EQUITABLE HOLDINGS INC (EQH)
US29452E1010 - Common Stock
Taking everything into account, EQH scores 5 out of 10 in our fundamental rating. EQH was compared to 99 industry peers in the Financial Services industry. While EQH seems to be doing ok healthwise, there are quite some concerns on its profitability. EQH scores decently on growth, while it is valued quite cheap. This could make an interesting combination.
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.
EQH had a negative operating cash flow in each of the past 5 years.
1.2 Ratios
The Return On Assets of EQH (-0.12%) is worse than 73.74% of its industry peers.
EQH has a worse Return On Equity (-11.49%) than 82.83% of its industry peers.
EQH's Return On Invested Capital of 1.08% is in line compared to the rest of the industry. EQH outperforms 40.40% of its industry peers.
The Average Return On Invested Capital over the past 3 years for EQH is significantly below the industry average of 7.84%.
The 3 year average ROIC (0.89%) for EQH is below the current ROIC(1.08%), indicating increased profibility in the last year.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | -0.12% | ||
| ROE | -11.49% | ||
| ROIC | 1.08% |
ROA(3y)0.31%
ROA(5y)0%
ROE(3y)54.44%
ROE(5y)29.14%
ROIC(3y)0.89%
ROIC(5y)0.73%
1.3 Margins
EQH's Profit Margin has declined in the last couple of years.
EQH has a Operating Margin of 24.67%. This is in the better half of the industry: EQH outperforms 68.69% of its industry peers.
EQH's Operating Margin has been stable in the last couple of years.
EQH has a better Gross Margin (55.93%) than 71.72% of its industry peers.
EQH's Gross Margin has been stable in the last couple of years.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 24.67% | ||
| PM (TTM) | N/A | ||
| GM | 55.93% |
OM growth 3Y57.31%
OM growth 5Y-1.09%
PM growth 3YN/A
PM growth 5Y-11.24%
GM growth 3Y8.18%
GM growth 5Y-0.98%
2. Health
2.1 Basic Checks
The Return on Invested Capital (ROIC) is below the Cost of Capital (WACC), so EQH is destroying value.
Compared to 1 year ago, EQH has less shares outstanding
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 0.20, we must say that EQH is in the distress zone and has some risk of bankruptcy.
The Altman-Z score of EQH (0.20) is worse than 60.61% of its industry peers.
The Debt to FCF ratio of EQH is 17.63, which is on the high side as it means it would take EQH, 17.63 years of fcf income to pay off all of its debts.
Looking at the Debt to FCF ratio, with a value of 17.63, EQH is in line with its industry, outperforming 47.47% of the companies in the same industry.
A Debt/Equity ratio of 3.59 is on the high side and indicates that EQH has dependencies on debt financing.
EQH's Debt to Equity ratio of 3.59 is on the low side compared to the rest of the industry. EQH is outperformed by 80.81% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 3.59 | ||
| Debt/FCF | 17.63 | ||
| Altman-Z | 0.2 |
ROIC/WACC0.18
WACC6.04%
2.3 Liquidity
A Current Ratio of 1.52 indicates that EQH should not have too much problems paying its short term obligations.
With a decent Current ratio value of 1.52, EQH is doing good in the industry, outperforming 65.66% of the companies in the same industry.
EQH has a Quick Ratio of 1.52. 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 Quick ratio, with a value of 1.52, EQH is in the better half of the industry, outperforming 66.67% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.52 | ||
| Quick Ratio | 1.52 |
3. Growth
3.1 Past
EQH shows a strong growth in Earnings Per Share. In the last year, the EPS has been growing by 30.30%, which is quite impressive.
The Earnings Per Share has been growing slightly by 3.45% on average over the past years.
EQH shows a small growth in Revenue. In the last year, the Revenue has grown by 7.79%.
The Revenue has been growing slightly by 3.64% on average over the past years.
EPS 1Y (TTM)30.3%
EPS 3Y-2.48%
EPS 5Y3.45%
EPS Q2Q%33.04%
Revenue 1Y (TTM)7.79%
Revenue growth 3Y1.38%
Revenue growth 5Y3.64%
Sales Q2Q%-15.12%
3.2 Future
Based on estimates for the next years, EQH will show a very strong growth in Earnings Per Share. The EPS will grow by 21.02% on average per year.
