TSX:EQB

Stock Analysis Report

Equitable Group

Executive Summary

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

Snowflake

Fundamentals

Undervalued with adequate balance sheet and pays a dividend.

Share Price & News

How has Equitable Group's share price performed over time and what events caused price changes?


Latest Share Price and Events


Market Performance


7 Day Return

2.5%

EQB

0.1%

CA Mortgage

-0.2%

CA Market


1 Year Return

78.8%

EQB

35.6%

CA Mortgage

1.5%

CA Market

Return vs Industry: EQB exceeded the Canadian Mortgage industry which returned 35.6% over the past year.

Return vs Market: EQB exceeded the Canadian Market which returned 1.5% over the past year.


Shareholder returns

EQBIndustryMarket
7 Day2.5%0.1%-0.2%
30 Day9.1%2.6%-3.5%
90 Day39.5%17.2%-1.8%
1 Year81.7%78.8%44.1%35.6%5.1%1.5%
3 Year111.5%101.5%61.3%41.5%13.3%3.2%
5 Year79.5%66.5%24.8%3.5%25.2%7.2%

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

Valuation

Is Equitable Group undervalued compared to its fair value and its price relative to the market?

44.5%

Undervalued compared to fair value


Share Price vs. Fair Value

Below Fair Value: EQB (CA$109.36) is trading below our estimate of fair value (CA$196.99)

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 (10.1x) compared to the Mortgage industry average (13.7x).

PE vs Market: EQB is good value based on its PE Ratio (10.1x) compared to the Canadian market (13.7x).


Price to Earnings Growth Ratio

PEG Ratio: EQB is good value based on its PEG Ratio (0.8x)


Price to Book Ratio

PB vs Industry: EQB is overvalued based on its PB Ratio (1.4x) compared to the CA Mortgage industry average (1.1x).


Next Steps

Future Growth

How is Equitable Group forecast to perform in the next 1 to 3 years based on estimates from 6 analysts?

13.3%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: EQB's forecast earnings growth (13.3% per year) is above the savings rate (1.9%).

Earnings vs Market: EQB's earnings (13.3% per year) are forecast to grow slower than the Canadian market (13.6% per year).

High Growth Earnings: EQB's earnings are forecast to grow, but not significantly.

Revenue vs Market: EQB's revenue (11.9% per year) is forecast to grow faster than the Canadian market (5.7% per year).

High Growth Revenue: EQB's revenue (11.9% 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%).


Next Steps

Past Performance

How has Equitable Group performed over the past 5 years?

11.4%

Historical annual earnings growth


Earnings and Revenue History


Past Earnings Growth Analysis

Earnings Trend: EQB's earnings have grown by 11.4% per year over the past 5 years.

Accelerating Growth: EQB's earnings growth over the past year (18.2%) exceeds its 5-year average (11.4% per year).

Earnings vs Industry: EQB earnings growth over the past year (18.2%) exceeded the Mortgage industry 7.7%.


Return on Equity

High ROE: EQB's Return on Equity (13.5%) is considered low.


Return on Assets

ROA vs Industry: EQB's Return on Assets is below or equal to the Mortgage industry average last year.


Return on Capital Employed

ROCE Improving: Insufficient data to calculate EQB's Return on Capital Employed to determine if it has improved over the past 3 years.


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 (0.44%)


Next Steps

Dividend

What is Equitable Group's current dividend yield, its reliability and sustainability?

1.21%

Current Dividend Yield


Dividend Yield vs Market

company1.2%marketbottom25%2.0%markettop25%6.0%industryaverage4.2%forecastin3Years1.4%

Current dividend yield vs market & industry


Stability and Growth of Payments

Notable Dividend: EQB's dividend (1.21%) isn’t notable compared to the bottom 25% of dividend payers in the Canadian market (2.04%).

High Dividend: EQB's dividend (1.21%) is low compared to the top 25% of dividend payers in the Canadian market (6.03%).

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 (10.8%), 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 (12.4% payout ratio).


Next Steps

Management

What is the CEO of Equitable Group's salary, the management and board of directors tenure and is there insider trading?

7.8yrs

Average management tenure


CEO

Andrew R. Moor (59yo)

12.6yrs

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 ($USD2.14M) is about average for companies of similar size in the Canadian market ($USD2.24M).

Compensation vs Earnings: Andrew R.'s compensation has been consistent with company performance over the past year.


Management Age and Tenure

7.8yrs

Average Tenure

Experienced Management: EQB's management team is seasoned and experienced (7.8 years average tenure).


Board Age and Tenure

5.9yrs

Average Tenure

61yo

Average Age

Experienced Board: EQB's board of directors are considered experienced (5.9 years average tenure).


Insider Trading

Insider Buying: EQB insiders have only sold shares in the past 3 months.


