EQUITABLE HOLDINGS INC (EQH) Stock Fundamental Analysis
USA - New York Stock Exchange - NYSE:EQH - US29452E1010 - Common Stock
48.58 USD
-0.16 (-0.33%)
48.58 USD
0 (0%)
Taking everything into account, EQH scores 4 out of 10 in our fundamental rating. EQH was compared to 98 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 decent growth rate and is not valued too expensively.
1. Profitability
1.1 Basic Checks
EQH had positive earnings in the past year.
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
EQH has a worse Return On Assets (-0.24%) than 73.74% of its industry peers.
Looking at the Return On Equity, with a value of -520.27%, EQH is doing worse than 90.91% of the companies in the same industry.
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.
The Average Return On Invested Capital over the past 3 years 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
EQH has a Operating Margin (12.18%) which is in line with its industry peers.
In the last couple of years the Operating Margin of EQH has grown nicely.
EQH has a Gross Margin of 49.15%. This is in the better half of the industry: EQH outperforms 68.69% of its industry peers.
In the last couple of years the Gross Margin of EQH has grown nicely.
| 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
With a Return on Invested Capital (ROIC) below the Cost of Capital (WACC), EQH is destroying value.
The number of shares outstanding for EQH has been reduced compared to 1 year ago.
Compared to 5 years ago, EQH has less shares outstanding
Compared to 1 year ago, EQH has an improved debt to assets ratio.
2.2 Solvency
EQH has an Altman-Z score of 0.21. 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 0.21. This is comparable to the rest of the industry: EQH outperforms 47.47% of its industry peers.
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.
The Debt to FCF ratio of EQH (19.39) is comparable to the rest of the industry.
A Debt/Equity ratio of 104.84 is on the high side and indicates that EQH has dependencies on debt financing.
EQH's Debt to Equity ratio of 104.84 is on the low side compared to the rest of the industry. EQH is outperformed by 94.95% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 104.84 | ||
| Debt/FCF | 19.39 | ||
| Altman-Z | 0.21 |
ROIC/WACC0.12
WACC4.52%
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.
A Quick Ratio of 2.45 indicates that EQH has no problem at all paying its short term obligations.
Looking at the Quick ratio, with a value of 2.45, EQH is in the better half of 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%.
Measured over the past 5 years, EQH shows a small growth in Earnings Per Share. The EPS has been growing by 4.12% on average per year.
EQH shows a decrease in Revenue. In the last year, the revenue decreased by -4.25%.
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%-14.47%
3.2 Future
The Earnings Per Share is expected to grow by 14.10% on average over the next years. This is quite good.
The Revenue is expected to grow by 6.07% on average over the next years.
EPS Next Y-4.14%
EPS Next 2Y16.11%
EPS Next 3Y16.96%
EPS Next 5Y14.1%
Revenue Next Year0.68%
Revenue Next 2Y3.83%
Revenue Next 3Y5.3%
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
With a Price/Earnings ratio of 8.91, the valuation of EQH can be described as very reasonable.
Based on the Price/Earnings ratio, EQH is valued a bit cheaper than 71.72% of the companies in the same industry.
Compared to an average S&P500 Price/Earnings ratio of 26.92, EQH is valued rather cheaply.
With a Price/Forward Earnings ratio of 6.05, the valuation of EQH can be described as very cheap.
83.84% of the companies in the same industry are more expensive than EQH, based on the Price/Forward Earnings ratio.
The average S&P500 Price/Forward Earnings ratio is at 23.46. EQH is valued rather cheaply when compared to this.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 8.91 | ||
| Fwd PE | 6.05 |
4.2 Price Multiples
Based on the Enterprise Value to EBITDA ratio, EQH is valued a bit cheaper than the industry average as 77.78% 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 71.72% of the companies are valued more expensively.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 11.68 | ||
| EV/EBITDA | 7.72 |
4.3 Compensation for Growth
EQH's earnings are expected to grow with 16.96% in the coming years. This may justify a more expensive valuation.
PEG (NY)N/A
PEG (5Y)2.16
EPS Next 2Y16.11%
EPS Next 3Y16.96%
5. Dividend
5.1 Amount
With a Yearly Dividend Yield of 2.22%, EQH has a reasonable but not impressive dividend return.
Compared to an average industry Dividend Yield of 2.36, EQH pays a bit more dividend than its industry peers.
Compared to an average S&P500 Dividend Yield of 2.00, EQH has a dividend comparable with the average S&P500 company.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 2.22% |
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 3Y16.96%
48.58
-0.16 (-0.33%)
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 Cap13.92B
Revenue(TTM)15.06B
Net Income(TTM)-770.00M
Analysts80
Price Target65.67 (35.18%)
Short Float %3.02%
Short Ratio3.08
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 2.22% |
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)-33.36%
Min Revenue beat(2)-40.44%
Max Revenue beat(2)-26.28%
Revenue beat(4)1
Avg Revenue beat(4)-16.29%
Min Revenue beat(4)-40.44%
Max Revenue beat(4)12.88%
Revenue beat(8)1
Avg Revenue beat(8)-21.51%
Revenue beat(12)3
Avg Revenue beat(12)-17.79%
Revenue beat(16)5
Avg Revenue beat(16)-15.64%
PT rev (1m)-0.05%
PT rev (3m)-2.61%
EPS NQ rev (1m)-0.62%
EPS NQ rev (3m)0.57%
EPS NY rev (1m)-2.87%
EPS NY rev (3m)-3.47%
Revenue NQ rev (1m)13.15%
Revenue NQ rev (3m)12.52%
Revenue NY rev (1m)5.14%
Revenue NY rev (3m)5.52%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 8.91 | ||
| Fwd PE | 6.05 | ||
| P/S | 0.92 | ||
| P/FCF | 11.68 | ||
| P/OCF | 10.98 | ||
| P/B | 94.05 | ||
| P/tB | N/A | ||
| EV/EBITDA | 7.72 |
EPS(TTM)5.45
EY11.22%
EPS(NY)8.03
Fwd EY16.54%
FCF(TTM)4.16
FCFY8.56%
OCF(TTM)4.43
OCFY9.11%
SpS52.55
BVpS0.52
TBVpS-18.07
PEG (NY)N/A
PEG (5Y)2.16
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
WACC4.52%
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-4.14%
EPS Next 2Y16.11%
EPS Next 3Y16.96%
EPS Next 5Y14.1%
Revenue 1Y (TTM)-4.25%
Revenue growth 3Y3.04%
Revenue growth 5Y4.47%
Sales Q2Q%-14.47%
Revenue Next Year0.68%
Revenue Next 2Y3.83%
Revenue Next 3Y5.3%
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 4 / 10 and the dividend payout ratio is -50.13%.