Executive Summary
Equitable Group Inc., through its subsidiary, Equitable Bank, provides various financial services to retail and commercial customers in Canada.
Rewards
Risk Analysis
Snowflake Analysis
Undervalued with proven track record and pays a dividend.
Similar Companies
Share Price & News
How has Equitable Group's share price performed over time and what events caused price changes?
Latest Share Price and Events
Stable Share Price: EQB's share price has been volatile over the past 3 months.
Market Performance
7 Day Return
11.2%
EQB
9.7%
CA Mortgage
4.5%
CA Market
1 Year Return
-20.6%
EQB
-24.1%
CA Mortgage
-24.5%
CA Market
Return vs Industry: EQB exceeded the Canadian Mortgage industry which returned -24.1% over the past year.
Return vs Market: EQB exceeded the Canadian Market which returned -24.5% over the past year.
Shareholder returns
| EQB | Industry | Market | |
|---|---|---|---|
| 7 Day | 11.2% | 9.7% | 4.5% |
| 30 Day | -38.7% | -39.2% | -20.1% |
| 90 Day | -50.0% | -45.3% | -24.9% |
| 1 Year | -19.3%-20.6% | -15.3%-24.1% | -22.0%-24.5% |
| 3 Year | -16.5%-20.6% | -11.7%-25.8% | -14.2%-22.2% |
| 5 Year | 1.9%-5.7% | -11.9%-29.3% | -1.9%-16.5% |
Price Volatility Vs. Market
How volatile is Equitable Group's share price compared to the market and industry in the last 5 years?
Simply Wall St News
1 week ago | Simply Wall St
Insider Buying: The Equitable Group Inc. (TSE:EQB) Independent Director Just Bought CA$67k Worth Of Shares3 weeks ago | Simply Wall St
Is Equitable Group Inc.'s (TSE:EQB) CEO Overpaid Relative To Its Peers?1 month ago | Simply Wall St
Are You An Income Investor? Don't Miss Out On Equitable Group Inc. (TSE:EQB)Valuation
Is Equitable Group undervalued compared to its fair value and its price relative to the market?
>50%
Undervalued compared to fair value
Share Price vs. Fair Value
Below Fair Value: EQB (CA$54.66) is trading below our estimate of fair value (CA$220.94)
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 (4.5x) compared to the Mortgage industry average (6.7x).
PE vs Market: EQB is good value based on its PE Ratio (4.5x) compared to the Canadian market (10.3x).
Price to Earnings Growth Ratio
PEG Ratio: EQB is poor value based on its PEG Ratio (1.4x)
Price to Book Ratio
PB vs Industry: EQB is good value based on its PB Ratio (0.7x) compared to the CA Mortgage industry average (0.7x).
Next Steps
Future Growth
How is Equitable Group forecast to perform in the next 1 to 3 years based on estimates from 6 analysts?
3.3%
Forecasted annual earnings growth
Earnings and Revenue Growth Forecasts
Analyst Future Growth Forecasts
Earnings vs Savings Rate: EQB's forecast earnings growth (3.3% per year) is above the savings rate (1.4%).
Earnings vs Market: EQB's earnings (3.3% per year) are forecast to grow slower than the Canadian market (7.4% per year).
High Growth Earnings: EQB's earnings are forecast to grow, but not significantly.
Revenue vs Market: EQB's revenue (6% per year) is forecast to grow faster than the Canadian market (3.8% per year).
High Growth Revenue: EQB's revenue (6% 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 (13%).
Next Steps
Past Performance
How has Equitable Group performed over the past 5 years?
11.9%
Historical annual earnings growth
Earnings and Revenue History
Quality Earnings: EQB has high quality earnings.
Growing Profit Margin: EQB's current net profit margins (42.2%) are lower than last year (43%).
Past Earnings Growth Analysis
Earnings Trend: EQB's earnings have grown by 11.9% per year over the past 5 years.
Accelerating Growth: EQB's earnings growth over the past year (25.4%) exceeds its 5-year average (11.9% per year).
Earnings vs Industry: EQB earnings growth over the past year (25.4%) exceeded the Mortgage industry 12.7%.
Return on Equity
High ROE: EQB's Return on Equity (14.1%) is considered low.
Next Steps
Financial Health
How is Equitable Group's financial position? (This company is analysed differently as a bank or financial institution)
Financial Position Analysis
Debt to Equity History and Analysis
Balance Sheet
Inventory Level: EQB has a low level of unsold assets or inventory.
Debt Coverage by Assets: EQB's debt is not covered by short term assets (assets are 0.1x debt).
Financial Institutions Analysis
Asset Level: EQB's level of assets compared to its equity is moderate.
Allowance for Bad Loans: EQB has a low allowance for bad loans.
Low Risk Liabilities: EQB's liabilities are made up of primarily low risk sources of funding.
Loan Level: EQB has an acceptable proportion of non-loan assets held.
Low Risk Deposits: EQB has advanced significantly more loans than the customer deposits it holds.
Level of Bad Loans: EQB has an appropriate level of bad loans (0.46%)
Next Steps
Dividend
What is Equitable Group's current dividend yield, its reliability and sustainability?
2.71%
Current Dividend Yield
Dividend Yield vs Market
Notable Dividend: EQB's dividend (2.71%) isn’t notable compared to the bottom 25% of dividend payers in the Canadian market (2.71%).
