Equitable Group Inc., through its subsidiary, Equitable Bank, provides personal and commercial banking services to retail and commercial customers in Canada.
Equitable Group 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.
Equitable Group Fundamentals Summary
How do Equitable Group's earnings and revenue compare to its market cap?
Is Equitable Group undervalued compared to its fair value and its price relative to the market?
Valuation Score
5/6
Valuation Score 5/6
Below Fair Value
Significantly Below Fair Value
PE vs Industry
PE vs Market
PEG Ratio
PB vs Industry
>50%
Undervalued compared to fair value
Share Price vs. Fair Value
Below Fair Value: EQB (CA$61.01) is trading below our estimate of fair value (CA$214.22)
Significantly Below Fair Value: EQB is trading below fair value by more than 20%.
Price To Earnings Ratio
PE vs Industry: EQB is good value based on its PE Ratio (6.8x) compared to the Canadian Mortgage industry average (8.2x).
PE vs Market: EQB is good value based on its PE Ratio (6.8x) compared to the Canadian market (11.4x).
Price to Earnings Growth Ratio
PEG Ratio: EQB is good value based on its PEG Ratio (0.5x)
Price to Book Ratio
PB vs Industry: EQB's PB Ratio (1.1x) is in line with the CA Mortgage industry average.
Future Growth
How is Equitable Group forecast to perform in the next 1 to 3 years based on estimates from 7 analysts?
Future Growth Score
3/6
Future Growth Score 3/6
Earnings vs Savings Rate
Earnings vs Market
High Growth Earnings
Revenue vs Market
High Growth Revenue
Future ROE
13.7%
Forecasted annual earnings growth
Earnings and Revenue Growth Forecasts
Analyst Future Growth Forecasts
Earnings vs Savings Rate: EQB's forecast earnings growth (13.7% per year) is above the savings rate (1.6%).
Earnings vs Market: EQB's earnings (13.7% per year) are forecast to grow faster than the Canadian market (7.6% per year).
High Growth Earnings: EQB's earnings are forecast to grow, but not significantly.
Revenue vs Market: EQB's revenue (15.2% per year) is forecast to grow faster than the Canadian market (6.4% per year).
High Growth Revenue: EQB's revenue (15.2% per year) is forecast to grow slower than 20% per year.
Earnings per Share Growth Forecasts
Future Return on Equity
Future ROE: EQB's Return on Equity is forecast to be low in 3 years time (14.8%).
Past Performance
How has Equitable Group performed over the past 5 years?
Past Performance Score
3/6
Past Performance Score 3/6
Quality Earnings
Growing Profit Margin
Earnings Trend
Accelerating Growth
Earnings vs Industry
High ROE
15.5%
Historical annual earnings growth
Earnings and Revenue History
Quality Earnings: EQB has a high level of non-cash earnings.
Growing Profit Margin: EQB's current net profit margins (44.6%) are lower than last year (45.6%).
Past Earnings Growth Analysis
Earnings Trend: EQB's earnings have grown by 15.5% per year over the past 5 years.
Accelerating Growth: EQB's earnings growth over the past year (16.9%) exceeds its 5-year average (15.5% per year).
Earnings vs Industry: EQB earnings growth over the past year (16.9%) exceeded the Mortgage industry 7.2%.
Return on Equity
High ROE: EQB's Return on Equity (15.3%) is considered low.
Financial Health
How is Equitable Group's financial position? (This company is analysed differently as a bank or financial institution)
Financial Health Score
4/6
Financial Health Score 4/6
Asset Level
Allowance for Bad Loans
Low Risk Liabilities
Loan Level
Low Risk Deposits
Level of Bad Loans
Financial Position Analysis
Debt to Equity History and Analysis
Balance Sheet
Financial Institutions Analysis
Asset Level: EQB's Assets to Equity ratio (18.2x) is moderate.
Allowance for Bad Loans: EQB has a lowallowance for bad loans (62%).
Low Risk Liabilities: 63% of EQB's liabilities are made up of primarily low risk sources of funding.
Loan Level: EQB has an appropriate level of Loans to Assets ratio (92%).
Low Risk Deposits: EQB's Loans to Deposits ratio (155%) is high.
Level of Bad Loans: EQB has an appropriate level of bad loans (0.2%).
Dividend
What is Equitable Group current dividend yield, its reliability and sustainability?
Dividend Score
4/6
Dividend Score 4/6
Notable Dividend
High Dividend
Stable Dividend
Growing Dividend
Earnings Coverage
Future Dividend Coverage
1.84%
Current Dividend Yield
Upcoming Dividend Payment
Dividend Yield vs Market
Notable Dividend: EQB's dividend (1.84%) isn’t notable compared to the bottom 25% of dividend payers in the Canadian market (1.91%).
High Dividend: EQB's dividend (1.84%) is low compared to the top 25% of dividend payers in the Canadian market (4.91%).
Stability and Growth of Payments
Stable Dividend: EQB's dividends per share have been stable in the past 10 years.
Growing Dividend: EQB's dividend payments have increased over the past 10 years.
Current Payout to Shareholders
Earnings Coverage: With its low payout ratio (9.2%), EQB's dividend payments are thoroughly covered by earnings.
Future Payout to Shareholders
Future Dividend Coverage: EQB's dividends in 3 years are forecast to be thoroughly covered by earnings (14.8% payout ratio).
Discover strong dividend paying companies
Management
How experienced are the management team and are they aligned to shareholders interests?
1.6yrs
Average management tenure
CEO
Andrew R. Moor (61 yo)
15.17yrs
Tenure
CA$3,196,105
Compensation
Mr. Andrew R. G. Moor serves as Independent Director at Sleep Country Canada Holdings Inc. since July 16, 2015. Mr. Moor joined Equitable Group Incorporated and Equitable Bank in March 2007 and has been it...
CEO Compensation Analysis
Compensation vs Market: Andrew R.'s total compensation ($USD2.50M) is about average for companies of similar size in the Canadian market ($USD2.24M).
Compensation vs Earnings: Andrew R.'s compensation has been consistent with company performance over the past year.
Leadership Team
Experienced Management: EQB's management team is not considered experienced ( 1.6 years average tenure), which suggests a new team.
Board Members
Experienced Board: EQB's board of directors are considered experienced (8 years average tenure).
Ownership
Who are the major shareholders and have insiders been buying or selling?
Insider Trading Volume
Insider Buying: EQB insiders have sold more shares than they have bought in the past 3 months.
Recent Insider Transactions
Ownership Breakdown
Dilution of Shares: Shareholders have not been meaningfully diluted in the past year.
Top Shareholders
Company Information
Equitable Group Inc.'s employee growth, exchange listings and data sources
All financial data provided by Standard & Poor's Capital IQ.
Data
Last Updated (UTC time)
Company Analysis
2022/05/23 00:00
End of Day Share Price
2022/05/20 00:00
Earnings
2022/03/31
Annual Earnings
2021/12/31
Unless specified all financial data is based on a yearly period but updated quarterly. This is known as Trailing Twelve Month (TTM) or Last Twelve Month (LTM) Data. Learn more here.