EPS growth without reflecting underlying business improvement.
"A minimum increase of at least one-third in per-share earnings over ten years."
These metrics estimate what EQR is worth based on fundamentals — independent of what the market prices it at.
Graham's Fair Value and NCAV are conservative floors.
EPV assumes zero growth. These are reference points, not price targets.
Net Current Asset Value
N/A
"Buy at two-thirds of net current assets." — Graham
Earnings Power Value
N/A
Per share, no-growth floor. Compare to current price.
ROIC — Return on Invested Capital
3.5%
Return on Invested Capital — Buffett's preferred measure for asset-light businesses. ROIC > 15% consistently signals a durable competitive advantage (moat). More meaningful than P/B for software, pharma, and consumer brand companies where most value is intangible and off-balance-sheet.
Cash Flow Analysis
Metric
2025
2024
2023
2022
2021
Capital Expenditure % of Net Income
32.1%
30.8%
39.9%
29.9%
N/A
Repurchase of Capital Stock
-$281M
-$60M
-$49M
$0M
N/A
Free Cash Flow
$1.3B▲
$1.3B▲
$1.2B▼
$1.2B•
N/A•
Warren's Owner Earnings
$2.5B
$2.3B
$2.1B
$1.9B
N/A
Peers & Industry
No auto-detected peers for this industry. You can manually compare EQR against any stock using the Compare tool.
"The management of a business is its most important single factor — more important than market position, patents, or financial structure."
— Benjamin Graham
No management data available.
Risk Analysis
EQR (EQR) fundamental analysis — Overall grade C based on profitability, financial health, valuation and cash flow. Graham's
Fair Value: N/A. Gross profit margin: 62.9%. Operating margin: 28.1%. Net margin: 36.2%. Analysis powered by 360investing — free fundamental stock analysis based on Benjamin Graham and Warren Buffett
principles.
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