Recent Insider Transactions

SellCA$206,00024 Sep 19
Eric Beutel
EntityIndividual
Role
Member of the Board of Directors
Independent Director
Shares2,000
Max PriceCA$103.00
SellCA$301,08019 Sep 19
Andrew R. Moor
EntityIndividual
Role
Chief Executive Officer
President
Shares3,000
Max PriceCA$100.36
SellCA$252,50016 Sep 19
Tim Wilson
EntityIndividual
Role
Chief Financial Officer
Senior VP & CFO
Shares2,500
Max PriceCA$101.00
SellCA$250,00011 Sep 19
Tim Wilson
EntityIndividual
Role
Chief Financial Officer
Senior VP & CFO
Shares2,500
Max PriceCA$100.00
SellCA$146,55130 Aug 19
Andrew R. Moor
EntityIndividual
Role
Chief Executive Officer
President
Shares1,500
Max PriceCA$97.78
SellCA$9,507,38026 Aug 19
Oakwest Corporation Limited
EntityCompany
Shares100,000
Max PriceCA$95.07
SellCA$127,30821 Aug 19
Mahima Poddar
EntityIndividual
Role
Head of Corporate Development
Vice-President of Product & Corporate Development
Shares1,330
Max PriceCA$95.72
BuyCA$236,31013 Aug 19
Benjamin Beutel Holdings Ltd
EntityCompany
Shares2,500
Max PriceCA$94.52
SellCA$240,75513 Aug 19
Benjamin Beutel Holdings Ltd
EntityCompany
Shares2,500
Max PriceCA$96.30
BuyCA$32,92302 Apr 19
Susan Ericksen
EntityIndividual
Shares500
Max PriceCA$65.85

Ownership Breakdown


Management Team

  • Andrew R. Moor (59yo)

    President

    • Tenure: 12.6yrs
    • Compensation: CA$2.81m
  • Kim Kukulowicz

    Senior VP of Marketing & Residential Sales

    • Tenure: 0yrs
    • Compensation: CA$236.48k
  • Tim Wilson

    Senior VP & CFO

    • Tenure: 7.8yrs
    • Compensation: CA$1.00m
  • Jody Sperling

    Senior Vice President of Human Resources

    • Tenure: 0yrs
  • Ron Tratch

    Senior VP & Chief Risk Officer

    • Tenure: 0yrs
    • Compensation: CA$803.99k
  • Dan Dickinson

    Senior VP & Chief Information Officer

    • Tenure: 0.5yrs
    • Compensation: CA$575.69k
  • Darren Lorimer

    Senior Vice President of Commercial Lending

    • Tenure: 0yrs
    • Compensation: CA$498.00k
  • Mahima Poddar

    Vice-President of Product & Corporate Development

    • Tenure: 0yrs
  • Michael Mignardi

    VP & General Counsel

    • Tenure: 0yrs
  • Lisa Cinelli

    VP & Chief Compliance Officer

    • Tenure: 0yrs

Board Members

  • Andrew R. Moor (59yo)

    President

    • Tenure: 12.6yrs
    • Compensation: CA$2.81m
  • David Malcolm LeGresley (60yo)

    Independent Chairman of the Board

    • Tenure: 5.4yrs
    • Compensation: CA$192.50k
  • Michael Emory (63yo)

    Independent Director

    • Tenure: 5.4yrs
    • Compensation: CA$118.35k
  • Austin Beutel (87yo)

    Honorary Chairman

    • Tenure: 5.4yrs
    • Compensation: CA$23.44k
  • Eric Beutel (56yo)

    Independent Director

    • Tenure: 15.8yrs
    • Compensation: CA$119.10k
  • Kish Kapoor (62yo)

    Independent Director

    • Tenure: 2.9yrs
    • Compensation: CA$124.73k
  • Mike Stramaglia (59yo)

    Independent Director

    • Tenure: 5.4yrs
    • Compensation: CA$117.10k
  • Rowan Saunders (55yo)

    Independent Director

    • Tenure: 6.4yrs
    • Compensation: CA$106.98k
  • Lynn McDonald (67yo)

    Independent Director

    • Tenure: 8.4yrs
    • Compensation: CA$121.98k
  • Vincenza Sera (62yo)

    Independent Director

    • Tenure: 6.4yrs
    • Compensation: CA$129.10k

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$1.831b
  • Shares outstanding: 16.74m
  • Website: https://www.equitablebank.ca

Number of Employees


Location

  • Equitable Group Inc.
  • Equitable Bank Tower
  • Suite 700
  • Toronto
  • Ontario
  • M4V 3A1
  • Canada

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
EQBTSX (The Toronto Stock Exchange)YesCommon SharesCACADMar 2004
EQGP.FOTCPK (Pink Sheets LLC)YesCommon SharesUSUSDMar 2004
EQB.PRCTSX (The Toronto Stock Exchange)PFD SER 3CACADAug 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 c ...


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2019/10/20 23:54
End of Day Share Price2019/10/18 00:00
Earnings2019/06/30
Annual Earnings2018/12/31


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.