EQUITABLE HOLDINGS INC (EQH) Stock Fundamental Analysis
NYSE:EQH - New York Stock Exchange, Inc. - US29452E1010 - Common Stock - Currency: USD
Taking everything into account, EQH scores 5 out of 10 in our fundamental rating. EQH was compared to 100 industry peers in the Financial Services industry. EQH has only an average score on both its financial health and profitability. EQH scores decently on growth, while it is valued quite cheap. This could make an interesting combination.
1. Profitability
1.1 Basic Checks
In the past year EQH was profitable.
In the past year EQH had a positive cash flow from operations.
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
Looking at the Return On Assets, with a value of 0.41%, EQH is doing worse than 66.00% of the companies in the same industry.
EQH has a Return On Equity of 48.98%. This is amongst the best in the industry. EQH outperforms 95.00% of its industry peers.
EQH has a Return On Invested Capital of 0.83%. This is in the lower half of the industry: EQH underperforms 64.00% 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 11.84%.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 0.41% | ||
| ROE | 48.98% | ||
| ROIC | 0.83% |
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
Looking at the Profit Margin, with a value of 7.66%, EQH is in line with its industry, outperforming 43.00% of the companies in the same industry.
Looking at the Operating Margin, with a value of 17.18%, EQH is in the better half of the industry, outperforming 62.00% of the companies in the same industry.
In the last couple of years the Operating Margin of EQH has grown nicely.
Looking at the Gross Margin, with a value of 52.13%, EQH is in the better half of the industry, outperforming 70.00% of the companies in the same industry.
In the last couple of years the Gross Margin of EQH has grown nicely.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 17.18% | ||
| PM (TTM) | 7.66% | ||
| GM | 52.13% |
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
With a Return on Invested Capital (ROIC) below the Cost of Capital (WACC), EQH is destroying value.
Compared to 1 year ago, EQH has less shares outstanding
The number of shares outstanding for EQH has been reduced compared to 5 years ago.
Compared to 1 year ago, EQH has an improved debt to assets ratio.
2.2 Solvency
EQH has an Altman-Z score of 0.19. 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 (0.19) which is in line with its industry peers.
The Debt to FCF ratio of EQH is 10.03, which is on the high side as it means it would take EQH, 10.03 years of fcf income to pay off all of its debts.
Looking at the Debt to FCF ratio, with a value of 10.03, EQH is in line with its industry, outperforming 55.00% of the companies in the same industry.
A Debt/Equity ratio of 5.43 is on the high side and indicates that EQH has dependencies on debt financing.
EQH's Debt to Equity ratio of 5.43 is on the low side compared to the rest of the industry. EQH is outperformed by 79.00% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 5.43 | ||
| Debt/FCF | 10.03 | ||
| Altman-Z | 0.19 |
ROIC/WACC0.13
WACC6.51%
2.3 Liquidity
A Current Ratio of 1.35 indicates that EQH should not have too much problems paying its short term obligations.
With a decent Current ratio value of 1.35, EQH is doing good in the industry, outperforming 62.00% of the companies in the same industry.
A Quick Ratio of 1.35 indicates that EQH should not have too much problems paying its short term obligations.
EQH's Quick ratio of 1.35 is fine compared to the rest of the industry. EQH outperforms 64.00% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.35 | ||
| Quick Ratio | 1.35 |
3. Growth
3.1 Past
EQH shows a strong growth in Earnings Per Share. In the last year, the EPS has been growing by 14.76%, which is quite good.
The Earnings Per Share has been growing slightly by 4.12% on average over the past years.
Looking at the last year, EQH shows a decrease in Revenue. The Revenue has decreased by -5.55% in the last year.
The Revenue has been growing slightly by 4.47% on average over the past years.
EPS 1Y (TTM)14.76%
EPS 3Y-3.05%
EPS 5Y4.12%
EPS Q2Q%-9.09%
Revenue 1Y (TTM)-5.55%
Revenue growth 3Y3.04%
Revenue growth 5Y4.47%
Sales Q2Q%105.2%
3.2 Future
Based on estimates for the next years, EQH will show a quite strong growth in Earnings Per Share. The EPS will grow by 16.31% on average per year.
Based on estimates for the next years, EQH will show a small growth in Revenue. The Revenue will grow by 5.31% on average per year.
EPS Next Y11.66%
EPS Next 2Y17.89%
EPS Next 3Y18.25%
EPS Next 5Y16.31%
Revenue Next Year-0.1%
Revenue Next 2Y1.86%
Revenue Next 3Y3.3%
Revenue Next 5Y5.31%
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 stable.
4. Valuation
4.1 Price/Earnings Ratio
A Price/Earnings ratio of 9.40 indicates a reasonable valuation of EQH.
Based on the Price/Earnings ratio, EQH is valued a bit cheaper than 71.00% of the companies in the same industry.
The average S&P500 Price/Earnings ratio is at 27.30. EQH is valued rather cheaply when compared to this.
A Price/Forward Earnings ratio of 6.61 indicates a rather cheap valuation of EQH.
Based on the Price/Forward Earnings ratio, EQH is valued a bit cheaper than 80.00% of the companies in the same industry.
EQH is valuated cheaply when we compare the Price/Forward Earnings ratio to 21.76, which is the current average of the S&P500 Index.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 9.4 | ||
| Fwd PE | 6.61 |
4.2 Price Multiples
Based on the Enterprise Value to EBITDA ratio, EQH is valued cheaper than 81.00% of the companies in the same industry.
