EQT CORP (EQT) Stock Fundamental Analysis
NYSE:EQT - New York Stock Exchange, Inc. - US26884L1098 - Common Stock - Currency: USD
EQT gets a fundamental rating of 3 out of 10. The analysis compared the fundamentals against 212 industry peers in the Oil, Gas & Consumable Fuels industry. Both the profitability and financial health of EQT have multiple concerns. 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.
In the past year EQT had a positive cash flow from operations.
In multiple years EQT reported negative net income over the last 5 years.
Each year in the past 5 years EQT had a positive operating cash flow.
1.2 Ratios
EQT's Return On Assets of 0.58% is on the low side compared to the rest of the industry. EQT is outperformed by 66.04% of its industry peers.
EQT's Return On Equity of 1.12% is on the low side compared to the rest of the industry. EQT is outperformed by 66.04% of its industry peers.
The Return On Invested Capital of EQT (0.04%) is worse than 76.89% of its industry peers.
Measured over the past 3 years, the Average Return On Invested Capital for EQT is significantly below the industry average of 27.42%.
The last Return On Invested Capital (0.04%) for EQT is well below the 3 year average (8.25%), which needs to be investigated, but indicates that EQT had better years and this may not be a problem.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 0.58% | ||
| ROE | 1.12% | ||
| ROIC | 0.04% |
ROA(3y)5.08%
ROA(5y)0.93%
ROE(3y)9.57%
ROE(5y)1.36%
ROIC(3y)8.25%
ROIC(5y)N/A
1.3 Margins
EQT has a Profit Margin (4.37%) which is comparable to the rest of the industry.
With a Operating Margin value of 0.35%, EQT is not doing good in the industry: 77.83% of the companies in the same industry are doing better.
In the last couple of years the Operating Margin of EQT has declined.
Looking at the Gross Margin, with a value of 56.04%, EQT is in the better half of the industry, outperforming 61.79% of the companies in the same industry.
In the last couple of years the Gross Margin of EQT has remained more or less at the same level.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 0.35% | ||
| PM (TTM) | 4.37% | ||
| GM | 56.04% |
OM growth 3YN/A
OM growth 5Y-15.64%
PM growth 3YN/A
PM growth 5YN/A
GM growth 3Y24.52%
GM growth 5Y-0.11%
2. Health
2.1 Basic Checks
The Return on Invested Capital (ROIC) is below the Cost of Capital (WACC), so EQT is destroying value.
EQT has more shares outstanding than it did 1 year ago.
Compared to 5 years ago, EQT has more shares outstanding
The debt/assets ratio for EQT is higher compared to a year ago.
2.2 Solvency
EQT has an Altman-Z score of 1.15. This is a bad value and indicates that EQT is not financially healthy and even has some risk of bankruptcy.
EQT has a Altman-Z score (1.15) which is comparable to the rest of the industry.
EQT has a debt to FCF ratio of 16.27. This is a negative value and a sign of low solvency as EQT would need 16.27 years to pay back of all of its debts.
Looking at the Debt to FCF ratio, with a value of 16.27, EQT is in line with its industry, outperforming 44.34% of the companies in the same industry.
EQT has a Debt/Equity ratio of 0.44. This is a healthy value indicating a solid balance between debt and equity.
EQT has a Debt to Equity ratio (0.44) which is in line with its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.44 | ||
| Debt/FCF | 16.27 | ||
| Altman-Z | 1.15 |
ROIC/WACC0
WACC10.24%
2.3 Liquidity
EQT has a Current Ratio of 0.70. This is a bad value and indicates that EQT is not financially healthy enough and could expect problems in meeting its short term obligations.
The Current ratio of EQT (0.70) is worse than 75.00% of its industry peers.
EQT has a Quick Ratio of 0.70. 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 Quick ratio of 0.70. This is in the lower half of the industry: EQT underperforms 69.34% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 0.7 | ||
| Quick Ratio | 0.7 |
3. Growth
3.1 Past
EQT shows a strong negative growth in Earnings Per Share. In the last year the EPS decreased by -32.90%.
EQT shows quite a strong growth in Earnings Per Share. Measured over the last years, the EPS has been growing by 13.31% yearly.
Looking at the last year, EQT shows a very negative growth in Revenue. The Revenue has decreased by -23.67% in the last year.
