EQUITABLE HOLDINGS INC (EQH) Stock Fundamental Analysis
USA - New York Stock Exchange - NYSE:EQH - US29452E1010 - Common Stock
46.69 USD
-0.13 (-0.28%)
46.69 USD
0 (0%)
Taking everything into account, EQH scores 4 out of 10 in our fundamental rating. EQH was compared to 98 industry peers in the Financial Services industry. While EQH seems to be doing ok healthwise, there are quite some concerns on its profitability. EQH has a decent growth rate and is not valued too expensively.
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.
In the past 5 years EQH reported 4 times negative operating cash flow.
1.2 Ratios
EQH has a Return On Assets of -0.24%. This is in the lower half of the industry: EQH underperforms 76.53% of its industry peers.
The Return On Equity of EQH (-520.27%) is worse than 90.82% of its industry peers.
EQH has a worse Return On Invested Capital (0.52%) than 65.31% of its industry peers.
EQH had an Average Return On Invested Capital over the past 3 years of 0.99%. This is significantly below the industry average of 8.20%.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | -0.24% | ||
| ROE | -520.27% | ||
| ROIC | 0.52% |
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 Operating Margin of 12.18%. This is comparable to the rest of the industry: EQH outperforms 44.90% of its industry peers.
In the last couple of years the Operating Margin of EQH has grown nicely.
With a decent Gross Margin value of 49.15%, EQH is doing good in the industry, outperforming 68.37% of the companies in the same industry.
In the last couple of years the Gross Margin of EQH has grown nicely.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 12.18% | ||
| PM (TTM) | N/A | ||
| GM | 49.15% |
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.
EQH has less shares outstanding than it did 1 year ago.
Compared to 5 years ago, EQH has less shares outstanding
EQH has a better debt/assets ratio than last year.
2.2 Solvency
Based on the Altman-Z score of 0.22, we must say that EQH is in the distress zone and has some risk of bankruptcy.
EQH has a Altman-Z score (0.22) which is comparable to the rest of the industry.
The Debt to FCF ratio of EQH is 16.88, which is on the high side as it means it would take EQH, 16.88 years of fcf income to pay off all of its debts.
EQH has a Debt to FCF ratio (16.88) which is in line with its industry peers.
EQH has a Debt/Equity ratio of 104.84. This is a high value indicating a heavy dependency on external financing.
Looking at the Debt to Equity ratio, with a value of 104.84, EQH is doing worse than 92.86% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 104.84 | ||
| Debt/FCF | 16.88 | ||
| Altman-Z | 0.22 |
ROIC/WACC0.12
WACC4.48%
2.3 Liquidity
A Current Ratio of 3.08 indicates that EQH has no problem at all paying its short term obligations.
EQH has a Current ratio of 3.08. This is amongst the best in the industry. EQH outperforms 83.67% of its industry peers.
EQH has a Quick Ratio of 3.08. This indicates that EQH is financially healthy and has no problem in meeting its short term obligations.
With an excellent Quick ratio value of 3.08, EQH belongs to the best of the industry, outperforming 84.69% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 3.08 | ||
| Quick Ratio | 3.08 |
3. Growth
3.1 Past
EQH shows a slight negative growth in Earnings Per Share. In the last year, the EPS has decreased by -4.72%.
The Earnings Per Share has been growing slightly by 4.12% on average over the past years.
EQH shows a decrease in Revenue. In the last year, the revenue decreased by -4.25%.
Measured over the past years, EQH shows a small growth in Revenue. The Revenue has been growing by 4.47% on average per year.
EPS 1Y (TTM)-4.72%
EPS 3Y-3.05%
EPS 5Y4.12%
EPS Q2Q%-3.27%
Revenue 1Y (TTM)-4.25%
Revenue growth 3Y3.04%
Revenue growth 5Y4.47%
Sales Q2Q%-52.86%
3.2 Future
The Earnings Per Share is expected to grow by 14.10% on average over the next years. This is quite good.
The Revenue is expected to grow by 6.07% on average over the next years.
