EQUITABLE HOLDINGS INC (EQH) Stock Fundamental Analysis
NYSE:EQH - New York Stock Exchange, Inc. - US29452E1010 - Common Stock - Currency: USD
We assign a fundamental rating of 5 out of 10 to EQH. EQH was compared to 101 industry peers in the Financial Services industry. EQH has an average financial health and profitability rating. EQH may be a bit undervalued, certainly considering the very reasonable score on growth
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.
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 reported 4 times negative operating cash flow.
1.2 Ratios
With a Return On Assets value of 0.41%, EQH is not doing good in the industry: 68.32% of the companies in the same industry are doing better.
EQH has a Return On Equity of 77.41%. This is amongst the best in the industry. EQH outperforms 97.03% of its industry peers.
With a Return On Invested Capital value of 1.49%, EQH perfoms like the industry average, outperforming 41.58% of the companies in the same industry.
EQH had an Average Return On Invested Capital over the past 3 years of 0.99%. This is significantly below the industry average of 11.97%.
The 3 year average ROIC (0.99%) for EQH is below the current ROIC(1.49%), indicating increased profibility in the last year.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 0.41% | ||
| ROE | 77.41% | ||
| ROIC | 1.49% |
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 7.24% is in line compared to the rest of the industry. EQH outperforms 40.59% of its industry peers.
EQH has a better Operating Margin (28.82%) than 71.29% of its industry peers.
In the last couple of years the Operating Margin of EQH has grown nicely.
EQH's Gross Margin of 58.15% is fine compared to the rest of the industry. EQH outperforms 75.25% of its industry peers.
In the last couple of years the Gross Margin of EQH has grown nicely.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 28.82% | ||
| PM (TTM) | 7.24% | ||
| GM | 58.15% |
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.
The number of shares outstanding for EQH has been reduced compared to 1 year ago.
The number of shares outstanding for EQH has been reduced compared to 5 years ago.
Compared to 1 year ago, EQH has an improved debt to assets ratio.
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.
With a Altman-Z score value of 0.21, EQH perfoms like the industry average, outperforming 40.59% of the companies in the same industry.
EQH has a debt to FCF ratio of 10.18. This is a negative value and a sign of low solvency as EQH would need 10.18 years to pay back of all of its debts.
With a Debt to FCF ratio value of 10.18, EQH perfoms like the industry average, outperforming 58.42% of the companies in the same industry.
EQH has a Debt/Equity ratio of 7.55. This is a high value indicating a heavy dependency on external financing.
EQH has a worse Debt to Equity ratio (7.55) than 84.16% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 7.55 | ||
| Debt/FCF | 10.18 | ||
| Altman-Z | 0.21 |
ROIC/WACC0.19
WACC7.91%
2.3 Liquidity
A Current Ratio of 1.26 indicates that EQH should not have too much problems paying its short term obligations.
Looking at the Current ratio, with a value of 1.26, EQH is in the better half of the industry, outperforming 64.36% of the companies in the same industry.
A Quick Ratio of 1.26 indicates that EQH should not have too much problems paying its short term obligations.
Looking at the Quick ratio, with a value of 1.26, EQH is in the better half of the industry, outperforming 65.35% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.26 | ||
| Quick Ratio | 1.26 |
3. Growth
3.1 Past
The Earnings Per Share has grown by an impressive 29.28% over the past year.
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.
EQH shows quite a strong growth in Revenue. In the last year, the Revenue has grown by 15.12%.
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 16.98% on average per year.
The Revenue is expected to grow by 5.26% on average over the next years.
EPS Next Y15.38%
EPS Next 2Y18.33%
EPS Next 3Y18.26%
EPS Next 5Y16.98%
Revenue Next Year2.35%
Revenue Next 2Y2.12%
Revenue Next 3Y4.52%
Revenue Next 5Y5.26%
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.
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
A Price/Earnings ratio of 8.40 indicates a reasonable valuation of EQH.
EQH's Price/Earnings ratio is a bit cheaper when compared to the industry. EQH is cheaper than 74.26% of the companies in the same industry.
EQH is valuated cheaply when we compare the Price/Earnings ratio to 28.92, which is the current average of the S&P500 Index.
A Price/Forward Earnings ratio of 7.28 indicates a rather cheap valuation of EQH.
Based on the Price/Forward Earnings ratio, EQH is valued a bit cheaper than 77.23% of the companies in the same industry.
The average S&P500 Price/Forward Earnings ratio is at 21.65. EQH is valued rather cheaply when compared to this.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 8.4 | ||
| Fwd PE | 7.28 |
4.2 Price Multiples
EQH's Enterprise Value to EBITDA ratio is rather cheap when compared to the industry. EQH is cheaper than 94.06% 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 79.21% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 8.29 | ||
| EV/EBITDA | 4.31 |
4.3 Compensation for Growth
The 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 18.26% in the coming years. This may justify a more expensive valuation.
PEG (NY)0.55
PEG (5Y)2.04
EPS Next 2Y18.33%
EPS Next 3Y18.26%
5. Dividend
5.1 Amount
With a Yearly Dividend Yield of 2.05%, EQH has a reasonable but not impressive dividend return.
EQH's Dividend Yield is a higher than the industry average which is at 4.93.
