EQT CORP (EQT) Stock Fundamental Analysis
NYSE:EQT - New York Stock Exchange, Inc. - US26884L1098 - Common Stock - Currency: USD
EQT gets a fundamental rating of 4 out of 10. The analysis compared the fundamentals against 208 industry peers in the Oil, Gas & Consumable Fuels industry. EQT has a medium profitability rating, but doesn't score so well on its financial health evaluation. EQT is showing excellent growth while it is valued at reasonable prices. Keep and eye on this one!
1. Profitability
1.1 Basic Checks
In the past year EQT was profitable.
In the past year EQT had a positive cash flow from operations.
The reported net income has been mixed in the past 5 years: EQT reported negative net income in multiple years.
In the past 5 years EQT always reported a positive cash flow from operatings.
1.2 Ratios
EQT has a Return On Assets (2.88%) which is comparable to the rest of the industry.
EQT has a Return On Equity (5.34%) which is comparable to the rest of the industry.
The Return On Invested Capital of EQT (4.07%) is worse than 62.98% of its industry peers.
The Average Return On Invested Capital over the past 3 years for EQT is significantly below the industry average of 23.52%.
The 3 year average ROIC (8.25%) for EQT is well above the current ROIC(4.07%). The reason for the recent decline needs to be investigated.
| 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 64.90% of its industry peers.
EQT has a Operating Margin of 24.22%. This is comparable to the rest of the industry: EQT outperforms 55.77% of its industry peers.
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 84.13% 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.
The number of shares outstanding for EQT has been increased compared to 1 year ago.
The number of shares outstanding for EQT has been increased compared to 5 years ago.
The debt/assets ratio for EQT is higher compared to a year ago.
2.2 Solvency
Based on the Altman-Z score of 1.49, we must say that EQT is in the distress zone and has some risk of bankruptcy.
Looking at the Altman-Z score, with a value of 1.49, EQT is in line with its industry, outperforming 56.25% of the companies in the same industry.
The Debt to FCF ratio of EQT is 3.93, which is a good value as it means it would take EQT, 3.93 years of fcf income to pay off 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 70.19% 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.
Looking at the Debt to Equity ratio, with a value of 0.37, EQT is in line with its industry, outperforming 57.21% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.37 | ||
| Debt/FCF | 3.93 | ||
| Altman-Z | 1.49 |
ROIC/WACC0.45
WACC8.99%
2.3 Liquidity
A Current Ratio of 0.71 indicates that EQT may have some problems paying its short term obligations.
EQT's Current ratio of 0.71 is on the low side compared to the rest of the industry. EQT is outperformed by 73.08% of its industry peers.
EQT has a Quick Ratio of 0.71. This is a bad value and indicates that EQT is not financially healthy enough and could expect problems in meeting its short term obligations.
EQT's Quick ratio of 0.71 is on the low side compared to the rest of the industry. EQT is outperformed by 66.83% 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.
EQT shows a strong growth in Revenue. In the last year, the Revenue has grown by 28.82%.
Measured over the past years, EQT shows a small growth in Revenue. The Revenue has been growing by 3.61% on average per year.
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 10.86% on average per year.
The Revenue is expected to grow by 11.74% on average over the next years. This is quite good.
EPS Next Y120.89%
EPS Next 2Y79.48%
EPS Next 3Y43.43%
EPS Next 5Y10.86%
Revenue Next Year53.07%
Revenue Next 2Y36.66%
Revenue Next 3Y20.59%
Revenue Next 5Y11.74%
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 stable.
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 21.01, the valuation of EQT can be described as rather expensive.
The rest of the industry has a similar Price/Earnings ratio as EQT.
EQT is valuated rather cheaply when we compare the Price/Earnings ratio to 26.73, which is the current average of the S&P500 Index.
Based on the Price/Forward Earnings ratio of 10.27, the valuation of EQT can be described as reasonable.
Compared to the rest of the industry, the Price/Forward Earnings ratio of EQT indicates a somewhat cheap valuation: EQT is cheaper than 63.46% of the companies listed in the same industry.
EQT's Price/Forward Earnings ratio indicates a rather cheap valuation when compared to the S&P500 average which is at 34.61.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 21.01 | ||
| Fwd PE | 10.27 |
4.2 Price Multiples
EQT's Enterprise Value to EBITDA is on the same level as the industry average.
EQT's Price/Free Cash Flow ratio is in line with the industry average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 15.12 | ||
| EV/EBITDA | 9.55 |
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 43.43% in the coming years.
PEG (NY)0.17
PEG (5Y)1.58
EPS Next 2Y79.48%
EPS Next 3Y43.43%
5. Dividend
5.1 Amount
EQT has a Yearly Dividend Yield of 1.23%. Purely for dividend investing, there may be better candidates out there.
EQT's Dividend Yield is slightly below the industry average, which is at 6.31.
With a Dividend Yield of 1.23, EQT pays less dividend than the S&P500 average, which is at 2.39.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.23% |
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 2Y79.48%
EPS Next 3Y43.43%
51.27
-0.55 (-1.06%)
Chartmill FA Rating
GICS SectorEnergy
GICS IndustryGroupEnergy
GICS IndustryOil, Gas & Consumable Fuels
Earnings (Last)
Earnings (Next)
Inst Owners93.24%
Inst Owner Change0.82%
Ins Owners0.57%
Ins Owner Change11.23%
Market Cap32.00B
Analysts81.33
Price Target63.76 (24.36%)
Short Float %2.81%
Short Ratio2.12
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.23% |
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)6.3%
PT rev (3m)9.83%
EPS NQ rev (1m)-4.13%
EPS NQ rev (3m)11.66%
EPS NY rev (1m)0%
EPS NY rev (3m)7.17%
Revenue NQ rev (1m)-2.47%
Revenue NQ rev (3m)7.92%
Revenue NY rev (1m)3.43%
Revenue NY rev (3m)4.78%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 21.01 | ||
| Fwd PE | 10.27 | ||
| P/S | 4.44 | ||
| P/FCF | 15.12 | ||
| P/OCF | 7.39 | ||
| P/B | 1.49 | ||
| P/tB | 1.67 | ||
| EV/EBITDA | 9.55 |
EPS(TTM)2.44
EY4.76%
EPS(NY)4.99
Fwd EY9.74%
FCF(TTM)3.39
FCFY6.61%
OCF(TTM)6.94
OCFY13.54%
SpS11.55
BVpS34.33
TBVpS30.69
PEG (NY)0.17
PEG (5Y)1.58
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 | 1.49 |
F-Score6
WACC8.99%
ROIC/WACC0.45
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 Y120.89%
EPS Next 2Y79.48%
EPS Next 3Y43.43%
EPS Next 5Y10.86%
Revenue 1Y (TTM)28.82%
Revenue growth 3Y19.83%
Revenue growth 5Y3.61%
Sales Q2Q%168.52%
Revenue Next Year53.07%
Revenue Next 2Y36.66%
Revenue Next 3Y20.59%
Revenue Next 5Y11.74%
EBIT growth 1Y134.04%
EBIT growth 3YN/A
EBIT growth 5Y-12.6%
EBIT Next Year357.82%
EBIT Next 3Y79.76%
EBIT Next 5Y33.64%
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%