EQUITABLE HOLDINGS INC (EQH) Stock Fundamental Analysis
USA - New York Stock Exchange - NYSE:EQH - US29452E1010 - Common Stock
45.81 USD
-0.31 (-0.67%)
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
- EQH had positive earnings in the past year.
- EQH had a positive operating cash flow in the past year.
- 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
- The Return On Assets of EQH (-0.24%) is worse than 74.23% of its industry peers.
- The Return On Equity of EQH (-520.27%) is worse than 92.78% of its industry peers.
- EQH's Return On Invested Capital of 0.52% is on the low side compared to the rest of the industry. EQH is outperformed by 61.86% of its industry peers.
- Measured over the past 3 years, the Average Return On Invested Capital for EQH 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 has a Operating Margin of 12.18%. This is comparable to the rest of the industry: EQH outperforms 47.42% of its industry peers.
- In the last couple of years the Operating Margin of EQH has grown nicely.
- EQH has a Gross Margin of 49.15%. This is in the better half of the industry: EQH outperforms 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
- 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.
- 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 0.21. 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 (0.21) which is in line with its industry peers.
- EQH has a debt to FCF ratio of 19.39. This is a negative value and a sign of low solvency as EQH would need 19.39 years to pay back of 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.
- The Debt to Equity ratio of EQH (104.84) is worse than 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
WACC6.28%
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.
- EQH has a Quick 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 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.
- Looking at the last year, EQH shows a decrease in Revenue. The Revenue has decreased by -4.25% in the last 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%-14.47%
3.2 Future
- The Earnings Per Share is expected to grow by 14.10% on average over the next years. This is quite good.
- The Revenue is expected to grow by 6.07% on average over the next years.
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
- 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
- EQH is valuated reasonably with a Price/Earnings ratio of 8.41.
- Compared to the rest of the industry, the Price/Earnings ratio of EQH indicates a somewhat cheap valuation: EQH is cheaper than 74.23% of the companies listed in the same industry.
- The average S&P500 Price/Earnings ratio is at 27.25. EQH is valued rather cheaply when compared to this.
- A Price/Forward Earnings ratio of 5.71 indicates a rather cheap valuation of EQH.
- 85.57% of the companies in the same industry are more expensive than EQH, based on the Price/Forward Earnings ratio.
- 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 | 8.41 | ||
| Fwd PE | 5.71 |
4.2 Price Multiples
- Based on the Enterprise Value to EBITDA ratio, EQH is valued a bit cheaper than 79.38% of the companies in the same industry.
- EQH's Price/Free Cash Flow ratio is a bit cheaper when compared to the industry. EQH is cheaper than 72.16% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 11.01 | ||
| EV/EBITDA | 7.46 |
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)2.04
EPS Next 2Y16.06%
EPS Next 3Y17.08%
5. Dividend
5.1 Amount
- EQH has a Yearly Dividend Yield of 2.33%. 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 2.09.
- EQH's Dividend Yield is a higher than the S&P500 average which is at 1.82.
| 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 8.41 and the Price/Book (PB) ratio is 88.69.
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.