EQT CORP (EQT) Stock Fundamental Analysis
NYSE:EQT - New York Stock Exchange, Inc. - US26884L1098 - Common Stock - Currency: USD
Taking everything into account, EQT scores 3 out of 10 in our fundamental rating. EQT was compared to 210 industry peers in the Oil, Gas & Consumable Fuels industry. EQT may be in some trouble as it scores bad on both profitability and health. EQT has a decent growth rate and is not valued too expensively.
1. Profitability
1.1 Basic Checks
In the past year EQT was profitable.
EQT had a positive operating cash flow in the past year.
In multiple years EQT reported negative net income over the last 5 years.
In the past 5 years EQT always reported a positive cash flow from operatings.
1.2 Ratios
The Return On Assets of EQT (0.93%) is worse than 62.86% of its industry peers.
EQT's Return On Equity of 1.78% is on the low side compared to the rest of the industry. EQT is outperformed by 62.38% of its industry peers.
Looking at the Return On Invested Capital, with a value of 0.77%, EQT is doing worse than 73.33% of the companies in the same industry.
Measured over the past 3 years, the Average Return On Invested Capital for EQT is significantly below the industry average of 23.80%.
The 3 year average ROIC (8.25%) for EQT is well above the current ROIC(0.77%). The reason for the recent decline needs to be investigated.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 0.93% | ||
| ROE | 1.78% | ||
| ROIC | 0.77% |
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
The Profit Margin of EQT (6.59%) is comparable to the rest of the industry.
With a Operating Margin value of 5.81%, EQT is not doing good in the industry: 67.14% of the companies in the same industry are doing better.
In the last couple of years the Operating Margin of EQT has declined.
The Gross Margin of EQT (61.84%) is better than 69.05% of its industry peers.
In the last couple of years the Gross Margin of EQT has remained more or less at the same level.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 5.81% | ||
| PM (TTM) | 6.59% | ||
| GM | 61.84% |
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
The Return on Invested Capital (ROIC) is below the Cost of Capital (WACC), so 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
The debt/assets ratio for EQT is higher compared to a year ago.
2.2 Solvency
EQT has an Altman-Z score of 1.30. This is a bad value and indicates that EQT is not financially healthy and even has some risk of bankruptcy.
EQT has a Altman-Z score of 1.30. This is comparable to the rest of the industry: EQT outperforms 49.52% of its industry peers.
The Debt to FCF ratio of EQT is 7.07, which is on the high side as it means it would take EQT, 7.07 years of fcf income to pay off all of its debts.
The Debt to FCF ratio of EQT (7.07) is comparable to the rest of the industry.
EQT has a Debt/Equity ratio of 0.39. This is a healthy value indicating a solid balance between debt and equity.
EQT has a Debt to Equity ratio of 0.39. This is comparable to the rest of the industry: EQT outperforms 55.71% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.39 | ||
| Debt/FCF | 7.07 | ||
| Altman-Z | 1.3 |
ROIC/WACC0.08
WACC9.2%
2.3 Liquidity
A Current Ratio of 0.57 indicates that EQT may have some problems paying its short term obligations.
With a Current ratio value of 0.57, EQT is not doing good in the industry: 82.38% of the companies in the same industry are doing better.
A Quick Ratio of 0.57 indicates that EQT may have some problems paying its short term obligations.
EQT's Quick ratio of 0.57 is on the low side compared to the rest of the industry. EQT is outperformed by 77.14% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 0.57 | ||
| Quick Ratio | 0.57 |
3. Growth
3.1 Past
The Earnings Per Share has grown by an impressive 60.53% over the past year.
EQT shows quite a strong growth in Earnings Per Share. Measured over the last years, the EPS has been growing by 13.31% yearly.
Looking at the last year, EQT shows a very negative growth in Revenue. The Revenue has decreased by -23.67% in the last year.
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)-23.67%
Revenue growth 3Y19.83%
Revenue growth 5Y3.61%
Sales Q2Q%67.89%
3.2 Future
The Earnings Per Share is expected to grow by 10.86% on average over the next years. This is quite good.
EQT is expected to show quite a strong growth in Revenue. In the coming years, the Revenue will grow by 11.74% yearly.
EPS Next Y120.89%
EPS Next 2Y79.48%
EPS Next 3Y43.43%
EPS Next 5Y10.86%
Revenue Next Year48%
Revenue Next 2Y34.93%
Revenue Next 3Y19.62%
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
A Price/Earnings ratio of 21.30 indicates a rather expensive valuation of EQT.
Compared to the rest of the industry, the Price/Earnings ratio of EQT is on the same level as its industry peers.
The average S&P500 Price/Earnings ratio is at 27.53. EQT is valued slightly cheaper when compared to this.
With a Price/Forward Earnings ratio of 10.41, the valuation of EQT can be described as very reasonable.
Based on the Price/Forward Earnings ratio, EQT is valued a bit cheaper than the industry average as 61.43% of the companies are valued more expensively.
The average S&P500 Price/Forward Earnings ratio is at 36.71. EQT is valued rather cheaply when compared to this.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 21.3 | ||
| Fwd PE | 10.41 |
4.2 Price Multiples
Compared to the rest of the industry, the Enterprise Value to EBITDA ratio of EQT indicates a slightly more expensive valuation: EQT is more expensive than 65.24% of the companies listed in the same industry.
