EQT CORP (EQT) Stock Fundamental Analysis
NYSE:EQT - New York Stock Exchange, Inc. - US26884L1098 - Common Stock - Currency: USD
We assign a fundamental rating of 3 out of 10 to EQT. EQT was compared to 211 industry peers in the Oil, Gas & Consumable Fuels industry. EQT has a bad profitability rating. Also its financial health evaluation is rather negative. 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.
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.
In the past 5 years EQT always reported a positive cash flow from operatings.
1.2 Ratios
EQT has a Return On Assets of 0.93%. This is in the lower half of the industry: EQT underperforms 63.03% of its industry peers.
EQT has a worse Return On Equity (1.78%) than 62.56% of its industry peers.
With a Return On Invested Capital value of 0.77%, EQT is not doing good in the industry: 73.46% of the companies in the same industry are doing better.
EQT had an Average Return On Invested Capital over the past 3 years of 8.25%. This is significantly below the industry average of 23.70%.
The last Return On Invested Capital (0.77%) 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 | 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.
The Operating Margin of EQT (5.81%) is worse than 66.82% of its industry peers.
EQT's Operating Margin has declined in the last couple of years.
EQT has a better Gross Margin (61.84%) than 69.19% of its industry peers.
EQT's Gross Margin has been stable in the last couple of years.
| 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
EQT has a Return on Invested Capital (ROIC), which is below the Cost of Capital (WACC), which means it 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 1.33, we must say that EQT is in the distress zone and has some risk of bankruptcy.
The Altman-Z score of EQT (1.33) 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.
Looking at the Debt to FCF ratio, with a value of 7.07, EQT is in line with its industry, outperforming 56.40% of the companies in the same industry.
EQT has a Debt/Equity ratio of 0.39. This is a healthy value indicating a solid balance between debt and equity.
With a Debt to Equity ratio value of 0.39, EQT perfoms like the industry average, outperforming 55.45% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.39 | ||
| Debt/FCF | 7.07 | ||
| Altman-Z | 1.33 |
ROIC/WACC0.09
WACC8.54%
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: 81.99% of the companies in the same industry are doing better.
EQT has a Quick Ratio of 0.57. This is a bad value and indicates that EQT is not financially healthy enough and could expect problems in meeting its short term obligations.
The Quick ratio of EQT (0.57) is worse than 76.78% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 0.57 | ||
| Quick Ratio | 0.57 |
3. Growth
3.1 Past
EQT shows a strong growth in Earnings Per Share. In the last year, the EPS has been growing by 33.57%, which is quite impressive.
The Earnings Per Share has been growing by 13.31% on average over the past years. This is quite good.
EQT shows a decrease in Revenue. In the last year, the revenue decreased by -1.05%.
The Revenue has been growing slightly by 3.61% on average over the past years.
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
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 Y117.46%
EPS Next 2Y73.89%
EPS Next 3Y38.64%
EPS Next 5Y10.86%
Revenue Next Year46.5%
Revenue Next 2Y33.02%
Revenue Next 3Y18.34%
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 29.17, the valuation of EQT can be described as expensive.
Based on the Price/Earnings ratio, EQT is valued a bit more expensive than 60.66% of the companies in the same industry.
Compared to an average S&P500 Price/Earnings ratio of 27.21, EQT is valued at the same level.
With a Price/Forward Earnings ratio of 11.89, the valuation of EQT can be described as very reasonable.
The rest of the industry has a similar Price/Forward Earnings ratio as EQT.
EQT's Price/Forward Earnings ratio indicates a valuation a bit cheaper than the S&P500 average which is at 21.70.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 29.17 | ||
| Fwd PE | 11.89 |
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 65.88% of the companies listed in the same industry.
Compared to the rest of the industry, the Price/Free Cash Flow ratio of EQT is on the same level as its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 28.1 | ||
| EV/EBITDA | 16.41 |
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 38.63% in the coming years.
PEG (NY)0.25
PEG (5Y)2.19
EPS Next 2Y73.89%
EPS Next 3Y38.64%
5. Dividend
5.1 Amount
EQT has a Yearly Dividend Yield of 1.08%. Purely for dividend investing, there may be better candidates out there.
Compared to an average industry Dividend Yield of 6.66, EQT is paying slightly less dividend.
Compared to an average S&P500 Dividend Yield of 2.42, EQT's dividend is way lower than the S&P500 average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.08% |
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.
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
EQT pays out 95.14% of its income as dividend. This is not a sustainable payout ratio.
EQT's earnings are growing slower than its dividend. This means the dividend growth is not sustainable.
DP95.14%
EPS Next 2Y73.89%
EPS Next 3Y38.64%
55.72
-2.6 (-4.46%)
Chartmill FA Rating
GICS SectorEnergy
GICS IndustryGroupEnergy
GICS IndustryOil, Gas & Consumable Fuels
Earnings (Last)
Earnings (Next)
Inst Owners96%
Inst Owner Change-4.53%
Ins Owners0.59%
Ins Owner Change10.17%
Market Cap33.36B
Analysts80.74
Price Target59.99 (7.66%)
Short Float %3.02%
Short Ratio2.36
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.08% |
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)3.33%
PT rev (3m)5.87%
EPS NQ rev (1m)0%
EPS NQ rev (3m)-7.67%
EPS NY rev (1m)3.32%
EPS NY rev (3m)15.3%
Revenue NQ rev (1m)-0.11%
Revenue NQ rev (3m)-0.83%
Revenue NY rev (1m)0.28%
Revenue NY rev (3m)3.18%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 29.17 | ||
| Fwd PE | 11.89 | ||
| P/S | 5.96 | ||
| P/FCF | 28.1 | ||
| P/OCF | 9.77 | ||
| P/B | 1.61 | ||
| P/tB | 1.81 | ||
| EV/EBITDA | 16.41 |
EPS(TTM)1.91
EY3.43%
EPS(NY)4.69
Fwd EY8.41%
FCF(TTM)1.98
FCFY3.56%
OCF(TTM)5.7
OCFY10.23%
SpS9.36
BVpS34.61
TBVpS30.8
PEG (NY)0.25
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 | 1.33 |
F-Score4
WACC8.54%
ROIC/WACC0.09
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 Y117.46%
EPS Next 2Y73.89%
EPS Next 3Y38.64%
EPS Next 5Y10.86%
Revenue 1Y (TTM)-1.05%
Revenue growth 3Y19.83%
Revenue growth 5Y3.61%
Sales Q2Q%1.14%
Revenue Next Year46.5%
Revenue Next 2Y33.02%
Revenue Next 3Y18.34%
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%