EQUITABLE HOLDINGS INC (EQH) Stock Fundamental Analysis
USA - NYSE:EQH - US29452E1010 - Common Stock
52.8 USD
-0.51 (-0.96%)
52.8 USD
0 (0%)
We assign a fundamental rating of 5 out of 10 to EQH. EQH was compared to 101 industry peers in the Financial Services industry. EQH has an average financial health and profitability rating. EQH has a correct valuation and a medium growth rate.
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.
In the past 5 years EQH reported 4 times negative operating cash flow.
1.2 Ratios
EQH has a Return On Assets of 0.13%. This is in the lower half of the industry: EQH underperforms 70.30% of its industry peers.
EQH has a Return On Equity of 35.42%. This is amongst the best in the industry. EQH outperforms 94.06% of its industry peers.
EQH's Return On Invested Capital of 0.82% is on the low side compared to the rest of the industry. EQH is outperformed by 62.38% of its industry peers.
EQH had an Average Return On Invested Capital over the past 3 years of 0.99%. This is significantly below the industry average of 7.64%.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 0.13% | ||
| ROE | 35.42% | ||
| ROIC | 0.82% |
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 Profit Margin of 2.57%. This is in the lower half of the industry: EQH underperforms 62.38% of its industry peers.
With a decent Operating Margin value of 17.41%, EQH is doing good in the industry, outperforming 63.37% of the companies in the same industry.
EQH's Operating Margin has improved in the last couple of years.
Looking at the Gross Margin, with a value of 51.52%, EQH is in the better half of the industry, outperforming 68.32% 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 | 17.41% | ||
| PM (TTM) | 2.57% | ||
| GM | 51.52% |
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.
EQH has less shares outstanding than it did 1 year ago.
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 0.20. This is a bad value and indicates that EQH is not financially healthy and even has some risk of bankruptcy.
EQH's Altman-Z score of 0.20 is in line compared to the rest of the industry. EQH outperforms 44.55% of its industry peers.
EQH has a debt to FCF ratio of 15.29. This is a negative value and a sign of low solvency as EQH would need 15.29 years to pay back of all of its debts.
With a Debt to FCF ratio value of 15.29, EQH perfoms like the industry average, outperforming 53.47% of the companies in the same industry.
EQH has a Debt/Equity ratio of 13.37. This is a high value indicating a heavy dependency on external financing.
EQH has a worse Debt to Equity ratio (13.37) than 87.13% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 13.37 | ||
| Debt/FCF | 15.29 | ||
| Altman-Z | 0.2 |
ROIC/WACC0.13
WACC6.26%
2.3 Liquidity
A Current Ratio of 1.67 indicates that EQH should not have too much problems paying its short term obligations.
Looking at the Current ratio, with a value of 1.67, EQH is in the better half of the industry, outperforming 70.30% of the companies in the same industry.
A Quick Ratio of 1.67 indicates that EQH should not have too much problems paying its short term obligations.
Looking at the Quick ratio, with a value of 1.67, EQH is in the better half of the industry, outperforming 72.28% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.67 | ||
| Quick Ratio | 1.67 |
3. Growth
3.1 Past
EQH shows a small growth in Earnings Per Share. In the last year, the EPS has grown by 3.00%.
EQH shows a small growth in Earnings Per Share. Measured over the last years, the EPS has been growing by 4.12% yearly.
The Revenue has been growing slightly by 0.04% 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)3%
EPS 3Y-3.05%
EPS 5Y4.12%
EPS Q2Q%-23.08%
Revenue 1Y (TTM)0.04%
Revenue growth 3Y3.04%
Revenue growth 5Y4.47%
Sales Q2Q%-34.77%
3.2 Future
The Earnings Per Share is expected to grow by 16.85% 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 6.27% on average per year.
EPS Next Y-0.11%
EPS Next 2Y16.09%
EPS Next 3Y16.84%
EPS Next 5Y16.85%
Revenue Next Year-4.59%
Revenue Next 2Y-1.72%
Revenue Next 3Y0.47%
Revenue Next 5Y6.27%
3.3 Evolution
The EPS growth rate is accelerating: in the next years the growth will be better than in the last years.
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 9.60, the valuation of EQH can be described as very reasonable.
73.27% of the companies in the same industry are more expensive than EQH, based on the Price/Earnings ratio.
EQH's Price/Earnings ratio indicates a rather cheap valuation when compared to the S&P500 average which is at 27.20.
The Price/Forward Earnings ratio is 6.57, which indicates a rather cheap valuation of EQH.
80.20% of the companies in the same industry are more expensive than EQH, based on the Price/Forward Earnings ratio.
EQH is valuated cheaply when we compare the Price/Forward Earnings ratio to 22.71, which is the current average of the S&P500 Index.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 9.6 | ||
| Fwd PE | 6.57 |
4.2 Price Multiples
Based on the Enterprise Value to EBITDA ratio, EQH is valued cheaply inside the industry as 89.11% of the companies are valued more expensively.
Based on the Price/Free Cash Flow ratio, EQH is valued a bit cheaper than 75.25% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 10.47 | ||
| EV/EBITDA | 5.93 |
4.3 Compensation for Growth
A more expensive valuation may be justified as EQH's earnings are expected to grow with 16.84% in the coming years.
