EQUITABLE HOLDINGS INC (EQH) Stock Fundamental Analysis
USA - New York Stock Exchange - NYSE:EQH - US29452E1010 - Common Stock
48.02 USD
+0.23 (+0.48%)
48.02 USD
0 (0%)
EQH gets a fundamental rating of 4 out of 10. The analysis compared the fundamentals against 99 industry peers in the Financial Services industry. EQH scores quite bad on profitability, while its financial health is fine. Not spectacular, but in line with the averages. EQH has a correct valuation and a medium growth rate.
1. Profitability
1.1 Basic Checks
In the past year EQH was profitable.
EQH had a positive operating cash flow in the past year.
In multiple years EQH reported negative net income over the last 5 years.
In the past 5 years EQH reported 4 times negative operating cash flow.
1.2 Ratios
EQH's Return On Assets of -0.24% is on the low side compared to the rest of the industry. EQH is outperformed by 73.74% of its industry peers.
EQH has a worse Return On Equity (-520.27%) than 90.91% of its industry peers.
EQH has a Return On Invested Capital of 0.52%. This is in the lower half of the industry: EQH underperforms 61.62% of its industry peers.
Measured over the past 3 years, the Average Return On Invested Capital for EQH is significantly below the industry average of 8.44%.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | -0.24% | ||
| ROE | -520.27% | ||
| ROIC | 0.52% |
ROA(3y)0.51%
ROA(5y)0.22%
ROE(3y)81.75%
ROE(5y)47.25%
ROIC(3y)0.99%
ROIC(5y)0.93%
1.3 Margins
The Operating Margin of EQH (12.18%) is comparable to the rest of the industry.
EQH's Operating Margin has improved in the last couple of years.
Looking at the Gross Margin, with a value of 49.15%, EQH is in the better half of the industry, outperforming 68.69% of the companies in the same industry.
EQH's Gross Margin has improved in the last couple of years.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 12.18% | ||
| PM (TTM) | N/A | ||
| GM | 49.15% |
OM growth 3Y-0.53%
OM growth 5Y12.57%
PM growth 3YN/A
PM growth 5YN/A
GM growth 3Y-1.39%
GM growth 5Y3.29%
2. Health
2.1 Basic Checks
EQH has a Return on Invested Capital (ROIC), which is below the Cost of Capital (WACC), which means it is destroying value.
Compared to 1 year ago, EQH has less shares outstanding
Compared to 5 years ago, EQH has less shares outstanding
EQH has a better debt/assets ratio than last year.
2.2 Solvency
Based on the Altman-Z score of 0.21, we must say that EQH is in the distress zone and has some risk of bankruptcy.
Looking at the Altman-Z score, with a value of 0.21, EQH is in line with its industry, outperforming 47.47% of the companies in the same industry.
The Debt to FCF ratio of EQH is 19.39, which is on the high side as it means it would take EQH, 19.39 years of fcf income to pay off all of its debts.
With a Debt to FCF ratio value of 19.39, EQH perfoms like the industry average, outperforming 41.41% of the companies in the same industry.
EQH has a Debt/Equity ratio of 104.84. This is a high value indicating a heavy dependency on external financing.
EQH has a Debt to Equity ratio of 104.84. This is amonst the worse of the industry: EQH underperforms 93.94% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 104.84 | ||
| Debt/FCF | 19.39 | ||
| Altman-Z | 0.21 |
ROIC/WACC0.12
WACC4.51%
2.3 Liquidity
EQH has a Current Ratio of 2.45. This indicates that EQH is financially healthy and has no problem in meeting its short term obligations.
The Current ratio of EQH (2.45) is better than 78.79% of its industry peers.
EQH has a Quick Ratio of 2.45. This indicates that EQH is financially healthy and has no problem in meeting its short term obligations.
With a decent Quick ratio value of 2.45, EQH is doing good in the industry, outperforming 79.80% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 2.45 | ||
| Quick Ratio | 2.45 |
3. Growth
3.1 Past
EQH shows a slight negative growth in Earnings Per Share. In the last year, the EPS has decreased by -4.72%.
EQH shows a small growth in Earnings Per Share. Measured over the last years, the EPS has been growing by 4.12% yearly.
Looking at the last year, EQH shows a decrease in Revenue. The Revenue has decreased by -4.25% in the last year.
The Revenue has been growing slightly by 4.47% on average over the past years.
EPS 1Y (TTM)-4.72%
EPS 3Y-3.05%
EPS 5Y4.12%
EPS Q2Q%-3.27%
Revenue 1Y (TTM)-4.25%
Revenue growth 3Y3.04%
Revenue growth 5Y4.47%
Sales Q2Q%-52.86%
3.2 Future
EQH is expected to show quite a strong growth in Earnings Per Share. In the coming years, the EPS will grow by 14.10% yearly.
