Equitable Group (TSX:EQB) - Share price, News & Analysis

EQB fundamental analysis
Snowflake Score
Valuation	5/6
Future Growth	3/6
Past Performance	3/6
Financial Health	4/6
Dividends	4/6

EQB Stock Overview

Equitable Group Inc., through its subsidiary, Equitable Bank, provides personal and commercial banking services to retail and commercial customers in Canada.

Rewards

Trading at 71.5% below our estimate of its fair value

Earnings are forecast to grow 13.73% per year

Earnings grew by 16.9% over the past year

Risk Analysis

High level of non-cash earnings

Significant insider selling over the past 3 months

Equitable Group Competitors

Royal Bank of Canada

TSX:RY

CA$179.2b

Toronto-Dominion Bank

TSX:TD

CA$167.0b

Bank of Nova Scotia

TSX:BNS

CA$96.1b

Bank of Montreal

TSX:BMO

CA$87.9b

Price History & Performance

Summary of all time highs, changes and price drops for Equitable Group
Historical stock prices
Current Share Price	CA$61.01
52 Week High	CA$84.78
52 Week Low	CA$51.73
Beta	1.68
1 Month Change	-2.26%
3 Month Change	-20.66%
1 Year Change	-14.64%
3 Year Change	76.53%
5 Year Change	145.02%
Change since IPO	438.72%

Shareholder Returns

	EQB	CA Mortgage	CA Market
7D	2.8%	1.1%	0.2%
1Y	-14.6%	-13.3%	4.8%

Return vs Industry: EQB underperformed the Canadian Mortgage industry which returned -13.3% over the past year.

Return vs Market: EQB underperformed the Canadian Market which returned 4.8% over the past year.

Price Volatility

Is EQB's price volatile compared to industry and market?
EQB volatility
EQB Average Weekly Movement	4.8%
Mortgage Industry Average Movement	2.9%
Market Average Movement	9.8%
10% most volatile stocks in CA Market	17.0%
10% least volatile stocks in CA Market	4.3%

Stable Share Price: EQB is less volatile than 75% of Canadian stocks over the past 3 months, typically moving +/- 5% a week.

Volatility Over Time: EQB's weekly volatility (5%) has been stable over the past year.

About the Company

Founded	Employees	CEO	Website
1970	1,219	Andrew R. Moor	https://www.equitablebank.ca

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?
EQB fundamental statistics
Market Cap	CA$2.08b
Earnings (TTM)	CA$306.90m
Revenue (TTM)	CA$687.38m

6.8x

P/E Ratio

1.1x

P/B Ratio

Is EQB overvalued?

See Fair Value and valuation analysis

Earnings & Revenue

Key profitability statistics from the latest earnings report
EQB income statement (TTM)
Revenue	CA$687.38m
Cost of Revenue	CA$0
Gross Profit	CA$687.38m
Other Expenses	CA$380.49m
Earnings	CA$306.90m

Last Reported Earnings

Mar 31, 2022

Next Earnings Date

n/a

Earnings per share (EPS)	8.99
Gross Margin	100.00%
Net Profit Margin	44.65%
Debt/Equity Ratio	602.4%

How did EQB perform over the long term?

See historical performance and comparison

Dividends

1.8%

Current Dividend Yield

9%

Payout Ratio

Does EQB pay a reliable dividends?

See EQB dividend history and benchmarks

When do you need to buy EQB by to receive an upcoming dividend?
Equitable Group dividend dates
Ex Dividend Date	Jun 14 2022
Dividend Pay Date	Jun 30 2022
Days until Ex dividend	20 days
Days until Dividend pay date	36 days

Does EQB pay a reliable dividends?

See EQB dividend history and benchmarks

Valuation

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 low allowance 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.

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