EQUITABLE HOLDINGS INC (EQH) Stock Fundamental Analysis
USA - New York Stock Exchange - NYSE:EQH - US29452E1010 - Common Stock
48.26 USD
-0.74 (-1.51%)
48.26 USD
0 (0%)
EQH gets a fundamental rating of 4 out of 10. The analysis compared the fundamentals against 97 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 not valued too expensively and it also shows a decent growth rate.
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.
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 76.29% of its industry peers.
The Return On Equity of EQH (-520.27%) is worse than 91.75% of its industry peers.
With a Return On Invested Capital value of 0.52%, EQH is not doing good in the industry: 63.92% of the companies in the same industry are doing better.
Measured over the past 3 years, the Average Return On Invested Capital 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
EQH has a Operating Margin (12.18%) which is in line with its industry peers.
In the last couple of years the Operating Margin of EQH has grown nicely.
With a decent Gross Margin value of 49.15%, EQH is doing good in 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.
EQH has less shares outstanding than it did 5 years ago.
EQH has a better debt/assets ratio than last year.
2.2 Solvency
Based on the Altman-Z score of 0.21, we must say that EQH is in the distress zone and has some risk of bankruptcy.
The Altman-Z score of EQH (0.21) is comparable to the rest of the 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 has a Debt to FCF ratio of 19.39. This is comparable to the rest of the industry: EQH outperforms 40.21% 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.
With a Debt to Equity ratio value of 104.84, EQH is not doing good in the industry: 94.85% of the companies in the same industry are doing better.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 104.84 | ||
| Debt/FCF | 19.39 | ||
| Altman-Z | 0.21 |
ROIC/WACC0.12
WACC4.51%
2.3 Liquidity
A Current Ratio of 2.45 indicates that EQH has no problem at all paying its short term obligations.
With a decent Current ratio value of 2.45, EQH is doing good in the industry, outperforming 78.35% of the companies in the same industry.
A Quick Ratio of 2.45 indicates that EQH has no problem at all paying 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%.
EQH shows a small growth in Earnings Per Share. Measured over the last years, the EPS has been growing by 4.12% yearly.
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%-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.
The Revenue is expected to grow by 6.07% on average over the next years.
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.
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
The Price/Earnings ratio is 8.86, which indicates a very decent valuation of EQH.
EQH's Price/Earnings ratio is a bit cheaper when compared to the industry. EQH is cheaper than 69.07% of the companies in the same industry.
The average S&P500 Price/Earnings ratio is at 26.54. EQH is valued rather cheaply when compared to this.
The Price/Forward Earnings ratio is 6.01, which indicates a rather cheap valuation of EQH.
Based on the Price/Forward Earnings ratio, EQH is valued cheaply inside the industry as 83.51% of the companies are valued more expensively.
Compared to an average S&P500 Price/Forward Earnings ratio of 23.78, EQH is valued rather cheaply.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 8.86 | ||
| Fwd PE | 6.01 |
4.2 Price Multiples
Based on the Enterprise Value to EBITDA ratio, EQH is valued a bit cheaper than the industry average as 77.32% of the companies are valued more expensively.
Based on the Price/Free Cash Flow ratio, EQH is valued a bit cheaper than 72.16% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 11.6 | ||
| EV/EBITDA | 7.77 |
4.3 Compensation for Growth
EQH's earnings are expected to grow with 16.82% in the coming years. This may justify a more expensive valuation.
PEG (NY)N/A
PEG (5Y)2.15
EPS Next 2Y16.11%
EPS Next 3Y16.82%
5. Dividend
5.1 Amount
With a Yearly Dividend Yield of 2.35%, EQH has a reasonable but not impressive dividend return.
Compared to an average industry Dividend Yield of 3.88, EQH pays a bit more dividend than its industry peers.
Compared to an average S&P500 Dividend Yield of 2.27, EQH has a dividend comparable with the average S&P500 company.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 2.35% |
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 2Y16.11%
EPS Next 3Y16.82%
48.26
-0.74 (-1.51%)
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 Cap13.83B
Revenue(TTM)15.06B
Net Income(TTM)-770.00M
Analysts80
Price Target65.54 (35.81%)
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 | 8.86 | ||
| Fwd PE | 6.01 | ||
| P/S | 0.92 | ||
| P/FCF | 11.6 | ||
| P/OCF | 10.91 | ||
| P/B | 93.43 | ||
| P/tB | N/A | ||
| EV/EBITDA | 7.77 |
EPS(TTM)5.45
EY11.29%
EPS(NY)8.03
Fwd EY16.65%
FCF(TTM)4.16
FCFY8.62%
OCF(TTM)4.43
OCFY9.17%
SpS52.55
BVpS0.52
TBVpS-18.07
PEG (NY)N/A
PEG (5Y)2.15
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
WACC4.51%
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%.