EQUITABLE HOLDINGS INC (EQH) Stock Fundamental Analysis
USA - New York Stock Exchange - NYSE:EQH - US29452E1010 - Common Stock
45.57 USD
-1.12 (-2.4%)
45.57 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
In the past year EQH was profitable.
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.
In the past 5 years EQH reported 4 times negative operating cash flow.
1.2 Ratios
EQH has a Return On Assets of -0.24%. This is in the lower half of the industry: EQH underperforms 76.53% of its industry peers.
With a Return On Equity value of -520.27%, EQH is not doing good in the industry: 90.82% of the companies in the same industry are doing better.
EQH has a worse Return On Invested Capital (0.52%) than 65.31% 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 8.20%.
| 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 comparable to the rest of the industry.
EQH's Operating Margin has improved in the last couple of years.
The Gross Margin of EQH (49.15%) is better than 68.37% 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
The Return on Invested Capital (ROIC) is below the Cost of Capital (WACC), so EQH is destroying value.
The number of shares outstanding for EQH has been reduced compared to 1 year ago.
EQH has less shares outstanding than it did 5 years ago.
The debt/assets ratio for EQH has been reduced compared to a year ago.
2.2 Solvency
Based on the Altman-Z score of 0.22, we must say that EQH is in the distress zone and has some risk of bankruptcy.
EQH's Altman-Z score of 0.22 is in line compared to the rest of the industry. EQH outperforms 44.90% of its industry peers.
EQH has a debt to FCF ratio of 16.88. This is a negative value and a sign of low solvency as EQH would need 16.88 years to pay back of all of its debts.
Looking at the Debt to FCF ratio, with a value of 16.88, EQH is in line with its industry, outperforming 42.86% 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.
The Debt to Equity ratio of EQH (104.84) is worse than 92.86% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 104.84 | ||
| Debt/FCF | 16.88 | ||
| Altman-Z | 0.22 |
ROIC/WACC0.12
WACC4.36%
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.
The Current ratio of EQH (3.08) is better than 83.67% of its industry peers.
EQH has a Quick Ratio of 3.08. This indicates that EQH is financially healthy and has no problem in meeting its short term obligations.
With an excellent Quick ratio value of 3.08, EQH belongs to the best of the industry, outperforming 84.69% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 3.08 | ||
| Quick Ratio | 3.08 |
3. Growth
3.1 Past
The earnings per share for EQH have decreased by -4.72% in the last year.
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 decreased by -4.25% in the past year.
Measured over the past years, EQH shows a small growth in Revenue. The Revenue has been growing by 4.47% on average per year.
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
Based on estimates for the next years, EQH will show a quite strong growth in Earnings Per Share. The EPS will grow by 14.10% on average per year.
The Revenue is expected to grow by 6.07% on average over the next years.
EPS Next Y-1.31%
EPS Next 2Y16.89%
EPS Next 3Y17.13%
EPS Next 5Y14.1%
Revenue Next Year-4.24%
Revenue Next 2Y-0.69%
Revenue Next 3Y1.65%
Revenue Next 5Y6.07%
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
The Price/Earnings ratio is 8.36, which indicates a very decent valuation of EQH.
Based on the Price/Earnings ratio, EQH is valued a bit cheaper than 74.49% of the companies in the same industry.
EQH is valuated cheaply when we compare the Price/Earnings ratio to 26.11, which is the current average of the S&P500 Index.
With a Price/Forward Earnings ratio of 5.60, the valuation of EQH can be described as very cheap.
83.67% of the companies in the same industry are more expensive than EQH, based on the Price/Forward Earnings ratio.
Compared to an average S&P500 Price/Forward Earnings ratio of 36.21, EQH is valued rather cheaply.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 8.36 | ||
| Fwd PE | 5.6 |
4.2 Price Multiples
87.76% of the companies in the same industry are more expensive than EQH, based on the Enterprise Value to EBITDA ratio.
Based on the Price/Free Cash Flow ratio, EQH is valued a bit cheaper than 71.43% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 10.95 | ||
| EV/EBITDA | 6.3 |
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)2.03
EPS Next 2Y16.89%
EPS Next 3Y17.13%
5. Dividend
5.1 Amount
EQH has a Yearly Dividend Yield of 2.31%.
Compared to an average industry Dividend Yield of 4.97, EQH pays a bit more dividend than its industry peers.
Compared to an average S&P500 Dividend Yield of 2.32, EQH has a dividend comparable with the average S&P500 company.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 2.31% |
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
EQH has negative earnings and hence a negative payout ratio. The dividend may be in danger.
EQH's earnings are growing slower than its dividend. This means the dividend growth is not sustainable.
DP-50.13%
EPS Next 2Y16.89%
EPS Next 3Y17.13%
45.57
-1.12 (-2.4%)
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 Cap13.06B
Revenue(TTM)15.06B
Net Income(TTM)-770.00M
Analysts80
Price Target65.71 (44.2%)
Short Float %3.01%
Short Ratio2.92
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 2.31% |
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)-1.23%
EPS NQ rev (3m)0.56%
EPS NY rev (1m)-0.23%
EPS NY rev (3m)-1.21%
Revenue NQ rev (1m)-3.08%
Revenue NQ rev (3m)-0.56%
Revenue NY rev (1m)-1.05%
Revenue NY rev (3m)0.37%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 8.36 | ||
| Fwd PE | 5.6 | ||
| P/S | 0.87 | ||
| P/FCF | 10.95 | ||
| P/OCF | 10.3 | ||
| P/B | 88.22 | ||
| P/tB | N/A | ||
| EV/EBITDA | 6.3 |
EPS(TTM)5.45
EY11.96%
EPS(NY)8.14
Fwd EY17.87%
FCF(TTM)4.16
FCFY9.13%
OCF(TTM)4.43
OCFY9.71%
SpS52.55
BVpS0.52
TBVpS-18.07
PEG (NY)N/A
PEG (5Y)2.03
Graham Number7.96
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
WACC4.36%
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 5Y14.1%
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 5Y6.07%
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 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%.