Education
About Us
Working with TipRanks
Follow Us
Equitable Holdings (EQH)
NYSE:EQH
Top Page
Equitable Holdings
(NYSE:EQH)
65Neutral
Positive Factors
Cash Flow Improvement
EQH is accelerating its free cash flow profile improvement trajectory by divesting a lower FCF conversion and higher volatility insurance business.
Strategic Shift
Equitable's shift to a balanced mix between annuities and asset management/wealth management is expected to drive higher earnings and support long-term growth.
Negative Factors
Earnings Reduction
There is a modest net reduction in earnings from EQH selling a significant portion of its Protection Solutions segment.
Equitable Holdings (EQH) vs. S&P 500 (SPY)
Market Cap
$15.55B
Dividend Yield1.91%
Average Volume (3M)2.98M
Price to Earnings (P/E)13.0
Beta (1Y)1.27
Revenue Growth16.81%
EPS Growth14.00%
CountryUS
Employees8,500
SectorFinancial
Sector Strength77
IndustryInsurance
Share Statistics
EPS (TTM)3.82
Shares Outstanding307,819,520
10 Day Avg. Volume2,842,106
30 Day Avg. Volume2,981,582
Financial Highlights & Ratios
PEG Ratio0.93
Price to Book (P/B)N/A
Price to Sales (P/S)1.22
Price to Cash Flow (P/CF)9.50
P/FCF Ratio7.10
Enterprise Value/Market CapN/A
Enterprise Value/RevenueN/A
Enterprise Value/Gross ProfitN/A
Enterprise Value/EbitdaN/A
Forecast
1Y Price Target
$63.33Price Target Upside25.36% Upside
Rating ConsensusStrong Buy
Number of Analyst Covering9
Equitable Holdings Business Overview & Revenue Model
Company DescriptionEquitable Holdings, Inc. is a financial services company in the U.S. and is comprised of two complementary and well-established principal franchises, AXA Equitable Life Insurance Company and AllianceBernstein. Its mission is to help clients secure their financial well-being. The company was founded by Henry B. Hyde in 1859 and is headquartered in New York, NY.
How the Company Makes MoneyEquitable Holdings generates revenue through a combination of premium income, investment income, and fees for services. Premium income is derived from the sale of insurance products, including life insurance and annuities, where clients pay premiums for coverage and benefits. Investment income is earned from managing and investing the assets held by the company, including the assets backing its insurance liabilities. Additionally, Equitable earns fees for providing investment management and advisory services to individuals and institutions. The company's earnings are further supported by strategic partnerships and distribution agreements that enhance its market reach and product offerings. Equitable's revenue model is built on leveraging its expertise in risk management, investment strategies, and financial planning to deliver value to clients and shareholders.
Equitable Holdings Financial Statement Overview
Summary
Equitable Holdings exhibits both strengths and weaknesses across its financial statements. While the company benefits from strong gross profit margins and adequate liquidity, it faces significant challenges with its high leverage, declining equity, and negative cash flows. These factors collectively indicate potential risks in financial sustainability and growth trajectory.Income Statement
Equitable Holdings shows a mixed income statement with strong gross profit margins but fluctuating revenues and net income over the past years. The most recent year saw an increase in revenue to $12.44 billion, yet net income has decreased significantly from its peak in 2022. The absence of EBIT and EBITDA figures in the latest year is a concern, suggesting possible operational inefficiencies or unusual costs impacting profitability.62
Positive
Balance Sheet
The balance sheet presents a moderate financial position for Equitable Holdings. The debt-to-equity ratio remains concerningly high, indicating a heavy reliance on debt financing. Stockholders' equity has significantly decreased, which raises stability concerns. Despite these challenges, the company maintains substantial cash reserves, providing some liquidity cushion.55
Neutral
Cash Flow
Cash flow statements reveal a challenging position for Equitable Holdings, with consistent negative free cash flow and operating cash flow over the years. This highlights ongoing struggles in generating cash from core operations, which can affect long-term sustainability. The financing cash flow has been consistently positive, suggesting reliance on external funding to support operations.40
Negative
| Breakdown | ||||
| Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 | Dec 2020 |
|---|---|---|---|---|
| Income Statement | Total Revenue | |||
| 12.44B | 10.53B | 12.64B | 11.04B | 12.41B | Gross Profit |
| 10.00B | 2.86B | 10.45B | 6.57B | 8.62B | EBIT |
| 0.00 | 0.00 | 2.48B | -1.38B | -1.97B | EBITDA |
| 0.00 | 1.78B | 3.83B | 572.00M | 864.00M | Net Income Common Stockholders |
| 1.31B | 1.30B | 2.15B | -24.00M | -349.00M |
| Balance Sheet | Cash, Cash Equivalents and Short-Term Investments | |||
| 1.63B | 9.41B | 4.28B | 5.19B | 88.21B | Total Assets |
| 8.87B | 276.81B | 252.70B | 292.26B | 282.27B | Total Debt |
| 3.83B | 5.63B | 5.23B | 5.12B | 4.12B | Net Debt |
| 2.21B | -2.61B | 950.00M | -66.00M | -2.06B | Total Liabilities |
| 292.30B | 271.66B | 249.11B | 278.70B | 264.95B | Stockholders Equity |
| 1.58B | 2.65B | 1.40B | 11.52B | 15.58B |
| Cash Flow | Free Cash Flow | |||
| 1.85B | -325.00M | -1.02B | -876.00M | -168.00M | Operating Cash Flow |
| 2.01B | -208.00M | -851.00M | -756.00M | -61.00M | Investing Cash Flow |
| 340.00M | -4.85B | -7.49B | -12.69B | -7.82B | Financing Cash Flow |
| 12.44B | 9.00B | 7.65B | 12.51B | 9.67B |
Equitable Holdings Technical Analysis
Neutral
50.52
Price Trends
51.74
Negative
49.07
Positive
44.82
Positive
Market Momentum
-0.50
Positive
43.83
Neutral
26.12
Neutral
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For EQH, the sentiment is Neutral. The current price of 50.52 is below the 20-day moving average (MA) of 52.84, below the 50-day MA of 51.74, and above the 200-day MA of 44.82, indicating a neutral trend. The MACD of -0.50 indicates Positive momentum. The RSI at 43.83 is Neutral, neither overbought nor oversold. The STOCH value of 26.12 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Neutral sentiment for EQH.
Equitable Holdings Risk Analysis
Equitable Holdings disclosed 51 risk factors in its most recent earnings report. Equitable Holdings reported the most risks in the “Finance & Corporate” category.
Finance & Corporate - Financial and accounting risks. Risks related to the execution of corporate activity and strategy
Latest Risks Added 0 New Risks
Equitable Holdings Peers Comparison
Overall Rating
UnderperformOutperform
Sector (64)
Financial Indicators
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
71 Outperform | $48.43B | 16.18 | 7.10% | 1.90% | -28.56% | 1.14% | |
67 Neutral | $5.93B | 1.86 | 43.24% | 5.27% | 47.95% | ― | |
65 Neutral | $15.55B | 13.01 | 61.74% | 1.91% | 16.81% | 14.00% | |
64 Neutral | $6.52B | 11.41 | 16.27% | 2.48% | 9.55% | 10.22% | |
64 Neutral | $13.80B | 10.64 | 9.23% | 4.22% | 17.66% | -7.66% | |
61 Neutral | $53.44B | 13.32 | 15.41% | 2.75% | 6.10% | 225.22% | |
61 Neutral | $37.38B | 14.18 | 9.79% | 4.94% | 34.25% | 11.22% |
* Financial Sector Average
Performance Comparison
EQH
Equitable Holdings
50.52
16.13
46.90%
AIG
American International Group
81.63
7.37
9.92%
LNC
Lincoln National
34.81
9.01
34.92%
MET
Metlife
78.45
7.87
11.15%
PRU
Prudential Financial
105.58
-2.34
-2.17%
VOYA
Voya Financial
67.45
-1.61
-2.33%
Equitable Holdings Earnings Call Summary
Earnings Call Date: Feb 5, 2025 | % Change Since: -5.13% | Next Earnings Date: Apr 30, 2025
Earnings Call Sentiment Positive
The earnings call reflected a generally positive outlook with significant growth in non-GAAP operating earnings, assets under management, and cash flow generation. Strategic initiatives and organic growth in business segments are progressing well. However, there were challenges noted in Protection Solutions and alternative investment income. Overall, the highlights significantly outweigh the lowlights.Highlights
Significant Increase in Non-GAAP Operating Earnings
Full year non-GAAP operating earnings were $2 billion or $5.93 per share, up 29% year-over-year on a per share basis. Adjusting for notable items, non-GAAP operating EPS was $6.18, up 20% from the prior year.
Strong Asset Growth
Assets under management and administration increased 10% year-over-year, now exceeding $1 trillion.
Record Cash Flow Generation
Generated $1.5 billion of cash flow to the Holding company, at the high end of guidance range, with over 50% coming from asset and wealth management businesses.
Progress on Strategic Initiatives
Achieved $100 million of run rate expense saves, on track to meet or exceed a $150 million target by 2027. Generated $80 million of incremental net investment income, ahead of plan to achieve $110 million by 2027.
