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Equitable Group Inc (TSE:EQB)
TSX:EQB
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Equitable Group
(TSX:EQB)
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Rating:65Neutral
Price Target:
C$106.00
â–²(4.79% Upside)
Equitable Group's overall stock score reflects a balanced view of its strengths and risks. The company's strong cash flow and operational efficiency are positive, but challenges in revenue growth and high leverage are concerns. Technical indicators suggest bullish momentum, but caution is advised due to overbought signals. The valuation is reasonable, providing a fair entry point for investors.
Positive Factors
Cash Flow Generation
Strong free cash flow growth indicates improved cash generation capabilities, enhancing financial flexibility and supporting future investments.
Operational Efficiency
Sustained operational efficiency suggests the company can manage costs effectively, supporting profitability even amid revenue challenges.
Return on Equity
A stable return on equity indicates effective use of shareholder funds, enhancing investor confidence and supporting long-term growth.
Negative Factors
Revenue Growth Challenges
Declining revenue growth suggests potential challenges in business expansion and market penetration, impacting long-term growth prospects.
High Leverage
High leverage can pose risks in volatile markets, limiting financial flexibility and increasing vulnerability to economic downturns.
Earnings Decline
A significant decline in EPS growth indicates challenges in maintaining profitability, potentially affecting investor sentiment and future earnings potential.
Equitable Group (EQB) vs. iShares MSCI Canada ETF (EWC)
Market Cap
$3.69B
Dividend Yield2.14%
Average Volume (3M)162.47K
Price to Earnings (P/E)14.7
Beta (1Y)0.59
Revenue Growth-7.50%
EPS Growth-34.45%
CountryCA
Employees1,896
SectorFinancial
Sector Strength70
IndustryFinancial - Mortgages
Share Statistics
EPS (TTM)1.53
Shares Outstanding37,542,550
10 Day Avg. Volume200,944
30 Day Avg. Volume162,475
Financial Highlights & Ratios
PEG Ratio0.00
Price to Book (P/B)0.00
Price to Sales (P/S)0.00
P/FCF Ratio0.00
Enterprise Value/Market Cap6.03
Enterprise Value/Revenue7.05
Enterprise Value/Gross Profit19.79
Enterprise Value/Ebitda40.20
Forecast
1Y Price Target
$99.76Price Target Upside-1.37% Downside
Rating ConsensusHold
Number of Analyst Covering7
EPS Forecast (FY)9.49
Revenue Forecast (FY)$1.28B
Equitable Group Business Overview & Revenue Model
Company DescriptionEQB Inc., through its subsidiary, Equitable Bank, provides personal and commercial banking services to retail and commercial customers in Canada. The company accepts term deposits and guaranteed investment certificates, high interest savings accounts, tax-free savings accounts, and institutional deposit notes, as well as specialized financing solutions. Its loan products include residential mortgages; equipment loans; home equity, cash surrender value, and commercial equity lines of credit; business enterprise solutions comprising mixed use, multi-residential properties, retail spaces, office condominiums, and industrial buildings; and asset repositioning, inventory, term, and construction loans. The company also offers digital banking services, as well as a range of banking solutions, including international money transfers, US dollar accounts, and a suite of registered products. The company was formerly known as Equitable Group Inc. and changed its name to EQB Inc. in June 2022. EQB Inc. was founded in 1970 and is headquartered in Toronto, Canada.
How the Company Makes MoneyEquitable Group generates revenue through multiple streams, primarily from interest income on loans and mortgages, which constitutes a significant portion of its total revenue. The company earns interest by lending funds to borrowers at rates higher than the rates it pays on deposits. Additionally, EQB receives fees from various banking services, including account maintenance fees and transaction fees. The company also benefits from investment income generated from its portfolio of securities. Strategic partnerships with real estate developers and financial advisors enhance its distribution channels and contribute to increased loan origination volumes, further driving revenue growth.
Equitable Group Earnings Call Summary
Earnings Call Date:Aug 27, 2025
(Q3-2025)
| % Change Since: |
Next Earnings Date:May 05, 2026
Earnings Call Sentiment Neutral
The earnings call presented a mixed picture. While there were notable achievements in loan portfolio growth and EQ Bank's customer acquisition, the financial performance fell short of expectations due to increased credit provisions, net income decline, and rising expenses. The strategic leadership changes indicate a focus on future growth and resilience.Q3-2025 Updates
Positive Updates
Loan Portfolio Growth
Loans under management increased 3% sequentially and 10% year-over-year to approximately $74 billion. Combined with administrative assets, it reached a new record of $137 billion, up 9% year-over-year.
Commercial Lending Strength
CMHC-insured multi-unit residential loans under management grew 8% sequentially and 30% year-over-year to $31.4 billion.
EQ Bank Customer Growth
EQ Bank added 26,000 new customers, a gain of 21% year-over-year, with deposits reaching $9.7 billion, growing at the fastest sequential rate in the last three years.
Record Decumulation Lending Portfolio
Decumulation lending portfolio reached a record of $2.7 billion, up 8% sequentially and 41% year-over-year.
Strategic Leadership Appointments
Chadwick Westlake appointed as President and CEO, and Anilisa Sainani as the new CFO, signaling a new era for EQB leadership.
Negative Updates
Below Expectation Revenue and Earnings
Revenue and earnings performance for the quarter were below expectations with a reported ROE of 12.4% year-to-date, and an anticipated ROE for fiscal 2025 around 11.5%.
