EQT CORP (EQT) Stock Fundamental Analysis
USA - NYSE:EQT - US26884L1098 - Common Stock
53.66 USD
+0.54 (+1.02%)
54.19 USD
+0.53 (+0.99%)
Overall EQT gets a fundamental rating of 5 out of 10. We evaluated EQT against 211 industry peers in the Oil, Gas & Consumable Fuels industry. There are concerns on the financial health of EQT while its profitability can be described as average. EQT is showing excellent growth while it is valued at reasonable prices. Keep and eye on this one!
1. Profitability
1.1 Basic Checks
EQT had positive earnings in the past year.
EQT had a positive operating cash flow in the past year.
The reported net income has been mixed in the past 5 years: EQT reported negative net income in multiple years.
Each year in the past 5 years EQT had a positive operating cash flow.
1.2 Ratios
EQT's Return On Assets of 2.88% is in line compared to the rest of the industry. EQT outperforms 47.87% of its industry peers.
EQT has a Return On Equity (5.34%) which is in line with its industry peers.
EQT's Return On Invested Capital of 4.07% is on the low side compared to the rest of the industry. EQT is outperformed by 62.56% of its industry peers.
The Average Return On Invested Capital over the past 3 years for EQT is significantly below the industry average of 21.53%.
The last Return On Invested Capital (4.07%) for EQT is well below the 3 year average (8.25%), which needs to be investigated, but indicates that EQT had better years and this may not be a problem.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 2.88% | ||
| ROE | 5.34% | ||
| ROIC | 4.07% |
ROA(3y)5.08%
ROA(5y)0.93%
ROE(3y)9.57%
ROE(5y)1.36%
ROIC(3y)8.25%
ROIC(5y)N/A
1.3 Margins
EQT has a better Profit Margin (15.87%) than 68.25% of its industry peers.
With a decent Operating Margin value of 24.22%, EQT is doing good in the industry, outperforming 62.09% of the companies in the same industry.
In the last couple of years the Operating Margin of EQT has declined.
Looking at the Gross Margin, with a value of 72.63%, EQT belongs to the top of the industry, outperforming 84.36% of the companies in the same industry.
EQT's Gross Margin has been stable in the last couple of years.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 24.22% | ||
| PM (TTM) | 15.87% | ||
| GM | 72.63% |
OM growth 3YN/A
OM growth 5Y-15.64%
PM growth 3YN/A
PM growth 5YN/A
GM growth 3Y24.52%
GM growth 5Y-0.11%
2. Health
2.1 Basic Checks
With a Return on Invested Capital (ROIC) below the Cost of Capital (WACC), EQT is destroying value.
EQT has more shares outstanding than it did 1 year ago.
Compared to 5 years ago, EQT has more shares outstanding
Compared to 1 year ago, EQT has a worse debt to assets ratio.
2.2 Solvency
EQT has an Altman-Z score of 1.52. This is a bad value and indicates that EQT is not financially healthy and even has some risk of bankruptcy.
EQT's Altman-Z score of 1.52 is in line compared to the rest of the industry. EQT outperforms 55.45% of its industry peers.
EQT has a debt to FCF ratio of 3.93. This is a good value and a sign of high solvency as EQT would need 3.93 years to pay back of all of its debts.
Looking at the Debt to FCF ratio, with a value of 3.93, EQT is in the better half of the industry, outperforming 72.51% of the companies in the same industry.
EQT has a Debt/Equity ratio of 0.37. This is a healthy value indicating a solid balance between debt and equity.
EQT has a Debt to Equity ratio (0.37) which is in line with its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.37 | ||
| Debt/FCF | 3.93 | ||
| Altman-Z | 1.52 |
ROIC/WACC0.48
WACC8.4%
2.3 Liquidity
A Current Ratio of 0.71 indicates that EQT may have some problems paying its short term obligations.
Looking at the Current ratio, with a value of 0.71, EQT is doing worse than 75.36% of the companies in the same industry.
A Quick Ratio of 0.71 indicates that EQT may have some problems paying its short term obligations.
EQT has a Quick ratio of 0.71. This is in the lower half of the industry: EQT underperforms 67.30% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 0.71 | ||
| Quick Ratio | 0.71 |
3. Growth
3.1 Past
The Earnings Per Share has grown by an impressive 60.53% over the past year.
The Earnings Per Share has been growing by 13.31% on average over the past years. This is quite good.
