Equitable Group Inc (TSE:EQB)
TSX:EQB
Want to see TSE:EQB full AI Analyst Report?
Top Page
Equitable Group
(TSX:EQB)
Select Model
Select Model
Rating:54Neutral
Price Target:
C$119.00
â–¼(-1.81% Downside)
Action:Reiterated
Date:05/29/26
The score is primarily constrained by weakening recent financial performance—especially negative TTM operating and free cash flow alongside softer revenue/margins and lower ROE. Technical indicators are mildly bearish/neutral (negative MACD and sub-50 RSI), while valuation is broadly reasonable with a modest dividend yield.
Positive Factors
Stable NII business model
The firm’s core earnings derive from net interest income on residential and commercial mortgages funded by customer deposits. This spread-driven model is durable over months, providing predictable revenue tied to lending volumes and deposit franchise rather than one-off items.
Negative Factors
Weak cash generation
Trailing cash flows are negative despite positive net income, signaling earnings are not converting to cash. Persistent cash-generation weakness limits internal funding for growth, increases dependence on deposits/wholesale funding, and reduces margin for operating volatility.
Read all positive and negative factors
Positive Factors
Negative Factors
Stable NII business model
The firm’s core earnings derive from net interest income on residential and commercial mortgages funded by customer deposits. This spread-driven model is durable over months, providing predictable revenue tied to lending volumes and deposit franchise rather than one-off items.
Read all positive factors
Equitable Group (EQB) vs. iShares MSCI Canada ETF (EWC)
Market Cap
C$4.36B
Dividend Yield2.09%
Average Volume (3M)179.27K
Price to Earnings (P/E)21.5
Beta (1Y)0.55
Revenue Growth-7.70%
EPS Growth-48.41%
CountryCA
Employees1,896
SectorFinancial
Sector Strength70
IndustryBanks - Regional
Share Statistics
EPS (TTM)5.09
Shares Outstanding36,592,780
10 Day Avg. Volume180,980
30 Day Avg. Volume179,270
Financial Highlights & Ratios
PEG Ratio-0.38
Price to Book (P/B)1.07
Price to Sales (P/S)1.10
P/FCF Ratio6.17
Enterprise Value/Market CapN/A
Enterprise Value/RevenueN/A
Enterprise Value/Gross ProfitN/A
Enterprise Value/EbitdaN/A
Forecast
1Y Price Target
C$121.57Price Target Upside0.31% Upside
Rating ConsensusModerate Buy
Number of Analyst Covering7
EPS Forecast (FY)9.51
Revenue Forecast (FY)C$1.42B
Equitable Group Business Overview & Revenue Model
Company Description
Established in Toronto, Canada in 1970, EQB Inc. operates predominantly through its subsidiary, Equitable Bank, providing a comprehensive suite of personal and commercial banking services to retail and business clients across Canada. The financial...
How the Company Makes Money
EQB primarily makes money through net interest income: it earns interest and fees on loans (notably residential and commercial mortgages and other consumer lending) and pays interest on its funding sources (customer deposits and other borrowings),...
Equitable Group Earnings Call Summary
Earnings Call Date:Dec 03, 2025
(Q4-2025)
| % Change Since: |
Next Earnings Date:Nov 10, 2026
Earnings Call Sentiment Neutral
The call presents a mixed but constructive outlook: solid strategic progress (EQ Bank customer and deposit growth, 10% LUM growth, strong off-balance-sheet multi-unit performance, PC Financial acquisition, and a $45M run-rate cost savings program) is balanced against near-term financial pressures (weaker non-interest revenue, higher provisions and impaired loans, a one-time $92M restructuring charge, and a depressed Q4 ROE of 7.5%). Management is optimistic about improving efficiency, credit trends and revenue pickup in H2 FY2026, but material macro and credit uncertainties remain.Positive Updates
Loans Under Management Growth
LUM increased 10% year-over-year to $74.5 billion (1% sequentially), driven by a 36% YoY surge in off-balance-sheet CMHC-insured multi-unit residential mortgages.
Negative Updates
Earnings and Return on Equity Pressure
Q4 diluted EPS was $1.53 and ROE was 7.5%; full-year diluted EPS was $8.90 and FY ROE was 11.3%, reflecting weaker revenue and higher provisions compared with prior periods.
Read all updates
Q4-2025 Updates
Positive
Negative
Loans Under Management Growth
LUM increased 10% year-over-year to $74.5 billion (1% sequentially), driven by a 36% YoY surge in off-balance-sheet CMHC-insured multi-unit residential mortgages.
