EQT CORP (EQT) Stock Fundamental Analysis
USA - NYSE:EQT - US26884L1098 - Common Stock
49.97 USD
+0.78 (+1.59%)
50 USD
+0.03 (+0.06%)
Taking everything into account, EQT scores 5 out of 10 in our fundamental rating. EQT was compared to 210 industry peers in the Oil, Gas & Consumable Fuels industry. While EQT is still in line with the averages on profitability rating, there are concerns on its financial health. EQT is not overvalued while it is showing excellent growth. This is an interesting combination.
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 in line with its industry peers.
EQT has a Return On Equity (5.34%) which is comparable to the rest of the industry.
With a Return On Invested Capital value of 4.07%, EQT is not doing good in the industry: 62.38% 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 21.71%.
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 Profit Margin of 15.87%. This is in the better half of the industry: EQT outperforms 68.10% of its industry peers.
Looking at the Operating Margin, with a value of 24.22%, EQT is in the better half of the industry, outperforming 60.95% of the companies in the same industry.
EQT's Operating Margin has declined in the last couple of years.
EQT has a better Gross Margin (72.63%) than 84.29% 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 | 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.
EQT has more shares outstanding than it did 5 years ago.
EQT has a worse debt/assets ratio than last year.
2.2 Solvency
EQT has an Altman-Z score of 1.44. This is a bad value and indicates that EQT is not financially healthy and even has some risk of bankruptcy.
Looking at the Altman-Z score, with a value of 1.44, EQT is in line with its industry, outperforming 52.86% of the companies in the same industry.
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.
EQT has a Debt to FCF ratio of 3.93. This is in the better half of the industry: EQT outperforms 72.86% of its industry peers.
A Debt/Equity ratio of 0.37 indicates that EQT is not too dependend on debt financing.
EQT has a Debt to Equity ratio of 0.37. This is comparable to the rest of the industry: EQT outperforms 57.62% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.37 | ||
| Debt/FCF | 3.93 | ||
| Altman-Z | 1.44 |
ROIC/WACC0.47
WACC8.57%
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 74.76% 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.
Looking at the Quick ratio, with a value of 0.71, EQT is doing worse than 66.67% of the companies in the same industry.
| 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
The Earnings Per Share is expected to grow by 18.13% on average over the next years. This is quite good.
The Revenue is expected to grow by 14.27% on average over the next years. This is quite good.
EPS Next Y112.02%
EPS Next 2Y81.77%
EPS Next 3Y47.57%
EPS Next 5Y18.13%
Revenue Next Year54.16%
Revenue Next 2Y36.41%
Revenue Next 3Y21.04%
Revenue Next 5Y14.27%
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 20.48, 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 rather cheaply when we compare the Price/Earnings ratio to 27.41, which is the current average of the S&P500 Index.
Based on the Price/Forward Earnings ratio of 9.76, 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 72.38% of the companies listed in the same industry.
The average S&P500 Price/Forward Earnings ratio is at 22.87. EQT is valued rather cheaply when compared to this.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 20.48 | ||
| Fwd PE | 9.76 |
4.2 Price Multiples
EQT's Enterprise Value to EBITDA ratio is in line with the industry average.
62.86% of the companies in the same industry are more expensive than EQT, based on the Price/Free Cash Flow ratio.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 14.74 | ||
| EV/EBITDA | 9.16 |
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 47.57% in the coming years.
PEG (NY)0.18
PEG (5Y)1.54
EPS Next 2Y81.77%
EPS Next 3Y47.57%
5. Dividend
5.1 Amount
EQT has a Yearly Dividend Yield of 1.28%. Purely for dividend investing, there may be better candidates out there.
EQT's Dividend Yield is slightly below the industry average, which is at 6.00.
Compared to an average S&P500 Dividend Yield of 2.38, EQT's dividend is way lower than the S&P500 average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.28% |
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
32.87% of the earnings are spent on dividend by EQT. This is a low number and sustainable payout ratio.
EQT's earnings are growing slower than its dividend. This means the dividend growth is not sustainable.
DP32.87%
EPS Next 2Y81.77%
EPS Next 3Y47.57%
49.97
+0.78 (+1.59%)
Chartmill FA Rating
GICS SectorEnergy
GICS IndustryGroupEnergy
GICS IndustryOil, Gas & Consumable Fuels
Earnings (Last)
Earnings (Next)
Inst Owners93.24%
Inst Owner Change-3.16%
Ins Owners0.57%
Ins Owner Change1.1%
Market Cap31.18B
Analysts80.67
Price Target63.6 (27.28%)
Short Float %2.94%
Short Ratio2.34
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.28% |
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)-0.26%
PT rev (3m)6.02%
EPS NQ rev (1m)-2.74%
EPS NQ rev (3m)-7.56%
EPS NY rev (1m)0%
EPS NY rev (3m)-2.5%
Revenue NQ rev (1m)-2.02%
Revenue NQ rev (3m)-1.19%
Revenue NY rev (1m)-0.01%
Revenue NY rev (3m)5.23%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 20.48 | ||
| Fwd PE | 9.76 | ||
| P/S | 4.33 | ||
| P/FCF | 14.74 | ||
| P/OCF | 7.2 | ||
| P/B | 1.46 | ||
| P/tB | 1.63 | ||
| EV/EBITDA | 9.16 |
EPS(TTM)2.44
EY4.88%
EPS(NY)5.12
Fwd EY10.25%
FCF(TTM)3.39
FCFY6.78%
OCF(TTM)6.94
OCFY13.89%
SpS11.55
BVpS34.33
TBVpS30.69
PEG (NY)0.18
PEG (5Y)1.54
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 | 1.44 |
F-Score6
WACC8.57%
ROIC/WACC0.47
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 Y112.02%
EPS Next 2Y81.77%
EPS Next 3Y47.57%
EPS Next 5Y18.13%
Revenue 1Y (TTM)28.82%
Revenue growth 3Y19.83%
Revenue growth 5Y3.61%
Sales Q2Q%168.52%
Revenue Next Year54.16%
Revenue Next 2Y36.41%
Revenue Next 3Y21.04%
Revenue Next 5Y14.27%
EBIT growth 1Y134.04%
EBIT growth 3YN/A
EBIT growth 5Y-12.6%
EBIT Next Year357.82%
EBIT Next 3Y79.76%
EBIT Next 5Y39.97%
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%