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Equitable Holdings (EQH)
NYSE:EQH
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Equitable Holdings
(NYSE:EQH)
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Rating:40Underperform
Price Target:
$43.00
▼(-11.78% Downside)
Equitable Holdings' overall stock score is primarily impacted by its financial performance challenges, including declining revenues, high leverage, and cash flow issues. The technical analysis indicates a bearish trend, further weighing on the score. While the valuation offers some dividend income potential, the negative P/E ratio raises concerns. The earnings call provided mixed insights, with strong asset growth but declining earnings.
Positive Factors
Assets Under Management Growth
The increase in assets under management indicates strong future growth potential, enhancing Equitable's market position and revenue base.
Wealth Management Expansion
Strong growth in wealth management suggests increased client engagement and effective advisory services, bolstering long-term revenue streams.
Capital Deployment Strategy
Strategic capital deployment, including debt reduction and share repurchases, enhances financial flexibility and supports sustainable growth.
Negative Factors
High Leverage
High leverage can limit financial flexibility and increase risk, potentially impacting the company's ability to invest in growth opportunities.
Declining Operating Earnings
A decline in operating earnings reflects operational challenges, which may hinder profitability and affect long-term financial health.
Cash Flow Challenges
Significant cash flow challenges can constrain the company's ability to fund operations and invest in future growth, impacting stability.
Equitable Holdings (EQH) vs. SPDR S&P 500 ETF (SPY)
Market Cap
$13.97B
Dividend Yield2.15%
Average Volume (3M)2.69M
Price to Earnings (P/E)―
Beta (1Y)1.09
Revenue Growth7.70%
EPS Growth-155.12%
CountryUS
Employees8,000
SectorFinancial
Sector Strength70
IndustryInsurance - Diversified
Share Statistics
EPS (TTM)1.48
Shares Outstanding286,532,040
10 Day Avg. Volume2,663,993
30 Day Avg. Volume2,686,142
Financial Highlights & Ratios
PEG Ratio1.23
Price to Book (P/B)9.56
Price to Sales (P/S)1.22
P/FCF Ratio10.20
Enterprise Value/Market Cap-7.94
Enterprise Value/Revenue-9.23
Enterprise Value/Gross Profit-16.11
Enterprise Value/Ebitda-145.70
Forecast
1Y Price Target
$63.00Price Target Upside29.26% Upside
Rating ConsensusStrong Buy
Number of Analyst Covering8
EPS Forecast (FY)5.66
Revenue Forecast (FY)$14.91B
Equitable Holdings Business Overview & Revenue Model
Company DescriptionEquitable 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 MoneyEquitable Holdings generates revenue through multiple key streams. Primarily, the company earns money through the sale of life insurance policies and annuities, which contribute to its premiums and investment income. The investment management segment also plays a crucial role, as Equitable manages assets for both individual and institutional clients, earning management fees. Additionally, the company benefits from fees associated with its retirement solutions, including 401(k) plans and other retirement accounts. Significant partnerships with financial advisors and distribution networks further enhance its reach and revenue potential. Furthermore, the performance of its investment portfolio, which includes equities, fixed income, and alternative investments, influences its earnings through capital gains and investment income.
Equitable Holdings Earnings Call Summary
Earnings Call Date:Nov 04, 2025
(Q3-2025)
| % Change Since: |
Next Earnings Date:Feb 11, 2026
Earnings Call Sentiment Neutral
Equitable Holdings showcased strong growth in assets under management and wealth management, along with successful capital deployment strategies. However, challenges such as a decline in operating earnings, net outflows in asset management, and elevated mortality impacts affected the quarter's performance. While the company appears well-positioned for future growth, the mixed results from this quarter balance the positives and negatives.Q3-2025 Updates
Positive Updates
Record Assets Under Management
Equitable Holdings ended the quarter with record assets under management of $1.1 trillion, up 4% sequentially, indicating strong future growth in earnings.
Strong Wealth Management Growth
Wealth Management had another strong quarter with $2.2 billion of advisory net inflows, a 12% annualized growth rate, and advisor productivity increased 8% year-over-year.
