EQUITABLE HOLDINGS INC (EQH)

US29452E1010 - Common Stock

38.01  +0.04 (+0.11%)

After market: 38.01 0 (0%)

Fundamental Rating

4

Overall EQH gets a fundamental rating of 4 out of 10. We evaluated EQH against 102 industry peers in the Financial Services industry. There are concerns on the financial health of EQH while its profitability can be described as average. EQH scores decently on growth, while it is valued quite cheap. This could make an interesting combination.



4

1. Profitability

1.1 Basic Checks

In the past year EQH was profitable.
EQH had a negative operating cash flow in the past year.
In multiple years EQH reported negative net income over the last 5 years.
EQH had a negative operating cash flow in each of the past 5 years.

1.2 Ratios

EQH's Return On Assets of 0.44% is in line compared to the rest of the industry. EQH outperforms 42.16% of its industry peers.
With an excellent Return On Equity value of 46.13%, EQH belongs to the best of the industry, outperforming 97.06% of the companies in the same industry.
EQH has a Return On Invested Capital (1.02%) which is in line with its industry peers.
The Average Return On Invested Capital over the past 3 years for EQH is significantly below the industry average of 7.81%.
The 3 year average ROIC (0.89%) for EQH is below the current ROIC(1.02%), indicating increased profibility in the last year.
Industry RankSector Rank
ROA 0.44%
ROE 46.13%
ROIC 1.02%
ROA(3y)0.31%
ROA(5y)0%
ROE(3y)54.44%
ROE(5y)29.14%
ROIC(3y)0.89%
ROIC(5y)0.73%

1.3 Margins

EQH has a Profit Margin (8.29%) which is in line with its industry peers.
In the last couple of years the Profit Margin of EQH has declined.
EQH has a better Operating Margin (22.83%) than 71.57% of its industry peers.
EQH's Operating Margin has been stable in the last couple of years.
Looking at the Gross Margin, with a value of 55.86%, EQH is in the better half of the industry, outperforming 73.53% of the companies in the same industry.
EQH's Gross Margin has been stable in the last couple of years.
Industry RankSector Rank
OM 22.83%
PM (TTM) 8.29%
GM 55.86%
OM growth 3Y57.31%
OM growth 5Y-1.09%
PM growth 3YN/A
PM growth 5Y-11.24%
GM growth 3Y8.18%
GM growth 5Y-0.98%

3

2. Health

2.1 Basic Checks

The Return on Invested Capital (ROIC) is below the Cost of Capital (WACC), so EQH is destroying value.
Compared to 1 year ago, EQH has less shares outstanding
EQH has less shares outstanding than it did 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 0.19. This is a bad value and indicates that EQH is not financially healthy and even has some risk of bankruptcy.
The Altman-Z score of EQH (0.19) is worse than 60.78% of its industry peers.
EQH has a Debt/Equity ratio of 4.67. This is a high value indicating a heavy dependency on external financing.
Looking at the Debt to Equity ratio, with a value of 4.67, EQH is doing worse than 81.37% of the companies in the same industry.
Industry RankSector Rank
Debt/Equity 4.67
Debt/FCF N/A
Altman-Z 0.19
ROIC/WACC0.18
WACC5.61%

2.3 Liquidity

A Current Ratio of 1.34 indicates that EQH should not have too much problems paying its short term obligations.
EQH's Current ratio of 1.34 is in line compared to the rest of the industry. EQH outperforms 58.82% of its industry peers.
EQH has a Quick Ratio of 1.34. This is a normal value and indicates that EQH is financially healthy and should not expect problems in meeting its short term obligations.
EQH's Quick ratio of 1.34 is fine compared to the rest of the industry. EQH outperforms 60.78% of its industry peers.
Industry RankSector Rank
Current Ratio 1.34
Quick Ratio 1.34

5

3. Growth

3.1 Past

The earnings per share for EQH have decreased by -8.89% 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 3.45% on average per year.
The Revenue has grown by 22.01% in the past year. This is a very strong growth!
EQH shows a small growth in Revenue. Measured over the last years, the Revenue has been growing by 3.64% yearly.
EPS 1Y (TTM)-8.89%
EPS 3Y-2.48%
EPS 5Y3.45%
EPS growth Q2Q19.82%
Revenue 1Y (TTM)22.01%
Revenue growth 3Y1.38%
Revenue growth 5Y3.64%
Revenue growth Q2Q4.25%

3.2 Future

EQH is expected to show a strong growth in Earnings Per Share. In the coming years, the EPS will grow by 21.47% yearly.
The Revenue is expected to grow by 7.59% on average over the next years.
EPS Next Y32.46%
EPS Next 2Y25.08%
EPS Next 3Y21.47%
EPS Next 5YN/A
Revenue Next Year11.83%
Revenue Next 2Y9.19%
Revenue Next 3Y7.59%
Revenue Next 5YN/A

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 accelerating: in the next years the growth will be better than in the last years.

