Equitable Holdings, Inc. (NYSE: EQH)

Sector: Financial Services Industry: Asset Management CIK: 0001333986
Market Cap 17.09 Bn
P/B 12.20
P/E 8.24
P/S 1.35
ROIC (Qtr) -1.39
Div Yield % 2.32
Rev 1y % (Qtr) -52.81
Total Debt (Qtr) 6.36 Bn
Debt/Equity (Qtr) 42.99
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About

Investment thesis

Bull case

  • Strong tangible asset base of 309.08B provides 48.57x coverage of total debt 6.36B, indicating robust asset backing and low credit risk.
  • Robust free cash flow of 1.19B exceeds capital expenditure of 76M by 15.68x, indicating strong organic growth funding capability.
  • Cash position of 14.03B provides exceptional 38.65x coverage of minority interest expenses 363M, indicating strong liquidity.
  • Retained earnings of 8.36B represent substantial 56.49x of equity 148M, indicating strong internal capital generation.
  • Strong tangible asset base of 309.08B provides 58.02x coverage of intangibles 5.33B, indicating robust asset quality.

Bear case

  • Operating cash flow of 1.27B barely covers its investment activities of (14.02B), with a coverage ratio of -0.09, indicating heavy reliance on external financing for growth which may not be sustainable in a tighter credit environment.
  • Operating cash flow of 1.27B provides thin coverage of dividend payments of (312M) with a -4.06 ratio, suggesting potential dividend sustainability issues if operational performance deteriorates.
  • The company's operating cash flow of 1.27B shows concerning coverage of stock compensation expenses of 271M, with a 4.68 ratio indicating potential earnings quality issues.
  • Operating cash flow of 1.27B provides minimal -181.14x coverage of tax expenses of (7M), suggesting potential tax planning inefficiencies or unsustainable tax positions.
  • Operating earnings of (474M) show weak coverage of depreciation charges of 872M, with a -0.54 ratio indicating high capital intensity and potential reinvestment needs.

Segments Breakdown of Revenue (2021)

Consolidation Items Breakdown of Revenue (2021)

Peer comparison

Companies in the Asset Management
S.No. Ticker Company Market Cap P/E P/S Total Debt (Qtr)
1 BLK BlackRock, Inc. 199.59 Bn 85.40 21.98 15.04 Bn
2 BN BROOKFIELD Corp /ON/ 103.94 Bn 31.52 5.64 262.97 Bn
3 AMP Ameriprise Financial Inc 88.69 Bn 55.02 7.20 5.89 Bn
4 BX Blackstone Inc. 88.51 Bn 49.39 10.93 12.89 Bn
5 KKR KKR & Co. Inc. 55.86 Bn 28.33 13.23 53.12 Bn
6 STT State Street Corp 46.52 Bn 21.77 3.91 34.72 Bn
7 NTRS Northern Trust Corp 34.14 Bn 33.31 6.71 15.64 Bn
8 RJF Raymond James Financial Inc 32.89 Bn 37.63 4.14 5.10 Bn

Industry comparisons

Current Valuation Value Ind Avg Percentile
EV to Assets EV to Assets 0.05 0.94
EV to Cash from Ops. EV/CFO -67.46 41.10
EV to Debt EV to Debt 2.65 15.28
EV to EBIT EV/EBIT 5.71 23.47
EV to EBITDA EV/EBITDA 4.40 47.80
EV to Free Cash Flow [EV/FCF] EV/FCF -40.44 38.62
EV to Market Cap EV to Market Cap 0.99 7.81
EV to Revenue EV/Rev 1.33 27.38
Price to Book Value [P/B] P/B 12.20 2.34
Price to Earnings [P/E] P/E 8.24 11.81
Dividend Metrics Value Ind Avg Percentile
Dividend Coverage Ratio Div Coverage (Qtr) -1.99 4.66
Dividend Payout Ratio % Div Payout % (Qtr) -36.60 -5.56
Dividend per Basic Share Div per Share (Qtr) 1.02 1.73
FCF Dividend Payout Ratio % FCF Div Payout % (Qtr) 25.35 49.83
Interest Coverage Int. cover (Qtr) -2.07 25.16
Growth Metrics Value Ind Avg Percentile
Capex Growth (1y) % Capex 1y % (Qtr) 53.09 -35.10
Cash and Equivalents Growth (1y) % Cash & Equiv 1y % (Qtr) 38.54 15.43
Dividend Growth (1y) % Div 1y % (Qtr) 10.87 1.65
EBIAT Growth (1y) % EBIAT 1y % (Qtr) -221.13 -90.82
EBITDA Growth (1y) % EBITDA 1y % (Qtr) -35.78 35.24
EBIT Growth (1y) % EBIT 1y % (Qtr) -130.10 -22.13
EBT Growth (1y) % EBT 1y % (Qtr) -60.87 -163.05
EPS Growth (1y) % EPS 1y % (Qtr) -184.69 -20.61
FCF Growth (1y) % FCF 1y % (Qtr) 13.31 220.21
Gross Profit Growth (1y) % Gross Profit 1y % (Qtr) 6.80 -53.96
Liquidity Ratios Value Ind Avg Percentile
Asset Utilization Ratio Asset Util Ratio (Qtr) 0.04 0.22
Cash Payout Ratio Cash Payout (Qtr) 0.25 0.36
Cash Ratio Cash Ratio 0.00 0.38
Current Ratio Current Ratio 0.00 0.86
Debt to Equity Ratio Debt/Equity (Qtr) 42.99 0.70
Interest Cover Ratio Int Coverage (Qtr) -2.07 25.16
Times Interest Earned Times Interest Earned (Qtr) -2.07 25.16
Profitability Value Ind Avg Percentile
EBITDA Margin % EBITDA Margin % (Qtr) 3.30 -114.76
EBIT Margin % EBIT Margin % (Qtr) -3.95 -127.24
EBT Margin % EBT Margin % (Qtr) -5.85 -150.97
Gross Margin % Gross Margin % (Qtr) 62.40 67.88
Net Profit Margin % Net Margin % (Qtr) -6.40 -148.68