Looking at the last year, EQT shows a very strong growth in Revenue. The Revenue has grown by 28.82%.
EQT shows a small growth in Revenue. Measured over the last years, the Revenue has been growing by 3.61% yearly.
EPS 1Y (TTM)60.53%
EPS 3Y19.87%
EPS 5Y13.31%
EPS Q2Q%662.5%
Revenue 1Y (TTM)28.82%
Revenue growth 3Y19.83%
Revenue growth 5Y3.61%
Sales Q2Q%168.52%
3.2 Future
Based on estimates for the next years, EQT will show a quite strong growth in Earnings Per Share. The EPS will grow by 17.79% on average per year.
Based on estimates for the next years, EQT will show a quite strong growth in Revenue. The Revenue will grow by 16.38% on average per year.
EPS Next Y105.29%
EPS Next 2Y78.61%
EPS Next 3Y45.67%
EPS Next 5Y17.79%
Revenue Next Year52.21%
Revenue Next 2Y33.68%
Revenue Next 3Y20.49%
Revenue Next 5Y16.38%
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 21.99, the valuation of EQT can be described as rather expensive.
EQT's Price/Earnings ratio is in line with the industry average.
EQT is valuated at similar levels of the S&P average when we compare the Price/Earnings ratio to 27.35, which is the current average of the S&P500 Index.
A Price/Forward Earnings ratio of 10.85 indicates a reasonable valuation of EQT.
62.56% of the companies in the same industry are more expensive than EQT, based on the Price/Forward Earnings ratio.
EQT is valuated cheaply when we compare the Price/Forward Earnings ratio to 22.86, which is the current average of the S&P500 Index.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 21.99 | ||
| Fwd PE | 10.85 |
4.2 Price Multiples
EQT's Enterprise Value to EBITDA ratio is in line with the industry average.
Based on the Price/Free Cash Flow ratio, EQT is valued a bit cheaper than the industry average as 60.19% of the companies are valued more expensively.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 15.83 | ||
| EV/EBITDA | 9.74 |
4.3 Compensation for Growth
EQT'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 EQT's earnings are expected to grow with 45.67% in the coming years.
PEG (NY)0.21
PEG (5Y)1.65
EPS Next 2Y78.61%
EPS Next 3Y45.67%
5. Dividend
5.1 Amount
With a Yearly Dividend Yield of 1.15%, EQT has a reasonable but not impressive dividend return.
Compared to an average industry Dividend Yield of 6.15, EQT is paying slightly less dividend.
With a Dividend Yield of 1.15, EQT pays less dividend than the S&P500 average, which is at 2.44.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.15% |
5.2 History
On average, the dividend of EQT grows each year by 39.73%, which is quite nice.
EQT has been paying a dividend for at least 10 years, so it has a reliable track record.
The dividend of EQT decreased in the last 3 years.
Dividend Growth(5Y)39.73%
Div Incr Years2
Div Non Decr Years2
5.3 Sustainability
32.87% of the earnings are spent on dividend by EQT. This is a low number and sustainable payout ratio.
The dividend of EQT is growing, but the earnings are growing slower. This means the dividend growth is not sustainable.
DP32.87%
EPS Next 2Y78.61%
EPS Next 3Y45.67%
53.66
+0.54 (+1.02%)
Chartmill FA Rating
GICS SectorEnergy
GICS IndustryGroupEnergy
GICS IndustryOil, Gas & Consumable Fuels
Earnings (Last)
Earnings (Next)
