EQUITABLE HOLDINGS INC (EQH) Stock Fundamental Analysis
USA - NYSE:EQH - US29452E1010 - Common Stock
50.36 USD
+1.08 (+2.19%)
50.36 USD
0 (0%)
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 not valued too expensively and it also shows a decent growth rate.
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 worse Return On Assets (0.13%) than 71.00% of its industry peers.
EQH has a better Return On Equity (35.42%) than 94.00% of its industry peers.
Looking at the Return On Invested Capital, with a value of 0.82%, EQH is doing worse than 63.00% of the companies in the same industry.
EQH had an Average Return On Invested Capital over the past 3 years of 0.99%. This is significantly below the industry average of 7.64%.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 0.13% | ||
| ROE | 35.42% | ||
| ROIC | 0.82% |
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 2.57%, EQH is not doing good in the industry: 63.00% of the companies in the same industry are doing better.
Looking at the Operating Margin, with a value of 17.41%, EQH is in the better half of the industry, outperforming 63.00% of the companies in the same industry.
EQH's Operating Margin has improved in the last couple of years.
Looking at the Gross Margin, with a value of 51.52%, EQH is in the better half of the industry, outperforming 68.00% 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 | 17.41% | ||
| PM (TTM) | 2.57% | ||
| GM | 51.52% |
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
The debt/assets ratio for EQH has been reduced compared to a year ago.
2.2 Solvency
EQH has an Altman-Z score of 0.20. This is a bad value and indicates that EQH is not financially healthy and even has some risk of bankruptcy.
EQH has a Altman-Z score of 0.20. This is comparable to the rest of the industry: EQH outperforms 45.00% of its industry peers.
The Debt to FCF ratio of EQH is 15.29, which is on the high side as it means it would take EQH, 15.29 years of fcf income to pay off all of its debts.
EQH's Debt to FCF ratio of 15.29 is in line compared to the rest of the industry. EQH outperforms 53.00% of its industry peers.
A Debt/Equity ratio of 13.37 is on the high side and indicates that EQH has dependencies on debt financing.
With a Debt to Equity ratio value of 13.37, EQH is not doing good in the industry: 87.00% of the companies in the same industry are doing better.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 13.37 | ||
| Debt/FCF | 15.29 | ||
| Altman-Z | 0.2 |
ROIC/WACC0.13
WACC6.22%
2.3 Liquidity
EQH has a Current Ratio of 1.67. 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 better Current ratio (1.67) than 69.00% of its industry peers.
EQH has a Quick Ratio of 1.67. 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 better Quick ratio (1.67) than 71.00% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.67 | ||
| Quick Ratio | 1.67 |
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%.
EQH shows a small growth in Earnings Per Share. Measured over the last years, the EPS has been growing by 4.12% yearly.
EQH shows a small growth in Revenue. In the last year, the Revenue has grown by 0.04%.
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)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
Based on estimates for the next years, EQH will show a quite strong growth in Earnings Per Share. The EPS will grow by 16.85% on average per year.
Based on estimates for the next years, EQH will show a small growth in Revenue. The Revenue will grow by 6.27% on average per year.
EPS Next Y-0.7%
EPS Next 2Y16.35%
EPS Next 3Y17.22%
EPS Next 5Y16.85%
Revenue Next Year-4.59%
Revenue Next 2Y-1.72%
Revenue Next 3Y0.47%
Revenue Next 5Y6.27%
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.
4. Valuation
4.1 Price/Earnings Ratio
Based on the Price/Earnings ratio of 9.16, the valuation of EQH can be described as reasonable.
Compared to the rest of the industry, the Price/Earnings ratio of EQH indicates a somewhat cheap valuation: EQH is cheaper than 77.00% of the companies listed in the same industry.
EQH's Price/Earnings ratio indicates a rather cheap valuation when compared to the S&P500 average which is at 27.86.
With a Price/Forward Earnings ratio of 6.24, the valuation of EQH can be described as very cheap.
EQH's Price/Forward Earnings ratio is rather cheap when compared to the industry. EQH is cheaper than 83.00% of the companies in the same industry.
When comparing the Price/Forward Earnings ratio of EQH to the average of the S&P500 Index (23.29), we can say EQH is valued rather cheaply.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 9.16 | ||
| Fwd PE | 6.24 |
4.2 Price Multiples
Based on the Enterprise Value to EBITDA ratio, EQH is valued cheaply inside the industry as 90.00% of the companies are valued more expensively.
Compared to the rest of the industry, the Price/Free Cash Flow ratio of EQH indicates a somewhat cheap valuation: EQH is cheaper than 76.00% of the companies listed in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 9.98 | ||
| EV/EBITDA | 5.64 |
4.3 Compensation for Growth
A more expensive valuation may be justified as EQH's earnings are expected to grow with 17.22% in the coming years.
