EQUITABLE HOLDINGS INC (EQH) Stock Fundamental Analysis
NYSE:EQH - New York Stock Exchange, Inc. - US29452E1010 - Common Stock - Currency: USD
EQH gets a fundamental rating of 4 out of 10. The analysis compared the fundamentals against 101 industry peers in the Financial Services industry. Both the profitability and financial health of EQH have multiple concerns. EQH may be a bit undervalued, certainly considering the very reasonable score on growth
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.
In the past 5 years EQH always reported negative operating cash flow.
1.2 Ratios
The Return On Assets of EQH (-0.12%) is worse than 74.26% of its industry peers.
EQH has a worse Return On Equity (-11.49%) than 83.17% of its industry peers.
EQH has a Return On Invested Capital (1.17%) which is in line with its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | -0.12% | ||
| ROE | -11.49% | ||
| ROIC | 1.17% |
ROA(3y)N/A
ROA(5y)N/A
ROE(3y)N/A
ROE(5y)N/A
ROIC(3y)N/A
ROIC(5y)N/A
1.3 Margins
The Operating Margin of EQH (24.67%) is better than 69.31% of its industry peers.
In the last couple of years the Operating Margin of EQH has grown nicely.
The Gross Margin of EQH (55.93%) is better than 72.28% of its industry peers.
EQH's Gross Margin has improved in the last couple of years.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 24.67% | ||
| PM (TTM) | N/A | ||
| GM | 55.93% |
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.
There is no outstanding debt for EQH. This means it has a Debt/Equity and Debt/FCF ratio of 0 and it is amongst the best of the sector and industry.
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.
With a Altman-Z score value of 0.20, EQH perfoms like the industry average, outperforming 40.59% of the companies in the same industry.
The Debt to FCF ratio of EQH is 17.63, which is on the high side as it means it would take EQH, 17.63 years of fcf income to pay off all of its debts.
Looking at the Debt to FCF ratio, with a value of 17.63, EQH is in line with its industry, 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/WACC0.15
WACC7.83%
2.3 Liquidity
A Current Ratio of 1.52 indicates that EQH should not have too much problems paying its short term obligations.
The Current ratio of EQH (1.52) is better than 66.34% 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's Quick ratio of 1.52 is fine compared to the rest of the industry. EQH outperforms 67.33% 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 29.28%, which is quite impressive.
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 quite strong growth in Revenue. The Revenue has grown by 15.12% in the last year.
EQH shows a small growth in Revenue. Measured over the last years, the Revenue has been growing by 4.47% yearly.
EPS 1Y (TTM)29.28%
EPS 3Y-3.05%
EPS 5Y4.12%
EPS Q2Q%18.05%
Revenue 1Y (TTM)15.12%
Revenue growth 3Y3.04%
Revenue growth 5Y4.47%
Sales Q2Q%66.87%
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 17.05% on average per year.
The Revenue is expected to grow by 5.26% on average over the next years.
EPS Next Y21.74%
EPS Next 2Y18.38%
EPS Next 3Y17.05%
EPS Next 5YN/A
Revenue Next Year9.88%
Revenue Next 2Y8.24%
Revenue Next 3Y5.26%
Revenue Next 5YN/A
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 stable.
4. Valuation
4.1 Price/Earnings Ratio
Based on the Price/Earnings ratio of 8.62, the valuation of EQH can be described as reasonable.
Compared to the rest of the industry, the Price/Earnings ratio of EQH indicates a somewhat cheap valuation: EQH is cheaper than 75.25% of the companies listed in the same industry.
The average S&P500 Price/Earnings ratio is at 29.63. EQH is valued rather cheaply when compared to this.
The Price/Forward Earnings ratio is 7.08, which indicates a rather cheap valuation of EQH.
Compared to the rest of the industry, the Price/Forward Earnings ratio of EQH indicates a rather cheap valuation: EQH is cheaper than 83.17% of the companies listed in the same industry.
EQH's Price/Forward Earnings ratio indicates a rather cheap valuation when compared to the S&P500 average which is at 22.68.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 8.62 | ||
| Fwd PE | 7.08 |
4.2 Price Multiples
94.06% of the companies in the same industry are more expensive than EQH, based on the Enterprise Value to EBITDA ratio.
