EQUITABLE HOLDINGS INC (EQH) Stock Fundamental Analysis
USA - New York Stock Exchange - NYSE:EQH - US29452E1010 - Common Stock
49 USD
+1.06 (+2.21%)
49 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 has a decent growth rate and is not valued too expensively.
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.
In multiple years EQH reported negative net income over the last 5 years.
EQH had negative operating cash flow in 4 of the past 5 years.
1.2 Ratios
EQH has a worse Return On Assets (-0.24%) than 76.29% of its industry peers.
With a Return On Equity value of -520.27%, EQH is not doing good in the industry: 91.75% of the companies in the same industry are doing better.
The Return On Invested Capital of EQH (0.52%) is worse than 63.92% of its industry peers.
The Average Return On Invested Capital over the past 3 years for EQH is significantly below the industry average of 8.44%.
| 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
Looking at the Operating Margin, with a value of 12.18%, EQH is in line with its industry, outperforming 46.39% of the companies in the same industry.
EQH's Operating Margin has improved in the last couple of years.
Looking at the Gross Margin, with a value of 49.15%, EQH is in the better half of the industry, outperforming 68.04% of the companies in the same industry.
EQH's Gross Margin has improved in the last couple of years.
| 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.
EQH has less shares outstanding than it did 1 year ago.
The number of shares outstanding for EQH has been reduced compared to 5 years ago.
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.
Looking at the Altman-Z score, with a value of 0.21, EQH is in line with its industry, outperforming 45.36% of the companies in the same industry.
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's Debt to FCF ratio of 19.39 is in line compared to the rest of the industry. EQH outperforms 40.21% of its industry peers.
EQH has a Debt/Equity ratio of 104.84. This is a high value indicating a heavy dependency on external financing.
Looking at the Debt to Equity ratio, with a value of 104.84, EQH is doing worse than 94.85% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 104.84 | ||
| Debt/FCF | 19.39 | ||
| Altman-Z | 0.21 |
ROIC/WACC0.12
WACC4.53%
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's Current ratio of 2.45 is fine compared to the rest of the industry. EQH outperforms 78.35% 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.
The Quick ratio of EQH (2.45) is better than 79.38% 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%.
The Earnings Per Share has been growing slightly by 4.12% on average over the past years.
EQH shows a decrease in Revenue. In the last year, the revenue decreased by -4.25%.
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%-52.86%
3.2 Future
Based on estimates for the next years, EQH will show a quite strong growth in Earnings Per Share. The EPS will grow by 14.10% on average per year.
EQH is expected to show a small growth in Revenue. In the coming years, the Revenue will grow by 6.07% yearly.
EPS Next Y-4.05%
EPS Next 2Y16.11%
EPS Next 3Y16.82%
EPS Next 5Y14.1%
Revenue Next Year1.71%
Revenue Next 2Y3.34%
Revenue Next 3Y4.66%
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.
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
EQH is valuated reasonably with a Price/Earnings ratio of 8.99.
69.07% of the companies in the same industry are more expensive than EQH, based on the Price/Earnings ratio.
When comparing the Price/Earnings ratio of EQH to the average of the S&P500 Index (26.76), we can say EQH is valued rather cheaply.
EQH is valuated cheaply with a Price/Forward Earnings ratio of 6.10.
83.51% 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 23.96, which is the current average of the S&P500 Index.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 8.99 | ||
| Fwd PE | 6.1 |
4.2 Price Multiples
Based on the Enterprise Value to EBITDA ratio, EQH is valued a bit cheaper than 77.32% 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 | 11.78 | ||
| EV/EBITDA | 7.77 |
4.3 Compensation for Growth
A more expensive valuation may be justified as EQH's earnings are expected to grow with 16.82% in the coming years.
PEG (NY)N/A
PEG (5Y)2.18
EPS Next 2Y16.11%
EPS Next 3Y16.82%
5. Dividend
5.1 Amount
EQH has a Yearly Dividend Yield of 2.35%. 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 3.96.
EQH's Dividend Yield is comparable with the S&P500 average which is at 2.31.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 2.35% |
5.2 History
On average, the dividend of EQH grows each year by 15.63%, which is quite nice.
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
The earnings of EQH are negative and hence is the payout ratio. EQH will probably not be able to sustain this dividend level.
EQH's earnings are growing slower than its dividend. This means the dividend growth is not sustainable.