EQT's Price/Free Cash Flow is on the same level as the industry average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 27.31 | ||
| EV/EBITDA | 16.02 |
4.3 Compensation for Growth
The 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)0.18
PEG (5Y)1.6
EPS Next 2Y79.48%
EPS Next 3Y43.43%
5. Dividend
5.1 Amount
With a Yearly Dividend Yield of 1.18%, EQT has a reasonable but not impressive dividend return.
Compared to an average industry Dividend Yield of 6.49, EQT is paying slightly less dividend.
With a Dividend Yield of 1.18, EQT pays less dividend than the S&P500 average, which is at 2.34.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.18% |
5.2 History
The dividend of EQT is nicely growing with an annual growth rate of 39.73%!
EQT has been paying a dividend for at least 10 years, so it has a reliable track record.
EQT has decreased its dividend in the last 3 years.
Dividend Growth(5Y)39.73%
Div Incr Years2
Div Non Decr Years2
5.3 Sustainability
EQT pays out 95.14% of its income as dividend. This is not a sustainable payout ratio.
The dividend of EQT is growing, but the earnings are growing slower. This means the dividend growth is not sustainable.
DP95.14%
EPS Next 2Y79.48%
EPS Next 3Y43.43%
51.96
-2.38 (-4.38%)
Chartmill FA Rating
GICS SectorEnergy
GICS IndustryGroupEnergy
GICS IndustryOil, Gas & Consumable Fuels
Earnings (Last)
Earnings (Next)
Inst Owners96%
Inst Owner Change0.48%
Ins Owners0.59%
Ins Owner Change10.17%
Market Cap32.42B
Analysts80.71
Price Target62.66 (20.59%)
Short Float %2.53%
Short Ratio2.11
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.18% |
Yearly Dividend0.64
Dividend Growth(5Y)39.73%
DP95.14%
Div Incr Years2
Div Non Decr Years2
Ex-Date
Surprises & Revisions
EPS beat(2)2
Avg EPS beat(2)26.94%
Min EPS beat(2)14.72%
Max EPS beat(2)39.15%
EPS beat(4)4
Avg EPS beat(4)51.81%
Min EPS beat(4)14.72%
Max EPS beat(4)97.2%
EPS beat(8)7
Avg EPS beat(8)91.32%
EPS beat(12)8
Avg EPS beat(12)61.76%
EPS beat(16)10
Avg EPS beat(16)67.45%
Revenue beat(2)0
Avg Revenue beat(2)-14.42%
Min Revenue beat(2)-19.86%
Max Revenue beat(2)-8.98%
Revenue beat(4)0
Avg Revenue beat(4)-11.49%
Min Revenue beat(4)-19.86%
Max Revenue beat(4)-3.47%
Revenue beat(8)2
Avg Revenue beat(8)-5.1%
Revenue beat(12)6
Avg Revenue beat(12)15.58%
Revenue beat(16)7
Avg Revenue beat(16)-9.24%
PT rev (1m)4.3%
PT rev (3m)9.94%
EPS NQ rev (1m)-4.69%
EPS NQ rev (3m)-16.91%
EPS NY rev (1m)1.58%
EPS NY rev (3m)7.17%
Revenue NQ rev (1m)0.78%
Revenue NQ rev (3m)0.67%
Revenue NY rev (1m)1.02%
Revenue NY rev (3m)-0.32%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 21.3 | ||
| Fwd PE | 10.41 | ||
| P/S | 5.79 | ||
| P/FCF | 27.31 | ||
| P/OCF | 9.5 | ||
| P/B | 1.56 | ||
| P/tB | 1.76 | ||
| EV/EBITDA | 16.02 |
EPS(TTM)2.44
EY4.7%
EPS(NY)4.99
Fwd EY9.61%
FCF(TTM)1.9
FCFY3.66%
OCF(TTM)5.47
OCFY10.53%
SpS8.98
BVpS33.21
TBVpS29.56
PEG (NY)0.18
PEG (5Y)1.6
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 0.93% | ||
| ROE | 1.78% | ||
| ROCE | 0.89% | ||
| ROIC | 0.77% | ||
| ROICexc | 0.78% | ||
| ROICexgc | 0.83% | ||
| OM | 5.81% | ||
| PM (TTM) | 6.59% | ||
| GM | 61.84% | ||
| FCFM | 21.2% |
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-Score4
Asset Turnover0.14
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.39 | ||
| Debt/FCF | 7.07 | ||
| Debt/EBITDA | 3.09 | ||
| Cap/Depr | 96.91% | ||
| Cap/Sales | 39.73% | ||
| Interest Coverage | 0.66 | ||
| Cash Conversion | 130.15% | ||
| Profit Quality | 321.52% | ||
| Current Ratio | 0.57 | ||
| Quick Ratio | 0.57 | ||
| Altman-Z | 1.3 |
F-Score4
WACC9.2%
ROIC/WACC0.08
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)-23.67%
Revenue growth 3Y19.83%
Revenue growth 5Y3.61%
Sales Q2Q%67.89%
Revenue Next Year48%
Revenue Next 2Y34.93%
Revenue Next 3Y19.62%
Revenue Next 5Y11.74%
EBIT growth 1Y-67.28%
EBIT growth 3YN/A
EBIT growth 5Y-12.6%
EBIT Next Year359.9%
EBIT Next 3Y73.95%
EBIT Next 5Y33.64%
FCF growth 1Y-52.59%
FCF growth 3Y-1.91%
FCF growth 5Y18.13%
OCF growth 1Y-16.91%
OCF growth 3Y19.36%
OCF growth 5Y8.83%