The Revenue is expected to grow by 6.90% on average over the next years.
EPS Next Y32.38%
EPS Next 2Y26.06%
EPS Next 3Y22.2%
EPS Next 5Y21.02%
Revenue Next Year12.76%
Revenue Next 2Y10.94%
Revenue Next 3Y9.5%
Revenue Next 5Y6.9%
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
A Price/Earnings ratio of 8.13 indicates a reasonable valuation of EQH.
79.80% of the companies in the same industry are more expensive than EQH, based on the Price/Earnings ratio.
EQH is valuated cheaply when we compare the Price/Earnings ratio to 27.73, which is the current average of the S&P500 Index.
A Price/Forward Earnings ratio of 6.35 indicates a rather cheap valuation of EQH.
Based on the Price/Forward Earnings ratio, EQH is valued cheaply inside the industry as 86.87% of the companies are valued more expensively.
Compared to an average S&P500 Price/Forward Earnings ratio of 22.83, EQH is valued rather cheaply.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 8.13 | ||
| Fwd PE | 6.35 |
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 94.95% of the companies listed in the same industry.
EQH's Price/Free Cash Flow ratio is a bit cheaper when compared to the industry. EQH is cheaper than 73.74% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 13.86 | ||
| EV/EBITDA | 4.58 |
4.3 Compensation for Growth
The low PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates a rather cheap valuation of the company.
EQH's earnings are expected to grow with 22.20% in the coming years. This may justify a more expensive valuation.
PEG (NY)0.25
PEG (5Y)2.35
EPS Next 2Y26.06%
EPS Next 3Y22.2%
5. Dividend
5.1 Amount
With a Yearly Dividend Yield of 2.13%, EQH has a reasonable but not impressive dividend return.
EQH's Dividend Yield is a higher than the industry average which is at 3.76.
Compared to an average S&P500 Dividend Yield of 2.34, EQH has a dividend comparable with the average S&P500 company.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 2.13% |
5.2 History
On average, the dividend of EQH grows each year by 30.50%, which is quite nice.
EQH has been paying a dividend for over 5 years, so it has already some track record.
EQH has not decreased its dividend in the past 5 years, so it has a somewhat stable track record.
Dividend Growth(5Y)30.5%
Div Incr Years5
Div Non Decr Years5
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-102.97%
EPS Next 2Y26.06%
EPS Next 3Y22.2%
EQUITABLE HOLDINGS INC
NYSE:EQH (12/20/2024, 8:07:22 PM)
After market: 46.52 0 (0%)46.52
+1.54 (+3.42%)
Chartmill FA Rating
GICS SectorFinancials
GICS IndustryGroupFinancial Services
GICS IndustryFinancial Services
Earnings (Last)
Earnings (Next)
Inst Owners98.39%
Inst Owner Change-3.37%
Ins Owners0.47%
Ins Owner Change-0.11%
Market Cap14.58B
Analysts75.29
Price Target54.74 (17.67%)
Short Float %1.35%
Short Ratio1.73
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 2.13% |
Dividend Growth(5Y)30.5%
DP-102.97%