Strong Organic Growth in Business Segments
Full year net inflows of $7.1 billion in retirement and $4 billion in wealth management, with AB reporting full year active net inflows of $4.3 billion.
AB's Successful Business Execution
AB successfully executed the separation of its Bernstein Research Services business and completed its New York City office relocation, expecting a 33%+ adjusted operating margin in 2025.
Positive Developments in In-Plan Guarantee Market
Over $600 million net inflows from BlackRock's LifePath Paycheck offering and a new partnership with JPMorgan Asset Management.
Lowlights
Challenges in Protection Solutions
Full-year earnings were at the lower end of the $200 million to $300 million guidance range, with elevated net mortality due to large claims with minimal reinsurance coverage.
Below Plan Alternative Investment Income
In the fourth quarter, alternative investment income was below plan, reducing earnings by $27 million after tax.
Volatility in Corporate and Other Segment
Corporate and other segment expected to generate a full-year loss of approximately $400 million.
Company Guidance
During the Equitable Holdings earnings call, the company provided robust guidance for 2025, highlighting several key metrics and financial targets. Non-GAAP operating earnings for 2024 stood at $2 billion or $5.93 per share, reflecting a 29% year-over-year increase on a per-share basis. Adjusted non-GAAP EPS was $6.18, surpassing the company's 12% to 15% annualized growth guidance. Assets under management and administration exceeded $1 trillion, marking a 10% increase over the previous year. The company generated $1.5 billion in cash flow, with over 50% derived from asset and wealth management businesses. Looking ahead, Equitable forecasts cash generation of $1.6 billion to $1.7 billion in 2025, with a path to $2 billion by 2027. Additionally, AB anticipates a 33%+ adjusted operating margin in 2025, improving by over 400 basis points from 2022. The company aims to maintain a 60% to 70% payout ratio, having returned $1.3 billion to shareholders in 2024, aligning with its strategic initiatives to achieve its 2027 financial goals.Equitable Holdings Corporate Events
Private Placements and FinancingBusiness Operations and Strategy
Equitable Holdings’ Strategic Loan and Tender Offer
Positive
Feb 24, 2025
On February 21, 2025, Equitable Holdings announced a $500 million senior unsecured delayed-draw term loan, intended to fund a tender offer and associated expenses. The loan is linked to a reinsurance agreement with Reinsurance Group of America to reinsure 75% of the company’s in-force individual life insurance block. This strategic financial maneuver is part of Equitable’s broader effort to increase its stake in AllianceBernstein Holding L.P. through a tender offer announced on February 24, 2025, for up to 46 million units at a premium price, potentially increasing Equitable’s economic interest to 77.5%. This move reflects Equitable’s strategy to enhance its market position in investment management.
Stock BuybackBusiness Operations and Strategy
Equitable Holdings Enters Strategic Reinsurance Agreement
Positive
Feb 24, 2025
On February 23, 2025, Equitable Holdings entered into an agreement with RGA Reinsurance Company to reinsure 75% of its in-force individual life insurance block, a move expected to generate over $2 billion in value, including a positive ceding commission and capital release. This transaction is strategically designed to enhance Equitable’s focus on its growth areas—retirement, asset management, and wealth management—and is anticipated to be accretive to its 2027 financial targets. The agreement, having received board approval, is set to close in mid-2025 pending regulatory approvals, and Equitable plans to increase its stake in AllianceBernstein and execute $500 million in additional share repurchases post-transaction.
Business Operations and StrategyFinancial Disclosures
Equitable Holdings Reports Strong 2024 Financial Results
Positive
Feb 5, 2025
Equitable Holdings reported strong financial results for the full year and fourth quarter of 2024, with record net inflows in its Retirement, Wealth Management, and Asset Management segments. The company achieved a 15% increase in annual cash generation, enabling a $1.3 billion return to shareholders. Non-GAAP operating earnings per share increased by 29% from 2023, driven by steady growth in spread- and fee-based earnings. Looking forward, Equitable Holdings expects continued momentum in 2025, projecting growth in Non-GAAP operating EPS and increased cash generation.
Glossary
OutperformA stock rated as "Outperform" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests that the stock is likely to deliver higher returns compared to the average returns of other stocks in the same sector or market index. Investors might consider this stock a good buying opportunity.
NeutralA stock rated as "Neutral" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly attractive nor unattractive for investment. Investors may consider holding onto the stock, as it is not expected to either significantly outperform or underperform the market.
UnderperformA stock rated as "Underperform" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests that the stock may deliver lower returns compared to the average returns of other stocks in the same sector or market index. Investors might consider selling the stock or avoiding it as an investment.
Disclaimer
This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.