EQUITABLE HOLDINGS INC (EQH) Stock Fundamental Analysis
USA - New York Stock Exchange - NYSE:EQH - US29452E1010 - Common Stock
45.12 USD
+1.32 (+3.01%)
45.12 USD
0 (0%)
Overall EQH gets a fundamental rating of 4 out of 10. We evaluated EQH against 99 industry peers in the Financial Services industry. EQH has only an average score on both its financial health and profitability. 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.
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 reported 4 times negative operating cash flow.
1.2 Ratios
With a Return On Assets value of 0.13%, EQH is not doing good in the industry: 70.71% of the companies in the same industry are doing better.
EQH's Return On Equity of 35.42% is amongst the best of the industry. EQH outperforms 93.94% of its industry peers.
With a Return On Invested Capital value of 0.82%, EQH is not doing good in the industry: 62.63% of the companies in the same industry are doing better.
The Average Return On Invested Capital over the past 3 years for EQH is significantly below the industry average of 8.14%.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 0.13% | ||
| ROE | 35.42% | ||
| ROIC | 0.82% |
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 2.57% is on the low side compared to the rest of the industry. EQH is outperformed by 64.65% of its industry peers.
The Operating Margin of EQH (17.41%) is better than 62.63% of its industry peers.
EQH's Operating Margin has improved in the last couple of years.
EQH has a better Gross Margin (51.52%) than 69.70% of its industry peers.
In the last couple of years the Gross Margin of EQH has grown nicely.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 17.41% | ||
| PM (TTM) | 2.57% | ||
| GM | 51.52% |
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.
The debt/assets ratio for EQH has been reduced compared to a year ago.
2.2 Solvency
EQH has an Altman-Z score of 0.19. 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 0.19, EQH perfoms like the industry average, outperforming 44.44% of the companies in the same industry.
EQH has a debt to FCF ratio of 15.30. This is a negative value and a sign of low solvency as EQH would need 15.30 years to pay back of all of its debts.
The Debt to FCF ratio of EQH (15.30) is comparable to the rest of the industry.
A Debt/Equity ratio of 13.37 is on the high side and indicates that EQH has dependencies on debt financing.
EQH has a worse Debt to Equity ratio (13.37) than 87.88% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 13.37 | ||
| Debt/FCF | 15.3 | ||
| Altman-Z | 0.19 |
ROIC/WACC0.18
WACC4.44%
2.3 Liquidity
EQH has a Current Ratio of 1.67. This is a normal value and indicates that EQH is financially healthy and should not expect problems in meeting its short term obligations.
EQH has a better Current ratio (1.67) than 72.73% of its industry peers.
A Quick Ratio of 1.67 indicates that EQH should not have too much problems paying its short term obligations.
EQH has a Quick ratio of 1.67. This is in the better half of the industry: EQH outperforms 74.75% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.67 | ||
| Quick Ratio | 1.67 |
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.
The Revenue has decreased by -4.25% in the past 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%-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 16.18% on average per year.
Based on estimates for the next years, EQH will show a small growth in Revenue. The Revenue will grow by 6.11% on average per year.
EPS Next Y-1.31%
EPS Next 2Y16.89%
EPS Next 3Y17.13%
EPS Next 5Y16.18%
Revenue Next Year-4.24%
Revenue Next 2Y-0.69%
Revenue Next 3Y1.65%
Revenue Next 5Y6.11%
3.3 Evolution
The EPS growth rate is accelerating: in the next years the growth will be better than in the last years.
The Revenue growth rate is accelerating: in the next years the growth will be better than in the last years.
4. Valuation
4.1 Price/Earnings Ratio
EQH is valuated reasonably with a Price/Earnings ratio of 8.28.
EQH's Price/Earnings ratio is a bit cheaper when compared to the industry. EQH is cheaper than 75.76% of the companies in the same industry.
The average S&P500 Price/Earnings ratio is at 25.45. EQH is valued rather cheaply when compared to this.
With a Price/Forward Earnings ratio of 5.54, the valuation of EQH can be described as very cheap.
EQH's Price/Forward Earnings ratio is rather cheap when compared to the industry. EQH is cheaper than 83.84% of the companies in the same industry.
Compared to an average S&P500 Price/Forward Earnings ratio of 34.46, EQH is valued rather cheaply.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 8.28 | ||
| Fwd PE | 5.54 |
4.2 Price Multiples
Compared to the rest of the industry, the Enterprise Value to EBITDA ratio of EQH indicates a rather cheap valuation: EQH is cheaper than 89.90% of the companies listed in the same industry.
Based on the Price/Free Cash Flow ratio, EQH is valued a bit cheaper than the industry average as 73.74% of the companies are valued more expensively.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 8.94 | ||
| EV/EBITDA | 5.19 |
4.3 Compensation for Growth
EQH's earnings are expected to grow with 17.13% in the coming years. This may justify a more expensive valuation.
PEG (NY)N/A
PEG (5Y)2.01
EPS Next 2Y16.89%
EPS Next 3Y17.13%
5. Dividend
5.1 Amount
With a Yearly Dividend Yield of 2.47%, EQH has a reasonable but not impressive dividend return.
Compared to an average industry Dividend Yield of 4.68, EQH pays a bit more dividend than its industry peers.
