EQUITABLE HOLDINGS INC (EQH) Stock Fundamental Analysis
USA - New York Stock Exchange - NYSE:EQH - US29452E1010 - Common Stock
45.93 USD
-0.19 (-0.41%)
45.98 USD
+0.05 (+0.11%)
Overall EQH gets a fundamental rating of 4 out of 10. We evaluated EQH against 97 industry peers in the Financial Services industry. The financial health of EQH is average, but 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.
- 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's Return On Assets of -0.24% is on the low side compared to the rest of the industry. EQH is outperformed by 74.23% of its industry peers.
- The Return On Equity of EQH (-520.27%) is worse than 92.78% of its industry peers.
- The Return On Invested Capital of EQH (0.52%) is worse than 61.86% 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 8.46%.
| 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
- With a Operating Margin value of 12.18%, EQH perfoms like the industry average, outperforming 47.42% of the companies in the same industry.
- EQH's Operating Margin has improved in the last couple of years.
- EQH's Gross Margin of 49.15% is fine compared to the rest of the industry. EQH outperforms 67.01% of its industry peers.
- In the last couple of years the Gross Margin of EQH has grown nicely.
| 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
- EQH has a Return on Invested Capital (ROIC), which is below the Cost of Capital (WACC), which means it 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 has a Debt to FCF ratio (19.39) which is in line with 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 94.85% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 104.84 | ||
| Debt/FCF | 19.39 | ||
| Altman-Z | 0.21 |
ROIC/WACC0.08
WACC6.26%
2.3 Liquidity
- A Current Ratio of 2.45 indicates that EQH has no problem at all paying its short term obligations.
- With an excellent Current ratio value of 2.45, EQH belongs to the best of the industry, outperforming 80.41% 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.
- EQH has a better Quick ratio (2.45) than 81.44% 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%.
- 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 decrease in Revenue. The Revenue has decreased by -4.25% 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)-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
- EQH is expected to show quite a strong growth in Earnings Per Share. In the coming years, the EPS will grow by 14.10% yearly.
- EQH is expected to show a small growth in Revenue. In the coming years, the Revenue will grow by 6.07% yearly.
EPS Next Y-4.26%
EPS Next 2Y16.06%
EPS Next 3Y17.08%
EPS Next 5Y14.1%
Revenue Next Year0.94%
Revenue Next 2Y4.21%
Revenue Next 3Y5.46%
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 8.43 indicates a reasonable valuation of EQH.
- Based on the Price/Earnings ratio, EQH is valued a bit cheaper than 74.23% of the companies in the same industry.
- The average S&P500 Price/Earnings ratio is at 28.82. EQH is valued rather cheaply when compared to this.
- Based on the Price/Forward Earnings ratio of 5.72, 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 85.57% of the companies listed in the same industry.
- Compared to an average S&P500 Price/Forward Earnings ratio of 25.95, EQH is valued rather cheaply.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 8.43 | ||
| Fwd PE | 5.72 |
4.2 Price Multiples
- Based on the Enterprise Value to EBITDA ratio, EQH is valued a bit cheaper than 79.38% 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 72.16% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 11.04 | ||
| EV/EBITDA | 7.44 |
4.3 Compensation for Growth
- EQH's earnings are expected to grow with 17.08% in the coming years. This may justify a more expensive valuation.
PEG (NY)N/A
PEG (5Y)2.04
EPS Next 2Y16.06%
EPS Next 3Y17.08%
5. Dividend
5.1 Amount
- EQH has a Yearly Dividend Yield of 2.33%.
- EQH's Dividend Yield is a higher than the industry average which is at 2.09.
- Compared to an average S&P500 Dividend Yield of 1.82, EQH pays a bit more dividend than the S&P500 average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 2.33% |
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.
Dividend Growth(5Y)15.63%
Div Incr Years0
Div Non Decr Years0
5.3 Sustainability
- The earnings of EQH are negative and hence is the payout ratio. EQH will probably not be able to sustain this dividend level.
- 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 2Y16.06%
EPS Next 3Y17.08%
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 8.43 and the Price/Book (PB) ratio is 88.92.
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 -4.26% in the next year.