EQUITABLE HOLDINGS INC (EQH) Stock Fundamental Analysis
NYSE:EQH - New York Stock Exchange, Inc. - US29452E1010 - Common Stock - Currency: USD
EQH gets a fundamental rating of 5 out of 10. The analysis compared the fundamentals against 101 industry peers in the Financial Services industry. Both the profitability and the financial health of EQH get a neutral evaluation. Nothing too spectacular is happening here. EQH may be a bit undervalued, certainly considering the very reasonable score on growth
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.
In multiple years EQH reported negative net income over the last 5 years.
In the past 5 years EQH reported 4 times negative operating cash flow.
1.2 Ratios
EQH has a Return On Assets of 0.41%. This is in the lower half of the industry: EQH underperforms 64.36% of its industry peers.
Looking at the Return On Equity, with a value of 48.98%, EQH belongs to the top of the industry, outperforming 95.05% of the companies in the same industry.
EQH has a worse Return On Invested Capital (0.83%) than 64.36% of its industry peers.
The Average Return On Invested Capital over the past 3 years for EQH is significantly below the industry average of 7.67%.
| 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
EQH has a Profit Margin (7.66%) which is comparable to the rest of the industry.
The Operating Margin of EQH (17.18%) is better than 62.38% of its industry peers.
EQH's Operating Margin has improved in the last couple of years.
EQH has a better Gross Margin (52.13%) than 69.31% of its industry peers.
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
EQH has a Return on Invested Capital (ROIC), which is below the Cost of Capital (WACC), which means it is destroying value.
Compared to 1 year ago, EQH has less shares outstanding
Compared to 5 years ago, EQH has less shares outstanding
The debt/assets ratio for EQH has been reduced compared to a year ago.
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.
EQH's Debt to FCF ratio of 10.03 is in line compared to the rest of the industry. EQH outperforms 56.44% of its industry peers.
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: 79.21% 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/WACC0.13
WACC6.45%
2.3 Liquidity
EQH has a Current Ratio of 1.35. 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 Current ratio of 1.35 is in line compared to the rest of the industry. EQH outperforms 59.41% of its industry peers.
EQH has a Quick Ratio of 1.35. This is a normal value and indicates that EQH is financially healthy and should not expect problems in meeting its short term obligations.
EQH has a Quick ratio of 1.35. This is in the better half of the industry: EQH outperforms 61.39% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.35 | ||
| Quick Ratio | 1.35 |
3. Growth
3.1 Past
EQH shows a small growth in Earnings Per Share. In the last year, the EPS has grown by 3.00%.
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 small growth in Revenue. In the last year, the Revenue has grown by 0.04%.
The Revenue has been growing slightly by 4.47% on average over the past years.
EPS 1Y (TTM)3%
EPS 3Y-3.05%
EPS 5Y4.12%
EPS Q2Q%-23.08%
Revenue 1Y (TTM)0.04%
Revenue growth 3Y3.04%
Revenue growth 5Y4.47%
Sales Q2Q%-34.77%
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 Y7.31%
EPS Next 2Y17.45%
EPS Next 3Y17.65%
EPS Next 5Y16.31%
Revenue Next Year-2.93%
Revenue Next 2Y-1.01%
Revenue Next 3Y2.43%
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
EQH is valuated reasonably with a Price/Earnings ratio of 9.80.
72.28% of the companies in the same industry are more expensive than EQH, based on the Price/Earnings ratio.
Compared to an average S&P500 Price/Earnings ratio of 26.87, EQH is valued rather cheaply.
EQH is valuated cheaply with a Price/Forward Earnings ratio of 6.56.
EQH's Price/Forward Earnings ratio is rather cheap when compared to the industry. EQH is cheaper than 81.19% of the companies in the same industry.
The average S&P500 Price/Forward Earnings ratio is at 35.34. EQH is valued rather cheaply when compared to this.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 9.8 | ||
| Fwd PE | 6.56 |
4.2 Price Multiples
Based on the Enterprise Value to EBITDA ratio, EQH is valued cheaper than 82.18% of the companies in the same industry.
Based on the Price/Free Cash Flow ratio, EQH is valued cheaply inside the industry as 81.19% of the companies are valued more expensively.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 8.06 | ||
| EV/EBITDA | 7.7 |
4.3 Compensation for Growth
EQH's PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates a correct valuation of the company.
EQH's earnings are expected to grow with 17.65% in the coming years. This may justify a more expensive valuation.
PEG (NY)1.34
PEG (5Y)2.38
EPS Next 2Y17.45%
EPS Next 3Y17.65%
5. Dividend
5.1 Amount
With a Yearly Dividend Yield of 1.98%, EQH has a reasonable but not impressive dividend return.
Compared to an average industry Dividend Yield of 4.43, EQH pays a bit more dividend than its industry peers.
EQH's Dividend Yield is comparable with the S&P500 average which is at 2.36.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.98% |
5.2 History
On average, the dividend of EQH grows each year by 15.63%, which is quite nice.
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.
The dividend of EQH is growing around the same rate as the earnings are growing. If this keeps up the dividend growth is sustainable.
DP32.57%
EPS Next 2Y17.45%
EPS Next 3Y17.65%
53.9
-0.74 (-1.35%)
Chartmill FA Rating
GICS SectorFinancials
GICS IndustryGroupFinancial Services
GICS IndustryFinancial Services
Earnings (Last)
Earnings (Next)
Inst Owners102.82%
Inst Owner Change1.41%
Ins Owners0.51%
Ins Owner Change0.26%
Market Cap16.38B
Analysts78.82
Price Target67.89 (25.96%)
Short Float %1.56%
Short Ratio1.98
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.98% |
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)3.45%
PT rev (3m)5.83%
EPS NQ rev (1m)-13.82%
EPS NQ rev (3m)-24.95%
EPS NY rev (1m)0%
EPS NY rev (3m)-6.99%
Revenue NQ rev (1m)-1.07%
Revenue NQ rev (3m)-2.44%
Revenue NY rev (1m)0.07%
Revenue NY rev (3m)-1.7%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 9.8 | ||
| Fwd PE | 6.56 | ||
| P/S | 1.07 | ||
| P/FCF | 8.06 | ||
| P/OCF | 7.68 | ||
| P/B | 6.82 | ||
| P/tB | N/A | ||
| EV/EBITDA | 7.7 |
EPS(TTM)5.5
EY10.2%
EPS(NY)8.22
Fwd EY15.25%
FCF(TTM)6.69
FCFY12.41%
OCF(TTM)7.02
OCFY13.02%
SpS50.54
BVpS7.9
TBVpS-9.72
PEG (NY)1.34
PEG (5Y)2.38
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
WACC6.45%
ROIC/WACC0.13
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)3%
EPS 3Y-3.05%
EPS 5Y4.12%
EPS Q2Q%-23.08%
EPS Next Y7.31%
EPS Next 2Y17.45%
EPS Next 3Y17.65%
EPS Next 5Y16.31%
Revenue 1Y (TTM)0.04%
Revenue growth 3Y3.04%
Revenue growth 5Y4.47%
Sales Q2Q%-34.77%
Revenue Next Year-2.93%
Revenue Next 2Y-1.01%
Revenue Next 3Y2.43%
Revenue Next 5Y5.31%
EBIT growth 1Y-42.65%
EBIT growth 3Y2.49%
EBIT growth 5Y17.6%
EBIT Next Year20.24%
EBIT Next 3Y18.18%
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