7

4. Valuation

4.1 Price/Earnings Ratio

EQH is valuated reasonably with a Price/Earnings ratio of 8.25.
EQH's Price/Earnings ratio is rather cheap when compared to the industry. EQH is cheaper than 84.31% of the companies in the same industry.
EQH's Price/Earnings ratio indicates a rather cheap valuation when compared to the S&P500 average which is at 26.48.
With a Price/Forward Earnings ratio of 6.22, the valuation of EQH can be described as very cheap.
Based on the Price/Forward Earnings ratio, EQH is valued cheaply inside the industry as 90.20% of the companies are valued more expensively.
Compared to an average S&P500 Price/Forward Earnings ratio of 22.79, EQH is valued rather cheaply.
Industry RankSector Rank
PE 8.25
Fwd PE 6.22

4.2 Price Multiples

Based on the Enterprise Value to EBITDA ratio, EQH is valued cheaper than 94.12% of the companies in the same industry.
Industry RankSector Rank
P/FCF N/A
EV/EBITDA 5.27

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.
A more expensive valuation may be justified as EQH's earnings are expected to grow with 21.47% in the coming years.
PEG (NY)0.25
PEG (5Y)2.39
EPS Next 2Y25.08%
EPS Next 3Y21.47%

5

5. Dividend

5.1 Amount

With a Yearly Dividend Yield of 2.39%, EQH has a reasonable but not impressive dividend return.
EQH's Dividend Yield is a higher than the industry average which is at 3.47.
EQH's Dividend Yield is comparable with the S&P500 average which is at 2.34.
Industry RankSector Rank
Dividend Yield 2.39%

5.2 History

The dividend of EQH is nicely growing with an annual growth rate of 30.50%!
EQH has been paying a dividend for over 5 years, so it has already some track record.
As EQH did not decrease their dividend in the past 5 years, we can say the dividend looks stable.
Dividend Growth(5Y)30.5%
Div Incr Years5
Div Non Decr Years5

5.3 Sustainability

31.18% of the earnings are spent on dividend by EQH. This is a low number and sustainable payout ratio.
EQH's earnings are growing slower than its dividend. This means the dividend growth is not sustainable.
DP31.18%
EPS Next 2Y25.08%
EPS Next 3Y21.47%

EQUITABLE HOLDINGS INC

NYSE:EQH (3/28/2024, 8:07:18 PM)

After market: 38.01 0 (0%)

38.01

+0.04 (+0.11%)

Chartmill FA Rating
GICS SectorFinancials
GICS IndustryGroupFinancial Services
GICS IndustryFinancial Services
Earnings (Last)
Earnings (Next)
Inst Owners
Inst Owner Change
Ins Owners
Ins Owner Change
Market Cap12.53B
Analysts
Price Target
Dividend
Industry RankSector Rank
Dividend Yield 2.39%
Dividend Growth(5Y)
DP
Div Incr Years
Div Non Decr Years
Ex-Date
Surprises & Revisions
EPS beat(2)
Avg EPS beat(2)
Min EPS beat(2)
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Revenue beat(2)
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PT rev (1m)
PT rev (3m)
EPS NQ rev (1m)
EPS NQ rev (3m)
EPS NY rev (1m)
EPS NY rev (3m)
Revenue NQ rev (1m)
Revenue NQ rev (3m)
Revenue NY rev (1m)
Revenue NY rev (3m)
Valuation
Industry RankSector Rank
PE 8.25
Fwd PE 6.22
P/S
P/FCF
P/OCF
P/B
P/tB
EV/EBITDA
EPS(TTM)
EY
EPS(NY)
Fwd EY
FCF(TTM)
FCFY
OCF(TTM)
OCFY
SpS
BVpS
TBVpS
PEG (NY)0.25
PEG (5Y)2.39
Profitability
Industry RankSector Rank
ROA 0.44%
ROE 46.13%
ROCE
ROIC
ROICexc
ROICexgc
OM 22.83%
PM (TTM) 8.29%
GM 55.86%
FCFM
ROA(3y)
ROA(5y)
ROE(3y)
ROE(5y)
ROIC(3y)
ROIC(5y)
ROICexc(3y)
ROICexc(5y)
ROICexgc(3y)
ROICexgc(5y)
ROCE(3y)
ROCE(5y)
ROICexcg growth 3Y
ROICexcg growth 5Y
ROICexc growth 3Y
ROICexc growth 5Y
OM growth 3Y
OM growth 5Y
PM growth 3Y
PM growth 5Y
GM growth 3Y
GM growth 5Y
F-Score
Asset Turnover0.05
Health
Industry RankSector Rank
Debt/Equity 4.67
Debt/FCF
Debt/EBITDA
Cap/Depr
Cap/Sales
Interest Coverage
Cash Conversion
Profit Quality
Current Ratio 1.34
Quick Ratio 1.34
Altman-Z
F-Score
WACC
ROIC/WACC
Cap/Depr(3y)
Cap/Depr(5y)
Cap/Sales(3y)
Cap/Sales(5y)
Profit Quality(3y)
Profit Quality(5y)
Growth
EPS 1Y (TTM)-8.89%
EPS 3Y-2.48%
EPS 5Y
EPS growth Q2Q
EPS Next Y32.46%
EPS Next 2Y
EPS Next 3Y
EPS Next 5Y
Revenue 1Y (TTM)22.01%
Revenue growth 3Y1.38%
Revenue growth 5Y
Revenue growth Q2Q
Revenue Next Year
Revenue Next 2Y
Revenue Next 3Y
Revenue Next 5Y
EBIT growth 1Y
EBIT growth 3Y
EBIT growth 5Y
EBIT Next Year
EBIT Next 3Y
EBIT Next 5Y
FCF growth 1Y
FCF growth 3Y
FCF growth 5Y
OCF growth 1Y
OCF growth 3Y
OCF growth 5Y