EQUITABLE HOLDINGS INC (EQH) Stock Fundamental Analysis
NYSE:EQH - New York Stock Exchange, Inc. - US29452E1010 - Common Stock
Taking everything into account, EQH scores 5 out of 10 in our fundamental rating. EQH was compared to 101 industry peers in the Financial Services industry. The financial health of EQH is average, but there are quite some concerns on its profitability. EQH is valued quite cheap, while showing a decent growth score. This is a good combination!
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 a negative operating cash flow in each of the past 5 years.
1.2 Ratios
EQH has a worse Return On Assets (-0.12%) than 72.28% of its industry peers.
The Return On Equity of EQH (-11.49%) is worse than 82.18% of its industry peers.
With a Return On Invested Capital value of 1.08%, EQH perfoms like the industry average, outperforming 41.58% of the companies in the same industry.
The Average Return On Invested Capital over the past 3 years for EQH is significantly below the industry average of 7.84%.
The last Return On Invested Capital (1.08%) for EQH is above the 3 year average (0.89%), which is a sign of increasing profitability.
| 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
In the last couple of years the Profit Margin of EQH has declined.
Looking at the Operating Margin, with a value of 24.67%, EQH is in the better half of the industry, outperforming 69.31% of the companies in the same industry.
EQH's Operating Margin has been stable in the last couple of years.
The Gross Margin of EQH (55.93%) is better than 72.28% 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.
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.
Compared to 1 year ago, EQH has an improved debt to assets ratio.
2.2 Solvency
EQH has an Altman-Z score of 0.20. This is a bad value and indicates that EQH is not financially healthy and even has some risk of bankruptcy.
The Altman-Z score of EQH (0.20) is worse than 61.39% of its industry peers.
EQH has a debt to FCF ratio of 17.63. This is a negative value and a sign of low solvency as EQH would need 17.63 years to pay back of all of its debts.
With a Debt to FCF ratio value of 17.63, EQH perfoms like the industry average, outperforming 47.52% 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 has a Debt to Equity ratio of 3.59. This is amonst the worse of the industry: EQH underperforms 80.20% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 3.59 | ||
| Debt/FCF | 17.63 | ||
| Altman-Z | 0.2 |
ROIC/WACC0.18
WACC5.99%
2.3 Liquidity
EQH has a Current 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.
EQH's Current ratio of 1.52 is fine compared to the rest of the industry. EQH outperforms 67.33% of its industry peers.
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.
EQH has a better Quick ratio (1.52) than 68.32% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.52 | ||
| Quick Ratio | 1.52 |
3. Growth
3.1 Past
The Earnings Per Share has grown by an impressive 30.30% over the past year.
The Earnings Per Share has been growing slightly by 3.45% on average over the past years.
Looking at the last year, EQH shows a small growth in Revenue. The Revenue has grown by 7.79% in the last year.
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
EQH is expected to show a strong growth in Earnings Per Share. In the coming years, the EPS will grow by 21.02% yearly.
Based on estimates for the next years, EQH will show a small growth in Revenue. The Revenue will grow by 6.90% on average per year.
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
Based on the Price/Earnings ratio of 9.23, the valuation of EQH can be described as reasonable.
Based on the Price/Earnings ratio, EQH is valued a bit cheaper than 75.25% of the companies in the same industry.
Compared to an average S&P500 Price/Earnings ratio of 28.29, EQH is valued rather cheaply.
With a Price/Forward Earnings ratio of 7.21, the valuation of EQH can be described as very cheap.
Based on the Price/Forward Earnings ratio, EQH is valued cheaply inside the industry as 83.17% of the companies are valued more expensively.
EQH is valuated cheaply when we compare the Price/Forward Earnings ratio to 24.44, which is the current average of the S&P500 Index.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 9.23 | ||
| Fwd PE | 7.21 |
4.2 Price Multiples
EQH's Enterprise Value to EBITDA ratio is rather cheap when compared to the industry. EQH is cheaper than 94.06% of the companies 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 69.31% of the companies listed in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 15.72 | ||
| EV/EBITDA | 5 |
4.3 Compensation for Growth
EQH's 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)0.29
PEG (5Y)2.67
EPS Next 2Y26.06%
EPS Next 3Y22.2%
5. Dividend
5.1 Amount
EQH has a Yearly Dividend Yield of 1.86%.
EQH's Dividend Yield is a higher than the industry average which is at 3.66.
Compared to an average S&P500 Dividend Yield of 2.28, EQH has a dividend comparable with the average S&P500 company.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.86% |
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
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, but the earnings are growing slower. This means the dividend growth is not sustainable.
DP-102.97%
EPS Next 2Y26.06%
EPS Next 3Y22.2%
EQUITABLE HOLDINGS INC
NYSE:EQH (1/22/2025, 10:41:09 AM)
52.79
-0.04 (-0.08%)
Chartmill FA Rating
GICS SectorFinancials
GICS IndustryGroupFinancial Services
GICS IndustryFinancial Services
Earnings (Last)
Earnings (Next)
Inst Owners98.39%
Inst Owner Change0.73%
Ins Owners0.47%
Ins Owner Change-0.25%
Market Cap16.54B
Analysts76.47
Price Target55.19 (4.55%)
Short Float %1.36%
Short Ratio1.68
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.86% |
Yearly Dividend1.09
Dividend Growth(5Y)30.5%
DP-102.97%
Div Incr Years5
Div Non Decr Years5
Ex-DateN/A
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)0.83%
PT rev (3m)11.8%
EPS NQ rev (1m)0%
EPS NQ rev (3m)1.16%
EPS NY rev (1m)0%
EPS NY rev (3m)0.34%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)2.96%
Revenue NY rev (1m)0%
Revenue NY rev (3m)0.94%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 9.23 | ||
| Fwd PE | 7.21 | ||
| P/S | 1.05 | ||
| P/FCF | 15.72 | ||
| P/OCF | 13.63 | ||
| P/B | 5.14 | ||
| P/tB | N/A | ||
| EV/EBITDA | 5 |
EPS(TTM)5.72
EY10.84%
EPS(NY)7.33
Fwd EY13.88%
FCF(TTM)3.36
FCFY6.36%
OCF(TTM)3.87
OCFY7.34%
SpS50.19
BVpS10.28
TBVpS-6.92
PEG (NY)0.29
PEG (5Y)2.67
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
WACC5.99%
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