EQUITABLE HOLDINGS INC (EQH) Stock Fundamental Analysis
USA - New York Stock Exchange - NYSE:EQH - US29452E1010 - Common Stock
46.69 USD
-0.13 (-0.28%)
46.69 USD
0 (0%)
EQH gets a fundamental rating of 4 out of 10. The analysis compared the fundamentals against 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 correct valuation and a medium growth rate.
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.
In multiple years EQH reported negative net income over the last 5 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.
EQH has a Return On Equity of -520.27%. This is amonst the worse of the industry: EQH underperforms 90.82% of its industry peers.
With a Return On Invested Capital value of 0.52%, EQH is not doing good in the industry: 65.31% of the companies in the same industry are doing better.
EQH had an Average Return On Invested Capital over the past 3 years of 0.99%. This 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
Looking at the Operating Margin, with a value of 12.18%, EQH is in line with its industry, outperforming 44.90% of the companies in the same 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.
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
The Return on Invested Capital (ROIC) is below the Cost of Capital (WACC), so EQH is destroying value.
EQH has less shares outstanding than it did 1 year ago.
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
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 has a Altman-Z score of 0.22. This is comparable to the rest of the industry: EQH outperforms 45.92% 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.
EQH has a Debt to FCF ratio (16.88) which is comparable to the rest of the industry.
EQH has a Debt/Equity ratio of 104.84. This is a high value indicating a heavy dependency on external financing.
With a Debt to Equity ratio value of 104.84, EQH is not doing good in the industry: 92.86% of the companies in the same industry are doing better.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 104.84 | ||
| Debt/FCF | 16.88 | ||
| Altman-Z | 0.22 |
ROIC/WACC0.12
WACC4.48%
2.3 Liquidity
A Current Ratio of 3.08 indicates that EQH has no problem at all paying its short term obligations.
Looking at the Current ratio, with a value of 3.08, EQH belongs to the top of the industry, outperforming 83.67% of the companies in the same industry.
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 84.69% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 3.08 | ||
| Quick Ratio | 3.08 |
3. Growth
3.1 Past
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%-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
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
Based on the Price/Earnings ratio of 8.57, the valuation of EQH can be described as reasonable.
73.47% of the companies in the same industry are more expensive than EQH, based on the Price/Earnings ratio.
When comparing the Price/Earnings ratio of EQH to the average of the S&P500 Index (26.31), we can say EQH is valued rather cheaply.
Based on the Price/Forward Earnings ratio of 5.73, the valuation of EQH can be described as very cheap.
Based on the Price/Forward Earnings ratio, EQH is valued cheaper than 83.67% of the companies in the same industry.
Compared to an average S&P500 Price/Forward Earnings ratio of 36.59, EQH is valued rather cheaply.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 8.57 | ||
| Fwd PE | 5.73 |
4.2 Price Multiples
84.69% 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 70.41% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 11.73 | ||
| EV/EBITDA | 6.66 |
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)2.08
EPS Next 2Y16.89%
EPS Next 3Y17.13%
5. Dividend
5.1 Amount
With a Yearly Dividend Yield of 2.31%, EQH has a reasonable but not impressive dividend return.
Compared to an average industry Dividend Yield of 5.20, EQH pays a bit more dividend than its industry peers.
EQH's Dividend Yield is comparable with the S&P500 average which is at 2.40.
| 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
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 around the same rate as the earnings are growing. If this keeps up the dividend growth is sustainable.
DP-50.13%
EPS Next 2Y16.89%
EPS Next 3Y17.13%
46.69
-0.13 (-0.28%)
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 Cap13.38B
Revenue(TTM)15.06B
Net Income(TTM)-770.00M
Analysts80
Price Target65.71 (40.74%)
Short Float %2.61%
Short Ratio2.62
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)-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 | 8.57 | ||
| Fwd PE | 5.73 | ||
| P/S | 0.93 | ||
| P/FCF | 11.73 | ||
| P/OCF | 11.03 | ||
| P/B | 94.5 | ||
| P/tB | N/A | ||
| EV/EBITDA | 6.66 |
EPS(TTM)5.45
EY11.67%
EPS(NY)8.14
Fwd EY17.44%
FCF(TTM)3.98
FCFY8.52%
OCF(TTM)4.23
OCFY9.07%
SpS50.27
BVpS0.49
TBVpS-17.29
PEG (NY)N/A
PEG (5Y)2.08
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
WACC4.48%
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 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%.