EQT CORP (EQT) Stock Fundamental Analysis
NYSE:EQT - New York Stock Exchange, Inc. - US26884L1098 - Common Stock - Currency: USD
Overall EQT gets a fundamental rating of 3 out of 10. We evaluated EQT against 213 industry peers in the Oil, Gas & Consumable Fuels industry. EQT has a bad profitability rating. Also its financial health evaluation is rather negative. EQT is not valued too expensively and it also shows a decent growth rate.
1. Profitability
1.1 Basic Checks
EQT had positive earnings in the past year.
In the past year EQT had a positive cash flow from operations.
In multiple years EQT reported negative net income over the last 5 years.
Each year in the past 5 years EQT had a positive operating cash flow.
1.2 Ratios
Looking at the Return On Assets, with a value of 0.93%, EQT is doing worse than 63.85% of the companies in the same industry.
The Return On Equity of EQT (1.78%) is worse than 63.85% of its industry peers.
EQT has a Return On Invested Capital of 0.77%. This is in the lower half of the industry: EQT underperforms 74.18% of its industry peers.
EQT had an Average Return On Invested Capital over the past 3 years of 8.25%. This is significantly below the industry average of 25.88%.
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
With a Profit Margin value of 6.59%, EQT perfoms like the industry average, outperforming 47.89% of the companies in the same industry.
EQT has a worse Operating Margin (5.81%) than 67.14% of its industry peers.
In the last couple of years the Operating Margin of EQT has declined.
The Gross Margin of EQT (61.84%) is better than 67.14% 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.
The number of shares outstanding for EQT has been increased compared to 5 years ago.
Compared to 1 year ago, EQT has a worse debt to assets ratio.
2.2 Solvency
Based on the Altman-Z score of 1.29, we must say that EQT is in the distress zone and has some risk of bankruptcy.
The Altman-Z score of EQT (1.29) is comparable to the rest of the industry.
EQT has a debt to FCF ratio of 7.07. This is a slightly negative value and a sign of low solvency as EQT would need 7.07 years to pay back of 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 (0.39) which is in line with its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.39 | ||
| Debt/FCF | 7.07 | ||
| Altman-Z | 1.29 |
ROIC/WACC0.08
WACC10.25%
2.3 Liquidity
A Current Ratio of 0.57 indicates that EQT may have some problems paying its short term obligations.
EQT has a worse Current ratio (0.57) than 82.63% of its industry peers.
A Quick Ratio of 0.57 indicates that EQT may have some problems paying its short term obligations.
With a Quick ratio value of 0.57, EQT is not doing good in the industry: 76.06% of the companies in the same industry are doing better.
| 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 33.57% 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 decrease in Revenue. The Revenue has decreased by -1.05% in the last year.
EQT shows a small growth in Revenue. Measured over the last years, the Revenue has been growing by 3.61% yearly.
EPS 1Y (TTM)33.57%
EPS 3Y19.87%
EPS 5Y13.31%
EPS Q2Q%43.9%
Revenue 1Y (TTM)-1.05%
Revenue growth 3Y19.83%
Revenue growth 5Y3.61%
Sales Q2Q%1.14%
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 13.96% 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 13.31% on average per year.
EPS Next Y110.47%
EPS Next 2Y68.97%
EPS Next 3Y37.37%
EPS Next 5Y13.96%
Revenue Next Year46.09%
Revenue Next 2Y31.83%
Revenue Next 3Y18.25%
Revenue Next 5Y13.31%
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
With a Price/Earnings ratio of 29.17, EQT can be considered very expensive at the moment.
Based on the Price/Earnings ratio, EQT is valued a bit more expensive than the industry average as 61.97% of the companies are valued more cheaply.
EQT is valuated at similar levels of the S&P average when we compare the Price/Earnings ratio to 26.03, which is the current average of the S&P500 Index.
The Price/Forward Earnings ratio is 12.59, which indicates a correct valuation of EQT.
Compared to the rest of the industry, the Price/Forward Earnings ratio of EQT is on the same level as its industry peers.
EQT is valuated rather cheaply when we compare the Price/Forward Earnings ratio to 21.94, which is the current average of the S&P500 Index.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 29.17 | ||
| Fwd PE | 12.59 |
4.2 Price Multiples
Based on the Enterprise Value to EBITDA ratio, EQT is valued a bit more expensive than 66.20% of the companies in the same industry.
EQT's Price/Free Cash Flow ratio is in line with the industry average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 28.09 | ||
| EV/EBITDA | 15.91 |
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 37.37% in the coming years.
PEG (NY)0.26
PEG (5Y)2.19
EPS Next 2Y68.97%
EPS Next 3Y37.37%
5. Dividend
5.1 Amount
With a Yearly Dividend Yield of 1.13%, EQT has a reasonable but not impressive dividend return.
Compared to an average industry Dividend Yield of 7.03, EQT is paying slightly less dividend.
Compared to an average S&P500 Dividend Yield of 2.36, EQT's dividend is way lower than the S&P500 average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.13% |
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
95.14% of the earnings are spent on dividend by EQT. 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 2Y68.97%
EPS Next 3Y37.37%
55.71
-0.43 (-0.77%)
Chartmill FA Rating
GICS SectorEnergy
GICS IndustryGroupEnergy
GICS IndustryOil, Gas & Consumable Fuels
Earnings (Last)
Earnings (Next)
Inst Owners100.84%
Inst Owner Change-4.63%
Ins Owners0.53%
Ins Owner Change7.68%
Market Cap33.35B
Analysts78.62
Price Target58.06 (4.22%)
Short Float %2.71%
Short Ratio1.83
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.13% |
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)1.86%
PT rev (3m)8.83%
EPS NQ rev (1m)-12.05%
EPS NQ rev (3m)-10.12%
EPS NY rev (1m)2.12%
EPS NY rev (3m)10.65%
Revenue NQ rev (1m)1.5%
Revenue NQ rev (3m)6.72%
Revenue NY rev (1m)-1.61%
Revenue NY rev (3m)6.5%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 29.17 | ||
| Fwd PE | 12.59 | ||
| P/S | 5.95 | ||
| P/FCF | 28.09 | ||
| P/OCF | 9.77 | ||
| P/B | 1.61 | ||
| P/tB | 1.81 | ||
| EV/EBITDA | 15.91 |
EPS(TTM)1.91
EY3.43%
EPS(NY)4.43
Fwd EY7.94%
FCF(TTM)1.98
FCFY3.56%
OCF(TTM)5.7
OCFY10.23%
SpS9.36
BVpS34.61
TBVpS30.8
PEG (NY)0.26
PEG (5Y)2.19
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 | 1.29 |
F-Score4
WACC10.25%
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)33.57%
EPS 3Y19.87%
EPS 5Y13.31%
EPS Q2Q%43.9%
EPS Next Y110.47%
EPS Next 2Y68.97%
EPS Next 3Y37.37%
EPS Next 5Y13.96%
Revenue 1Y (TTM)-1.05%
Revenue growth 3Y19.83%
Revenue growth 5Y3.61%
Sales Q2Q%1.14%
Revenue Next Year46.09%
Revenue Next 2Y31.83%
Revenue Next 3Y18.25%
Revenue Next 5Y13.31%
EBIT growth 1Y-67.28%
EBIT growth 3YN/A
EBIT growth 5Y-12.6%
EBIT Next Year335.37%
EBIT Next 3Y69.44%
EBIT Next 5Y33.83%
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%