EQUITABLE HOLDINGS INC (EQH) Stock Fundamental Analysis
USA - NYSE:EQH - US29452E1010 - Common Stock
45.15 USD
-0.35 (-0.77%)
45.15 USD
0 (0%)
Taking everything into account, EQH scores 4 out of 10 in our fundamental rating. EQH was compared to 97 industry peers in the Financial Services industry. EQH has only an average score on both its financial health and profitability. 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.
In the past 5 years EQH reported 4 times negative operating cash flow.
1.2 Ratios
EQH has a worse Return On Assets (0.13%) than 72.16% of its industry peers.
With an excellent Return On Equity value of 35.42%, EQH belongs to the best of the industry, outperforming 93.81% of the companies in the same industry.
Looking at the Return On Invested Capital, with a value of 0.82%, EQH is doing worse than 63.92% of the companies in the same industry.
EQH had an Average Return On Invested Capital over the past 3 years of 0.99%. This is significantly below the industry average of 8.15%.
| 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
The Profit Margin of EQH (2.57%) is worse than 67.01% of its industry peers.
The Operating Margin of EQH (17.41%) is better than 62.89% of its industry peers.
EQH's Operating Margin has improved in the last couple of years.
EQH's Gross Margin of 51.52% is fine compared to the rest of the industry. EQH outperforms 70.10% of its industry peers.
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
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
EQH has a better debt/assets ratio than last year.
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's Altman-Z score of 0.19 is in line compared to the rest of the industry. EQH outperforms 44.33% of its industry peers.
The Debt to FCF ratio of EQH is 15.30, which is on the high side as it means it would take EQH, 15.30 years of fcf income to pay off all of its debts.
EQH has a Debt to FCF ratio (15.30) which is comparable to the rest of the 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 Debt to Equity ratio of 13.37. This is amonst the worse of the industry: EQH underperforms 88.66% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 13.37 | ||
| Debt/FCF | 15.3 | ||
| Altman-Z | 0.19 |
ROIC/WACC0.18
WACC4.45%
2.3 Liquidity
EQH has a Current Ratio of 1.67. This is a normal value and indicates that EQH is financially healthy and should not expect problems in meeting 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 73.20% of the companies in the same industry.
EQH has a Quick Ratio of 1.67. This is a normal value and indicates that EQH is financially healthy and should not expect problems in meeting its short term obligations.
The Quick ratio of EQH (1.67) is better than 75.26% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.67 | ||
| Quick Ratio | 1.67 |
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%.
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.
The Revenue has been growing slightly by 4.47% on average over the past years.
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
EQH is expected to show quite a strong growth in Earnings Per Share. In the coming years, the EPS will grow by 16.18% yearly.
The Revenue is expected to grow by 6.11% on average over the next years.
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
The Price/Earnings ratio is 8.28, which indicates a very decent valuation of EQH.
EQH's Price/Earnings ratio is a bit cheaper when compared to the industry. EQH is cheaper than 75.26% of the companies in the same industry.
EQH's Price/Earnings ratio indicates a rather cheap valuation when compared to the S&P500 average which is at 25.91.
A Price/Forward Earnings ratio of 5.54 indicates a rather cheap valuation of EQH.
84.54% of the companies in the same industry are more expensive than EQH, based on the Price/Forward Earnings ratio.
EQH's Price/Forward Earnings ratio indicates a rather cheap valuation when compared to the S&P500 average which is at 34.57.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 8.28 | ||
| Fwd PE | 5.54 |
4.2 Price Multiples
Compared to the rest of the industry, the Enterprise Value to EBITDA ratio of EQH indicates a rather cheap valuation: EQH is cheaper than 89.69% of the companies listed in the same industry.
Based on the Price/Free Cash Flow ratio, EQH is valued a bit cheaper than 72.16% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 8.95 | ||
| EV/EBITDA | 5.33 |
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)2.01
EPS Next 2Y16.89%
EPS Next 3Y17.13%
5. Dividend
5.1 Amount
EQH has a Yearly Dividend Yield of 2.37%. Purely for dividend investing, there may be better candidates out there.
EQH's Dividend Yield is a higher than the industry average which is at 4.49.
Compared to an average S&P500 Dividend Yield of 2.36, EQH has a dividend comparable with the average S&P500 company.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 2.37% |
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 93.12% of its income as dividend. This is not 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.
DP93.12%
EPS Next 2Y16.89%
EPS Next 3Y17.13%
45.15
-0.35 (-0.77%)
Chartmill FA Rating
GICS SectorFinancials
GICS IndustryGroupFinancial Services
GICS IndustryFinancial Services
Earnings (Last)
Earnings (Next)
Inst Owners100.63%
Inst Owner Change-1.12%
Ins Owners0.5%
Ins Owner Change-0.18%
Market Cap13.52B
Revenue(TTM)15.06B
Net Income(TTM)407.00M
Analysts80
Price Target66.3 (46.84%)
Short Float %2.54%
Short Ratio2.64
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 2.37% |
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)-0.76%
PT rev (3m)-2.34%
EPS NQ rev (1m)-4.36%
EPS NQ rev (3m)-7.21%
EPS NY rev (1m)-0.62%
EPS NY rev (3m)-8.04%
Revenue NQ rev (1m)-0.86%
Revenue NQ rev (3m)-1.03%
Revenue NY rev (1m)0.11%
Revenue NY rev (3m)-1.35%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 8.28 | ||
| Fwd PE | 5.54 | ||
| P/S | 0.85 | ||
| P/FCF | 8.95 | ||
| P/OCF | 8.55 | ||
| P/B | 11.77 | ||
| P/tB | N/A | ||
| EV/EBITDA | 5.33 |
EPS(TTM)5.45
EY12.07%
EPS(NY)8.14
Fwd EY18.04%
FCF(TTM)5.04
FCFY11.17%
OCF(TTM)5.28
OCFY11.7%
SpS52.91
BVpS3.84
TBVpS-14
PEG (NY)N/A
PEG (5Y)2.01
Graham Number21.69
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%
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-Score5
Asset Turnover0.05
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 13.37 | ||
| Debt/FCF | 15.3 | ||
| 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 | 0.19 |
F-Score5
WACC4.45%
ROIC/WACC0.18
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-31.71%
EBIT growth 3Y2.49%
EBIT growth 5Y17.6%
EBIT Next Year8.74%
EBIT Next 3Y14.53%
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
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 4 / 10.
How financially healthy is EQUITABLE HOLDINGS INC?
The financial health rating of EQUITABLE HOLDINGS INC (EQH) is 4 / 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 93.12%.