Compared to an average S&P500 Dividend Yield of 2.45, EQH has a dividend comparable with the average S&P500 company.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 2.47% |
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
EQH pays out 93.12% of its income as dividend. This is not a sustainable payout ratio.
EQH's earnings are growing around the same pace than its dividend. As long as the earnings growth is kept the dividend growth is sustainable.
DP93.12%
EPS Next 2Y16.89%
EPS Next 3Y17.13%
45.12
+1.32 (+3.01%)
Chartmill FA Rating
GICS SectorFinancials
GICS IndustryGroupFinancial Services
GICS IndustryFinancial Services
Earnings (Last)
Earnings (Next)
Inst Owners100.63%
Inst Owner Change1.07%
Ins Owners0.5%
Ins Owner Change-4.16%
Market Cap13.52B
Revenue(TTM)15.06B
Net Income(TTM)407.00M
Analysts80
Price Target65.71 (45.63%)
Short Float %2.61%
Short Ratio2.62
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 2.47% |
Yearly Dividend1.19
Dividend Growth(5Y)15.63%
DP93.12%
Div Incr Years0
Div Non Decr Years0
Ex-Date
Surprises & Revisions
EPS beat(2)0
Avg EPS beat(2)-13.94%
Min EPS beat(2)-15.26%
Max EPS beat(2)-12.62%
EPS beat(4)0
Avg EPS beat(4)-8.2%
Min EPS beat(4)-15.26%
Max EPS beat(4)-1.05%
EPS beat(8)3
Avg EPS beat(8)-3.27%
EPS beat(12)4
Avg EPS beat(12)-3.84%
EPS beat(16)7
Avg EPS beat(16)-0.99%
Revenue beat(2)1
Avg Revenue beat(2)-13.78%
Min Revenue beat(2)-40.44%
Max Revenue beat(2)12.88%
Revenue beat(4)1
Avg Revenue beat(4)-14.99%
Min Revenue beat(4)-40.44%
Max Revenue beat(4)12.88%
Revenue beat(8)2
Avg Revenue beat(8)-18.05%
Revenue beat(12)4
Avg Revenue beat(12)-15.36%
Revenue beat(16)6
Avg Revenue beat(16)-13.5%
PT rev (1m)-0.76%
PT rev (3m)-2.34%
EPS NQ rev (1m)-0.63%
EPS NQ rev (3m)-7%
EPS NY rev (1m)-0.62%
EPS NY rev (3m)-8.04%
Revenue NQ rev (1m)-1.14%
Revenue NQ rev (3m)-1.22%
Revenue NY rev (1m)0.11%
Revenue NY rev (3m)-1.35%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 8.28 | ||
| Fwd PE | 5.54 | ||
| P/S | 0.85 | ||
| P/FCF | 8.94 | ||
| P/OCF | 8.54 | ||
| P/B | 11.76 | ||
| P/tB | N/A | ||
| EV/EBITDA | 5.19 |
EPS(TTM)5.45
EY12.08%
EPS(NY)8.14
Fwd EY18.05%
FCF(TTM)5.04
FCFY11.18%
OCF(TTM)5.28
OCFY11.71%
SpS52.91
BVpS3.84
TBVpS-14
PEG (NY)N/A
PEG (5Y)2.01
Graham Number21.69
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 0.13% | ||
| ROE | 35.42% | ||
| ROCE | 0.96% | ||
| ROIC | 0.82% | ||
| ROICexc | 0.86% | ||
| ROICexgc | 1.86% | ||
| OM | 17.41% | ||
| PM (TTM) | 2.57% | ||
| GM | 51.52% | ||
| FCFM | 9.53% |
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-Score5
Asset Turnover0.05
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 13.37 | ||
| Debt/FCF | 15.3 | ||
| Debt/EBITDA | 4.24 | ||
| Cap/Depr | 8.22% | ||
| Cap/Sales | 0.45% | ||
| Interest Coverage | 250 | ||
| Cash Conversion | 43.67% | ||
| Profit Quality | 371.25% | ||
| Current Ratio | 1.67 | ||
| Quick Ratio | 1.67 | ||
| Altman-Z | 0.19 |
F-Score5
WACC4.44%
ROIC/WACC0.18
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-1.31%
EPS Next 2Y16.89%
EPS Next 3Y17.13%
EPS Next 5Y16.18%
Revenue 1Y (TTM)-4.25%
Revenue growth 3Y3.04%
Revenue growth 5Y4.47%
Sales Q2Q%-52.86%
Revenue Next Year-4.24%
Revenue Next 2Y-0.69%
Revenue Next 3Y1.65%
Revenue Next 5Y6.11%
EBIT growth 1Y-31.71%
EBIT growth 3Y2.49%
EBIT growth 5Y17.6%
EBIT Next Year8.74%
EBIT Next 3Y14.53%
EBIT Next 5YN/A
FCF growth 1Y303.64%
FCF growth 3YN/A
FCF growth 5YN/A
OCF growth 1Y394.6%
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 4 / 10.
How financially healthy is EQUITABLE HOLDINGS INC?
The financial health rating of EQUITABLE HOLDINGS INC (EQH) is 4 / 10.
Is the dividend of EQUITABLE HOLDINGS INC sustainable?
The dividend rating of EQUITABLE HOLDINGS INC (EQH) is 4 / 10 and the dividend payout ratio is 93.12%.