EQH is expected to show a small growth in Revenue. In the coming years, the Revenue will grow by 6.07% yearly.
EPS Next Y-4.05%
EPS Next 2Y16.11%
EPS Next 3Y16.82%
EPS Next 5Y14.1%
Revenue Next Year1.71%
Revenue Next 2Y3.34%
Revenue Next 3Y4.66%
Revenue Next 5Y6.07%
3.3 Evolution
When comparing the EPS growth rate of the last years to the growth rate of the upcoming years, we see that the growth is accelerating.
When comparing the Revenue growth rate of the last years to the growth rate of the upcoming years, we see that the growth is accelerating.
4. Valuation
4.1 Price/Earnings Ratio
Based on the Price/Earnings ratio of 8.81, the valuation of EQH can be described as reasonable.
Based on the Price/Earnings ratio, EQH is valued a bit cheaper than the industry average as 70.71% of the companies are valued more expensively.
EQH's Price/Earnings ratio indicates a rather cheap valuation when compared to the S&P500 average which is at 26.39.
With a Price/Forward Earnings ratio of 5.98, the valuation of EQH can be described as very cheap.
Based on the Price/Forward Earnings ratio, EQH is valued cheaper than 83.84% of the companies in the same industry.
The average S&P500 Price/Forward Earnings ratio is at 23.84. EQH is valued rather cheaply when compared to this.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 8.81 | ||
| Fwd PE | 5.98 |
4.2 Price Multiples
Based on the Enterprise Value to EBITDA ratio, EQH is valued a bit cheaper than the industry average as 78.79% of the companies are valued more expensively.
Based on the Price/Free Cash Flow ratio, EQH is valued a bit cheaper than the industry average as 72.73% of the companies are valued more expensively.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 11.54 | ||
| EV/EBITDA | 7.67 |
4.3 Compensation for Growth
EQH's earnings are expected to grow with 16.82% in the coming years. This may justify a more expensive valuation.
PEG (NY)N/A
PEG (5Y)2.14
EPS Next 2Y16.11%
EPS Next 3Y16.82%
5. Dividend
5.1 Amount
EQH has a Yearly Dividend Yield of 2.26%. Purely for dividend investing, there may be better candidates out there.
Compared to an average industry Dividend Yield of 2.43, EQH pays a bit more dividend than its industry peers.
EQH's Dividend Yield is a higher than the S&P500 average which is at 1.87.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 2.26% |
5.2 History
The dividend of EQH is nicely growing with an annual growth rate of 15.63%!
EQH has been paying a dividend for over 5 years, so it has already some track record.
Dividend Growth(5Y)15.63%
Div Incr Years0
Div Non Decr Years0
5.3 Sustainability
The earnings of EQH are negative and hence is the payout ratio. EQH will probably not be able to sustain this dividend level.
The dividend of EQH is growing, but the earnings are growing slower. This means the dividend growth is not sustainable.
DP-50.13%
EPS Next 2Y16.11%
EPS Next 3Y16.82%
48.02
+0.23 (+0.48%)
Chartmill FA Rating
GICS SectorFinancials
GICS IndustryGroupFinancial Services
GICS IndustryFinancial Services
Earnings (Last)
Earnings (Next)
Inst Owners102.45%
Inst Owner Change1.16%
Ins Owners0.48%
Ins Owner Change-0.29%
Market Cap13.76B
Revenue(TTM)15.06B
Net Income(TTM)-770.00M
Analysts80
Price Target65.54 (36.48%)
Short Float %3.02%
Short Ratio3.08
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 2.26% |
Yearly Dividend1.19
Dividend Growth(5Y)15.63%
DP-50.13%
Div Incr Years0
Div Non Decr Years0
Ex-Date
Surprises & Revisions
EPS beat(2)0
Avg EPS beat(2)-12.21%
Min EPS beat(2)-15.26%
Max EPS beat(2)-9.16%
EPS beat(4)0
