EQUITABLE HOLDINGS INC (EQH) Stock Fundamental Analysis
USA - New York Stock Exchange - NYSE:EQH - US29452E1010 - Common Stock
45.12 USD
+1.32 (+3.01%)
45.12 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. The financial health of EQH is average, but there are quite some concerns on its profitability. EQH has a correct valuation and a medium growth rate.
1. Profitability
1.1 Basic Checks
EQH had positive earnings in the past year.
EQH had a positive operating cash flow in the past year.
The reported net income has been mixed in the past 5 years: EQH reported negative net income in multiple years.
EQH had negative operating cash flow in 4 of the past 5 years.
1.2 Ratios
The Return On Assets of EQH (-0.24%) is worse than 76.77% of its industry peers.
EQH has a worse Return On Equity (-520.27%) than 90.91% of its industry peers.
With a Return On Invested Capital value of 0.52%, EQH is not doing good in the industry: 65.66% of the companies in the same industry are doing better.
Measured over the past 3 years, the Average Return On Invested Capital for EQH is significantly below the industry average of 8.14%.
| 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
With a Operating Margin value of 12.18%, EQH perfoms like the industry average, outperforming 44.44% of the companies in the same industry.
EQH's Operating Margin has improved in the last couple of years.
EQH has a Gross Margin of 49.15%. This is in the better half of the industry: EQH outperforms 67.68% of its industry peers.
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
EQH has an Altman-Z score of 0.22. This is a bad value and indicates that EQH is not financially healthy and even has some risk of bankruptcy.
EQH has a Altman-Z score of 0.22. This is comparable to the rest of the industry: EQH outperforms 45.45% of its industry peers.
The Debt to FCF ratio of EQH is 16.88, which is on the high side as it means it would take EQH, 16.88 years of fcf income to pay off all of its debts.
With a Debt to FCF ratio value of 16.88, EQH perfoms like the industry average, outperforming 42.42% of the companies in the same industry.
A Debt/Equity ratio of 104.84 is on the high side and indicates that EQH has dependencies on debt financing.
Looking at the Debt to Equity ratio, with a value of 104.84, EQH is doing worse than 92.93% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 104.84 | ||
| Debt/FCF | 16.88 | ||
| Altman-Z | 0.22 |
ROIC/WACC0.12
WACC4.44%
2.3 Liquidity
EQH has a Current Ratio of 3.08. This indicates that EQH is financially healthy and has no problem in meeting its short term obligations.
EQH has a better Current ratio (3.08) than 83.84% of its industry peers.
A Quick Ratio of 3.08 indicates that EQH has no problem at all paying its short term obligations.
With an excellent Quick ratio value of 3.08, EQH belongs to the best of the industry, outperforming 84.85% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 3.08 | ||
| Quick Ratio | 3.08 |
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%.
The Earnings Per Share has been growing slightly by 4.12% on average over the past years.
The Revenue has decreased by -4.25% in the past year.
EQH shows a small growth in Revenue. Measured over the last years, the Revenue has been growing by 4.47% yearly.
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
The Earnings Per Share is expected to grow by 16.18% on average over the next years. This is quite good.
Based on estimates for the next years, EQH will show a small growth in Revenue. The Revenue will grow by 6.11% on average per year.
EPS Next Y-1.31%
EPS Next 2Y16.89%
EPS Next 3Y17.13%
EPS Next 5Y16.18%
Revenue Next Year-4.24%
Revenue Next 2Y-0.69%
Revenue Next 3Y1.65%
Revenue Next 5Y6.11%
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
EQH is valuated reasonably with a Price/Earnings ratio of 8.28.
EQH's Price/Earnings ratio is a bit cheaper when compared to the industry. EQH is cheaper than 74.75% of the companies in the same industry.
The average S&P500 Price/Earnings ratio is at 25.45. EQH is valued rather cheaply when compared to this.
Based on the Price/Forward Earnings ratio of 5.54, the valuation of EQH can be described as very cheap.
EQH's Price/Forward Earnings ratio is rather cheap when compared to the industry. EQH is cheaper than 83.84% of the companies in the same industry.
EQH's Price/Forward Earnings ratio indicates a rather cheap valuation when compared to the S&P500 average which is at 34.46.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 8.28 | ||
| Fwd PE | 5.54 |
4.2 Price Multiples
85.86% of the companies in the same industry are more expensive than EQH, based on the Enterprise Value to EBITDA ratio.
