EQUITABLE HOLDINGS INC (EQH) Stock Fundamental Analysis
USA - New York Stock Exchange - NYSE:EQH - US29452E1010 - Common Stock
49 USD
+1.06 (+2.21%)
48.36 USD
-0.64 (-1.31%)
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 has a correct valuation and a medium 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
The Return On Assets of EQH (-0.24%) is worse than 76.29% of its industry peers.
EQH has a worse Return On Equity (-520.27%) than 91.75% of its industry peers.
EQH has a worse Return On Invested Capital (0.52%) than 63.92% of its industry peers.
EQH had an Average Return On Invested Capital over the past 3 years of 0.99%. This 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
EQH has a Return on Invested Capital (ROIC), which is below the Cost of Capital (WACC), which means it is destroying value.
Compared to 1 year ago, EQH has less shares outstanding
The number of shares outstanding for EQH has been reduced compared to 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 0.21. This is a bad value and indicates that EQH is not financially healthy and even has some risk of bankruptcy.
EQH has a Altman-Z score (0.21) which is in line with its industry peers.
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.
Looking at the Debt to FCF ratio, with a value of 19.39, EQH is in line with its industry, outperforming 40.21% of the companies in the same industry.
A Debt/Equity ratio of 104.84 is on the high side and indicates that EQH has dependencies on debt financing.
EQH's Debt to Equity ratio of 104.84 is on the low side compared to the rest of the industry. EQH is outperformed by 94.85% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 104.84 | ||
| Debt/FCF | 19.39 | ||
| Altman-Z | 0.21 |
ROIC/WACC0.12
WACC4.51%
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 has a better Current ratio (2.45) than 78.35% of its industry peers.
EQH has a Quick Ratio of 2.45. This indicates that EQH is financially healthy and has no problem in meeting its short term obligations.
With a decent Quick ratio value of 2.45, EQH is doing good in the industry, outperforming 79.38% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 2.45 | ||
| Quick Ratio | 2.45 |
3. Growth
3.1 Past
The earnings per share for EQH have decreased by -4.72% in the last 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 a decrease in Revenue. In the last year, the revenue decreased by -4.25%.
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
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.
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-4.05%
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
EQH is valuated reasonably with a Price/Earnings ratio of 8.99.
Compared to the rest of the industry, the Price/Earnings ratio of EQH indicates a somewhat cheap valuation: EQH is cheaper than 70.10% of the companies listed in the same industry.
The average S&P500 Price/Earnings ratio is at 26.59. EQH is valued rather cheaply when compared to this.
With a Price/Forward Earnings ratio of 6.10, the valuation of EQH can be described as very cheap.
83.51% of the companies in the same industry are more expensive than EQH, based on the Price/Forward Earnings ratio.
When comparing the Price/Forward Earnings ratio of EQH to the average of the S&P500 Index (23.80), we can say EQH is valued rather cheaply.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 8.99 | ||
| Fwd PE | 6.1 |
4.2 Price Multiples
EQH's Enterprise Value to EBITDA ratio is a bit cheaper when compared to the industry. EQH is cheaper than 78.35% of the companies in the same industry.
Compared to the rest of the industry, the Price/Free Cash Flow ratio of EQH indicates a somewhat cheap valuation: EQH is cheaper than 72.16% of the companies listed in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 11.78 | ||
| EV/EBITDA | 7.66 |
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)2.18
EPS Next 2Y16.11%
EPS Next 3Y16.82%
5. Dividend
5.1 Amount
EQH has a Yearly Dividend Yield of 2.35%. Purely for dividend investing, there may be better candidates out there.
Compared to an average industry Dividend Yield of 3.96, EQH pays a bit more dividend than its industry peers.
Compared to an average S&P500 Dividend Yield of 2.31, EQH has a dividend comparable with the average S&P500 company.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 2.35% |
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 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 3Y16.82%
49
+1.06 (+2.21%)
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 Cap14.04B
Revenue(TTM)15.06B
Net Income(TTM)-770.00M
Analysts80
Price Target65.54 (33.76%)
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 | 8.99 | ||
| Fwd PE | 6.1 | ||
| P/S | 0.93 | ||
| P/FCF | 11.78 | ||
| P/OCF | 11.07 | ||
| P/B | 94.86 | ||
| P/tB | N/A | ||
| EV/EBITDA | 7.66 |
EPS(TTM)5.45
EY11.12%
EPS(NY)8.03
Fwd EY16.4%
FCF(TTM)4.16
FCFY8.49%
OCF(TTM)4.43
OCFY9.03%
SpS52.55
BVpS0.52
TBVpS-18.07
PEG (NY)N/A
PEG (5Y)2.18
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%.