Education
About Us
Working with TipRanks
Follow Us
Equitable Holdings, Inc. (EQH)
:EQH
Top Page
Equitable Holdings
(NYSE:EQH)
Rating:67Neutral
Price Target:
$57.00
▲(8.70%Upside)
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.
Market Position
EQH is seen as best positioned in the US retirement market due to its integrated retirement model and history of innovation.
Negative Factors
Earnings Miss
Mortality and lower fees contributed to the earnings miss in key segments like Protection Solutions, Individual Retirement, and Legacy.
EPS Growth Pressure
Elevated mortality and lower markets could put 2025 EPS growth below the expected range, leading to near-term pressure on the stock.
Equitable Holdings (EQH) vs. SPDR S&P 500 ETF (SPY)
Market Cap
$15.82B
Dividend Yield1.89%
Average Volume (3M)2.57M
Price to Earnings (P/E)14.3
Beta (1Y)1.09
Revenue Growth12.41%
EPS Growth14.76%
CountryUS
Employees8,000
SectorFinancial
Sector Strength76
IndustryInsurance - Diversified
Share Statistics
EPS (TTM)1.30
Shares Outstanding301,661,740
10 Day Avg. Volume2,420,174
30 Day Avg. Volume2,566,653
Financial Highlights & Ratios
PEG Ratio-3.66
Price to Book (P/B)6.92
Price to Sales (P/S)0.00
P/FCF Ratio8.07
Enterprise Value/Market Cap0.93
Enterprise Value/Revenue0.30
Enterprise Value/Gross Profit1.43
Enterprise Value/Ebitda1.47
Forecast
1Y Price Target
$67.22Price Target Upside28.18% Upside
Rating ConsensusStrong Buy
Number of Analyst Covering9
Equitable Holdings Business Overview & Revenue Model
Company DescriptionEquitable Holdings, Inc. (EQH) is a leading financial services company in the United States, primarily engaged in providing life insurance, retirement, and asset management solutions. The company operates through its two main business segments: Individual Retirement, which offers annuity products, and Group Retirement, which provides retirement plan products and services. Equitable Holdings is committed to helping clients plan for and achieve financial security through a broad range of investment and insurance products.
How the Company Makes MoneyEquitable 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 Earnings Call Summary
Earnings Call Date:Apr 29, 2025
(Q1-2025)
| % Change Since: 3.31%|
Next Earnings Date:Aug 05, 2025
Earnings Call Sentiment Neutral
The earnings call highlighted strong net inflows, increased advisor productivity, and solid performance from AllianceBernstein, alongside a robust balance sheet and significant capital return to shareholders. However, there were challenges with a decline in non-GAAP earnings and elevated mortality claims affecting the Protection Solutions segment. The market volatility also posed challenges, impacting fee income and April flows.Q1-2025 Updates
Positive Updates
Strong Net Inflows and Advisor Productivity
The Retirement businesses produced $1.6 billion in net inflows in the first quarter. There were $2 billion of advisory net inflows in the Wealth Management business with advisor productivity up 8% and a 12% organic growth rate on a trailing 12-month basis.
AllianceBernstein Performance
AB operating earnings rose 19% year-over-year, driven by higher average AUM and improved margins. AB delivered positive net flows across each of its three distribution channels, with total active net inflows of $2.7 billion and AUM up 20% year-over-year to $75 billion in the private markets business.
Capital Return to Shareholders
Equitable returned $335 million to shareholders in the first quarter, representing an 80% pay-out ratio. The company also purchased $760 million of AB Holding units, increasing ownership in AllianceBernstein to 69%.
Robust Balance Sheet
Equitable's year-end combined NAIC RBC ratio was approximately 425%, with $1.1 billion of holding company liquidity before factoring in the $2 billion benefit from the reinsurance transaction.
Negative Updates
Decline in Non-GAAP Operating Earnings
Non-GAAP operating earnings were $421 million or $1.30 per share, down 7% year-over-year on a per-share basis. Adjusting for notable items, non-GAAP operating EPS was $1.35, down 3% compared to the prior year.
Elevated Mortality Claims in Protection Solutions
The Protection Solutions segment reported a loss of $17 million due to a very high level of large individual life mortality claims. Elevated mortality claims in the individual life insurance block reduced earnings per share by about $0.20 relative to normal expectations.
Market Volatility Impacts
Market volatility and tax payments have pressured April flows for AllianceBernstein. The decline in average separate account assets and fewer fee days in the first quarter negatively affected fee income.
