EQUITABLE HOLDINGS INC (EQH) Stock Fundamental Analysis
USA - New York Stock Exchange - NYSE:EQH - US29452E1010 - Common Stock
46.82 USD
+0.1 (+0.21%)
46.82 USD
0 (0%)
We assign a fundamental rating of 4 out of 10 to EQH. 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 correct valuation and a medium growth rate.
1. Profitability
1.1 Basic Checks
EQH had positive earnings in the past year.
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.
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 76.53% of its industry peers.
With a Return On Equity value of -520.27%, EQH is not doing good in the industry: 90.82% of the companies in the same industry are doing better.
EQH has a Return On Invested Capital of 0.52%. This is in the lower half of the industry: EQH underperforms 65.31% of its industry peers.
The Average Return On Invested Capital over the past 3 years for EQH is significantly below the industry average of 8.20%.
| 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 of 12.18%. This is comparable to the rest of the industry: EQH outperforms 44.90% of its industry peers.
In the last couple of years the Operating Margin of EQH has grown nicely.
EQH's Gross Margin of 49.15% is fine compared to the rest of the industry. EQH outperforms 68.37% 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
With a Return on Invested Capital (ROIC) below the Cost of Capital (WACC), EQH is destroying value.
EQH has less shares outstanding than it did 1 year ago.
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
Based on the Altman-Z score of 0.22, we must say that EQH is in the distress zone and has some risk of bankruptcy.
With a Altman-Z score value of 0.22, EQH perfoms like the industry average, outperforming 45.92% of the companies in the same industry.
EQH has a debt to FCF ratio of 16.88. This is a negative value and a sign of low solvency as EQH would need 16.88 years to pay back of all of its debts.
Looking at the Debt to FCF ratio, with a value of 16.88, EQH is in line with its industry, outperforming 42.86% of the companies in the same industry.
EQH has a Debt/Equity ratio of 104.84. This is a high value indicating a heavy dependency on external 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 92.86% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 104.84 | ||
| Debt/FCF | 16.88 | ||
| Altman-Z | 0.22 |
ROIC/WACC0.12
WACC4.48%
2.3 Liquidity
A Current Ratio of 3.08 indicates that EQH has no problem at all paying its short term obligations.
Looking at the Current ratio, with a value of 3.08, EQH belongs to the top of the industry, outperforming 83.67% of the companies in the same industry.
EQH has a Quick Ratio of 3.08. This indicates that EQH is financially healthy and has no problem in meeting its short term obligations.
Looking at the Quick ratio, with a value of 3.08, EQH belongs to the top of the industry, outperforming 84.69% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 3.08 | ||
| Quick Ratio | 3.08 |
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%.
The Revenue has been growing slightly by 4.47% on average over the past years.
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
The Earnings Per Share is expected to grow by 16.18% on average over the next years. This is quite good.
The Revenue is expected to grow by 6.11% on average over the next years.
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
A Price/Earnings ratio of 8.59 indicates a reasonable valuation of EQH.
Compared to the rest of the industry, the Price/Earnings ratio of EQH indicates a somewhat cheap valuation: EQH is cheaper than 73.47% of the companies listed in the same industry.
EQH's Price/Earnings ratio indicates a rather cheap valuation when compared to the S&P500 average which is at 26.15.
A Price/Forward Earnings ratio of 5.75 indicates a rather cheap valuation of EQH.
83.67% of the companies in the same industry are more expensive than EQH, based on the Price/Forward Earnings ratio.
EQH is valuated cheaply when we compare the Price/Forward Earnings ratio to 36.12, which is the current average of the S&P500 Index.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 8.59 | ||
| Fwd PE | 5.75 |
4.2 Price Multiples
Based on the Enterprise Value to EBITDA ratio, EQH is valued cheaper than 84.69% of the companies in the same industry.
Based on the Price/Free Cash Flow ratio, EQH is valued a bit cheaper than the industry average as 70.41% of the companies are valued more expensively.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 11.77 | ||
| EV/EBITDA | 6.66 |
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)2.08
EPS Next 2Y16.89%
EPS Next 3Y17.13%
5. Dividend
5.1 Amount
EQH has a Yearly Dividend Yield of 2.47%.
Compared to an average industry Dividend Yield of 5.20, EQH pays a bit more dividend than its industry peers.
Compared to an average S&P500 Dividend Yield of 2.41, EQH has a dividend comparable with the average S&P500 company.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 2.47% |
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.
The dividend of EQH is growing around the same rate as the earnings are growing. If this keeps up the dividend growth is sustainable.
DP-50.13%
EPS Next 2Y16.89%
EPS Next 3Y17.13%
46.82
+0.1 (+0.21%)
Chartmill FA Rating
GICS SectorFinancials
GICS IndustryGroupFinancial Services
GICS IndustryFinancial Services
Earnings (Last)
Earnings (Next)
Inst Owners100.63%
Inst Owner Change1.13%
Ins Owners0.5%
Ins Owner Change-0.23%
Market Cap14.02B
Revenue(TTM)15.06B
Net Income(TTM)-770.00M
Analysts80
Price Target65.71 (40.35%)
Short Float %2.61%
Short Ratio2.62
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 2.47% |
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)-1.65%
PT rev (3m)-2.56%
EPS NQ rev (1m)-0.97%
EPS NQ rev (3m)0.23%
EPS NY rev (1m)-0.23%
EPS NY rev (3m)-1.21%
Revenue NQ rev (1m)-1.03%
Revenue NQ rev (3m)2.46%
Revenue NY rev (1m)-1.05%
Revenue NY rev (3m)0.37%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 8.59 | ||
| Fwd PE | 5.75 | ||
| P/S | 0.93 | ||
| P/FCF | 11.77 | ||
| P/OCF | 11.06 | ||
| P/B | 94.76 | ||
| P/tB | N/A | ||
| EV/EBITDA | 6.66 |
EPS(TTM)5.45
EY11.64%
EPS(NY)8.14
Fwd EY17.39%
FCF(TTM)3.98
FCFY8.5%
OCF(TTM)4.23
OCFY9.04%
SpS50.27
BVpS0.49
TBVpS-17.29
PEG (NY)N/A
PEG (5Y)2.08
Graham Number7.78
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | -0.24% | ||
| ROE | -520.27% | ||
| ROCE | 0.61% | ||
| ROIC | 0.52% | ||
| ROICexc | 0.54% | ||
| ROICexgc | 1.13% | ||
| 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 | 16.88 | ||
| 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 | 3.08 | ||
| Quick Ratio | 3.08 | ||
| Altman-Z | 0.22 |
F-Score4
WACC4.48%
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-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-52.73%
EBIT growth 3Y2.49%
EBIT growth 5Y17.6%
EBIT Next Year8.74%
EBIT Next 3Y14.53%
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 4 / 10 and the dividend payout ratio is -50.13%.