Avg EPS beat(4)-10.23%
Min EPS beat(4)-15.26%
Max EPS beat(4)-3.88%
EPS beat(8)3
Avg EPS beat(8)-2.6%
EPS beat(12)3
Avg EPS beat(12)-5.84%
EPS beat(16)6
Avg EPS beat(16)-3.92%
Revenue beat(2)0
Avg Revenue beat(2)-49.91%
Min Revenue beat(2)-59.37%
Max Revenue beat(2)-40.44%
Revenue beat(4)1
Avg Revenue beat(4)-24.56%
Min Revenue beat(4)-59.37%
Max Revenue beat(4)12.88%
Revenue beat(8)1
Avg Revenue beat(8)-25.64%
Revenue beat(12)3
Avg Revenue beat(12)-20.55%
Revenue beat(16)5
Avg Revenue beat(16)-17.71%
PT rev (1m)-1.15%
PT rev (3m)-2.82%
EPS NQ rev (1m)-0.01%
EPS NQ rev (3m)0.84%
EPS NY rev (1m)-2.78%
EPS NY rev (3m)-3.95%
Revenue NQ rev (1m)8.92%
Revenue NQ rev (3m)11.6%
Revenue NY rev (1m)6.21%
Revenue NY rev (3m)6.6%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 8.81 | ||
| Fwd PE | 5.98 | ||
| P/S | 0.91 | ||
| P/FCF | 11.54 | ||
| P/OCF | 10.85 | ||
| P/B | 92.97 | ||
| P/tB | N/A | ||
| EV/EBITDA | 7.67 |
EPS(TTM)5.45
EY11.35%
EPS(NY)8.03
Fwd EY16.73%
FCF(TTM)4.16
FCFY8.66%
OCF(TTM)4.43
OCFY9.22%
SpS52.55
BVpS0.52
TBVpS-18.07
PEG (NY)N/A
PEG (5Y)2.14
Graham Number7.96
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | -0.24% | ||
| ROE | -520.27% | ||
| ROCE | 0.61% | ||
| ROIC | 0.52% | ||
| ROICexc | 0.55% | ||
| ROICexgc | 1.16% | ||
| OM | 12.18% | ||
| PM (TTM) | N/A | ||
| GM | 49.15% | ||
| FCFM | 7.92% |
ROA(3y)0.51%
ROA(5y)0.22%
ROE(3y)81.75%
ROE(5y)47.25%
ROIC(3y)0.99%
ROIC(5y)0.93%
ROICexc(3y)1.01%
ROICexc(5y)0.95%
ROICexgc(3y)2.3%
ROICexgc(5y)2.17%
ROCE(3y)1.15%
ROCE(5y)1.08%
ROICexgc growth 3Y0.46%
ROICexgc growth 5Y11.98%
ROICexc growth 3Y2.18%
ROICexc growth 5Y13.84%
OM growth 3Y-0.53%
OM growth 5Y12.57%
PM growth 3YN/A
PM growth 5YN/A
GM growth 3Y-1.39%
GM growth 5Y3.29%
F-Score4
Asset Turnover0.05
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 104.84 | ||
| Debt/FCF | 19.39 | ||
| Debt/EBITDA | 5.73 | ||
| Cap/Depr | 8.72% | ||
| Cap/Sales | 0.5% | ||
| Interest Coverage | 250 | ||
| Cash Conversion | 46.86% | ||
| Profit Quality | N/A | ||
| Current Ratio | 2.45 | ||
| Quick Ratio | 2.45 | ||
| Altman-Z | 0.21 |
F-Score4
WACC4.51%
ROIC/WACC0.12
Cap/Depr(3y)17.57%
Cap/Depr(5y)16.59%
Cap/Sales(3y)1.02%
Cap/Sales(5y)0.92%
Profit Quality(3y)N/A
Profit Quality(5y)N/A
High Growth Momentum
Growth
EPS 1Y (TTM)-4.72%
EPS 3Y-3.05%
EPS 5Y4.12%
EPS Q2Q%-3.27%
EPS Next Y-4.05%
EPS Next 2Y16.11%
EPS Next 3Y16.82%
EPS Next 5Y14.1%
Revenue 1Y (TTM)-4.25%
Revenue growth 3Y3.04%
Revenue growth 5Y4.47%
Sales Q2Q%-52.86%
Revenue Next Year1.71%
Revenue Next 2Y3.34%
Revenue Next 3Y4.66%
Revenue Next 5Y6.07%
EBIT growth 1Y-52.73%
EBIT growth 3Y2.49%
EBIT growth 5Y17.6%
EBIT Next Year1.82%
EBIT Next 3Y12.06%
EBIT Next 5YN/A
FCF growth 1Y336.98%
FCF growth 3YN/A
FCF growth 5YN/A
OCF growth 1Y456.18%
OCF growth 3YN/A
OCF growth 5YN/A
EQUITABLE HOLDINGS INC / EQH FAQ
Can you provide the ChartMill fundamental rating for EQUITABLE HOLDINGS INC?
ChartMill assigns a fundamental rating of 4 / 10 to EQH.
What is the valuation status of EQUITABLE HOLDINGS INC (EQH) stock?
ChartMill assigns a valuation rating of 6 / 10 to EQUITABLE HOLDINGS INC (EQH). This can be considered as Fairly Valued.
Can you provide the profitability details for EQUITABLE HOLDINGS INC?
EQUITABLE HOLDINGS INC (EQH) has a profitability rating of 3 / 10.
How financially healthy is EQUITABLE HOLDINGS INC?
The financial health rating of EQUITABLE HOLDINGS INC (EQH) is 5 / 10.
Is the dividend of EQUITABLE HOLDINGS INC sustainable?
The dividend rating of EQUITABLE HOLDINGS INC (EQH) is 3 / 10 and the dividend payout ratio is -50.13%.