EQT CORP (EQ6.DE) Stock Fundamental Analysis
Europe - Frankfurt Stock Exchange - FRA:EQ6 - US26884L1098 - Common Stock
47.76 EUR
+0.89 (+1.91%)
Taking everything into account, EQ6 scores 5 out of 10 in our fundamental rating. EQ6 was compared to 71 industry peers in the Oil, Gas & Consumable Fuels industry. EQ6 has a medium profitability rating, but doesn't score so well on its financial health evaluation. EQ6 is showing excellent growth while it is valued at reasonable prices. Keep and eye on this one!
1. Profitability
1.1 Basic Checks
- EQ6 had positive earnings in the past year.
- EQ6 had a positive operating cash flow in the past year.
- In multiple years EQ6 reported negative net income over the last 5 years.
- Each year in the past 5 years EQ6 had a positive operating cash flow.
1.2 Ratios
- EQ6's Return On Assets of 4.32% is fine compared to the rest of the industry. EQ6 outperforms 64.79% of its industry peers.
- EQ6 has a Return On Equity (7.69%) which is in line with its industry peers.
- EQ6 has a Return On Invested Capital (5.82%) which is comparable to the rest of the industry.
- EQ6 had an Average Return On Invested Capital over the past 3 years of 8.25%. This is in line with the industry average of 8.91%.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 4.32% | ||
| ROE | 7.69% | ||
| ROIC | 5.82% |
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
- Looking at the Profit Margin, with a value of 22.59%, EQ6 belongs to the top of the industry, outperforming 87.32% of the companies in the same industry.
- EQ6 has a Operating Margin of 33.07%. This is amongst the best in the industry. EQ6 outperforms 83.10% of its industry peers.
- In the last couple of years the Operating Margin of EQ6 has declined.
- EQ6 has a Gross Margin of 75.72%. This is amongst the best in the industry. EQ6 outperforms 81.69% of its industry peers.
- EQ6's Gross Margin has been stable in the last couple of years.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 33.07% | ||
| PM (TTM) | 22.59% | ||
| GM | 75.72% |
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 EQ6 is destroying value.
- Compared to 1 year ago, EQ6 has more shares outstanding
- EQ6 has more shares outstanding than it did 5 years ago.
- EQ6 has a worse debt/assets ratio than last year.
2.2 Solvency
- Based on the Altman-Z score of 1.68, we must say that EQ6 is in the distress zone and has some risk of bankruptcy.
- Looking at the Altman-Z score, with a value of 1.68, EQ6 is in line with its industry, outperforming 46.48% of the companies in the same industry.
- EQ6 has a debt to FCF ratio of 3.31. This is a good value and a sign of high solvency as EQ6 would need 3.31 years to pay back of all of its debts.
- EQ6 has a Debt to FCF ratio of 3.31. This is in the better half of the industry: EQ6 outperforms 71.83% of its industry peers.
- A Debt/Equity ratio of 0.33 indicates that EQ6 is not too dependend on debt financing.
- The Debt to Equity ratio of EQ6 (0.33) is better than 67.61% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.33 | ||
| Debt/FCF | 3.31 | ||
| Altman-Z | 1.68 |
ROIC/WACC0.69
WACC8.49%
2.3 Liquidity
- A Current Ratio of 0.58 indicates that EQ6 may have some problems paying its short term obligations.
- Looking at the Current ratio, with a value of 0.58, EQ6 is doing worse than 94.37% of the companies in the same industry.
- EQ6 has a Quick Ratio of 0.58. This is a bad value and indicates that EQ6 is not financially healthy enough and could expect problems in meeting its short term obligations.
- The Quick ratio of EQ6 (0.58) is worse than 88.73% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 0.58 | ||
| Quick Ratio | 0.58 |
3. Growth
3.1 Past
- EQ6 shows a strong growth in Earnings Per Share. In the last year, the EPS has been growing by 111.94%, which is quite impressive.
- EQ6 shows quite a strong growth in Earnings Per Share. Measured over the last years, the EPS has been growing by 13.31% yearly.
