EQT CORP (EQT) Stock Fundamental Analysis
NYSE:EQT - New York Stock Exchange, Inc. - US26884L1098 - Common Stock
We assign a fundamental rating of 2 out of 10 to EQT. EQT was compared to 210 industry peers in the Oil, Gas & Consumable Fuels industry. EQT has a bad profitability rating. Also its financial health evaluation is rather negative. EQT is valied quite expensively at the moment, while it does show a decent growth rate.
1. Profitability
1.1 Basic Checks
EQT had positive earnings in the past year.
EQT had a positive operating cash flow in the past year.
In multiple years EQT reported negative net income over the last 5 years.
In the past 5 years EQT always reported a positive cash flow from operatings.
1.2 Ratios
EQT's Return On Assets of 0.79% is on the low side compared to the rest of the industry. EQT is outperformed by 72.82% of its industry peers.
EQT has a Return On Equity of 1.55%. This is in the lower half of the industry: EQT underperforms 71.84% of its industry peers.
EQT's Return On Invested Capital of 0.97% is on the low side compared to the rest of the industry. EQT is outperformed by 79.61% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 0.79% | ||
| ROE | 1.55% | ||
| ROIC | 0.97% |
ROA(3y)3.13%
ROA(5y)-0.49%
ROE(3y)5.37%
ROE(5y)-1.36%
ROIC(3y)N/A
ROIC(5y)N/A
1.3 Margins
EQT has a worse Profit Margin (5.52%) than 61.65% of its industry peers.
The Operating Margin of EQT (8.12%) is worse than 70.87% of its industry peers.
EQT's Operating Margin has improved in the last couple of years.
Looking at the Gross Margin, with a value of 56.49%, EQT is in the better half of the industry, outperforming 63.59% of the companies in the same industry.
In the last couple of years the Gross Margin of EQT has grown nicely.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 8.12% | ||
| PM (TTM) | 5.52% | ||
| GM | 56.49% |
OM growth 3YN/A
OM growth 5Y16.83%
PM growth 3YN/A
PM growth 5YN/A
GM growth 3Y18.63%
GM growth 5Y2.17%
2. Health
2.1 Basic Checks
With a Return on Invested Capital (ROIC) below the Cost of Capital (WACC), EQT is destroying value.
The number of shares outstanding for EQT has been increased compared to 1 year ago.
EQT has more shares outstanding than it did 5 years ago.
EQT has a better debt/assets ratio than last year.
2.2 Solvency
EQT has an Altman-Z score of 1.20. This is a bad value and indicates that EQT is not financially healthy and even has some risk of bankruptcy.
The Altman-Z score of EQT (1.20) is comparable to the rest of the industry.
EQT has a debt to FCF ratio of 27.60. This is a negative value and a sign of low solvency as EQT would need 27.60 years to pay back of all of its debts.
With a Debt to FCF ratio value of 27.60, EQT is not doing good in the industry: 63.11% of the companies in the same industry are doing better.
EQT has a Debt/Equity ratio of 0.66. This is a neutral value indicating EQT is somewhat dependend on debt financing.
EQT has a Debt to Equity ratio of 0.66. This is in the lower half of the industry: EQT underperforms 64.56% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.66 | ||
| Debt/FCF | 27.6 | ||
| Altman-Z | 1.2 |
ROIC/WACC0.12
WACC8.29%
2.3 Liquidity
EQT has a Current Ratio of 0.51. This is a bad value and indicates that EQT is not financially healthy enough and could expect problems in meeting its short term obligations.
EQT has a Current ratio of 0.51. This is amonst the worse of the industry: EQT underperforms 87.38% of its industry peers.
EQT has a Quick Ratio of 0.51. This is a bad value and indicates that EQT is not financially healthy enough and could expect problems in meeting its short term obligations.
EQT's Quick ratio of 0.51 is on the low side compared to the rest of the industry. EQT is outperformed by 84.47% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 0.51 | ||
| Quick Ratio | 0.51 |
3. Growth
3.1 Past
The earnings per share for EQT have decreased strongly by -40.44% in the last year.
The Earnings Per Share has been decreasing by -2.26% on average over the past years.
The Revenue for EQT has decreased by -31.80% in the past year. This is quite bad
Measured over the past years, EQT shows a quite strong growth in Revenue. The Revenue has been growing by 8.67% on average per year.