Compared to an average S&P500 Dividend Yield of 2.51, EQH has a dividend comparable with the average S&P500 company.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 2.05% |
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.
EQH has not decreased its dividend in the past 5 years, so it has a somewhat stable track record.
Dividend Growth(5Y)15.63%
Div Incr Years5
Div Non Decr Years5
5.3 Sustainability
31.13% of the earnings are spent on dividend by EQH. This is a low number and sustainable payout ratio.
The dividend of EQH is growing around the same rate as the earnings are growing. If this keeps up the dividend growth is sustainable.
DP31.13%
EPS Next 2Y18.33%
EPS Next 3Y18.26%
50.05
+1.16 (+2.37%)
Chartmill FA Rating
GICS SectorFinancials
GICS IndustryGroupFinancial Services
GICS IndustryFinancial Services
Earnings (Last)
Earnings (Next)
Inst Owners100.07%
Inst Owner Change0%
Ins Owners0.46%
Ins Owner Change0.23%
Market Cap15.36B
Analysts77.65
Price Target65.05 (29.97%)
Short Float %1.51%
Short Ratio1.62
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 2.05% |
Yearly Dividend1.19
Dividend Growth(5Y)15.63%
DP31.13%
Div Incr Years5
Div Non Decr Years5
Ex-Date
Surprises & Revisions
EPS beat(2)0
Avg EPS beat(2)-2.47%
Min EPS beat(2)-3.88%
Max EPS beat(2)-1.05%
EPS beat(4)2
Avg EPS beat(4)0.63%
Min EPS beat(4)-3.88%
Max EPS beat(4)6.6%
EPS beat(8)3
Avg EPS beat(8)-2.52%
EPS beat(12)5
Avg EPS beat(12)-2.2%
EPS beat(16)9
Avg EPS beat(16)2.54%
Revenue beat(2)0
Avg Revenue beat(2)-16.2%
Min Revenue beat(2)-21.09%
Max Revenue beat(2)-11.32%
Revenue beat(4)0
Avg Revenue beat(4)-19.75%
Min Revenue beat(4)-40.64%
Max Revenue beat(4)-5.97%
Revenue beat(8)1
Avg Revenue beat(8)-20.14%
Revenue beat(12)3
Avg Revenue beat(12)-16.92%
Revenue beat(16)7
Avg Revenue beat(16)-10.52%
PT rev (1m)1.77%
PT rev (3m)17.86%
EPS NQ rev (1m)-10.55%
EPS NQ rev (3m)-12.21%
EPS NY rev (1m)-5.19%
EPS NY rev (3m)-6.13%
Revenue NQ rev (1m)-0.95%
Revenue NQ rev (3m)-2.83%
Revenue NY rev (1m)-4.53%
Revenue NY rev (3m)-6.88%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 8.4 | ||
| Fwd PE | 7.28 | ||
| P/S | 0.91 | ||
| P/FCF | 8.29 | ||
| P/OCF | 7.66 | ||
| P/B | 9.69 | ||
| P/tB | N/A | ||
| EV/EBITDA | 4.31 |
EPS(TTM)5.96
EY11.91%
EPS(NY)6.88
Fwd EY13.74%
FCF(TTM)6.04
FCFY12.07%
OCF(TTM)6.54
OCFY13.06%
SpS55.27
BVpS5.17
TBVpS-12.34
PEG (NY)0.55
PEG (5Y)2.04
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 0.41% | ||
| ROE | 77.41% | ||
| ROCE | 1.73% | ||
| ROIC | 1.49% | ||
| ROICexc | 1.52% | ||
| ROICexgc | 3.39% | ||
| OM | 28.82% | ||
| PM (TTM) | 7.24% | ||
| GM | 58.15% | ||
| FCFM | 10.93% |
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-Score7
Asset Turnover0.06
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 7.55 | ||
| Debt/FCF | 10.18 | ||
| Debt/EBITDA | 2.08 | ||
| Cap/Depr | 17.79% | ||
| Cap/Sales | 0.9% | ||
| Interest Coverage | 15.37 | ||
| Cash Conversion | 34.9% | ||
| Profit Quality | 151.02% | ||
| Current Ratio | 1.26 | ||
| Quick Ratio | 1.26 | ||
| Altman-Z | 0.21 |
F-Score7
WACC7.91%
ROIC/WACC0.19
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)29.28%
EPS 3Y-3.05%
EPS 5Y4.12%
EPS Q2Q%18.05%
EPS Next Y15.38%
EPS Next 2Y18.33%
EPS Next 3Y18.26%
EPS Next 5Y16.98%
Revenue 1Y (TTM)15.12%
Revenue growth 3Y3.04%
Revenue growth 5Y4.47%
Sales Q2Q%66.87%
Revenue Next Year2.35%
Revenue Next 2Y2.12%
Revenue Next 3Y4.52%
Revenue Next 5Y5.26%
EBIT growth 1Y45.35%
EBIT growth 3Y2.49%
EBIT growth 5Y17.6%
EBIT Next Year31.94%
EBIT Next 3YN/A
EBIT Next 5YN/A
FCF growth 1Y670.15%
FCF growth 3YN/A
FCF growth 5YN/A
OCF growth 1Y1064.42%
OCF growth 3YN/A
OCF growth 5YN/A