EQH's Price/Free Cash Flow ratio is a bit cheaper when compared to the industry. EQH is cheaper than 68.32% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 15.13 | ||
| EV/EBITDA | 5.04 |
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 17.05% in the coming years. This may justify a more expensive valuation.
PEG (NY)0.4
PEG (5Y)2.09
EPS Next 2Y18.38%
EPS Next 3Y17.05%
5. Dividend
5.1 Amount
EQH has a Yearly Dividend Yield of 1.78%. 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 3.84.
Compared to the average S&P500 Dividend Yield of 2.29, EQH is paying slightly less dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.78% |
5.2 History
The dividend of EQH is nicely growing with an annual growth rate of 30.50%!
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 2Y18.38%
EPS Next 3Y17.05%
51.37
-2.59 (-4.8%)
Chartmill FA Rating
GICS SectorFinancials
GICS IndustryGroupFinancial Services
GICS IndustryFinancial Services
Earnings (Last)
Earnings (Next)
Inst Owners100.07%
Inst Owner Change1.66%
Ins Owners0.46%
Ins Owner Change-0.25%
Market Cap15.92B
Analysts77.78
Price Target61.1 (18.94%)
Short Float %1.72%
Short Ratio1.97
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.78% |
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)7.56%
PT rev (3m)17.1%
EPS NQ rev (1m)-2.32%
EPS NQ rev (3m)-2.24%
EPS NY rev (1m)-0.96%
EPS NY rev (3m)-0.65%
Revenue NQ rev (1m)-1.45%
Revenue NQ rev (3m)0.72%
Revenue NY rev (1m)-0.03%
Revenue NY rev (3m)1.7%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 8.62 | ||
| Fwd PE | 7.08 | ||
| P/S | 1.01 | ||
| P/FCF | 15.13 | ||
| P/OCF | 13.11 | ||
| P/B | 4.94 | ||
| P/tB | N/A | ||
| EV/EBITDA | 5.04 |
EPS(TTM)5.96
EY11.6%
EPS(NY)7.26
Fwd EY14.12%
FCF(TTM)3.39
FCFY6.61%
OCF(TTM)3.92
OCFY7.63%
SpS50.75
BVpS10.39
TBVpS-7
PEG (NY)0.4
PEG (5Y)2.09
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | -0.12% | ||
| ROE | -11.49% | ||
| ROCE | 1.36% | ||
| ROIC | 1.17% | ||
| ROICexc | 1.21% | ||
| ROICexgc | 2.75% | ||
| OM | 24.67% | ||
| PM (TTM) | N/A | ||
| GM | 55.93% | ||
| FCFM | 6.69% |
ROA(3y)N/A
ROA(5y)N/A
ROE(3y)N/A
ROE(5y)N/A
ROIC(3y)N/A
ROIC(5y)N/A
ROICexc(3y)N/A
ROICexc(5y)N/A
ROICexgc(3y)N/A
ROICexgc(5y)N/A
ROCE(3y)N/A
ROCE(5y)N/A
ROICexcg growth 3YN/A
ROICexcg growth 5YN/A
ROICexc growth 3YN/A
ROICexc growth 5YN/A
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 | 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
WACC7.83%
ROIC/WACC0.15
Cap/Depr(3y)N/A
Cap/Depr(5y)N/A
Cap/Sales(3y)N/A
Cap/Sales(5y)N/A
Profit Quality(3y)N/A
Profit Quality(5y)N/A
High Growth Momentum
Growth
EPS 1Y (TTM)29.28%
EPS 3Y-3.05%
EPS 5Y4.12%
EPS Q2Q%18.05%
EPS Next Y21.74%
EPS Next 2Y18.38%
EPS Next 3Y17.05%
EPS Next 5YN/A
Revenue 1Y (TTM)15.12%
Revenue growth 3Y3.04%
Revenue growth 5Y4.47%
Sales Q2Q%66.87%
Revenue Next Year9.88%
Revenue Next 2Y8.24%
Revenue Next 3Y5.26%
Revenue Next 5YN/A
EBIT growth 1Y13.35%
EBIT growth 3Y2.49%
EBIT growth 5Y17.6%
EBIT Next Year31.94%
EBIT Next 3YN/A
EBIT Next 5YN/A
FCF growth 1Y309.15%
FCF growth 3YN/A
FCF growth 5YN/A
OCF growth 1Y441.01%
OCF growth 3YN/A
OCF growth 5YN/A