EQT shows a small growth in Revenue. Measured over the last years, the Revenue has been growing by 3.61% yearly.
EPS 1Y (TTM)-32.9%
EPS 3Y19.87%
EPS 5Y13.31%
EPS Q2Q%43.75%
Revenue 1Y (TTM)-23.67%
Revenue growth 3Y19.83%
Revenue growth 5Y3.61%
Sales Q2Q%4.88%
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 13.96% yearly.
The Revenue is expected to grow by 13.31% on average over the next years. This is quite good.
EPS Next Y88.61%
EPS Next 2Y66.36%
EPS Next 3Y34.09%
EPS Next 5Y13.96%
Revenue Next Year48.48%
Revenue Next 2Y28.65%
Revenue Next 3Y16.95%
Revenue Next 5Y13.31%
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 stable.
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
The Price/Earnings ratio is 32.89, which means the current valuation is very expensive for EQT.
64.62% of the companies in the same industry are cheaper than EQT, based on the Price/Earnings ratio.
The average S&P500 Price/Earnings ratio is at 28.29. EQT is around the same levels.
With a Price/Forward Earnings ratio of 17.44, EQT is valued on the expensive side.
Compared to the rest of the industry, the Price/Forward Earnings ratio of EQT is on the same level as its industry peers.
EQT's Price/Forward Earnings ratio indicates a similar valuation than the S&P500 average which is at 21.08.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 32.89 | ||
| Fwd PE | 17.44 |
4.2 Price Multiples
EQT's Enterprise Value to EBITDA ratio is a bit more expensive when compared to the industry. EQT is more expensive than 69.81% of the companies in the same industry.
EQT's Price/Free Cash Flow ratio is in line with the industry average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 53.13 | ||
| EV/EBITDA | 18.15 |
4.3 Compensation for Growth
EQT's low PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates a rather cheap valuation of the company.
EQT's earnings are expected to grow with 34.09% in the coming years. This may justify a more expensive valuation.
PEG (NY)0.37
PEG (5Y)2.47
EPS Next 2Y66.36%
EPS Next 3Y34.09%
5. Dividend
5.1 Amount
With a Yearly Dividend Yield of 1.24%, EQT has a reasonable but not impressive dividend return.
Compared to an average industry Dividend Yield of 7.82, EQT is paying slightly less dividend.
With a Dividend Yield of 1.24, EQT pays less dividend than the S&P500 average, which is at 2.57.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.24% |
5.2 History
On average, the dividend of EQT grows each year by 39.73%, which is quite nice.
EQT has been paying a dividend for at least 10 years, so it has a reliable track record.
EQT has decreased its dividend in the last 3 years.
Dividend Growth(5Y)39.73%
Div Incr Years2
Div Non Decr Years2
5.3 Sustainability
EQT pays out 141.64% of its income as dividend. This is not a sustainable payout ratio.
The dividend of EQT is growing, but the earnings are growing slower. This means the dividend growth is not sustainable.
DP141.64%
EPS Next 2Y66.36%
EPS Next 3Y34.09%
50.98
+0.13 (+0.26%)
Chartmill FA Rating
GICS SectorEnergy
GICS IndustryGroupEnergy
GICS IndustryOil, Gas & Consumable Fuels
Earnings (Last)
Earnings (Next)
Inst Owners100.84%
Inst Owner Change0%