EPS Next Y-1.31%
EPS Next 2Y16.89%
EPS Next 3Y17.13%
EPS Next 5Y14.1%
Revenue Next Year-4.24%
Revenue Next 2Y-0.69%
Revenue Next 3Y1.65%
Revenue Next 5Y6.07%
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.
When comparing the Revenue growth rate of the last years to the growth rate of the upcoming years, we see that the growth is accelerating.
4. Valuation
4.1 Price/Earnings Ratio
EQH is valuated reasonably with a Price/Earnings ratio of 8.57.
Compared to the rest of the industry, the Price/Earnings ratio of EQH indicates a somewhat cheap valuation: EQH is cheaper than 71.43% of the companies listed in the same industry.
When comparing the Price/Earnings ratio of EQH to the average of the S&P500 Index (26.31), we can say EQH is valued rather cheaply.
A Price/Forward Earnings ratio of 5.73 indicates a rather cheap valuation of EQH.
Based on the Price/Forward Earnings ratio, EQH is valued cheaper than 83.67% of the companies in the same industry.
When comparing the Price/Forward Earnings ratio of EQH to the average of the S&P500 Index (36.59), we can say EQH is valued rather cheaply.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 8.57 | ||
| Fwd PE | 5.73 |
4.2 Price Multiples
EQH's Enterprise Value to EBITDA ratio is rather cheap when compared to the industry. EQH is cheaper than 86.73% of the companies in the same industry.
Compared to the rest of the industry, the Price/Free Cash Flow ratio of EQH indicates a somewhat cheap valuation: EQH is cheaper than 71.43% of the companies listed in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 11.22 | ||
| EV/EBITDA | 6.42 |
4.3 Compensation for Growth
A more expensive valuation may be justified as EQH's earnings are expected to grow with 17.13% in the coming years.
PEG (NY)N/A
PEG (5Y)2.08
EPS Next 2Y16.89%
EPS Next 3Y17.13%
5. Dividend
5.1 Amount
EQH has a Yearly Dividend Yield of 2.31%.
EQH's Dividend Yield is a higher than the industry average which is at 5.04.
Compared to an average S&P500 Dividend Yield of 2.34, EQH has a dividend comparable with the average S&P500 company.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 2.31% |
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 has negative earnings and hence a negative payout ratio. The dividend may be in danger.
EQH's earnings are growing slower than its dividend. This means the dividend growth is not sustainable.
DP-50.13%
EPS Next 2Y16.89%
EPS Next 3Y17.13%
46.69
-0.13 (-0.28%)
Chartmill FA Rating
GICS SectorFinancials
GICS IndustryGroupFinancial Services
GICS IndustryFinancial Services
Earnings (Last)
Earnings (Next)
Inst Owners100.63%
Inst Owner Change1.13%
Ins Owners0.5%
Ins Owner Change-0.23%
Market Cap13.38B
Revenue(TTM)15.06B
Net Income(TTM)-770.00M
Analysts80
Price Target65.71 (40.74%)
Short Float %2.61%
Short Ratio2.62
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 2.31% |
Yearly Dividend1.19
Dividend Growth(5Y)15.63%
DP-50.13%
Div Incr Years0
Div Non Decr Years0
Ex-Date
Surprises & Revisions
EPS beat(2)0
Avg EPS beat(2)-12.21%
Min EPS beat(2)-15.26%
Max EPS beat(2)-9.16%
EPS beat(4)0
Avg EPS beat(4)-10.23%
Min EPS beat(4)-15.26%
Max EPS beat(4)-3.88%
