EQUITABLE HOLDINGS INC (EQH) Stock Fundamental Analysis
USA - NYSE:EQH - US29452E1010 - Common Stock
48.01 USD
+0.6 (+1.27%)
48.01 USD
0 (0%)
EQH gets a fundamental rating of 5 out of 10. The analysis compared the fundamentals against 99 industry peers in the Financial Services industry. EQH has only an average score on both its financial health and profitability. EQH has a correct valuation and a medium growth rate.
1. Profitability
1.1 Basic Checks
In the past year EQH was profitable.
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
EQH has a worse Return On Assets (0.13%) than 69.70% of its industry peers.
EQH has a better Return On Equity (35.42%) than 93.94% of its industry peers.
EQH has a worse Return On Invested Capital (0.82%) than 61.62% 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 7.79%.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 0.13% | ||
| ROE | 35.42% | ||
| ROIC | 0.82% |
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's Profit Margin of 2.57% is on the low side compared to the rest of the industry. EQH is outperformed by 61.62% of its industry peers.
Looking at the Operating Margin, with a value of 17.41%, EQH is in the better half of the industry, outperforming 63.64% of the companies in the same industry.
EQH's Operating Margin has improved in the last couple of years.
The Gross Margin of EQH (51.52%) is better than 68.69% of its industry peers.
EQH's Gross Margin has improved in the last couple of years.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 17.41% | ||
| PM (TTM) | 2.57% | ||
| GM | 51.52% |
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
With a Return on Invested Capital (ROIC) below the Cost of Capital (WACC), EQH is destroying value.
Compared to 1 year ago, EQH has less shares outstanding
The number of shares outstanding for EQH has been reduced compared to 5 years ago.
EQH has a better debt/assets ratio than last year.
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's Altman-Z score of 0.20 is in line compared to the rest of the industry. EQH outperforms 44.44% of its industry peers.
EQH has a debt to FCF ratio of 15.30. This is a negative value and a sign of low solvency as EQH would need 15.30 years to pay back of all of its debts.
EQH has a Debt to FCF ratio (15.30) which is in line with its industry peers.
A Debt/Equity ratio of 13.37 is on the high side and indicates that EQH has dependencies on debt financing.
The Debt to Equity ratio of EQH (13.37) is worse than 86.87% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 13.37 | ||
| Debt/FCF | 15.3 | ||
| Altman-Z | 0.2 |
ROIC/WACC0.18
WACC4.53%
2.3 Liquidity
EQH has a Current Ratio of 1.67. 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 Current ratio (1.67) than 68.69% of its industry peers.
EQH has a Quick Ratio of 1.67. 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 Quick ratio value of 1.67, EQH is doing good in the industry, outperforming 70.71% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.67 | ||
| Quick Ratio | 1.67 |
3. Growth
3.1 Past
EQH shows a small growth in Earnings Per Share. In the last year, the EPS has grown by 3.00%.
The Earnings Per Share has been growing slightly by 4.12% on average over the past years.
Looking at the last year, EQH shows a small growth in Revenue. The Revenue has grown by 0.04% in the last year.
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)3%
EPS 3Y-3.05%
EPS 5Y4.12%
EPS Q2Q%-23.08%
Revenue 1Y (TTM)0.04%
Revenue growth 3Y3.04%
Revenue growth 5Y4.47%
Sales Q2Q%-34.77%
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 16.85% on average per year.
EQH is expected to show a small growth in Revenue. In the coming years, the Revenue will grow by 6.27% yearly.
EPS Next Y-0.7%
EPS Next 2Y16.35%
EPS Next 3Y17.22%
EPS Next 5Y16.85%
Revenue Next Year-4.35%
Revenue Next 2Y-1.26%
Revenue Next 3Y0.86%
Revenue Next 5Y6.27%
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
With a Price/Earnings ratio of 8.73, the valuation of EQH can be described as very reasonable.
Compared to the rest of the industry, the Price/Earnings ratio of EQH indicates a somewhat cheap valuation: EQH is cheaper than 77.78% of the companies listed in the same industry.
EQH's Price/Earnings ratio indicates a rather cheap valuation when compared to the S&P500 average which is at 27.69.
Based on the Price/Forward Earnings ratio of 5.95, the valuation of EQH can be described as very cheap.
Based on the Price/Forward Earnings ratio, EQH is valued cheaper than 82.83% of the companies in the same industry.
EQH is valuated cheaply when we compare the Price/Forward Earnings ratio to 23.18, which is the current average of the S&P500 Index.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 8.73 | ||
| Fwd PE | 5.95 |
4.2 Price Multiples
EQH's Enterprise Value to EBITDA ratio is rather cheap when compared to the industry. EQH is cheaper than 88.89% 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 75.76% of the companies listed in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 9.52 | ||
| EV/EBITDA | 5.49 |
4.3 Compensation for Growth
EQH's earnings are expected to grow with 17.22% in the coming years. This may justify a more expensive valuation.
PEG (NY)N/A
PEG (5Y)2.12
EPS Next 2Y16.35%
EPS Next 3Y17.22%
5. Dividend
5.1 Amount
With a Yearly Dividend Yield of 2.29%, EQH has a reasonable but not impressive dividend return.