Successful Capital Deployment
Equitable Holdings allocated $1.5 billion to drive shareholder value and future growth, including $676 million in share repurchases and reducing outstanding debt by $500 million.
Asset Management Earnings Surge
AB delivered strong earnings with a 39% increase year-over-year, driven by a 6% sequential increase in fee revenue. The adjusted margin improved to 34.2%.
Growth in Retirement Business
The retirement business generated $1.1 billion of net flows during the quarter, driven by continued growth in RILA sales.
Negative Updates
Decline in Operating Earnings
Non-GAAP operating earnings were $455 million or $1.48 per share, down 6% year-over-year on a per share basis.
Net Outflows in Asset Management
AB reported total net outflows of $2.3 billion, which includes $4 billion of low-fee assets transferred to RGA as part of the life reinsurance transaction.
Elevated Mortality Impact
The company experienced elevated mortality, resulting in a $36 million adjustment for July mortality experience, impacting overall earnings.
GAAP Net Loss
A GAAP net loss of $1.3 billion was reported, primarily driven by a one-time impact from asset transfers at the closing of the individual life reinsurance transaction.
Company Guidance
During the Equitable Holdings Third Quarter 2025 Earnings Call, the company provided detailed guidance highlighting several financial metrics. Non-GAAP operating earnings for the quarter were reported at $455 million, equating to $1.48 per share, reflecting a 6% year-over-year decrease on a per-share basis. When adjusting for notable items, the non-GAAP operating EPS stood at $1.67, marking a 2% increase compared to the previous year. The company showcased strong organic growth momentum, with record assets under management reaching $1.1 trillion, a 4% sequential increase. The Retirement segment saw $1.1 billion in net flows, driven by robust RILA sales, while Wealth Management achieved $2.2 billion in advisory net inflows, representing a 12% annualized growth rate. Additionally, the Asset Management segment, led by AllianceBernstein, reported $1.7 billion in net inflows after excluding a $4 billion asset transfer to RGA. Equitable Holdings allocated $1.5 billion in capital for shareholder value enhancement and future growth investments, including $676 million in share repurchases and reducing outstanding debt by $500 million. The company maintains confidence in meeting its 2027 financial targets, including a $2 billion annual cash generation goal.Equitable Holdings Financial Statement Overview
Summary
Equitable Holdings is facing significant financial challenges, including declining revenues, negative net profit margins, high leverage, and cash flow constraints. Despite a strong gross profit margin, the overall financial health is weakened by negative net income and high debt levels.Income Statement
Equitable Holdings has experienced a significant decline in revenue over the TTM period, with a negative revenue growth rate of -11.93%. The gross profit margin remains relatively strong at 66.42%, but the net profit margin has turned negative, indicating profitability challenges. The EBIT and EBITDA margins have also deteriorated, reflecting operational inefficiencies.45
Neutral
Balance Sheet
The company's balance sheet shows high leverage, with a debt-to-equity ratio of 25.90, indicating significant reliance on debt financing. The return on equity is negative, suggesting that the company is not generating sufficient returns on shareholder investments. The equity ratio is low, highlighting potential financial instability.30
Negative
Cash Flow
Equitable Holdings' cash flow situation is concerning, with a dramatic decline in free cash flow growth of -93.04% over the TTM period. The operating cash flow to net income ratio is zero, indicating cash flow challenges. However, the free cash flow to net income ratio is relatively healthy, suggesting some ability to cover net income with free cash flow.40
Negative
| Breakdown | TTM | Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 | Dec 2020 |
