Equitable Holdings Inc (EQH, Financial), a prominent player in the U.S. insurance industry, has experienced a notable stock price fluctuation recently. Over the past week, the stock has seen a decrease of 0.97%. However, looking at a broader timeline, EQH has gained an impressive 13.63% over the past three months. Currently, the stock is fairly valued at $38.15, closely aligning with its GF Value of $40.61. This valuation marks a shift from being modestly undervalued three months ago, suggesting a positive adjustment in market perceptions and investor confidence.
Overview of Equitable Holdings Inc
Equitable Holdings Inc operates through various segments including Individual Retirement, Group Retirement, Investment Management and Research, Protection Solutions, Wealth Management, and Legacy. Each segment caters to a unique aspect of financial and insurance needs, offering products ranging from annuities to life insurance and investment management services. This diversified business model not only enhances EQH's market presence but also stabilizes its revenue streams across different economic cycles.
Assessing Profitability
Equitable Holdings Inc holds a Profitability Rank of 5/10, indicating a moderate level of profitability within the industry. A standout figure in its financial metrics is the Return on Equity (ROE), which is exceptionally high at 50.08%, ranking better than 96.91% of its peers. This indicates a highly efficient management team at utilizing shareholders' equity. However, the Return on Assets (ROA) and Return on Invested Capital (ROIC) stand at 0.49% and 0.85% respectively, suggesting moderate efficiency in asset and capital utilization. Over the past decade, EQH has maintained profitability in 8 out of 10 years, demonstrating its resilience and operational efficiency.
Growth Trajectory
Equitable Holdings is recognized with a Growth Rank of 8/10, reflecting strong growth metrics. The company has seen a 3-year revenue growth rate per share of 2.80% and a more robust 5-year rate of 8.30%. Looking ahead, EQH is projected to have a total revenue growth rate of 17.78% over the next 3 to 5 years, positioning it well above many of its industry counterparts. However, its EPS growth rates have been mixed, with a 3-year decline of -2.70% but a positive 5-year growth rate of 2.10%.
Significant Shareholders
Notable investors in Equitable Holdings include Richard Pzena (Trades, Portfolio), holding 7.96% of shares, and T Rowe Price Equity Income Fund (Trades, Portfolio), with a 2.43% stake. Additionally, CI Select Canadian Equity Fund (Trades, Portfolio) holds a smaller share of 0.1%. These major holders underscore a strong confidence in EQH's market strategy and future prospects.
Competitive Landscape
Equitable Holdings stands among notable competitors such as Old Republic International Corp (ORI, Financial) with a market cap of $8.28 billion, Enstar Group Ltd (ESGR, Financial) at $4.42 billion, and Fidelis Insurance Holdings Ltd (FIHL, Financial) at $2.21 billion. This competitive positioning highlights EQH's significant presence and influence within the insurance industry.
Conclusion
In summary, Equitable Holdings Inc showcases a solid growth trajectory and robust profitability metrics. Despite a slight decline in recent stock performance, its market position remains strong, supported by influential financial holders and a stable growth outlook. As the company continues to navigate through its diverse segments, it remains a noteworthy option for investors looking at stable yet growth-oriented insurance stocks.
This article, generated by GuruFocus, is designed to provide general insights and is not tailored financial advice. Our commentary is rooted in historical data and analyst projections, utilizing an impartial methodology, and is not intended to serve as specific investment guidance. It does not formulate a recommendation to purchase or divest any stock and does not consider individual investment objectives or financial circumstances. Our objective is to deliver long-term, fundamental data-driven analysis. Be aware that our analysis might not incorporate the most recent, price-sensitive company announcements or qualitative information. GuruFocus holds no position in the stocks mentioned herein.