EPS beat(8)3
Avg EPS beat(8)-2.6%
EPS beat(12)3
Avg EPS beat(12)-5.84%
EPS beat(16)6
Avg EPS beat(16)-3.92%
Revenue beat(2)0
Avg Revenue beat(2)-49.91%
Min Revenue beat(2)-59.37%
Max Revenue beat(2)-40.44%
Revenue beat(4)1
Avg Revenue beat(4)-24.56%
Min Revenue beat(4)-59.37%
Max Revenue beat(4)12.88%
Revenue beat(8)1
Avg Revenue beat(8)-25.64%
Revenue beat(12)3
Avg Revenue beat(12)-20.55%
Revenue beat(16)5
Avg Revenue beat(16)-17.71%
PT rev (1m)-1.65%
PT rev (3m)-2.56%
EPS NQ rev (1m)-1.23%
EPS NQ rev (3m)0.56%
EPS NY rev (1m)-0.23%
EPS NY rev (3m)-1.21%
Revenue NQ rev (1m)-3.08%
Revenue NQ rev (3m)-0.56%
Revenue NY rev (1m)-1.05%
Revenue NY rev (3m)0.37%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 8.57 | ||
| Fwd PE | 5.73 | ||
| P/S | 0.89 | ||
| P/FCF | 11.22 | ||
| P/OCF | 10.55 | ||
| P/B | 90.39 | ||
| P/tB | N/A | ||
| EV/EBITDA | 6.42 |
EPS(TTM)5.45
EY11.67%
EPS(NY)8.14
Fwd EY17.44%
FCF(TTM)4.16
FCFY8.91%
OCF(TTM)4.43
OCFY9.48%
SpS52.55
BVpS0.52
TBVpS-18.07
PEG (NY)N/A
PEG (5Y)2.08
Graham Number7.96
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | -0.24% | ||
| ROE | -520.27% | ||
| ROCE | 0.61% | ||
| ROIC | 0.52% | ||
| ROICexc | 0.54% | ||
| ROICexgc | 1.13% | ||
| OM | 12.18% | ||
| PM (TTM) | N/A | ||
| GM | 49.15% | ||
| FCFM | 7.92% |
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%
ROICexgc growth 3Y0.46%
ROICexgc 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-Score4
Asset Turnover0.05
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 104.84 | ||
| Debt/FCF | 16.88 | ||
| Debt/EBITDA | 5.73 | ||
| Cap/Depr | 8.72% | ||
| Cap/Sales | 0.5% | ||
| Interest Coverage | 250 | ||
| Cash Conversion | 46.86% | ||
| Profit Quality | N/A | ||
| Current Ratio | 3.08 | ||
| Quick Ratio | 3.08 | ||
| Altman-Z | 0.22 |
F-Score4
WACC4.48%
ROIC/WACC0.12
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)-4.72%
EPS 3Y-3.05%
EPS 5Y4.12%
EPS Q2Q%-3.27%
EPS Next Y-1.31%
EPS Next 2Y16.89%
EPS Next 3Y17.13%
EPS Next 5Y14.1%
Revenue 1Y (TTM)-4.25%
Revenue growth 3Y3.04%
Revenue growth 5Y4.47%
Sales Q2Q%-52.86%
Revenue Next Year-4.24%
Revenue Next 2Y-0.69%
Revenue Next 3Y1.65%
Revenue Next 5Y6.07%
EBIT growth 1Y-52.73%
EBIT growth 3Y2.49%
EBIT growth 5Y17.6%
EBIT Next Year8.74%
EBIT Next 3Y14.53%
EBIT Next 5YN/A
FCF growth 1Y336.98%
FCF growth 3YN/A
FCF growth 5YN/A
OCF growth 1Y456.18%
OCF growth 3YN/A
OCF growth 5YN/A
EQUITABLE HOLDINGS INC / EQH FAQ
Can you provide the ChartMill fundamental rating for EQUITABLE HOLDINGS INC?
ChartMill assigns a fundamental rating of 4 / 10 to EQH.
What is the valuation status of EQUITABLE HOLDINGS INC (EQH) stock?
ChartMill assigns a valuation rating of 6 / 10 to EQUITABLE HOLDINGS INC (EQH). This can be considered as Fairly Valued.
Can you provide the profitability details for EQUITABLE HOLDINGS INC?
EQUITABLE HOLDINGS INC (EQH) has a profitability rating of 3 / 10.
How financially healthy is EQUITABLE HOLDINGS INC?
The financial health rating of EQUITABLE HOLDINGS INC (EQH) is 5 / 10.
Is the dividend of EQUITABLE HOLDINGS INC sustainable?
The dividend rating of EQUITABLE HOLDINGS INC (EQH) is 4 / 10 and the dividend payout ratio is -50.13%.