EQH's Price/Free Cash Flow ratio is a bit cheaper when compared to the industry. EQH is cheaper than 70.71% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 11.34 | ||
| EV/EBITDA | 6.47 |
4.3 Compensation for Growth
A more expensive valuation may be justified as EQH's earnings are expected to grow with 17.13% in the coming years.
PEG (NY)N/A
PEG (5Y)2.01
EPS Next 2Y16.89%
EPS Next 3Y17.13%
5. Dividend
5.1 Amount
EQH has a Yearly Dividend Yield of 2.47%.
Compared to an average industry Dividend Yield of 4.63, EQH pays a bit more dividend than its industry peers.
Compared to an average S&P500 Dividend Yield of 2.42, EQH has a dividend comparable with the average S&P500 company.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 2.47% |
5.2 History
On average, the dividend of EQH grows each year by 15.63%, which is quite nice.
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.
EQH's earnings are growing around the same pace than its dividend. As long as the earnings growth is kept the dividend growth is sustainable.
DP-50.13%
EPS Next 2Y16.89%
EPS Next 3Y17.13%
45.12
+1.32 (+3.01%)
Chartmill FA Rating
GICS SectorFinancials
GICS IndustryGroupFinancial Services
GICS IndustryFinancial Services
Earnings (Last)
Earnings (Next)
Inst Owners100.63%
Inst Owner Change1.13%
Ins Owners0.5%
Ins Owner Change-0.23%
Market Cap13.52B
Revenue(TTM)15.06B
Net Income(TTM)-770.00M
Analysts80
Price Target65.71 (45.63%)
Short Float %2.61%
Short Ratio2.62
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 2.47% |
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)-1.65%
PT rev (3m)-2.56%
EPS NQ rev (1m)-0.97%
EPS NQ rev (3m)0.23%
EPS NY rev (1m)-0.23%
EPS NY rev (3m)-1.21%
Revenue NQ rev (1m)-1.03%
Revenue NQ rev (3m)2.46%
Revenue NY rev (1m)-1.05%
Revenue NY rev (3m)0.37%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 8.28 | ||
| Fwd PE | 5.54 | ||
| P/S | 0.9 | ||
| P/FCF | 11.34 | ||
| P/OCF | 10.66 | ||
| P/B | 91.32 | ||
| P/tB | N/A | ||
| EV/EBITDA | 6.47 |
EPS(TTM)5.45
EY12.08%
EPS(NY)8.14
Fwd EY18.05%
FCF(TTM)3.98
FCFY8.82%
OCF(TTM)4.23
OCFY9.38%
SpS50.27
BVpS0.49
TBVpS-17.29
PEG (NY)N/A
PEG (5Y)2.01
Graham Number7.78
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | -0.24% | ||
| ROE | -520.27% | ||
| ROCE | 0.61% | ||
| ROIC | 0.52% | ||
| ROICexc | 0.54% | ||
| ROICexgc | 1.13% | ||
| 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 | 16.88 | ||
| 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 | 3.08 | ||
| Quick Ratio | 3.08 | ||
| Altman-Z | 0.22 |
F-Score4
WACC4.44%
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-1.31%
EPS Next 2Y16.89%
EPS Next 3Y17.13%
EPS Next 5Y16.18%
Revenue 1Y (TTM)-4.25%
Revenue growth 3Y3.04%
Revenue growth 5Y4.47%
Sales Q2Q%-52.86%
Revenue Next Year-4.24%
Revenue Next 2Y-0.69%
Revenue Next 3Y1.65%
Revenue Next 5Y6.11%
EBIT growth 1Y-52.73%
EBIT growth 3Y2.49%
EBIT growth 5Y17.6%
EBIT Next Year8.74%
EBIT Next 3Y14.53%
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 4 / 10.
How financially healthy is EQUITABLE HOLDINGS INC?
The financial health rating of EQUITABLE HOLDINGS INC (EQH) is 4 / 10.
Is the dividend of EQUITABLE HOLDINGS INC sustainable?
The dividend rating of EQUITABLE HOLDINGS INC (EQH) is 4 / 10 and the dividend payout ratio is -50.13%.