EQUITABLE HOLDINGS INC (EQH) Stock Fundamental Analysis
USA - New York Stock Exchange - NYSE:EQH - US29452E1010 - Common Stock
48.59 USD
+0.6 (+1.25%)
48.59 USD
0 (0%)
Taking everything into account, EQH scores 4 out of 10 in our fundamental rating. EQH was compared to 98 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
In the past year EQH was profitable.
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 73.47% of its industry peers.
EQH has a Return On Equity of -520.27%. This is amonst the worse of the industry: EQH underperforms 90.82% of its industry peers.
Looking at the Return On Invested Capital, with a value of 0.52%, EQH is doing worse than 62.24% of the companies in the same industry.
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
Looking at the Operating Margin, with a value of 12.18%, EQH is in line with its industry, outperforming 46.94% of the companies in the same industry.
EQH's Operating Margin has improved in the last couple of years.
With a decent Gross Margin value of 49.15%, EQH is doing good in the industry, outperforming 68.37% 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.
Compared to 5 years ago, EQH has less shares outstanding
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.
The Debt to FCF ratio of EQH is 19.39, which is on the high side as it means it would take EQH, 19.39 years of fcf income to pay off 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 41.84% 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.
EQH has a worse Debt to Equity ratio (104.84) than 92.86% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 104.84 | ||
| Debt/FCF | 19.39 | ||
| Altman-Z | 0.21 |
ROIC/WACC0.08
WACC6.45%
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 amongst the best of the industry. EQH outperforms 80.61% of its industry peers.
A Quick Ratio of 2.45 indicates that EQH has no problem at all paying its short term obligations.
Looking at the Quick ratio, with a value of 2.45, EQH belongs to the top of the industry, outperforming 81.63% of the companies in the same industry.
| 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.
The Revenue has decreased by -4.25% in the past 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)-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.
Based on estimates for the next years, EQH will show a small growth in Revenue. The Revenue will grow by 6.07% on average per year.
EPS Next Y-4.14%
EPS Next 2Y16.11%
EPS Next 3Y16.96%
EPS Next 5Y14.1%
Revenue Next Year0.68%
Revenue Next 2Y3.83%
Revenue Next 3Y5.3%
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
A Price/Earnings ratio of 8.92 indicates a reasonable valuation of EQH.
70.41% 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 (27.19), we can say EQH is valued rather cheaply.
With a Price/Forward Earnings ratio of 6.05, the valuation of EQH can be described as very cheap.
Compared to the rest of the industry, the Price/Forward Earnings ratio of EQH indicates a rather cheap valuation: EQH is cheaper than 83.67% 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 23.88.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 8.92 | ||
| Fwd PE | 6.05 |
4.2 Price Multiples
Based on the Enterprise Value to EBITDA ratio, EQH is valued a bit cheaper than the industry average as 78.57% of the companies are valued more expensively.
72.45% of the companies in the same industry are more expensive than EQH, based on the Price/Free Cash Flow ratio.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 11.68 | ||
| EV/EBITDA | 7.66 |
4.3 Compensation for Growth
A more expensive valuation may be justified as EQH's earnings are expected to grow with 16.96% in the coming years.
PEG (NY)N/A
PEG (5Y)2.16
EPS Next 2Y16.11%
EPS Next 3Y16.96%
5. Dividend
5.1 Amount
EQH has a Yearly Dividend Yield of 2.27%.
EQH's Dividend Yield is a higher than the industry average which is at 2.35.
Compared to an average S&P500 Dividend Yield of 1.94, EQH has a dividend comparable with the average S&P500 company.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 2.27% |
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.
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 3Y16.96%
48.59
+0.6 (+1.25%)
Chartmill FA Rating
GICS SectorFinancials
GICS IndustryGroupFinancial Services
GICS IndustryFinancial Services
Earnings (Last)
Earnings (Next)
Inst Owners102.57%
Inst Owner Change0%
Ins Owners0.47%
Ins Owner Change-0.29%
Market Cap13.92B
Revenue(TTM)15.06B
Net Income(TTM)-770.00M
Analysts80
Price Target65.67 (35.15%)
Short Float %2.58%
Short Ratio2.7
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 2.27% |
Yearly Dividend1.19
Dividend Growth(5Y)15.63%
DP-50.13%
Div Incr Years0
Div Non Decr Years0
Ex-DateN/A
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)-33.36%
Min Revenue beat(2)-40.44%
Max Revenue beat(2)-26.28%
Revenue beat(4)1
Avg Revenue beat(4)-16.29%
Min Revenue beat(4)-40.44%
Max Revenue beat(4)12.88%
Revenue beat(8)1
Avg Revenue beat(8)-21.51%
Revenue beat(12)3
Avg Revenue beat(12)-17.79%
Revenue beat(16)5
Avg Revenue beat(16)-15.64%
PT rev (1m)-0.05%
PT rev (3m)-1.7%
EPS NQ rev (1m)-0.27%
EPS NQ rev (3m)-0.12%
EPS NY rev (1m)-0.09%
EPS NY rev (3m)-3.47%
Revenue NQ rev (1m)0.83%
Revenue NQ rev (3m)10.18%
Revenue NY rev (1m)-1.01%
Revenue NY rev (3m)5.26%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 8.92 | ||
| Fwd PE | 6.05 | ||
| P/S | 0.92 | ||
| P/FCF | 11.68 | ||
| P/OCF | 10.98 | ||
| P/B | 94.07 | ||
| P/tB | N/A | ||
| EV/EBITDA | 7.66 |
EPS(TTM)5.45
EY11.22%
EPS(NY)8.03
Fwd EY16.54%
FCF(TTM)4.16
FCFY8.56%
OCF(TTM)4.43
OCFY9.11%
SpS52.55
BVpS0.52
TBVpS-18.07
PEG (NY)N/A
PEG (5Y)2.16
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
WACC6.45%
ROIC/WACC0.08
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-4.14%
EPS Next 2Y16.11%
EPS Next 3Y16.96%
EPS Next 5Y14.1%
Revenue 1Y (TTM)-4.25%
Revenue growth 3Y3.04%
Revenue growth 5Y4.47%
Sales Q2Q%-14.47%
Revenue Next Year0.68%
Revenue Next 2Y3.83%
Revenue Next 3Y5.3%
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.
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 8.92 and the Price/Book (PB) ratio is 94.07.
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 -4.14% in the next year.