DP-50.13%
EPS Next 2Y16.11%
EPS Next 3Y16.82%
49
+1.06 (+2.21%)
Chartmill FA Rating
GICS SectorFinancials
GICS IndustryGroupFinancial Services
GICS IndustryFinancial Services
Earnings (Last)
Earnings (Next)
Inst Owners102.45%
Inst Owner Change1.16%
Ins Owners0.48%
Ins Owner Change-0.22%
Market Cap14.04B
Revenue(TTM)15.06B
Net Income(TTM)-770.00M
Analysts80
Price Target65.54 (33.76%)
Short Float %3.01%
Short Ratio2.92
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 2.35% |
Yearly Dividend1.19
Dividend Growth(5Y)15.63%
DP-50.13%
Div Incr Years0
Div Non Decr Years0
Ex-Date
Surprises & Revisions
EPS beat(2)0
Avg EPS beat(2)-12.21%
Min EPS beat(2)-15.26%
Max EPS beat(2)-9.16%
EPS beat(4)0
Avg EPS beat(4)-10.23%
Min EPS beat(4)-15.26%
Max EPS beat(4)-3.88%
EPS beat(8)3
Avg EPS beat(8)-2.6%
EPS beat(12)3
Avg EPS beat(12)-5.84%
EPS beat(16)6
Avg EPS beat(16)-3.92%
Revenue beat(2)0
Avg Revenue beat(2)-49.91%
Min Revenue beat(2)-59.37%
Max Revenue beat(2)-40.44%
Revenue beat(4)1
Avg Revenue beat(4)-24.56%
Min Revenue beat(4)-59.37%
Max Revenue beat(4)12.88%
Revenue beat(8)1
Avg Revenue beat(8)-25.64%
Revenue beat(12)3
Avg Revenue beat(12)-20.55%
Revenue beat(16)5
Avg Revenue beat(16)-17.71%
PT rev (1m)-1.15%
PT rev (3m)-2.82%
EPS NQ rev (1m)-1.2%
EPS NQ rev (3m)1.03%
EPS NY rev (1m)-2.78%
EPS NY rev (3m)-3.95%
Revenue NQ rev (1m)8.77%
Revenue NQ rev (3m)11.6%
Revenue NY rev (1m)6.21%
Revenue NY rev (3m)6.6%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 8.99 | ||
| Fwd PE | 6.1 | ||
| P/S | 0.93 | ||
| P/FCF | 11.78 | ||
| P/OCF | 11.07 | ||
| P/B | 94.86 | ||
| P/tB | N/A | ||
| EV/EBITDA | 7.77 |
EPS(TTM)5.45
EY11.12%
EPS(NY)8.03
Fwd EY16.4%
FCF(TTM)4.16
FCFY8.49%
OCF(TTM)4.43
OCFY9.03%
SpS52.55
BVpS0.52
TBVpS-18.07
PEG (NY)N/A
PEG (5Y)2.18
Graham Number7.96
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | -0.24% | ||
| ROE | -520.27% | ||
| ROCE | 0.61% | ||
| ROIC | 0.52% | ||
| ROICexc | 0.55% | ||
| ROICexgc | 1.16% | ||
| OM | 12.18% | ||
| PM (TTM) | N/A | ||
| GM | 49.15% | ||
| FCFM | 7.92% |
ROA(3y)0.51%
ROA(5y)0.22%
ROE(3y)81.75%
ROE(5y)47.25%
ROIC(3y)0.99%
ROIC(5y)0.93%
ROICexc(3y)1.01%
ROICexc(5y)0.95%
ROICexgc(3y)2.3%
ROICexgc(5y)2.17%
ROCE(3y)1.15%
ROCE(5y)1.08%
ROICexgc growth 3Y0.46%
ROICexgc growth 5Y11.98%
ROICexc growth 3Y2.18%
ROICexc growth 5Y13.84%
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%
F-Score4
Asset Turnover0.05
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 104.84 | ||
| Debt/FCF | 19.39 | ||
| Debt/EBITDA | 5.73 | ||
| Cap/Depr | 8.72% | ||
| Cap/Sales | 0.5% | ||
| Interest Coverage | 250 | ||
| Cash Conversion | 46.86% | ||
| Profit Quality | N/A | ||
| Current Ratio | 2.45 | ||
| Quick Ratio | 2.45 | ||
| Altman-Z | 0.21 |
F-Score4
WACC4.53%
ROIC/WACC0.12
Cap/Depr(3y)17.57%
Cap/Depr(5y)16.59%
Cap/Sales(3y)1.02%
Cap/Sales(5y)0.92%
Profit Quality(3y)N/A
Profit Quality(5y)N/A
High Growth Momentum
Growth
EPS 1Y (TTM)-4.72%
EPS 3Y-3.05%
EPS 5Y4.12%
EPS Q2Q%-3.27%
EPS Next Y-4.05%
EPS Next 2Y16.11%
EPS Next 3Y16.82%
EPS Next 5Y14.1%
Revenue 1Y (TTM)-4.25%
Revenue growth 3Y3.04%
Revenue growth 5Y4.47%
Sales Q2Q%-52.86%
Revenue Next Year1.71%
Revenue Next 2Y3.34%
Revenue Next 3Y4.66%
Revenue Next 5Y6.07%
EBIT growth 1Y-52.73%
EBIT growth 3Y2.49%
EBIT growth 5Y17.6%
EBIT Next Year1.82%
EBIT Next 3Y12.06%
EBIT Next 5YN/A
FCF growth 1Y336.98%
FCF growth 3YN/A
FCF growth 5YN/A
OCF growth 1Y456.18%
OCF growth 3YN/A
OCF growth 5YN/A
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.
What is the valuation status of EQUITABLE HOLDINGS INC (EQH) stock?
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.
How financially healthy is EQUITABLE HOLDINGS INC?
The financial health rating of EQUITABLE HOLDINGS INC (EQH) is 5 / 10.
Is the dividend of EQUITABLE HOLDINGS INC sustainable?
The dividend rating of EQUITABLE HOLDINGS INC (EQH) is 3 / 10 and the dividend payout ratio is -50.13%.