Equitable Holdings (EQH) AI Stock Analysis

• Market Cap: $14.24B
• Dividend Yield: 2.07%
• Average Volume (3M): 3.60M
• Price to Earnings (P/E): 12.3
• Beta (1Y): 1.13
• Revenue Growth: 16.81%
• EPS Growth: 14.00%
• Country: US
• Employees: 8,000
• Sector: Financial
• Sector Strength: 84
• Industry: Insurance - Diversified
• EPS (TTM): 3.82
• Shares Outstanding: 306,828,700
• 10 Day Avg. Volume: 4,218,922
• 30 Day Avg. Volume: 3,600,314
• PEG Ratio: 0.88
• Price to Book (P/B): N/A
• Price to Sales (P/S): 1.30
• Price to Cash Flow (P/CF): 10.10
• P/FCF Ratio: 7.60
• Enterprise Value/Market Cap: N/A
• Enterprise Value/Revenue: N/A
• Enterprise Value/Gross Profit: N/A
• Enterprise Value/Ebitda: N/A
• 1Y Price Target: $63.90
• Price Target Upside: 35.27% Upside
• Rating Consensus: Strong Buy
• Number of Analyst Covering: 10

Equitable Holdings has a mixed financial performance with notable risks related to high leverage and negative cash flows. However, the positive outlook from the earnings call and attractive valuation metrics provide a counterbalance, aligning the stock for moderate potential in the insurance sector.

Positive Factors

Cash Flow and Capital

EQH's growing free cash flow profile is attractive, with less volatility on a forward-looking basis.

Market Position

EQH is uniquely positioned to deliver on the US Retirement opportunity, indicating strong market share in key annuity products.

Strategic Transformation

Equitable's shift to a balanced mix between annuities and asset management/wealth management is expected to drive higher earnings and support long-term growth.

Negative Factors

Earnings Impact

There is a modest net reduction in earnings from EQH selling a significant portion of its Protection Solutions segment.

Operational Challenges

Protection Solutions had higher mortality and Corporate experienced higher expenses, impacting their performance negatively.

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 through a combination of premium income, investment income, and fees for services. Premium income is derived from the sale of insurance products, including life insurance and annuities, where clients pay premiums for coverage and benefits. Investment income is earned from managing and investing the assets held by the company, including the assets backing its insurance liabilities. Additionally, Equitable earns fees for providing investment management and advisory services to individuals and institutions. The company's earnings are further supported by strategic partnerships and distribution agreements that enhance its market reach and product offerings. Equitable's revenue model is built on leveraging its expertise in risk management, investment strategies, and financial planning to deliver value to clients and shareholders.

Equitable Holdings Financial Statement Overview

Summary

Equitable Holdings has a mixed financial performance. The company benefits from strong gross profit margins and maintains substantial cash reserves. However, it faces challenges with high leverage, declining equity, and negative cash flows, indicating potential risks in financial sustainability.

Income Statement

Equitable Holdings shows a mixed income statement with strong gross profit margins but fluctuating revenues and net income over the past years. The most recent year saw an increase in revenue to $12.44 billion, yet net income has decreased significantly from its peak in 2022. The absence of EBIT and EBITDA figures in the latest year is a concern, suggesting possible operational inefficiencies or unusual costs impacting profitability.

Balance Sheet

The balance sheet presents a moderate financial position for Equitable Holdings. The debt-to-equity ratio remains concerningly high, indicating a heavy reliance on debt financing. Stockholders' equity has significantly decreased, which raises stability concerns. Despite these challenges, the company maintains substantial cash reserves, providing some liquidity cushion.

Cash Flow

Cash flow statements reveal a challenging position for Equitable Holdings, with consistent negative free cash flow and operating cash flow over the years. This highlights ongoing struggles in generating cash from core operations, which can affect long-term sustainability. The financing cash flow has been consistently positive, suggesting reliance on external funding to support operations.

