Equitable Holdings (EQH) AI Stock Analysis

• Market Cap: $16.66B
• Dividend Yield: 1.76%
• Average Volume (3M): 2.13M
• Price to Earnings (P/E): 14.9
• Beta (1Y): 1.07
• Revenue Growth: 12.41%
• EPS Growth: 14.76%
• Country: US
• Employees: 8,000
• Sector: Financial
• Sector Strength: 79
• Industry: Insurance - Diversified
• EPS (TTM): 1.30
• Shares Outstanding: 303,895,230
• 10 Day Avg. Volume: 2,023,480
• 30 Day Avg. Volume: 2,127,594
• PEG Ratio: -0.25
• Price to Book (P/B): 4.40
• Price to Sales (P/S): 0.00
• P/FCF Ratio: -35.87
• Enterprise Value/Market Cap: 0.72
• Enterprise Value/Revenue: 0.24
• Enterprise Value/Gross Profit: 1.10
• Enterprise Value/Ebitda: 1.21
• 1Y Price Target: $65.11
• Price Target Upside: 19.07% Upside
• Rating Consensus: Strong Buy
• Number of Analyst Covering: 10

• Rating: 71 Outperform
• Price Target: ―

Equitable Holdings achieves a solid overall score, driven by strong financial performance and strategic initiatives. The company's robust revenue growth, improved profit margins, and effective leverage management are key strengths. While technical analysis and valuation are stable, earnings call insights highlight growth potential amidst challenges in earnings and market conditions.

Positive Factors

Business Model

The multi-channel business model is expected to have long term success through various cycles.

Earnings Growth

Strong flows across most business segments should help support future earnings growth.

Growth Potential

The favorable rate environment, aging population theme, and supportive Investment Management and Wealth Management performances should translate to a favorable runway for durable long-term growth.

Negative Factors

Earnings Miss

Mortality and lower fees contributed to the earnings miss in key segments like Protection Solutions, Individual Retirement, and Legacy.

Earnings Pressure

Elevated mortality and lower markets could put 2025 EPS growth below the expected range, leading to near-term pressure on the stock.

Market Concerns

Despite recessionary concerns reflected in weaker equity markets, investors can find comfort in EQH's strong RBC ratio and capital flexibility.

Equitable Holdings Business Overview & Revenue Model

Company Description

Equitable Holdings, Inc., together with its consolidated subsidiaries, operates as a diversified financial services company worldwide. The company operates through four segments: Individual Retirement, Group Retirement, Investment Management and Research, and Protection Solutions. The Individual Retirement segment offers a suite of variable annuity products primarily to affluent and high net worth individuals. The Group Retirement segment provides tax-deferred investment and retirement services or products to plans sponsored by educational entities, municipalities, and not-for-profit entities, as well as small and medium-sized businesses. The Investment Management and Research segment offers diversified investment management, research, and related solutions to various clients through institutional, retail, and private wealth management channels; and distributes its institutional research products and solutions. The Protection Solutions segment provides various variable universal life, indexed universal life, and term life products to help affluent and high net worth individuals, as well as small and medium-sized business owners; and a suite of life, short- and long-term disability, dental, and vision insurance products to small and medium-size businesses. The company was formerly known as AXA Equitable Holdings, Inc. and changed its name to Equitable Holdings, Inc. in January 2020. Equitable Holdings, Inc. was founded in 1859 and is based in New York, New York.

How the Company Makes Money

Equitable Holdings generates revenue primarily through the sale of its insurance and annuity products. In the Individual Retirement segment, the company earns money from fees associated with its annuity products, which provide clients with guaranteed income for retirement. These fees are typically based on the account value of the annuities. In the Group Retirement segment, Equitable Holdings generates income from administrative fees and asset management fees on retirement plan products. Additionally, the company benefits from investment income, which is derived from managing the reserves backing its insurance and annuity liabilities. Key revenue streams include premiums from life insurance policies, fees from retirement and investment products, and investment income. The company's earnings are also influenced by factors such as interest rates, market conditions, and its ability to manage risk effectively.

Equitable Holdings Financial Statement Overview

Summary

Equitable Holdings displays strong financial recovery with robust revenue and profit growth, improved operating margins, and enhanced cash flow generation. Despite a low equity ratio, the company effectively manages leverage and maintains substantial liquidity, indicating stability and growth potential.

Income Statement

Equitable Holdings exhibited strong revenue growth with a substantial increase from $10.53B in 2023 to $14.78B in TTM, indicating a robust upward trajectory. Gross profit margin remained healthy at 74.02% in TTM. Net profit margin improved to 9.41% in TTM compared to lower past performances, demonstrating enhanced profitability. The EBIT margin recovered to 14.16% after previous losses, and EBITDA margin stood at 19.49%, both showing significant improvement in operational efficiency.

Balance Sheet

The company maintains a strong liquidity position with $127.07B in cash and equivalents in TTM. Debt-to-equity ratio improved to 1.80, indicating better leverage management compared to previous years. However, the equity ratio remains low at 0.83% in TTM, suggesting potential risk due to limited equity buffer. ROE was notably high at 57.92% in TTM, reflecting effective use of equity to generate income.