Read all positive updates
Company Guidance
EQB's guidance for fiscal 2026 (excluding PC Financial) calls for loans under management to grow in the high-single-digit to low-double-digit range and NIMs to remain around the 2%+ level (Q4 NIM 2.01%), with ROE expected to approach ~12% (and potentially rise later in 2026) versus Q4 ROE of 7.5% and FY2025 ROE of 11.3%; diluted EPS growth could fall within the medium‑term 12–15% range. Management expects to realize roughly $45 million of annual expense savings from a $92 million restructuring charge, target low-single-digit total expense growth, deliver positive operating leverage and a low‑50s efficiency ratio, maintain strong capital (CET1 ~13.3%), continue dividend increases (quarterly dividend $0.57) and share buybacks (731k shares repurchased in Q4). They also expect credit provisions to moderate with PCL relief in H2 2026 (ACL 41 bps, impaired PCLs 30 bps, gross impaired loans $871M) while growing core franchises (LUM $74.5B, +10% YoY; off‑balance CMHC multi‑unit +36% YoY; EQ Bank customers +18% YoY, deposits nearly $10B).Equitable Group Financial Statement Overview
Summary
Income Statement
64
Positive
Balance Sheet
58
Neutral
Cash Flow
33
Negative
| Breakdown | TTM | Oct 2025 | Oct 2024 | Dec 2023 | Dec 2022 | Dec 2021 |
|---|---|---|---|---|---|---|
Income Statement | ||||||
| Total Revenue | 3.00B | 3.11B | 3.34B | 3.05B | 1.66B | 1.17B |
| Gross Profit | 1.16B | 1.23B | 1.15B | 3.05B | 744.93M | 650.58M |
| EBITDA | 351.74M | 439.45M | 614.37M | 46.99M | 1.30B | 423.08M |
| Net Income | 198.15M | 265.30M | 400.56M | 445.91M | 270.18M | 292.53M |
Balance Sheet | ||||||
| Total Assets | 52.21B | 53.49B | 53.23B | 52.93B | 51.14B | 36.16B |
| Cash, Cash Equivalents and Short-Term Investments | 1.85B | 2.26B | 2.03B | -1.32B | 2.34B | 1.44B |
| Total Debt | 16.04B | 13.12B | 19.27B | 17.37B | 19.54B | 13.58B |
| Total Liabilities | 48.97B | 50.28B | 50.10B | 50.09B | 48.61B | 34.21B |
| Stockholders Equity | 3.23B | 3.20B | 3.13B | 2.85B | 2.53B | 1.95B |
Cash Flow | ||||||
| Free Cash Flow | -227.95M | 555.10M | -345.61M | 561.49M | -46.69M | 654.68M |
| Operating Cash Flow | -134.39M | 639.99M | -278.24M | 596.45M | 29.89M | 693.26M |
| Investing Cash Flow | 18.98M | -66.58M | 402.77M | -1.77B | -766.77M | -458.25M |
| Financing Cash Flow | -271.97M | -179.75M | -82.36M | 1.26B | 458.74M | -19.50M |
Equitable Group Technical Analysis
Positive
121.19
Price Trends
117.03
Positive
114.23
Positive
103.38
Positive
Market Momentum
-0.20
Negative
54.62
Neutral
61.04
Neutral
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For TSE:EQB, the sentiment is Positive. The current price of 121.19 is above the 20-day moving average (MA) of 116.46, above the 50-day MA of 117.03, and above the 200-day MA of 103.38, indicating a bullish trend. The MACD of -0.20 indicates Negative momentum. The RSI at 54.62 is Neutral, neither overbought nor oversold. The STOCH value of 61.04 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for TSE:EQB.
Equitable Group Peers Comparison
UnderperformOutperform
Sector (68)
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
75 Outperform | C$874.21M | 28.80 | 5.89% | 0.49% | 9.23% | -14.64% | |
72 Outperform | C$437.56M | 12.12 | 8.48% | 8.38% | -8.75% | -3.51% | |
70 Outperform | C$1.00B | 12.26 | 12.71% | 7.33% | 10.47% | 9.78% | |
68 Neutral | $18.00B | 11.42 | 9.92% | 3.81% | 9.73% | 1.22% | |
61 Neutral | C$561.83M | 11.42 | 9.35% | 7.95% | -11.74% | -1.31% | |
55 Neutral | C$538.72M | 17.93 | 4.48% | 10.00% | -10.08% | -35.26% | |
54 Neutral | C$4.36B | 21.53 | 6.16% | 2.09% | -7.70% | -48.41% |
* Financial Sector Average
TSE:EQB
Equitable Group
119.19
28.53
31.46%
TSE:AI
Atrium Mortgage Invest
11.70
1.39
13.44%
TSE:FC
Firm Cap Mortgage Invest
11.91
0.59
5.17%
TSE:MKP
MCAN Financial
24.63
6.43
35.36%
TSE:TF
Timbercreek Financial
6.51
-0.23
-3.37%
TSE:VBNK
Versabank
27.26
12.23
81.38%
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.