Compared to an average industry Dividend Yield of 5.15, EQH pays a bit more dividend than its industry peers.
EQH's Dividend Yield is comparable with the S&P500 average which is at 2.34.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 2.29% |
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 pays out 93.12% of its income as dividend. This is not a sustainable payout ratio.
EQH's earnings are growing around the same pace than its dividend. As long as the earnings growth is kept the dividend growth is sustainable.
DP93.12%
EPS Next 2Y16.35%
EPS Next 3Y17.22%
48.01
+0.6 (+1.27%)
Chartmill FA Rating
GICS SectorFinancials
GICS IndustryGroupFinancial Services
GICS IndustryFinancial Services
Earnings (Last)
Earnings (Next)
Inst Owners100.63%
Inst Owner Change-0.13%
Ins Owners0.5%
Ins Owner Change-0.27%
Market Cap14.38B
Analysts80
Price Target66.81 (39.16%)
Short Float %2.38%
Short Ratio2.46
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 2.29% |
Yearly Dividend1.19
Dividend Growth(5Y)15.63%
DP93.12%
Div Incr Years0
Div Non Decr Years0
Ex-Date
Surprises & Revisions
EPS beat(2)0
Avg EPS beat(2)-13.94%
Min EPS beat(2)-15.26%
Max EPS beat(2)-12.62%
EPS beat(4)0
Avg EPS beat(4)-8.2%
Min EPS beat(4)-15.26%
Max EPS beat(4)-1.05%
EPS beat(8)3
Avg EPS beat(8)-3.27%
EPS beat(12)4
Avg EPS beat(12)-3.84%
EPS beat(16)7
Avg EPS beat(16)-0.99%
Revenue beat(2)1
Avg Revenue beat(2)-13.78%
Min Revenue beat(2)-40.44%
Max Revenue beat(2)12.88%
Revenue beat(4)1
Avg Revenue beat(4)-14.99%
Min Revenue beat(4)-40.44%
Max Revenue beat(4)12.88%
Revenue beat(8)2
Avg Revenue beat(8)-18.05%
Revenue beat(12)4
Avg Revenue beat(12)-15.36%
Revenue beat(16)6
Avg Revenue beat(16)-13.5%
PT rev (1m)-0.92%
PT rev (3m)0.08%
EPS NQ rev (1m)-2.98%
EPS NQ rev (3m)-7.26%
EPS NY rev (1m)-0.59%
EPS NY rev (3m)-7.47%
Revenue NQ rev (1m)2.64%
Revenue NQ rev (3m)0.73%
Revenue NY rev (1m)0.25%
Revenue NY rev (3m)-1.4%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 8.73 | ||
| Fwd PE | 5.95 | ||
| P/S | 0.91 | ||
| P/FCF | 9.52 | ||
| P/OCF | 9.09 | ||
| P/B | 12.52 | ||
| P/tB | N/A | ||
| EV/EBITDA | 5.49 |
EPS(TTM)5.5
EY11.46%
EPS(NY)8.07
Fwd EY16.8%
FCF(TTM)5.04
FCFY10.51%
OCF(TTM)5.28
OCFY11%
SpS52.91
BVpS3.84
TBVpS-14
PEG (NY)N/A
PEG (5Y)2.12
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 0.13% | ||
| ROE | 35.42% | ||
| ROCE | 0.96% | ||
| ROIC | 0.82% | ||
| ROICexc | 0.86% | ||
| ROICexgc | 1.86% | ||
| OM | 17.41% | ||
| PM (TTM) | 2.57% | ||
| GM | 51.52% | ||
| FCFM | 9.53% |
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%
ROICexcg growth 3Y0.46%
ROICexcg 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-Score5
Asset Turnover0.05
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 13.37 | ||
| Debt/FCF | 15.3 | ||
| Debt/EBITDA | 4.24 | ||
| Cap/Depr | 8.22% | ||
| Cap/Sales | 0.45% | ||
| Interest Coverage | 250 | ||
| Cash Conversion | 43.67% | ||
| Profit Quality | 371.25% | ||
| Current Ratio | 1.67 | ||
| Quick Ratio | 1.67 | ||
| Altman-Z | 0.2 |
F-Score5
WACC4.53%
ROIC/WACC0.18
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)3%
EPS 3Y-3.05%
EPS 5Y4.12%
EPS Q2Q%-23.08%
EPS Next Y-0.7%
EPS Next 2Y16.35%
EPS Next 3Y17.22%
EPS Next 5Y16.85%
Revenue 1Y (TTM)0.04%
Revenue growth 3Y3.04%
Revenue growth 5Y4.47%
Sales Q2Q%-34.77%
Revenue Next Year-4.35%
Revenue Next 2Y-1.26%
Revenue Next 3Y0.86%
Revenue Next 5Y6.27%
EBIT growth 1Y-31.71%
EBIT growth 3Y2.49%
EBIT growth 5Y17.6%
EBIT Next Year8.74%
EBIT Next 3Y14.53%
EBIT Next 5YN/A
FCF growth 1Y303.64%
FCF growth 3YN/A
FCF growth 5YN/A
OCF growth 1Y394.6%
OCF growth 3YN/A
OCF growth 5YN/A