Inst Owners90.11%
Inst Owner Change-0.39%
Ins Owners0.57%
Ins Owner Change1.1%
Market Cap33.49B
Analysts80.67
Price Target63.78 (18.86%)
Short Float %3.04%
Short Ratio2.2
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.15% |
Yearly Dividend0.64
Dividend Growth(5Y)39.73%
DP32.87%
Div Incr Years2
Div Non Decr Years2
Ex-Date
Surprises & Revisions
EPS beat(2)2
Avg EPS beat(2)12.22%
Min EPS beat(2)9.71%
Max EPS beat(2)14.72%
EPS beat(4)4
Avg EPS beat(4)40.2%
Min EPS beat(4)9.71%
Max EPS beat(4)97.2%
EPS beat(8)7
Avg EPS beat(8)88.06%
EPS beat(12)9
Avg EPS beat(12)62.66%
EPS beat(16)10
Avg EPS beat(16)66.72%
Revenue beat(2)1
Avg Revenue beat(2)11.24%
Min Revenue beat(2)-19.86%
Max Revenue beat(2)42.33%
Revenue beat(4)1
Avg Revenue beat(4)2.51%
Min Revenue beat(4)-19.86%
Max Revenue beat(4)42.33%
Revenue beat(8)3
Avg Revenue beat(8)0.74%
Revenue beat(12)6
Avg Revenue beat(12)13.79%
Revenue beat(16)8
Avg Revenue beat(16)1.26%
PT rev (1m)0.28%
PT rev (3m)6.32%
EPS NQ rev (1m)-9.31%
EPS NQ rev (3m)-18.43%
EPS NY rev (1m)-3.17%
EPS NY rev (3m)-7.06%
Revenue NQ rev (1m)-2.67%
Revenue NQ rev (3m)-6.48%
Revenue NY rev (1m)-1.26%
Revenue NY rev (3m)2.85%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 21.99 | ||
| Fwd PE | 10.85 | ||
| P/S | 4.65 | ||
| P/FCF | 15.83 | ||
| P/OCF | 7.73 | ||
| P/B | 1.56 | ||
| P/tB | 1.75 | ||
| EV/EBITDA | 9.74 |
EPS(TTM)2.44
EY4.55%
EPS(NY)4.94
Fwd EY9.22%
FCF(TTM)3.39
FCFY6.32%
OCF(TTM)6.94
OCFY12.94%
SpS11.55
BVpS34.33
TBVpS30.69
PEG (NY)0.21
PEG (5Y)1.65
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 2.88% | ||
| ROE | 5.34% | ||
| ROCE | 4.67% | ||
| ROIC | 4.07% | ||
| ROICexc | 4.13% | ||
| ROICexgc | 4.4% | ||
| OM | 24.22% | ||
| PM (TTM) | 15.87% | ||
| GM | 72.63% | ||
| FCFM | 29.36% |
ROA(3y)5.08%
ROA(5y)0.93%
ROE(3y)9.57%
ROE(5y)1.36%
ROIC(3y)8.25%
ROIC(5y)N/A
ROICexc(3y)8.67%
ROICexc(5y)N/A
ROICexgc(3y)8.68%
ROICexgc(5y)N/A
ROCE(3y)9.48%
ROCE(5y)N/A
ROICexcg growth 3YN/A
ROICexcg growth 5Y-23.92%
ROICexc growth 3YN/A
ROICexc growth 5Y-24.86%
OM growth 3YN/A
OM growth 5Y-15.64%
PM growth 3YN/A
PM growth 5YN/A
GM growth 3Y24.52%
GM growth 5Y-0.11%
F-Score6
Asset Turnover0.18
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.37 | ||
| Debt/FCF | 3.93 | ||
| Debt/EBITDA | 1.89 | ||
| Cap/Depr | 90.33% | ||
| Cap/Sales | 30.76% | ||
| Interest Coverage | 3.24 | ||
| Cash Conversion | 103.16% | ||
| Profit Quality | 184.94% | ||
| Current Ratio | 0.71 | ||
| Quick Ratio | 0.71 | ||
| Altman-Z | 1.52 |
F-Score6
WACC8.4%
ROIC/WACC0.48
Cap/Depr(3y)101.62%
Cap/Depr(5y)88.24%
Cap/Sales(3y)30.21%
Cap/Sales(5y)31.83%
Profit Quality(3y)144.02%
Profit Quality(5y)N/A
High Growth Momentum
Growth
EPS 1Y (TTM)60.53%
EPS 3Y19.87%
EPS 5Y13.31%
EPS Q2Q%662.5%
EPS Next Y105.29%
EPS Next 2Y78.61%
EPS Next 3Y45.67%
EPS Next 5Y17.79%
Revenue 1Y (TTM)28.82%
Revenue growth 3Y19.83%
Revenue growth 5Y3.61%
Sales Q2Q%168.52%
Revenue Next Year52.21%
Revenue Next 2Y33.68%
Revenue Next 3Y20.49%
Revenue Next 5Y16.38%
EBIT growth 1Y134.04%
EBIT growth 3YN/A
EBIT growth 5Y-12.6%
EBIT Next Year359.42%
EBIT Next 3Y78.41%
EBIT Next 5Y38.12%
FCF growth 1Y-19.15%
FCF growth 3Y-1.91%
FCF growth 5Y18.13%
OCF growth 1Y0.42%
OCF growth 3Y19.36%
OCF growth 5Y8.83%