Compared to the rest of the industry, the Price/Free Cash Flow ratio of EQH indicates a rather cheap valuation: EQH is cheaper than 81.00% of the companies listed in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 8.25 | ||
| EV/EBITDA | 7.75 |
4.3 Compensation for Growth
EQH's low PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates a rather cheap valuation of the company.
A more expensive valuation may be justified as EQH's earnings are expected to grow with 18.25% in the coming years.
PEG (NY)0.81
PEG (5Y)2.28
EPS Next 2Y17.89%
EPS Next 3Y18.25%
5. Dividend
5.1 Amount
EQH has a Yearly Dividend Yield of 1.94%.
Compared to an average industry Dividend Yield of 5.00, EQH pays a bit more dividend than its industry peers.
Compared to an average S&P500 Dividend Yield of 2.37, EQH has a dividend comparable with the average S&P500 company.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.94% |
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
EQH pays out 32.57% of its income as dividend. This is a sustainable payout ratio.
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.
DP32.57%
EPS Next 2Y17.89%
EPS Next 3Y18.25%
54.78
+0.09 (+0.16%)
Chartmill FA Rating
GICS SectorFinancials
GICS IndustryGroupFinancial Services
GICS IndustryFinancial Services
Earnings (Last)
Earnings (Next)
Inst Owners101.23%
Inst Owner Change0%
Ins Owners0.51%
Ins Owner Change0.21%
Market Cap16.78B
Analysts78.82
Price Target65.62 (19.79%)
Short Float %1.74%
Short Ratio2.2
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.94% |
Yearly Dividend1.19
Dividend Growth(5Y)15.63%
DP32.57%
Div Incr Years0
Div Non Decr Years0
Ex-Date
Surprises & Revisions
EPS beat(2)0
Avg EPS beat(2)-8.25%
Min EPS beat(2)-12.62%
Max EPS beat(2)-3.88%
EPS beat(4)1
Avg EPS beat(4)-4.18%
Min EPS beat(4)-12.62%
Max EPS beat(4)0.84%
EPS beat(8)3
Avg EPS beat(8)-1.59%
EPS beat(12)5
Avg EPS beat(12)-2.34%
EPS beat(16)8
Avg EPS beat(16)1.47%
Revenue beat(2)1
Avg Revenue beat(2)0.78%
Min Revenue beat(2)-11.32%
Max Revenue beat(2)12.88%
Revenue beat(4)1
Avg Revenue beat(4)-6.37%
Min Revenue beat(4)-21.09%
Max Revenue beat(4)12.88%
Revenue beat(8)2
Avg Revenue beat(8)-14.83%
Revenue beat(12)4
Avg Revenue beat(12)-15.35%
Revenue beat(16)7
Avg Revenue beat(16)-9.85%
PT rev (1m)2.3%
PT rev (3m)0.87%
EPS NQ rev (1m)-7.4%
EPS NQ rev (3m)-11.55%
EPS NY rev (1m)-0.65%
EPS NY rev (3m)-8.22%
Revenue NQ rev (1m)-1.55%
Revenue NQ rev (3m)-3.29%
Revenue NY rev (1m)0.05%
Revenue NY rev (3m)-6.87%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 9.4 | ||
| Fwd PE | 6.61 | ||
| P/S | 1.09 | ||
| P/FCF | 8.25 | ||
| P/OCF | 7.87 | ||
| P/B | 6.99 | ||
| P/tB | N/A | ||
| EV/EBITDA | 7.75 |
EPS(TTM)5.83
EY10.64%
EPS(NY)8.28
Fwd EY15.12%
FCF(TTM)6.64
FCFY12.12%
OCF(TTM)6.96
OCFY12.71%
SpS50.14
BVpS7.84
TBVpS-9.65
PEG (NY)0.81
PEG (5Y)2.28
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 0.41% | ||
| ROE | 48.98% | ||
| ROCE | 0.96% | ||
| ROIC | 0.83% | ||
| ROICexc | 0.85% | ||
| ROICexgc | 1.8% | ||
| OM | 17.18% | ||
| PM (TTM) | 7.66% | ||
| GM | 52.13% | ||
| FCFM | 13.24% |
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%
ROICexcg growth 3Y0.46%
ROICexcg 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-Score5
Asset Turnover0.05
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 5.43 | ||
| Debt/FCF | 10.03 | ||
| Debt/EBITDA | 3.76 | ||
| Cap/Depr | 12% | ||
| Cap/Sales | 0.65% | ||
| Interest Coverage | 250 | ||
| Cash Conversion | 61.45% | ||
| Profit Quality | 172.87% | ||
| Current Ratio | 1.35 | ||
| Quick Ratio | 1.35 | ||
| Altman-Z | 0.19 |
F-Score5
WACC6.51%
ROIC/WACC0.13
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)14.76%
EPS 3Y-3.05%
EPS 5Y4.12%
EPS Q2Q%-9.09%
EPS Next Y11.66%
EPS Next 2Y17.89%
EPS Next 3Y18.25%
EPS Next 5Y16.31%
Revenue 1Y (TTM)-5.55%
Revenue growth 3Y3.04%
Revenue growth 5Y4.47%
Sales Q2Q%105.2%
Revenue Next Year-0.1%
Revenue Next 2Y1.86%
Revenue Next 3Y3.3%
Revenue Next 5Y5.31%
EBIT growth 1Y-42.65%
EBIT growth 3Y2.49%
EBIT growth 5Y17.6%
EBIT Next Year31.94%
EBIT Next 3YN/A
EBIT Next 5YN/A
FCF growth 1Y300.3%
FCF growth 3YN/A
FCF growth 5YN/A
OCF growth 1Y356.99%
OCF growth 3YN/A
OCF growth 5YN/A