Ins Owners0.53%
Ins Owner Change7.16%
Market Cap30.46B
Analysts78
Price Target57 (11.81%)
Short Float %3.42%
Short Ratio2.37
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.24% |
Yearly Dividend0.64
Dividend Growth(5Y)39.73%
DP141.64%
Div Incr Years2
Div Non Decr Years2
Ex-Date
Surprises & Revisions
EPS beat(2)2
Avg EPS beat(2)68.18%
Min EPS beat(2)39.15%
Max EPS beat(2)97.2%
EPS beat(4)4
Avg EPS beat(4)55.04%
Min EPS beat(4)27.67%
Max EPS beat(4)97.2%
EPS beat(8)7
Avg EPS beat(8)93.57%
EPS beat(12)7
Avg EPS beat(12)59.22%
EPS beat(16)10
Avg EPS beat(16)67.47%
Revenue beat(2)0
Avg Revenue beat(2)-6.23%
Min Revenue beat(2)-8.98%
Max Revenue beat(2)-3.47%
Revenue beat(4)1
Avg Revenue beat(4)-4.32%
Min Revenue beat(4)-13.64%
Max Revenue beat(4)8.81%
Revenue beat(8)3
Avg Revenue beat(8)-1.91%
Revenue beat(12)6
Avg Revenue beat(12)5.93%
Revenue beat(16)7
Avg Revenue beat(16)-8.88%
PT rev (1m)3.87%
PT rev (3m)17.22%
EPS NQ rev (1m)6.19%
EPS NQ rev (3m)3.72%
EPS NY rev (1m)1.09%
EPS NY rev (3m)5.39%
Revenue NQ rev (1m)2.91%
Revenue NQ rev (3m)2.67%
Revenue NY rev (1m)4.58%
Revenue NY rev (3m)12.03%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 32.89 | ||
| Fwd PE | 17.44 | ||
| P/S | 5.78 | ||
| P/FCF | 53.13 | ||
| P/OCF | 10.77 | ||
| P/B | 1.48 | ||
| P/tB | 1.66 | ||
| EV/EBITDA | 18.15 |
EPS(TTM)1.55
EY3.04%
EPS(NY)2.92
Fwd EY5.73%
FCF(TTM)0.96
FCFY1.88%
OCF(TTM)4.73
OCFY9.28%
SpS8.83
BVpS34.48
TBVpS30.64
PEG (NY)0.37
PEG (5Y)2.47
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 0.58% | ||
| ROE | 1.12% | ||
| ROCE | 0.05% | ||
| ROIC | 0.04% | ||
| ROICexc | 0.04% | ||
| ROICexgc | 0.05% | ||
| OM | 0.35% | ||
| PM (TTM) | 4.37% | ||
| GM | 56.04% | ||
| FCFM | 10.87% |
ROA(3y)5.08%
ROA(5y)0.93%
ROE(3y)9.57%
ROE(5y)1.36%
ROIC(3y)8.25%
ROIC(5y)N/A
ROICexc(3y)8.67%
ROICexc(5y)N/A
ROICexgc(3y)8.68%
ROICexgc(5y)N/A
ROCE(3y)9.48%
ROCE(5y)N/A
ROICexcg growth 3YN/A
ROICexcg growth 5Y-23.92%
ROICexc growth 3YN/A
ROICexc growth 5Y-24.86%
OM growth 3YN/A
OM growth 5Y-15.64%
PM growth 3YN/A
PM growth 5YN/A
GM growth 3Y24.52%
GM growth 5Y-0.11%
F-Score3
Asset Turnover0.13
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.44 | ||
| Debt/FCF | 16.27 | ||
| Debt/EBITDA | 4.13 | ||
| Cap/Depr | 104.23% | ||
| Cap/Sales | 42.74% | ||
| Interest Coverage | 0.05 | ||
| Cash Conversion | 129.62% | ||
| Profit Quality | 248.62% | ||
| Current Ratio | 0.7 | ||
| Quick Ratio | 0.7 | ||
| Altman-Z | 1.15 |
F-Score3
WACC10.24%
ROIC/WACC0
Cap/Depr(3y)101.62%
Cap/Depr(5y)88.24%
Cap/Sales(3y)30.21%
Cap/Sales(5y)31.83%
Profit Quality(3y)144.02%
Profit Quality(5y)N/A
High Growth Momentum
Growth
EPS 1Y (TTM)-32.9%
EPS 3Y19.87%
EPS 5Y13.31%
EPS Q2Q%43.75%
EPS Next Y88.61%
EPS Next 2Y66.36%
EPS Next 3Y34.09%
EPS Next 5Y13.96%
Revenue 1Y (TTM)-23.67%
Revenue growth 3Y19.83%
Revenue growth 5Y3.61%
Sales Q2Q%4.88%
Revenue Next Year48.48%
Revenue Next 2Y28.65%
Revenue Next 3Y16.95%
Revenue Next 5Y13.31%
EBIT growth 1Y-99.24%
EBIT growth 3YN/A
EBIT growth 5Y-12.6%
EBIT Next Year335.37%
EBIT Next 3Y69.44%
EBIT Next 5Y33.83%
FCF growth 1Y-50.57%
FCF growth 3Y-1.91%
FCF growth 5Y18.13%
OCF growth 1Y-11.07%
OCF growth 3Y19.36%
OCF growth 5Y8.83%