EPS 1Y (TTM)-40.44%
EPS 3YN/A
EPS 5Y-2.26%
EPS Q2Q%-60%
Revenue 1Y (TTM)-31.8%
Revenue growth 3Y31.21%
Revenue growth 5Y8.67%
Sales Q2Q%7.66%
3.2 Future
EQT is expected to show quite a strong growth in Earnings Per Share. In the coming years, the EPS will grow by 9.53% yearly.
EQT is expected to show a small growth in Revenue. In the coming years, the Revenue will grow by 5.39% yearly.
EPS Next Y-40.27%
EPS Next 2Y9.58%
EPS Next 3Y17.17%
EPS Next 5Y9.53%
Revenue Next Year-7.59%
Revenue Next 2Y10.05%
Revenue Next 3Y10.25%
Revenue Next 5Y5.39%
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.
The Revenue growth rate is decreasing: in the next years the growth will be less than in the last years.
4. Valuation
4.1 Price/Earnings Ratio
The Price/Earnings ratio is 39.87, which means the current valuation is very expensive for EQT.
EQT's Price/Earnings ratio is a bit more expensive when compared to the industry. EQT is more expensive than 69.90% of the companies in the same industry.
EQT is valuated rather expensively when we compare the Price/Earnings ratio to 28.29, which is the current average of the S&P500 Index.
The Price/Forward Earnings ratio is 19.26, which indicates a rather expensive current valuation of EQT.
The rest of the industry has a similar Price/Forward Earnings ratio as EQT.
When comparing the Price/Forward Earnings ratio of EQT to the average of the S&P500 Index (24.44), we can say EQT is valued slightly cheaper.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 39.87 | ||
| Fwd PE | 19.26 |
4.2 Price Multiples
Based on the Enterprise Value to EBITDA ratio, EQT is valued a bit more expensive than 74.76% of the companies in the same industry.
Compared to the rest of the industry, the Price/Free Cash Flow ratio of EQT indicates a slightly more expensive valuation: EQT is more expensive than 61.16% of the companies listed in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 63.78 | ||
| EV/EBITDA | 18.08 |
4.3 Compensation for Growth
EQT's earnings are expected to grow with 17.17% in the coming years. This may justify a more expensive valuation.
PEG (NY)N/A
PEG (5Y)N/A
EPS Next 2Y9.58%
EPS Next 3Y17.17%
5. Dividend
5.1 Amount
EQT has a Yearly Dividend Yield of 1.17%. Purely for dividend investing, there may be better candidates out there.
Compared to an average industry Dividend Yield of 6.39, EQT is paying slightly less dividend.
With a Dividend Yield of 1.17, EQT pays less dividend than the S&P500 average, which is at 2.28.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.17% |
5.2 History
On average, the dividend of EQT grows each year by 36.84%, which is quite nice.
EQT has been paying a dividend for at least 10 years, so it has a reliable track record.
The dividend of EQT decreased in the last 3 years.
Dividend Growth(5Y)36.84%
Div Incr Years2
Div Non Decr Years2
5.3 Sustainability
EQT pays out 94.95% of its income as dividend. This is not a sustainable payout ratio.
EQT's earnings are growing slower than its dividend. This means the dividend growth is not sustainable.
DP94.95%
EPS Next 2Y9.58%
EPS Next 3Y17.17%
EQT CORP
NYSE:EQT (1/21/2025, 8:04:00 PM)
After market: 53.47 +0.04 (+0.07%)53.43
+0.47 (+0.89%)
Chartmill FA Rating
GICS SectorEnergy
GICS IndustryGroupEnergy