Increased Credit Provisions
Total Stage 1 and 2 allowances for credit losses increased to 27 basis points, up from 25 basis points in Q2 2025, and up from 20 basis points in Q3 2024. Overall allowance reached $174.4 million, up 4 points sequentially and 7 points year-over-year.
Net Income Decline
Net income for the quarter was $80.3 million, down 15% from Q2 and 32% year-over-year. Diluted EPS was $2.07 and ROE was 10.1%.
Rising Expenses
Noninterest expenses grew to $166 million in the quarter, up 6% from Q2, driven by investments in the Challenger team, technology spend, and increased premises expenses.
Challenges in Personal Lending
Gross impaired loans in personal lending increased to $352 million, a 9.5% increase from Q2, largely driven by credit migration and a softening in the housing market.
Company Guidance
During EQB's third quarter earnings call for fiscal year 2025, the company provided several key financial metrics and strategic insights. Loans under management increased by 3% sequentially and 10% year-over-year to approximately $74 billion, contributing to total assets of $137 billion, up 9% from the previous year. The company's return on equity (ROE) was reported at 12.4% year-to-date, but due to ongoing headwinds, it is anticipated to be around 11.5% for the full fiscal year. EQ Bank added 26,000 new customers, a 21% year-over-year increase, with deposits reaching $9.7 billion. Despite these positives, the quarter faced challenges, including elevated provisions for credit losses, which reached $34 million, and a net interest margin that declined to 1.95%. EQB's net income for the quarter was $80.3 million, down 15% from the previous quarter. The company remains focused on strategic growth, with plans to host an Investor Day in 2026 to outline its long-term objectives.Equitable Group Financial Statement Overview
Summary
Income Statement
65
Positive
Balance Sheet
70
Positive
Cash Flow
75
Positive
| Breakdown | TTM | Dec 2025 | Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 |
|---|---|---|---|---|---|---|
Income Statement | ||||||
| Total Revenue | 3.16B | 3.11B | 3.34B | 3.05B | 1.66B | 1.17B |
| Gross Profit | 1.13B | 1.23B | 1.15B | 3.05B | 744.93M | 650.58M |
| EBITDA | 554.50M | 439.45M | 614.37M | 46.99M | 1.30B | 423.08M |
| Net Income | 349.41M | 265.30M | 400.56M | 445.91M | 270.18M | 292.53M |
Balance Sheet | ||||||
| Total Assets | 54.56B | 53.49B | 53.23B | 52.93B | 51.14B | 36.16B |
| Cash, Cash Equivalents and Short-Term Investments | 2.13B | 2.26B | 2.03B | -1.32B | 2.34B | 1.44B |
| Total Debt | 18.84B | 13.01B | 19.27B | 17.37B | 19.54B | 13.58B |
| Total Liabilities | 51.25B | 50.28B | 50.10B | 50.09B | 48.61B | 34.21B |
| Stockholders Equity | 3.30B | 3.20B | 3.13B | 2.85B | 2.53B | 1.95B |
Cash Flow | ||||||
| Free Cash Flow | 315.64M | 555.10M | -345.61M | 561.49M | -46.69M | 654.68M |
| Operating Cash Flow | 410.39M | 639.99M | -278.24M | 596.45M | 29.89M | 693.26M |
| Investing Cash Flow | -146.68M | -66.58M | 402.77M | -1.77B | -766.77M | -458.25M |
| Financing Cash Flow | -287.56M | -179.75M | -82.36M | 1.26B | 458.74M | -19.50M |
Equitable Group Technical Analysis
Positive
101.15
Price Trends
89.81
Positive
92.65
Positive
93.63
Positive
Market Momentum
3.19
Negative
77.33
Negative
81.00
Negative
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 101.15 is above the 20-day moving average (MA) of 92.62, above the 50-day MA of 89.81, and above the 200-day MA of 93.63, indicating a bullish trend. The MACD of 3.19 indicates Negative momentum. The RSI at 77.33 is Negative, neither overbought nor oversold. The STOCH value of 81.00 is Negative, 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 |
|---|---|---|---|---|---|---|---|
69 Neutral | C$890.73M | 13.34 | 10.50% | 7.38% | 7.74% | -31.96% | |
68 Neutral | C$557.01M | 11.12 | 9.72% | 7.93% | -13.69% | -1.60% | |
68 Neutral | C$570.17M | 15.03 | 5.52% | 10.04% | -9.00% | -35.22% | |
68 Neutral | $18.00B | 11.42 | 9.92% | 3.81% | 9.73% | 1.22% | |
67 Neutral | C$427.99M | 11.29 | 8.90% | 8.44% | -6.64% | 4.43% | |
65 Neutral | $3.69B | 14.70 | 8.72% | 2.14% | -7.50% | -34.45% | |
60 Neutral | C$2.88B | 15.67 | 27.73% | 6.40% | 24.34% | 13.13% |
* Financial Sector Average
TSE:EQB
Equitable Group
101.15
4.06
4.18%
TSE:AI
Atrium Mortgage Invest
11.73
1.70
16.95%
TSE:FC
Firm Cap Mortgage Invest
11.80
0.87
7.96%
TSE:FN
First National Financial
47.98
9.57
24.92%
TSE:MKP
MCAN Mortgage
22.29
5.81
35.25%
TSE:TF
Timbercreek Financial
6.87
0.49
7.68%
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.