- The Revenue has grown by 38.47% in the past year. This is a very strong growth!
- Measured over the past years, EQ6 shows a small growth in Revenue. The Revenue has been growing by 3.61% on average per year.
EPS 1Y (TTM)111.94%
EPS 3Y19.87%
EPS 5Y13.31%
EPS Q2Q%333.33%
Revenue 1Y (TTM)38.47%
Revenue growth 3Y19.83%
Revenue growth 5Y3.61%
Sales Q2Q%52.56%
3.2 Future
- The Earnings Per Share is expected to grow by 25.35% on average over the next years. This is a very strong growth
- The Revenue is expected to grow by 16.02% on average over the next years. This is quite good.
EPS Next Y88.02%
EPS Next 2Y64.59%
EPS Next 3Y47.03%
EPS Next 5Y25.35%
Revenue Next Year50.39%
Revenue Next 2Y29.36%
Revenue Next 3Y21.46%
Revenue Next 5Y16.02%
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
- The Price/Earnings ratio is 20.07, which indicates a rather expensive current valuation of EQ6.
- The rest of the industry has a similar Price/Earnings ratio as EQ6.
- When comparing the Price/Earnings ratio of EQ6 to the average of the S&P500 Index (28.82), we can say EQ6 is valued slightly cheaper.
- The Price/Forward Earnings ratio is 13.57, which indicates a correct valuation of EQ6.
- Compared to the rest of the industry, the Price/Forward Earnings ratio of EQ6 is on the same level as its industry peers.
- When comparing the Price/Forward Earnings ratio of EQ6 to the average of the S&P500 Index (25.95), we can say EQ6 is valued slightly cheaper.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 20.07 | ||
| Fwd PE | 13.57 |
4.2 Price Multiples
- EQ6's Enterprise Value to EBITDA is on the same level as the industry average.
- Compared to the rest of the industry, the Price/Free Cash Flow ratio of EQ6 indicates a somewhat cheap valuation: EQ6 is cheaper than 60.56% of the companies listed in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 14.33 | ||
| EV/EBITDA | 8.44 |
4.3 Compensation for Growth
- The low PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates a rather cheap valuation of the company.
- The decent profitability rating of EQ6 may justify a higher PE ratio.
- A more expensive valuation may be justified as EQ6's earnings are expected to grow with 47.03% in the coming years.
PEG (NY)0.23
PEG (5Y)1.51
EPS Next 2Y64.59%
EPS Next 3Y47.03%
5. Dividend
5.1 Amount
- EQ6 has a Yearly Dividend Yield of 1.21%.
- EQ6's Dividend Yield is slightly below the industry average, which is at 5.24.
- Compared to the average S&P500 Dividend Yield of 1.82, EQ6 is paying slightly less dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.21% |
5.2 History
- The dividend of EQ6 is nicely growing with an annual growth rate of 39.73%!
Dividend Growth(5Y)39.73%
Div Incr YearsN/A
Div Non Decr YearsN/A
5.3 Sustainability
- 21.38% of the earnings are spent on dividend by EQ6. This is a low number and sustainable payout ratio.
- The dividend of EQ6 is growing, but the earnings are growing slower. This means the dividend growth is not sustainable.
DP21.38%
EPS Next 2Y64.59%
EPS Next 3Y47.03%
EQT CORP / EQ6.DE FAQ
Can you provide the ChartMill fundamental rating for EQT CORP?
ChartMill assigns a fundamental rating of 5 / 10 to EQ6.DE.
What is the valuation status for EQ6 stock?
ChartMill assigns a valuation rating of 6 / 10 to EQT CORP (EQ6.DE). This can be considered as Fairly Valued.
What is the profitability of EQ6 stock?
EQT CORP (EQ6.DE) has a profitability rating of 6 / 10.
What is the financial health of EQT CORP (EQ6.DE) stock?
The financial health rating of EQT CORP (EQ6.DE) is 3 / 10.
Can you provide the dividend sustainability for EQ6 stock?
The dividend rating of EQT CORP (EQ6.DE) is 3 / 10 and the dividend payout ratio is 21.38%.