GICS IndustryOil, Gas & Consumable Fuels
Earnings (Last)
Earnings (Next)
Inst Owners77.09%
Inst Owner Change0.12%
Ins Owners0.54%
Ins Owner Change-0.06%
Market Cap31.88B
Analysts75.71
Price Target48.62 (-9%)
Short Float %2.88%
Short Ratio2.22
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.17% |
Yearly Dividend0.58
Dividend Growth(5Y)36.84%
DP94.95%
Div Incr Years2
Div Non Decr Years2
Ex-DateN/A
Surprises & Revisions
EPS beat(2)2
Avg EPS beat(2)76.68%
Min EPS beat(2)56.15%
Max EPS beat(2)97.2%
EPS beat(4)3
Avg EPS beat(4)42.75%
Min EPS beat(4)-9.87%
Max EPS beat(4)97.2%
EPS beat(8)6
Avg EPS beat(8)86.17%
EPS beat(12)6
Avg EPS beat(12)54.22%
EPS beat(16)10
Avg EPS beat(16)70.78%
Revenue beat(2)0
Avg Revenue beat(2)-8.56%
Min Revenue beat(2)-13.64%
Max Revenue beat(2)-3.47%
Revenue beat(4)1
Avg Revenue beat(4)-2.62%
Min Revenue beat(4)-13.64%
Max Revenue beat(4)9.22%
Revenue beat(8)4
Avg Revenue beat(8)16.95%
Revenue beat(12)7
Avg Revenue beat(12)19.7%
Revenue beat(16)8
Avg Revenue beat(16)-5.84%
PT rev (1m)4.89%
PT rev (3m)16.35%
EPS NQ rev (1m)0%
EPS NQ rev (3m)22.26%
EPS NY rev (1m)0%
EPS NY rev (3m)-9.35%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)10.45%
Revenue NY rev (1m)-0.37%
Revenue NY rev (3m)0.02%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 39.87 | ||
| Fwd PE | 19.26 | ||
| P/S | 5.6 | ||
| P/FCF | 63.78 | ||
| P/OCF | 11.83 | ||
| P/B | 1.57 | ||
| P/tB | 1.78 | ||
| EV/EBITDA | 18.08 |
EPS(TTM)1.34
EY2.51%
EPS(NY)2.77
Fwd EY5.19%
FCF(TTM)0.84
FCFY1.57%
OCF(TTM)4.52
OCFY8.45%
SpS9.54
BVpS34.08
TBVpS29.98
PEG (NY)N/A
PEG (5Y)N/A
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 0.79% | ||
| ROE | 1.55% | ||
| ROCE | 1.22% | ||
| ROIC | 0.97% | ||
| ROICexc | 0.97% | ||
| ROICexgc | 1.04% | ||
| OM | 8.12% | ||
| PM (TTM) | 5.52% | ||
| GM | 56.49% | ||
| FCFM | 8.78% |
ROA(3y)3.13%
ROA(5y)-0.49%
ROE(3y)5.37%
ROE(5y)-1.36%
ROIC(3y)N/A
ROIC(5y)N/A
ROICexc(3y)N/A
ROICexc(5y)N/A
ROICexgc(3y)N/A
ROICexgc(5y)N/A
ROCE(3y)N/A
ROCE(5y)N/A
ROICexcg growth 3YN/A
ROICexcg growth 5Y21.09%
ROICexc growth 3YN/A
ROICexc growth 5Y21.19%
OM growth 3YN/A
OM growth 5Y16.83%
PM growth 3YN/A
PM growth 5YN/A
GM growth 3Y18.63%
GM growth 5Y2.17%
F-Score3
Asset Turnover0.14
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.66 | ||
| Debt/FCF | 27.6 | ||
| Debt/EBITDA | 5.34 | ||
| Cap/Depr | 107.4% | ||
| Cap/Sales | 38.57% | ||
| Interest Coverage | 1.75 | ||
| Cash Conversion | 107.53% | ||
| Profit Quality | 159.06% | ||
| Current Ratio | 0.51 | ||
| Quick Ratio | 0.51 | ||
| Altman-Z | 1.2 |
F-Score3
WACC8.29%
ROIC/WACC0.12
Cap/Depr(3y)87.85%
Cap/Depr(5y)87.75%
Cap/Sales(3y)27.44%
Cap/Sales(5y)30.54%
Profit Quality(3y)N/A
Profit Quality(5y)N/A
High Growth Momentum
Growth
EPS 1Y (TTM)-40.44%
EPS 3YN/A
EPS 5Y-2.26%
EPS Q2Q%-60%
EPS Next Y-40.27%
EPS Next 2Y9.58%
EPS Next 3Y17.17%
EPS Next 5Y9.53%
Revenue 1Y (TTM)-31.8%
Revenue growth 3Y31.21%
Revenue growth 5Y8.67%
Sales Q2Q%7.66%
Revenue Next Year-7.59%
Revenue Next 2Y10.05%
Revenue Next 3Y10.25%
Revenue Next 5Y5.39%
EBIT growth 1Y-88.59%
EBIT growth 3YN/A
EBIT growth 5Y26.96%
EBIT Next Year151.54%
EBIT Next 3Y62.62%
EBIT Next 5Y32.5%
FCF growth 1Y-77.04%
FCF growth 3Y32.77%
FCF growth 5YN/A
OCF growth 1Y-24.56%
OCF growth 3Y27.39%
OCF growth 5Y1.33%