EQUITABLE HOLDINGS INC (EQH) Stock Fundamental Analysis
USA - New York Stock Exchange - NYSE:EQH - US29452E1010 - Common Stock
45.64 USD
-0.73 (-1.57%)
45.64 USD
0 (0%)
Overall EQH gets a fundamental rating of 4 out of 10. We evaluated EQH against 97 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 is not valued too expensively and it also shows a decent 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.
- EQH had negative operating cash flow in 4 of the past 5 years.
1.2 Ratios
- Looking at the Return On Assets, with a value of -0.24%, EQH is doing worse than 74.23% of the companies in the same industry.
- With a Return On Equity value of -520.27%, EQH is not doing good in the industry: 92.78% of the companies in the same industry are doing better.
- EQH has a Return On Invested Capital of 0.52%. This is in the lower half of the industry: EQH underperforms 62.89% 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 8.46%.
| 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's Operating Margin of 12.18% is in line compared to the rest of the industry. EQH outperforms 46.39% of its industry peers.
- EQH's Operating Margin has improved in the last couple of years.
- EQH has a better Gross Margin (49.15%) than 67.01% 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.
- Compared to 1 year ago, EQH has less shares outstanding
- 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 0.21, we must say that EQH is in the distress zone and 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 46.39% 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.
- EQH has a Debt to FCF ratio of 19.39. This is comparable to the rest of the industry: EQH outperforms 41.24% of its industry peers.
- 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 94.85% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 104.84 | ||
| Debt/FCF | 19.39 | ||
| Altman-Z | 0.21 |
ROIC/WACC0.08
WACC6.3%
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.
- EQH has a better Current ratio (2.45) than 80.41% of its industry peers.
- A Quick Ratio of 2.45 indicates that EQH has no problem at all paying its short term obligations.
- EQH has a better Quick ratio (2.45) than 81.44% of its industry peers.
| 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.
- 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%-14.47%
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 14.10% yearly.
- Based on estimates for the next years, EQH will show a small growth in Revenue. The Revenue will grow by 6.07% on average per year.
EPS Next Y-4.26%
EPS Next 2Y16.06%
EPS Next 3Y17.08%
EPS Next 5Y14.1%
Revenue Next Year0.94%
Revenue Next 2Y4.21%
Revenue Next 3Y5.46%
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.
- The Revenue growth rate is accelerating: in the next years the growth will be better than in the last years.
4. Valuation
4.1 Price/Earnings Ratio
- The Price/Earnings ratio is 8.37, which indicates a very decent valuation of EQH.
- Based on the Price/Earnings ratio, EQH is valued a bit 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 27.21.
- A Price/Forward Earnings ratio of 5.69 indicates a rather cheap valuation of EQH.
- Based on the Price/Forward Earnings ratio, EQH is valued cheaply inside the industry as 85.57% of the companies are valued more expensively.
- EQH is valuated cheaply when we compare the Price/Forward Earnings ratio to 25.98, which is the current average of the S&P500 Index.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 8.37 | ||
| Fwd PE | 5.69 |
4.2 Price Multiples
- Compared to the rest of the industry, the Enterprise Value to EBITDA ratio of EQH indicates a somewhat cheap valuation: EQH is cheaper than 79.38% of the companies listed in the same industry.
- Compared to the rest of the industry, the Price/Free Cash Flow ratio of EQH indicates a somewhat cheap valuation: EQH is cheaper than 72.16% of the companies listed in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 10.97 | ||
| EV/EBITDA | 7.41 |
4.3 Compensation for Growth
- A more expensive valuation may be justified as EQH's earnings are expected to grow with 17.08% in the coming years.
PEG (NY)N/A
PEG (5Y)2.03
EPS Next 2Y16.06%
EPS Next 3Y17.08%
5. Dividend
5.1 Amount
- EQH has a Yearly Dividend Yield of 2.33%.
- Compared to an average industry Dividend Yield of 2.09, EQH pays a bit more dividend than its industry peers.
- EQH's Dividend Yield is a higher than the S&P500 average which is at 1.81.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 2.33% |
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 has negative earnings and hence a negative payout ratio. The dividend may be in danger.
- 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 2Y16.06%
EPS Next 3Y17.08%
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.
Can you provide the valuation status for EQUITABLE HOLDINGS INC?
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.
What are the PE and PB ratios of EQUITABLE HOLDINGS INC (EQH) stock?
The Price/Earnings (PE) ratio for EQUITABLE HOLDINGS INC (EQH) is 8.37 and the Price/Book (PB) ratio is 88.36.
Can you provide the expected EPS growth for EQH stock?
The Earnings per Share (EPS) of EQUITABLE HOLDINGS INC (EQH) is expected to decline by -4.26% in the next year.