EQUITABLE HOLDINGS INC (EQH) Stock Fundamental Analysis
NYSE:EQH - New York Stock Exchange, Inc. - US29452E1010 - Common Stock - Currency: USD
We assign a fundamental rating of 5 out of 10 to EQH. EQH was compared to 100 industry peers in the Financial Services industry. EQH has an average financial health and profitability rating. EQH is valued quite cheap, while showing a decent growth score. This is a good combination!
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 has a worse Return On Assets (0.41%) than 66.00% of its industry peers.
EQH has a Return On Equity of 48.98%. This is amongst the best in the industry. EQH outperforms 95.00% of its industry peers.
The Return On Invested Capital of EQH (0.83%) is worse than 64.00% of its industry peers.
Measured over the past 3 years, the Average Return On Invested Capital for EQH is significantly below the industry average of 11.84%.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 0.41% | ||
| ROE | 48.98% | ||
| ROIC | 0.83% |
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
With a Profit Margin value of 7.66%, EQH perfoms like the industry average, outperforming 43.00% of the companies in the same industry.
The Operating Margin of EQH (17.18%) is better than 62.00% of its industry peers.
In the last couple of years the Operating Margin of EQH has grown nicely.
Looking at the Gross Margin, with a value of 52.13%, EQH is in the better half of the industry, outperforming 70.00% of the companies in the same industry.
EQH's Gross Margin has improved in the last couple of years.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 17.18% | ||
| PM (TTM) | 7.66% | ||
| GM | 52.13% |
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
The Return on Invested Capital (ROIC) is below the Cost of Capital (WACC), so EQH is destroying value.
The number of shares outstanding for EQH has been reduced compared to 1 year ago.
Compared to 5 years ago, EQH has less shares outstanding
Compared to 1 year ago, EQH has an improved debt to assets ratio.
2.2 Solvency
Based on the Altman-Z score of 0.19, we must say that EQH is in the distress zone and has some risk of bankruptcy.
EQH has a Altman-Z score (0.19) which is comparable to the rest of the industry.
EQH has a debt to FCF ratio of 10.03. This is a negative value and a sign of low solvency as EQH would need 10.03 years to pay back of all of its debts.
Looking at the Debt to FCF ratio, with a value of 10.03, EQH is in line with its industry, outperforming 55.00% of the companies in the same industry.
A Debt/Equity ratio of 5.43 is on the high side and indicates that EQH has dependencies on debt financing.
With a Debt to Equity ratio value of 5.43, EQH is not doing good in the industry: 79.00% of the companies in the same industry are doing better.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 5.43 | ||
| Debt/FCF | 10.03 | ||
| Altman-Z | 0.19 |
ROIC/WACC0.17
WACC4.99%
2.3 Liquidity
A Current Ratio of 1.35 indicates that EQH should not have too much problems paying its short term obligations.
The Current ratio of EQH (1.35) is better than 62.00% of its industry peers.
A Quick Ratio of 1.35 indicates that EQH should not have too much problems paying its short term obligations.
With a decent Quick ratio value of 1.35, EQH is doing good in the industry, outperforming 64.00% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.35 | ||
| Quick Ratio | 1.35 |
3. Growth
3.1 Past
The Earnings Per Share has grown by an nice 14.76% over the past 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 -5.55%.
The Revenue has been growing slightly by 4.47% on average over the past years.
EPS 1Y (TTM)14.76%
EPS 3Y-3.05%
EPS 5Y4.12%
EPS Q2Q%-9.09%
Revenue 1Y (TTM)-5.55%
Revenue growth 3Y3.04%
Revenue growth 5Y4.47%
Sales Q2Q%105.2%
3.2 Future
The Earnings Per Share is expected to grow by 16.31% on average over the next years. This is quite good.
Based on estimates for the next years, EQH will show a small growth in Revenue. The Revenue will grow by 5.31% on average per year.
EPS Next Y11.66%
EPS Next 2Y17.89%
EPS Next 3Y18.25%
EPS Next 5Y16.31%
Revenue Next Year-0.1%
Revenue Next 2Y1.86%
Revenue Next 3Y3.3%
Revenue Next 5Y5.31%
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 accelerating.
The Revenue growth rate is stable: in the next years the growth will be about the same than in the last years.
4. Valuation
4.1 Price/Earnings Ratio
A Price/Earnings ratio of 9.55 indicates a reasonable valuation of EQH.
Based on the Price/Earnings ratio, EQH is valued a bit cheaper than the industry average as 71.00% of the companies are valued more expensively.
When comparing the Price/Earnings ratio of EQH to the average of the S&P500 Index (27.45), we can say EQH is valued rather cheaply.
EQH is valuated cheaply with a Price/Forward Earnings ratio of 6.72.
Based on the Price/Forward Earnings ratio, EQH is valued a bit cheaper than the industry average as 79.00% of the companies are valued more expensively.
When comparing the Price/Forward Earnings ratio of EQH to the average of the S&P500 Index (21.90), we can say EQH is valued rather cheaply.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 9.55 | ||
| Fwd PE | 6.72 |
4.2 Price Multiples
EQH's Enterprise Value to EBITDA ratio is rather cheap when compared to the industry. EQH is cheaper than 81.00% of the companies in the same industry.
Based on the Price/Free Cash Flow ratio, EQH is valued cheaper than 81.00% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 8.39 | ||
| EV/EBITDA | 7.83 |
4.3 Compensation for Growth
EQH's 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 18.25% in the coming years.