Cash Flow

Equitable Holdings improved its cash flow stability, with operating cash flow increasing to $1.88B in TTM. Free cash flow grew significantly, evidenced by a positive $1.61B in TTM, recovering from previous negative figures. Operating cash flow to net income ratio of 1.35 in TTM indicates efficient cash conversion. The free cash flow to net income ratio of 1.16 highlights the company's ability to generate free cash flow relative to net income.

Breakdown
TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement		Total Revenue
14.78B	12.44B	10.53B	12.64B	11.04B	12.41B
	Gross Profit
10.94B	10.00B	2.86B	5.38B	6.57B	807.00M
	EBIT
2.09B	2.34B	738.00M	2.99B	1.56B	-1.97B
	EBITDA
2.88B	3.20B	1.78B	3.83B	3.37B	864.00M
	Net Income Common Stockholders
1.26B	1.31B	1.30B	2.15B	1.75B	-648.00M
Balance Sheet		Cash, Cash Equivalents and Short-Term Investments
4.41B	83.61B	9.41B	4.96B	5.19B	87.82B
	Total Assets
249.87B	287.63B	276.81B	252.70B	292.26B	275.40B
	Total Debt
4.11B	3.83B	5.63B	5.23B	5.12B	4.12B
	Net Debt
-294.00M	-1.01B	-2.61B	950.00M	-66.00M	-1.75B
	Total Liabilities
234.38B	284.06B	271.66B	249.11B	278.70B	258.08B
	Stockholders Equity
13.54B	1.58B	2.65B	1.40B	11.52B	15.58B
Cash Flow		Free Cash Flow
1.61B	1.85B	-325.00M	-417.00M	-313.00M	-168.00M
	Operating Cash Flow
1.88B	1.64B	-208.00M	-250.00M	-193.00M	-61.00M
	Investing Cash Flow
-14.37B	-15.86B	-4.85B	-7.49B	-12.69B	-7.82B
	Financing Cash Flow
9.72B	12.44B	9.00B	7.04B	11.95B	9.67B

Equitable Holdings Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 54.68
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Negative
• RSI: Neutral
• STOCH: Negative

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For EQH, the sentiment is Positive. The current price of 54.68 is above the 20-day moving average (MA) of 53.22, above the 50-day MA of 50.60, and above the 200-day MA of 48.04, indicating a bullish trend. The MACD of 0.93 indicates Negative momentum. The RSI at 60.85 is Neutral, neither overbought nor oversold. The STOCH value of 87.66 is Negative, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for EQH.

Equitable Holdings Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
HIG	79 Outperform	$36.74B	12.89	18.49%	1.56%	7.55%	14.16%
PFG	73 Outperform	$17.21B	16.45	9.70%	3.79%	5.84%	-10.64%
ACGL	73 Outperform	$35.80B	9.47	18.42%	―	25.29%	-23.19%
EQH	71 Outperform	$16.66B	14.90	56.67%	1.76%	12.41%	14.76%
AEG	70 Neutral	$11.23B	15.97	9.36%	4.09%	-5.03%	―
AIG	68 Neutral	$50.34B	19.51	6.13%	1.88%	-44.30%	-33.09%
Sector *	64 Neutral	$12.83B	9.78	7.78%	16985.64%	12.26%	-7.81%

Equitable Holdings Corporate Events

Equitable Holdings Stockholders Approve Key Proposals

At the recent Annual Meeting, Equitable Holdings‘ stockholders approved several key proposals, including the amendment of the 2019 Omnibus Incentive Plan to increase the number of shares reserved for issuance. Additionally, the stockholders elected ten directors to serve until the 2026 annual meeting and ratified the appointment of PricewaterhouseCoopers LLP as the independent auditor for fiscal year 2025. These decisions reflect the company’s strategic direction and governance priorities, impacting its operational framework and stakeholder engagement.

The most recent analyst rating on (EQH) stock is a Buy with a $45.00 price target. To see the full list of analyst forecasts on Equitable Holdings stock, see the EQH Stock Forecast page.

Equitable Holdings Reports Strong Q1 2025 Results

Equitable Holdings reported its first quarter 2025 financial results, highlighting positive net flows across its Retirement, Wealth Management, and Asset Management segments, with net income of $63 million and Non-GAAP operating earnings of $421 million. The company is on track to close a strategic life reinsurance transaction with RGA by mid-2025, which will free over $2 billion of capital, enhancing its financial flexibility and allowing for further capital returns to shareholders, including share repurchases and dividend increases.

Equitable Holdings Increases Stake in AllianceBernstein

On April 3, 2025, Equitable Holdings announced the final results of its tender offer to purchase up to 46 million units in AllianceBernstein Holding L.P., which expired on April 1, 2025. The company accepted 19,682,946 units for approximately $757.8 million, increasing its economic interest in AllianceBernstein L.P. to about 68.6%. This move solidifies Equitable Holdings’ position in the investment management sector, potentially impacting its market influence and stakeholder interests.

Equitable Holdings Increases Stake in AllianceBernstein

On April 2, 2025, Equitable Holdings announced the preliminary results of its tender offer to purchase up to 46 million units in AllianceBernstein Holding L.P., which expired on April 1, 2025. The company expects to acquire approximately 19.77 million units for around $761 million, increasing its economic interest in AllianceBernstein to 68.6%. This move is significant for Equitable Holdings as it strengthens its position in the investment management industry and impacts stakeholders by consolidating its control over AllianceBernstein.