EQUITABLE HOLDINGS INC (EQH)
US29452E1010 - Common Stock
EQH gets a fundamental rating of 5 out of 10. The analysis compared the fundamentals against 100 industry peers in the Financial Services industry. While EQH seems to be doing ok healthwise, 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
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.
EQH had a negative operating cash flow in each of the past 5 years.
1.2 Ratios
With a Return On Assets value of -0.12%, EQH is not doing good in the industry: 74.00% of the companies in the same industry are doing better.
The Return On Equity of EQH (-11.49%) is worse than 84.00% of its industry peers.
EQH has a Return On Invested Capital of 1.08%. This is in the lower half of the industry: EQH underperforms 60.00% of its industry peers.
The Average Return On Invested Capital over the past 3 years for EQH is significantly below the industry average of 7.54%.
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
EQH's Profit Margin has declined in the last couple of years.
The Operating Margin of EQH (24.67%) is better than 71.00% of its industry peers.
In the last couple of years the Operating Margin of EQH has remained more or less at the same level.
EQH has a better Gross Margin (55.93%) than 71.00% 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.
EQH has less shares outstanding than it did 1 year ago.
Compared to 5 years ago, EQH has less shares outstanding
The debt/assets ratio for EQH has been reduced compared to a year ago.
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.
EQH has a Altman-Z score of 0.20. This is in the lower half of the industry: EQH underperforms 61.00% of its industry peers.
EQH has a debt to FCF ratio of 17.55. This is a negative value and a sign of low solvency as EQH would need 17.55 years to pay back of all of its debts.
EQH has a Debt to FCF ratio (17.55) which is in line with its industry peers.
EQH has a Debt/Equity ratio of 3.56. This is a high value indicating a heavy dependency on external financing.
EQH's Debt to Equity ratio of 3.56 is on the low side compared to the rest of the industry. EQH is outperformed by 81.00% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 3.56 | ||
| Debt/FCF | 17.55 | ||
| Altman-Z | 0.2 |
ROIC/WACC0.18
WACC5.87%
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.
With a decent Current ratio value of 1.52, EQH is doing good in the industry, outperforming 66.00% 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.
EQH has a Quick ratio of 1.52. This is in the better half of the industry: EQH outperforms 68.00% of its industry peers.
| 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.
The Revenue has been growing slightly by 7.79% in the past 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 quite a strong growth in Earnings Per Share. In the coming years, the EPS will grow by 19.63% yearly.
The Revenue is expected to grow by 5.31% on average over the next years.
EPS Next Y32.32%
EPS Next 2Y25.86%
EPS Next 3Y22.04%
EPS Next 5Y19.63%
Revenue Next Year12.44%
Revenue Next 2Y9.99%
Revenue Next 3Y8.67%
Revenue Next 5Y5.31%
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.
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 8.18, the valuation of EQH can be described as reasonable.
81.00% of the companies in the same industry are more expensive than EQH, based on the Price/Earnings ratio.
The average S&P500 Price/Earnings ratio is at 28.96. EQH is valued rather cheaply when compared to this.
EQH is valuated cheaply with a Price/Forward Earnings ratio of 6.41.
Compared to the rest of the industry, the Price/Forward Earnings ratio of EQH indicates a rather cheap valuation: EQH is cheaper than 89.00% of the companies listed in the same industry.
Compared to an average S&P500 Price/Forward Earnings ratio of 23.82, EQH is valued rather cheaply.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 8.18 | ||
| Fwd PE | 6.41 |
4.2 Price Multiples
EQH's Enterprise Value to EBITDA ratio is rather cheap when compared to the industry. EQH is cheaper than 95.00% of the companies in the same industry.
Based on the Price/Free Cash Flow ratio, EQH is valued a bit cheaper than the industry average as 68.00% of the companies are valued more expensively.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 13.94 | ||
| 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 22.04% in the coming years. This may justify a more expensive valuation.
PEG (NY)0.25
PEG (5Y)2.37
EPS Next 2Y25.86%
EPS Next 3Y22.04%
5. Dividend
5.1 Amount
EQH has a Yearly Dividend Yield of 2.01%.
Compared to an average industry Dividend Yield of 3.55, EQH pays a bit more dividend than its industry peers.
Compared to an average S&P500 Dividend Yield of 2.23, EQH has a dividend comparable with the average S&P500 company.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 2.01% |
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.