PEG (NY)N/A
PEG (5Y)2.33
EPS Next 2Y16.09%
EPS Next 3Y16.84%
5. Dividend
5.1 Amount
EQH has a Yearly Dividend Yield of 2.00%. Purely for dividend investing, there may be better candidates out there.
Compared to an average industry Dividend Yield of 4.86, EQH pays a bit more dividend than its industry peers.
EQH's Dividend Yield is comparable with the S&P500 average which is at 2.38.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 2% |
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
93.12% of the earnings are spent on dividend by EQH. This is not a sustainable payout ratio.
The dividend of EQH is growing around the same rate as the earnings are growing. If this keeps up the dividend growth is sustainable.
DP93.12%
EPS Next 2Y16.09%
EPS Next 3Y16.84%
52.8
-0.51 (-0.96%)
Chartmill FA Rating
GICS SectorFinancials
GICS IndustryGroupFinancial Services
GICS IndustryFinancial Services
Earnings (Last)
Earnings (Next)
Inst Owners102.82%
Inst Owner Change-5.81%
Ins Owners0.51%
Ins Owner Change-0.24%
Market Cap15.82B
Analysts80
Price Target67.43 (27.71%)
Short Float %2.28%
Short Ratio2.52
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 2% |
Yearly Dividend1.19
Dividend Growth(5Y)15.63%
DP93.12%
Div Incr Years0
Div Non Decr Years0
Ex-Date
Surprises & Revisions
EPS beat(2)0
Avg EPS beat(2)-13.94%
Min EPS beat(2)-15.26%
Max EPS beat(2)-12.62%
EPS beat(4)0
Avg EPS beat(4)-8.2%
Min EPS beat(4)-15.26%
Max EPS beat(4)-1.05%
EPS beat(8)3
Avg EPS beat(8)-3.27%
EPS beat(12)4
Avg EPS beat(12)-3.84%
EPS beat(16)7
Avg EPS beat(16)-0.99%
Revenue beat(2)1
Avg Revenue beat(2)-13.78%
Min Revenue beat(2)-40.44%
Max Revenue beat(2)12.88%
Revenue beat(4)1
Avg Revenue beat(4)-14.99%
Min Revenue beat(4)-40.44%
Max Revenue beat(4)12.88%
Revenue beat(8)2
Avg Revenue beat(8)-18.05%
Revenue beat(12)4
Avg Revenue beat(12)-15.36%
Revenue beat(16)6
Avg Revenue beat(16)-13.5%
PT rev (1m)-0.67%
PT rev (3m)3.48%
EPS NQ rev (1m)-3.53%
EPS NQ rev (3m)-5.03%
EPS NY rev (1m)-6.92%
EPS NY rev (3m)-11.12%
Revenue NQ rev (1m)-2.66%
Revenue NQ rev (3m)-6.69%
Revenue NY rev (1m)-1.71%
Revenue NY rev (3m)-4.45%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 9.6 | ||
| Fwd PE | 6.57 | ||
| P/S | 1 | ||
| P/FCF | 10.47 | ||
| P/OCF | 10 | ||
| P/B | 13.76 | ||
| P/tB | N/A | ||
| EV/EBITDA | 5.93 |
EPS(TTM)5.5
EY10.42%
EPS(NY)8.03
Fwd EY15.21%
FCF(TTM)5.04
FCFY9.55%
OCF(TTM)5.28
OCFY10%
SpS52.91
BVpS3.84
TBVpS-14
PEG (NY)N/A
PEG (5Y)2.33
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 0.13% | ||
| ROE | 35.42% | ||
| ROCE | 0.96% | ||
| ROIC | 0.82% | ||
| ROICexc | 0.86% | ||
| ROICexgc | 1.86% | ||
| OM | 17.41% | ||
| PM (TTM) | 2.57% | ||
| GM | 51.52% | ||
| FCFM | 9.53% |
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 | 13.37 | ||
| Debt/FCF | 15.29 | ||
| Debt/EBITDA | 4.24 | ||
| Cap/Depr | 8.22% | ||
| Cap/Sales | 0.45% | ||
| Interest Coverage | 250 | ||
| Cash Conversion | 43.67% | ||
| Profit Quality | 371.25% | ||
| Current Ratio | 1.67 | ||
| Quick Ratio | 1.67 | ||
| Altman-Z | 0.2 |
F-Score5
WACC6.26%
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)3%
EPS 3Y-3.05%
EPS 5Y4.12%
EPS Q2Q%-23.08%
EPS Next Y-0.11%
EPS Next 2Y16.09%
EPS Next 3Y16.84%
EPS Next 5Y16.85%
Revenue 1Y (TTM)0.04%
Revenue growth 3Y3.04%
Revenue growth 5Y4.47%
Sales Q2Q%-34.77%
Revenue Next Year-4.59%
Revenue Next 2Y-1.72%
Revenue Next 3Y0.47%
Revenue Next 5Y6.27%
EBIT growth 1Y-31.71%
EBIT growth 3Y2.49%
EBIT growth 5Y17.6%
EBIT Next Year20.24%
EBIT Next 3Y18.18%
EBIT Next 5YN/A
FCF growth 1Y303.64%
FCF growth 3YN/A
FCF growth 5YN/A
OCF growth 1Y394.6%
OCF growth 3YN/A
OCF growth 5YN/A