PEG (NY)0.82
PEG (5Y)2.32
EPS Next 2Y17.89%
EPS Next 3Y18.25%
5. Dividend
5.1 Amount
With a Yearly Dividend Yield of 1.93%, EQH has a reasonable but not impressive dividend return.
EQH's Dividend Yield is a higher than the industry average which is at 4.97.
Compared to the average S&P500 Dividend Yield of 2.42, EQH is paying slightly less dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.93% |
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 pays out 32.57% of its income as dividend. This is a sustainable payout ratio.
EQH's earnings are growing around the same pace than its dividend. As long as the earnings growth is kept the dividend growth is sustainable.
DP32.57%
EPS Next 2Y17.89%
EPS Next 3Y18.25%
55.67
-0.18 (-0.32%)
Chartmill FA Rating
GICS SectorFinancials
GICS IndustryGroupFinancial Services
GICS IndustryFinancial Services
Earnings (Last)
Earnings (Next)
Inst Owners101.23%
Inst Owner Change-0.42%
Ins Owners0.51%
Ins Owner Change0.21%
Market Cap17.05B
Analysts78.82
Price Target65.62 (17.87%)
Short Float %1.74%
Short Ratio2.2
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.93% |
Yearly Dividend1.19
Dividend Growth(5Y)15.63%
DP32.57%
Div Incr Years0
Div Non Decr Years0
Ex-Date
Surprises & Revisions
EPS beat(2)0
Avg EPS beat(2)-8.25%
Min EPS beat(2)-12.62%
Max EPS beat(2)-3.88%
EPS beat(4)1
Avg EPS beat(4)-4.18%
Min EPS beat(4)-12.62%
Max EPS beat(4)0.84%
EPS beat(8)3
Avg EPS beat(8)-1.59%
EPS beat(12)5
Avg EPS beat(12)-2.34%
EPS beat(16)8
Avg EPS beat(16)1.47%
Revenue beat(2)1
Avg Revenue beat(2)0.78%
Min Revenue beat(2)-11.32%
Max Revenue beat(2)12.88%
Revenue beat(4)1
Avg Revenue beat(4)-6.37%
Min Revenue beat(4)-21.09%
Max Revenue beat(4)12.88%
Revenue beat(8)2
Avg Revenue beat(8)-14.83%
Revenue beat(12)4
Avg Revenue beat(12)-15.35%
Revenue beat(16)7
Avg Revenue beat(16)-9.85%
PT rev (1m)2.3%
PT rev (3m)0.87%
EPS NQ rev (1m)0.18%
EPS NQ rev (3m)-4.42%
EPS NY rev (1m)-0.65%
EPS NY rev (3m)-8.22%
Revenue NQ rev (1m)-0.07%
Revenue NQ rev (3m)-1.77%
Revenue NY rev (1m)1.17%
Revenue NY rev (3m)-6.82%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 9.55 | ||
| Fwd PE | 6.72 | ||
| P/S | 1.11 | ||
| P/FCF | 8.39 | ||
| P/OCF | 7.99 | ||
| P/B | 7.1 | ||
| P/tB | N/A | ||
| EV/EBITDA | 7.83 |
EPS(TTM)5.83
EY10.47%
EPS(NY)8.28
Fwd EY14.88%
FCF(TTM)6.64
FCFY11.92%
OCF(TTM)6.96
OCFY12.51%
SpS50.14
BVpS7.84
TBVpS-9.65
PEG (NY)0.82
PEG (5Y)2.32
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 0.41% | ||
| ROE | 48.98% | ||
| ROCE | 0.96% | ||
| ROIC | 0.83% | ||
| ROICexc | 0.85% | ||
| ROICexgc | 1.8% | ||
| OM | 17.18% | ||
| PM (TTM) | 7.66% | ||
| GM | 52.13% | ||
| FCFM | 13.24% |
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%
ROICexcg growth 3Y0.46%
ROICexcg 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-Score5
Asset Turnover0.05
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 5.43 | ||
| Debt/FCF | 10.03 | ||
| Debt/EBITDA | 3.76 | ||
| Cap/Depr | 12% | ||
| Cap/Sales | 0.65% | ||
| Interest Coverage | 250 | ||
| Cash Conversion | 61.45% | ||
| Profit Quality | 172.87% | ||
| Current Ratio | 1.35 | ||
| Quick Ratio | 1.35 | ||
| Altman-Z | 0.19 |
F-Score5
WACC4.99%
ROIC/WACC0.17
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)14.76%
EPS 3Y-3.05%
EPS 5Y4.12%
EPS Q2Q%-9.09%
EPS Next Y11.66%
EPS Next 2Y17.89%
EPS Next 3Y18.25%
EPS Next 5Y16.31%
Revenue 1Y (TTM)-5.55%
Revenue growth 3Y3.04%
Revenue growth 5Y4.47%
Sales Q2Q%105.2%
Revenue Next Year-0.1%
Revenue Next 2Y1.86%
Revenue Next 3Y3.3%
Revenue Next 5Y5.31%
EBIT growth 1Y-42.65%
EBIT growth 3Y2.49%
EBIT growth 5Y17.6%
EBIT Next Year31.94%
EBIT Next 3YN/A
EBIT Next 5YN/A
FCF growth 1Y300.3%
FCF growth 3YN/A
FCF growth 5YN/A
OCF growth 1Y356.99%
OCF growth 3YN/A
OCF growth 5YN/A