High Dividend: EQB's dividend (2.71%) is low compared to the top 25% of dividend payers in the Canadian market (8.69%).
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
Dividend Coverage: With its low payout ratio (10.7%), 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 (15% payout ratio).
Next Steps
Management
How experienced are the management team and are they aligned to shareholders interests?
8.2yrs
Average management tenure
CEO
Andrew R. Moor (59yo)
13s
Tenure
CA$2,814,429
Compensation
Mr. Andrew R. G. Moor serves as Director at Sleep Country Canada Holdings Inc. since July 16, 2015. Mr. Moor joined Equitable Group Incorporated and Equitable Bank in March 2007 and is President, Chief Exe ...
CEO Compensation Analysis
Compensation vs Market: Andrew R.'s total compensation ($USD1.99M) is about average for companies of similar size in the Canadian market ($USD1.71M).
Compensation vs Earnings: Andrew R.'s compensation has been consistent with company performance over the past year.
Leadership Team
| Name | Position | Tenure | Compensation | Ownership |
|---|---|---|---|---|
| President | 13yrs | CA$2.81m | 1.31% CA$12.0m | |
| Senior VP & CFO | 8.17yrs | CA$1.00m | 0.097% CA$891.8k | |
| Senior VP & Chief Information Officer | 0.83yr | CA$575.69k | 0.0046% CA$42.6k | |
| Senior VP & Chief Risk Officer | no data | CA$803.99k | 0.0076% CA$70.0k | |
| Senior Vice President of Commercial Lending | no data | CA$498.00k | 0.0043% CA$39.6k | |
| VP & General Counsel | no data | no data | 0.0048% CA$44.0k | |
| VP & Chief Compliance Officer | no data | no data | no data | |
| Senior Vice President of Human Resources | no data | no data | 0.011% CA$98.2k | |
| Senior Vice-President of Residential Sales | no data | CA$236.48k | 0.0071% CA$65.5k | |
| Senior Vice President of Residential Lending | no data | no data | 0.0027% CA$25.1k |
8.2yrs
Average Tenure
Experienced Management: EQB's management team is seasoned and experienced (8.2 years average tenure).
Board Members
| Name | Position | Tenure | Compensation | Ownership |
|---|---|---|---|---|
| President | 13yrs | CA$2.81m | 1.31% CA$12.0m | |
| Independent Chairman of the Board | 5.83yrs | CA$192.50k | 0.11% CA$983.9k | |
| Independent Director | 5.83yrs | CA$118.35k | 0.0095% CA$87.5k | |
| Honorary Chairman | 5.83yrs | CA$23.44k | no data | |
| Independent Director | 16.17yrs | CA$119.10k | 0.17% CA$1.6m | |
| Independent Director | 3.25yrs | CA$124.73k | 0.0085% CA$77.9k | |
| Independent Director | 5.83yrs | CA$117.10k | 0.012% CA$109.4k | |
| Independent Director | 6.83yrs | CA$106.98k | 0.012% CA$109.4k | |
| Independent Director | 8.83yrs | CA$121.98k | 0.024% CA$221.4k | |
| Independent Director | 6.83yrs | CA$129.10k | 0.012% CA$109.4k |
6.3yrs
Average Tenure
61yo
Average Age
Experienced Board: EQB's board of directors are considered experienced (6.3 years average tenure).
Ownership
Who are the major shareholders and have insiders been buying or selling?
Insider Trading Volume
Insider Buying: EQB insiders have bought more shares than they have sold 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 company bio, employee growth, exchange listings and data sources
Key Information
- Name: Equitable Group Inc.
- Ticker: EQB
- Exchange: TSX
- Founded: 1970
- Industry: Thrifts and Mortgage Finance
- Sector: Banks
- Market Cap: CA$918.156m
- Shares outstanding: 16.80m
- Website: https://www.equitablebank.ca
Number of Employees
Location
- Equitable Group Inc.
- Equitable Bank Tower
- Suite 700
- Toronto
- Ontario
- M4V 3A1
- Canada
Listings
| Ticker | Exchange | Primary Security | Security Type | Country | Currency | Listed on |
|---|---|---|---|---|---|---|
| EQB | TSX (The Toronto Stock Exchange) | Yes | Common Shares | CA | CAD | Mar 2004 |
| EQGP.F | OTCPK (Pink Sheets LLC) | Yes | Common Shares | US | USD | Mar 2004 |
| EQB.PRC | TSX (The Toronto Stock Exchange) | PFD SER 3 | CA | CAD | Aug 2014 |
Biography
Equitable Group Inc., through its subsidiary, Equitable Bank, provides various financial services to retail and commercial customers in Canada. The company accepts term deposits and guaranteed investment certificates (GICs), high interest savings accounts (HISAs), tax-free savings accounts, and institutional deposit notes. Its loan products include residential mortgages; home equity and cash surrender value lines of credit; mortgages on commercial properties comprising mixed-use, multi-residential properties, retail spaces, office condominiums, and industrial buildings; and asset repositioning, inventory, term, and construction loans. Equitable Group Inc. was founded in 1970 and is headquartered in Toronto, Canada.
Company Analysis and Financial Data Status
| Data | Last Updated (UTC time) |
|---|---|
| Company Analysis | 2020/03/31 02:14 |
| End of Day Share Price | 2020/03/30 00:00 |
| Earnings | 2019/12/31 |
| Annual Earnings | 2019/12/31 |
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.