PEG (NY)N/A
PEG (5Y)2.22
EPS Next 2Y16.35%
EPS Next 3Y17.22%
5. Dividend
5.1 Amount
EQH has a Yearly Dividend Yield of 6.10%, which is a nice return.
Compared to an average industry Dividend Yield of 5.19, EQH pays a bit more dividend than its industry peers.
Compared to an average S&P500 Dividend Yield of 2.41, EQH pays a better dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 6.1% |
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 93.12% of its income as dividend. This is not 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.
DP93.12%
EPS Next 2Y16.35%
EPS Next 3Y17.22%
50.36
+1.08 (+2.19%)
Chartmill FA Rating
GICS SectorFinancials
GICS IndustryGroupFinancial Services
GICS IndustryFinancial Services
Earnings (Last)
Earnings (Next)
Inst Owners100.63%
Inst Owner Change-5.82%
Ins Owners0.5%
Ins Owner Change-0.29%
Market Cap15.08B
Analysts80
Price Target67.43 (33.9%)
Short Float %2.38%
Short Ratio2.46
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 6.1% |
Yearly Dividend1.19
Dividend Growth(5Y)15.63%
DP93.12%
Div Incr Years0
Div Non Decr Years0
Ex-Date
Surprises & Revisions
EPS beat(2)0
Avg EPS beat(2)-13.94%
Min EPS beat(2)-15.26%
Max EPS beat(2)-12.62%
EPS beat(4)0
Avg EPS beat(4)-8.2%
Min EPS beat(4)-15.26%
Max EPS beat(4)-1.05%
EPS beat(8)3
Avg EPS beat(8)-3.27%
EPS beat(12)4
Avg EPS beat(12)-3.84%
EPS beat(16)7
Avg EPS beat(16)-0.99%
Revenue beat(2)1
Avg Revenue beat(2)-13.78%
Min Revenue beat(2)-40.44%
Max Revenue beat(2)12.88%
Revenue beat(4)1
Avg Revenue beat(4)-14.99%
Min Revenue beat(4)-40.44%
Max Revenue beat(4)12.88%
Revenue beat(8)2
Avg Revenue beat(8)-18.05%
Revenue beat(12)4
Avg Revenue beat(12)-15.36%
Revenue beat(16)6
Avg Revenue beat(16)-13.5%
PT rev (1m)0%
PT rev (3m)2.76%
EPS NQ rev (1m)-1.38%
EPS NQ rev (3m)-5.03%
EPS NY rev (1m)-0.59%
EPS NY rev (3m)-11.07%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)-6.69%
Revenue NY rev (1m)0%
Revenue NY rev (3m)-4.5%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 9.16 | ||
| Fwd PE | 6.24 | ||
| P/S | 0.95 | ||
| P/FCF | 9.98 | ||
| P/OCF | 9.54 | ||
| P/B | 13.13 | ||
| P/tB | N/A | ||
| EV/EBITDA | 5.64 |
EPS(TTM)5.5
EY10.92%
EPS(NY)8.07
Fwd EY16.02%
FCF(TTM)5.04
FCFY10.02%
OCF(TTM)5.28
OCFY10.49%
SpS52.91
BVpS3.84
TBVpS-14
PEG (NY)N/A
PEG (5Y)2.22
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 0.13% | ||
| ROE | 35.42% | ||
| ROCE | 0.96% | ||
| ROIC | 0.82% | ||
| ROICexc | 0.86% | ||
| ROICexgc | 1.86% | ||
| OM | 17.41% | ||
| PM (TTM) | 2.57% | ||
| GM | 51.52% | ||
| FCFM | 9.53% |
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 | 13.37 | ||
| Debt/FCF | 15.29 | ||
| Debt/EBITDA | 4.24 | ||
| Cap/Depr | 8.22% | ||
| Cap/Sales | 0.45% | ||
| Interest Coverage | 250 | ||
| Cash Conversion | 43.67% | ||
| Profit Quality | 371.25% | ||
| Current Ratio | 1.67 | ||
| Quick Ratio | 1.67 | ||
| Altman-Z | 0.2 |
F-Score5
WACC6.22%
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 Y-0.7%
EPS Next 2Y16.35%
EPS Next 3Y17.22%
EPS Next 5Y16.85%
Revenue 1Y (TTM)0.04%
Revenue growth 3Y3.04%
Revenue growth 5Y4.47%
Sales Q2Q%-34.77%
Revenue Next Year-4.59%
Revenue Next 2Y-1.72%
Revenue Next 3Y0.47%
Revenue Next 5Y6.27%
EBIT growth 1Y-31.71%
EBIT growth 3Y2.49%
EBIT growth 5Y17.6%
EBIT Next Year8.74%
EBIT Next 3Y14.53%
EBIT Next 5YN/A
FCF growth 1Y303.64%
FCF growth 3YN/A
FCF growth 5YN/A
OCF growth 1Y394.6%
OCF growth 3YN/A
OCF growth 5YN/A