Company Guidance
During the Equitable Holdings First Quarter 2025 Earnings Call, Mark Pearson, President and CEO, highlighted the company's financial performance and strategic moves amidst market volatility. The call disclosed that non-GAAP operating earnings were $421 million, or $1.30 per share, reflecting a 7% year-over-year decline per share. Adjusted for notable items, earnings per share were $1.35, down 3% from the previous year. Equitable's Retirement and Wealth Management divisions showed solid growth, with $1.6 billion in net inflows and a 12% organic growth rate. AllianceBernstein (AB) reported a 19% rise in operating earnings, fueled by higher average assets under management (AUM) and improved margins, reaching a total AUM of $75 billion, up 20% year-over-year. The company returned $335 million to shareholders, representing an 80% payout ratio, and increased its stake in AB to 69% through a $760 million purchase. Equitable plans to execute $500 million in additional share repurchases post a reinsurance transaction with RGA expected to close mid-year, which will release over $2 billion of capital. The company emphasized its strong balance sheet with a combined NAIC RBC ratio of approximately 425% and $1.1 billion in holding company liquidity, ensuring resilience against macroeconomic volatility.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.80
Positive
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.70
Positive
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.75
Positive
| 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 | 10.27B | 10.00B | 2.86B | 5.38B | 6.57B | 807.00M |
| EBITDA | 2.88B | 3.20B | 1.78B | 3.83B | 3.37B | 864.00M |
| Net Income | 1.26B | 1.31B | 1.30B | 2.15B | 1.75B | -648.00M |
Balance Sheet | ||||||
| Total Assets | 287.37B | 295.87B | 276.81B | 252.70B | 292.26B | 275.40B |
| Cash, Cash Equivalents and Short-Term Investments | 34.16B | 83.61B | 9.41B | 4.96B | 5.82B | 11.73B |
| Total Debt | 6.44B | 5.95B | 5.63B | 5.23B | 5.12B | 4.43B |
| Total Liabilities | 282.87B | 292.30B | 271.66B | 249.11B | 278.70B | 258.08B |
| Stockholders Equity | 2.40B | 1.58B | 2.65B | 1.40B | 11.52B | 15.58B |
Cash Flow | ||||||
| Free Cash Flow | 2.03B | 1.85B | -325.00M | -417.00M | -313.00M | -168.00M |
| Operating Cash Flow | 2.13B | 2.01B | -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
Neutral
52.44
Price Trends
53.45
Negative
51.74
Positive
49.87
Positive
Market Momentum
-0.33
Positive
44.62
Neutral
39.54
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 52.44 is below the 20-day moving average (MA) of 54.02, below the 50-day MA of 53.45, and above the 200-day MA of 49.87, indicating a neutral trend. The MACD of -0.33 indicates Positive momentum. The RSI at 44.62 is Neutral, neither overbought nor oversold. The STOCH value of 39.54 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 (68)
Financial Indicators
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
78 Outperform | $35.00B | 12.28 | 18.49% | 2.03% | 7.55% | 14.16% | |
76 Outperform | $18.17B | 17.38 | 9.70% | 4.58% | 5.84% | -10.64% | |
73 Outperform | $33.11B | 8.98 | 18.42% | ― | 25.29% | -23.19% | |
70 Neutral | $11.26B | 15.84 | 9.36% | 7.45% | -5.03% | ― | |
68 Neutral | $16.93B | 11.67 | 9.79% | 3.89% | 11.83% | -7.56% | |
67 Neutral | $15.82B | 14.26 | 56.67% | 1.89% | 12.41% | 14.76% | |
56 Neutral | $46.80B | 18.14 | 6.13% | 2.52% | -44.30% | -33.09% |
* Financial Sector Average
Performance Comparison
EQH
Equitable Holdings
52.44
11.64
28.53%
AEG
Aegon
7.19
1.23
20.64%
AIG
American International Group
81.42
7.73
10.49%
ACGL
Arch Capital Group
89.00
-2.67
-2.91%
HIG
Hartford Financial
123.21
22.96
22.90%
PFG
Principal Financial
80.20
-0.55
-0.68%
Equitable Holdings Corporate Events
Shareholder MeetingsBusiness Operations and Strategy
Equitable Holdings Stockholders Approve Key Proposals
Neutral
May 28, 2025
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.
Stock BuybackDividendsBusiness Operations and StrategyFinancial Disclosures
Equitable Holdings Reports Strong Q1 2025 Results
Positive
Apr 29, 2025
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.
Glossary
BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
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.