Div Incr Years5
Div Non Decr Years5
Ex-Date
Surprises & Revisions
EPS beat(2)1
Avg EPS beat(2)-0.11%
Min EPS beat(2)-1.05%
Max EPS beat(2)0.84%
EPS beat(4)3
Avg EPS beat(4)5.02%
Min EPS beat(4)-1.05%
Max EPS beat(4)13.7%
EPS beat(8)3
Avg EPS beat(8)-3.64%
EPS beat(12)6
Avg EPS beat(12)-1.81%
EPS beat(16)10
Avg EPS beat(16)4.97%
Revenue beat(2)0
Avg Revenue beat(2)-13.53%
Min Revenue beat(2)-21.09%
Max Revenue beat(2)-5.97%
Revenue beat(4)0
Avg Revenue beat(4)-26.73%
Min Revenue beat(4)-40.64%
Max Revenue beat(4)-5.97%
Revenue beat(8)2
Avg Revenue beat(8)-18.54%
Revenue beat(12)4
Avg Revenue beat(12)-15.43%
Revenue beat(16)8
Avg Revenue beat(16)-8.64%
PT rev (1m)7.98%
PT rev (3m)13.65%
EPS NQ rev (1m)0%
EPS NQ rev (3m)1.16%
EPS NY rev (1m)0.04%
EPS NY rev (3m)0.34%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)2.96%
Revenue NY rev (1m)0.29%
Revenue NY rev (3m)0.94%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 8.13 | ||
| Fwd PE | 6.35 | ||
| P/S | 0.93 | ||
| P/FCF | 13.86 | ||
| P/OCF | 12.01 | ||
| P/B | 4.53 | ||
| P/tB | N/A | ||
| EV/EBITDA | 4.58 |
EPS(TTM)5.72
EY12.3%
EPS(NY)7.33
Fwd EY15.75%
FCF(TTM)3.36
FCFY7.22%
OCF(TTM)3.87
OCFY8.33%
SpS50.19
BVpS10.28
TBVpS-6.92
PEG (NY)0.25
PEG (5Y)2.35
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | -0.12% | ||
| ROE | -11.49% | ||
| ROCE | 1.36% | ||
| ROIC | 1.08% | ||
| ROICexc | 1.12% | ||
| ROICexgc | 2.55% | ||
| OM | 24.67% | ||
| PM (TTM) | N/A | ||
| GM | 55.93% | ||
| FCFM | 6.69% |
ROA(3y)0.31%
ROA(5y)0%
ROE(3y)54.44%
ROE(5y)29.14%
ROIC(3y)0.89%
ROIC(5y)0.73%
ROICexc(3y)0.91%
ROICexc(5y)0.75%
ROICexgc(3y)2.12%
ROICexgc(5y)1.75%
ROCE(3y)1.11%
ROCE(5y)0.91%
ROICexcg growth 3Y59.05%
ROICexcg growth 5Y-1.66%
ROICexc growth 3Y59.44%
ROICexc growth 5Y-1.49%
OM growth 3Y57.31%
OM growth 5Y-1.09%
PM growth 3YN/A
PM growth 5Y-11.24%
GM growth 3Y8.18%
GM growth 5Y-0.98%
F-Score5
Asset Turnover0.05
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 3.59 | ||
| Debt/FCF | 17.63 | ||
| Debt/EBITDA | 2.43 | ||
| Cap/Depr | 18.49% | ||
| Cap/Sales | 1.03% | ||
| Interest Coverage | 250 | ||
| Cash Conversion | 25.53% | ||
| Profit Quality | N/A | ||
| Current Ratio | 1.52 | ||
| Quick Ratio | 1.52 | ||
| Altman-Z | 0.2 |
F-Score5
WACC6.04%
ROIC/WACC0.18
Cap/Depr(3y)19.69%
Cap/Depr(5y)15.86%
Cap/Sales(3y)0.97%
Cap/Sales(5y)0.87%
Profit Quality(3y)N/A
Profit Quality(5y)N/A
High Growth Momentum
Growth
EPS 1Y (TTM)30.3%
EPS 3Y-2.48%
EPS 5Y3.45%
EPS Q2Q%33.04%
EPS Next Y32.38%
EPS Next 2Y26.06%
EPS Next 3Y22.2%
EPS Next 5Y21.02%
Revenue 1Y (TTM)7.79%
Revenue growth 3Y1.38%
Revenue growth 5Y3.64%
Sales Q2Q%-15.12%
Revenue Next Year12.76%
Revenue Next 2Y10.94%
Revenue Next 3Y9.5%
Revenue Next 5Y6.9%
EBIT growth 1Y13.35%
EBIT growth 3Y59.49%
EBIT growth 5Y2.51%
EBIT Next Year32.84%
EBIT Next 3Y12.71%
EBIT Next 5YN/A
FCF growth 1Y224.94%
FCF growth 3YN/A
FCF growth 5YN/A
OCF growth 1Y270.27%
OCF growth 3YN/A
OCF growth 5YN/A