|---|---|---|---|---|---|---|
Income Statement | ||||||
| Total Revenue | 12.01B | 12.44B | 10.53B | 12.64B | 7.61B | 12.41B |
| Gross Profit | 6.88B | 6.60B | 5.19B | 7.58B | 7.32B | 2.90B |
| EBITDA | 761.00M | 3.20B | 1.78B | 3.83B | 3.37B | 864.00M |
| Net Income | -696.00M | 1.31B | 1.30B | 2.15B | 1.75B | -648.00M |
Balance Sheet | ||||||
| Total Assets | 314.51B | 295.87B | 276.81B | 252.70B | 292.26B | 275.40B |
| Cash, Cash Equivalents and Short-Term Investments | 15.16B | 8.20B | 9.41B | 4.96B | 5.82B | 11.73B |
| Total Debt | 6.36B | 6.78B | 6.33B | 5.85B | 5.89B | 5.28B |
| Total Liabilities | 312.57B | 292.30B | 271.66B | 249.11B | 278.70B | 258.08B |
| Stockholders Equity | 148.00M | 1.58B | 2.65B | 1.40B | 11.52B | 15.58B |
Cash Flow | ||||||
| Free Cash Flow | 1.18B | 1.49B | -325.00M | -417.00M | -313.00M | -168.00M |
| Operating Cash Flow | 1.25B | 1.64B | -208.00M | -250.00M | -193.00M | -61.00M |
| Investing Cash Flow | -13.85B | -15.36B | -4.85B | -7.49B | -12.69B | -7.82B |
| Financing Cash Flow | 16.60B | 12.10B | 9.00B | 7.04B | 11.95B | 9.67B |
Equitable Holdings Technical Analysis
Positive
48.74
Price Trends
46.69
Positive
49.40
Negative
50.29
Negative
Market Momentum
0.65
Negative
60.45
Neutral
74.77
Neutral
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 48.74 is above the 20-day moving average (MA) of 47.28, above the 50-day MA of 46.69, and below the 200-day MA of 50.29, indicating a neutral trend. The MACD of 0.65 indicates Negative momentum. The RSI at 60.45 is Neutral, neither overbought nor oversold. The STOCH value of 74.77 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive 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
UnderperformOutperform
Sector (68)
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
79 Outperform | $34.96B | 9.02 | 17.81% | ― | 16.68% | -28.54% | |
78 Outperform | $38.93B | 11.41 | 20.07% | 1.55% | 7.11% | 22.52% | |
76 Outperform | $19.68B | 13.04 | 13.74% | 3.44% | 12.33% | ― | |
68 Neutral | $18.00B | 11.42 | 9.92% | 3.81% | 9.73% | 1.22% | |
64 Neutral | $11.55B | 8.47 | 14.42% | 5.77% | -6.19% | ― | |
60 Neutral | $46.68B | 15.51 | 7.68% | 2.02% | -23.02% | 52.43% | |
40 Underperform | $13.97B | -17.61 | -41.33% | 2.15% | 7.70% | -155.12% |
* Financial Sector Average
EQH
Equitable Holdings
48.74
2.23
4.79%
AEG
Aegon
7.68
2.13
38.38%
AIG
American International Group
86.52
15.05
21.06%
ACGL
Arch Capital Group
96.40
4.06
4.40%
HIG
Hartford Insurance
139.72
31.44
29.04%
PFG
Principal Financial
89.59
14.78
19.76%
Equitable Holdings Corporate Events
M&A TransactionsStock BuybackBusiness Operations and StrategyFinancial Disclosures
Equitable Holdings Reports Q3 2025 Financial Results
Neutral
Nov 4, 2025
Equitable Holdings reported its third-quarter 2025 financial results, highlighting a net loss of $1.3 billion due to a one-time impact from a life reinsurance transaction. Despite this, the company achieved non-GAAP operating earnings of $455 million, with strong net inflows in retirement and wealth management sectors and a record $1.1 trillion in assets under management. The company is deploying $1.5 billion in capital for shareholder value, including buybacks, debt repayment, and growth investments, and has acquired Stifel Independent Advisors to enhance its wealth management operations.
Business Operations and Strategy
Equitable Holdings Updates Segment Reporting Structure
Neutral
Oct 22, 2025
Equitable Holdings announced changes to its segment reporting following the closure of a transaction with RGA Reinsurance Company on July 31, 2025. The reorganization, effective from the third quarter of 2025, combines the Individual Retirement and Group Retirement segments into a single Retirement segment and moves its legacy and life insurance business to the Corporate and Other segment. These changes are intended to better reflect the company’s operational decision-making and performance assessment, with no impact on previously reported consolidated financial statements.
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.