Breakdown
Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement		Total Revenue
12.44B	10.53B	12.64B	11.04B	12.41B
	Gross Profit
10.00B	2.86B	10.45B	6.57B	8.62B
	EBIT
0.00	0.00	2.48B	-1.38B	-1.97B
	EBITDA
0.00	1.78B	3.83B	572.00M	864.00M
	Net Income Common Stockholders
1.31B	1.30B	2.15B	-24.00M	-349.00M
Balance Sheet		Cash, Cash Equivalents and Short-Term Investments
1.63B	9.41B	4.28B	5.19B	88.21B
	Total Assets
8.87B	276.81B	252.70B	292.26B	282.27B
	Total Debt
3.83B	5.63B	5.23B	5.12B	4.12B
	Net Debt
2.21B	-2.61B	950.00M	-66.00M	-2.06B
	Total Liabilities
292.30B	271.66B	249.11B	278.70B	264.95B
	Stockholders Equity
1.58B	2.65B	1.40B	11.52B	15.58B
Cash Flow		Free Cash Flow
1.85B	-325.00M	-1.02B	-876.00M	-168.00M
	Operating Cash Flow
2.01B	-208.00M	-851.00M	-756.00M	-61.00M
	Investing Cash Flow
340.00M	-4.85B	-7.49B	-12.69B	-7.82B
	Financing Cash Flow
12.44B	9.00B	7.65B	12.51B	9.67B

Equitable Holdings Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 47.24
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Positive
• MACD: Positive
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For EQH, the sentiment is Negative. The current price of 47.24 is below the 20-day moving average (MA) of 50.69, below the 50-day MA of 51.91, and above the 200-day MA of 46.05, indicating a neutral trend. The MACD of -1.58 indicates Positive momentum. The RSI at 41.89 is Neutral, neither overbought nor oversold. The STOCH value of 42.23 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for EQH.

Equitable Holdings Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
ACGL	79 Outperform	$34.61B	8.23	22.02%	―	26.24%	-3.87%
HIG	79 Outperform	$33.12B	11.21	19.58%	1.71%	8.19%	29.77%
AIG	70 Outperform	$47.85B	16.19	7.10%	1.95%	-28.56%	1.14%
PFG	66 Neutral	$16.34B	10.88	14.28%	4.01%	18.02%	171.70%
AEG	65 Neutral	$9.08B	13.15	9.36%	4.97%	-5.03%	―
Sector *	64 Neutral	$13.34B	9.25	9.42%	4.85%	16.07%	-8.44%
EQH	56 Neutral	$14.24B	12.29	61.74%	2.07%	16.81%	14.00%

Equitable Holdings Corporate Events

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.

Equitable Holdings’ Strategic Loan and Tender Offer

On February 21, 2025, Equitable Holdings announced a $500 million senior unsecured delayed-draw term loan, intended to fund a tender offer and associated expenses. The loan is linked to a reinsurance agreement with Reinsurance Group of America to reinsure 75% of the company’s in-force individual life insurance block. This strategic financial maneuver is part of Equitable’s broader effort to increase its stake in AllianceBernstein Holding L.P. through a tender offer announced on February 24, 2025, for up to 46 million units at a premium price, potentially increasing Equitable’s economic interest to 77.5%. This move reflects Equitable’s strategy to enhance its market position in investment management.

Equitable Holdings Enters Strategic Reinsurance Agreement

On February 23, 2025, Equitable Holdings entered into an agreement with RGA Reinsurance Company to reinsure 75% of its in-force individual life insurance block, a move expected to generate over $2 billion in value, including a positive ceding commission and capital release. This transaction is strategically designed to enhance Equitable’s focus on its growth areas—retirement, asset management, and wealth management—and is anticipated to be accretive to its 2027 financial targets. The agreement, having received board approval, is set to close in mid-2025 pending regulatory approvals, and Equitable plans to increase its stake in AllianceBernstein and execute $500 million in additional share repurchases post-transaction.

Equitable Holdings Reports Strong 2024 Financial Results

Equitable Holdings reported strong financial results for the full year and fourth quarter of 2024, with record net inflows in its Retirement, Wealth Management, and Asset Management segments. The company achieved a 15% increase in annual cash generation, enabling a $1.3 billion return to shareholders. Non-GAAP operating earnings per share increased by 29% from 2023, driven by steady growth in spread- and fee-based earnings. Looking forward, Equitable Holdings expects continued momentum in 2025, projecting growth in Non-GAAP operating EPS and increased cash generation.