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 2Y25.86%
EPS Next 3Y22.04%
EQUITABLE HOLDINGS INC
NYSE:EQH (11/21/2024, 8:24:57 PM)
After market: 46.8 0 (0%)46.8
+0.07 (+0.15%)
Chartmill FA Rating
GICS SectorFinancials
GICS IndustryGroupFinancial Services
GICS IndustryFinancial Services
Earnings (Last)
Earnings (Next)
Inst Owners
Inst Owner Change
Ins Owners
Ins Owner Change
Market Cap14.66B
Analysts
Price Target
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 2.01% |
Dividend Growth(5Y)
DP
Div Incr Years
Div Non Decr Years
Ex-Date
Surprises & Revisions
EPS beat(2)
Avg EPS beat(2)
Min EPS beat(2)
Max EPS beat(2)
EPS beat(4)
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Min EPS beat(4)
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EPS beat(8)
Avg EPS beat(8)
EPS beat(12)
Avg EPS beat(12)
EPS beat(16)
Avg EPS beat(16)
Revenue beat(2)
Avg Revenue beat(2)
Min Revenue beat(2)
Max Revenue beat(2)
Revenue beat(4)
Avg Revenue beat(4)
Min Revenue beat(4)
Max Revenue beat(4)
Revenue beat(8)
Avg Revenue beat(8)
Revenue beat(12)
Avg Revenue beat(12)
Revenue beat(16)
Avg Revenue beat(16)
PT rev (1m)
PT rev (3m)
EPS NQ rev (1m)
EPS NQ rev (3m)
EPS NY rev (1m)
EPS NY rev (3m)
Revenue NQ rev (1m)
Revenue NQ rev (3m)
Revenue NY rev (1m)
Revenue NY rev (3m)
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 8.18 | ||
| Fwd PE | 6.41 | ||
| P/S | |||
| P/FCF | |||
| P/OCF | |||
| P/B | |||
| P/tB | |||
| EV/EBITDA |
EPS(TTM)
EY
EPS(NY)
Fwd EY
FCF(TTM)
FCFY
OCF(TTM)
OCFY
SpS
BVpS
TBVpS
PEG (NY)0.25
PEG (5Y)2.37
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | -0.12% | ||
| ROE | -11.49% | ||
| ROCE | |||
| ROIC | |||
| ROICexc | |||
| ROICexgc | |||
| OM | 24.67% | ||
| PM (TTM) | N/A | ||
| GM | 55.93% | ||
| FCFM |
ROA(3y)
ROA(5y)
ROE(3y)
ROE(5y)
ROIC(3y)
ROIC(5y)
ROICexc(3y)
ROICexc(5y)
ROICexgc(3y)
ROICexgc(5y)
ROCE(3y)
ROCE(5y)
ROICexcg growth 3Y
ROICexcg growth 5Y
ROICexc growth 3Y
ROICexc growth 5Y
OM growth 3Y
OM growth 5Y
PM growth 3Y
PM growth 5Y
GM growth 3Y
GM growth 5Y
F-Score
Asset Turnover0.05
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 3.56 | ||
| Debt/FCF | |||
| Debt/EBITDA | |||
| Cap/Depr | |||
| Cap/Sales | |||
| Interest Coverage | |||
| Cash Conversion | |||
| Profit Quality | |||
| Current Ratio | 1.52 | ||
| Quick Ratio | 1.52 | ||
| Altman-Z |
F-Score
WACC
ROIC/WACC
Cap/Depr(3y)
Cap/Depr(5y)
Cap/Sales(3y)
Cap/Sales(5y)
Profit Quality(3y)
Profit Quality(5y)
High Growth Momentum
Growth
EPS 1Y (TTM)30.3%
EPS 3Y-2.48%
EPS 5Y
EPS Q2Q%
EPS Next Y32.32%
EPS Next 2Y
EPS Next 3Y
EPS Next 5Y
Revenue 1Y (TTM)7.79%
Revenue growth 3Y1.38%
Revenue growth 5Y
Sales Q2Q%
Revenue Next Year
Revenue Next 2Y
Revenue Next 3Y
Revenue Next 5Y
EBIT growth 1Y
EBIT growth 3Y
EBIT growth 5Y
EBIT Next Year
EBIT Next 3Y
EBIT Next 5Y
FCF growth 1Y
FCF growth 3Y
FCF growth 5Y
OCF growth 1Y
OCF growth 3Y
OCF growth 5Y