TSX:EQB

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Equitable Group

Executive Summary

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


Snowflake Analysis

Undervalued established dividend payer.


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 has not had significant price volatility in the past 3 months.


Market Performance


7 Day Return

0.1%

EQB

0.1%

CA Mortgage

-0.5%

CA Market


1 Year Return

-30.2%

EQB

-26.7%

CA Mortgage

-3.5%

CA Market

Return vs Industry: EQB underperformed the Canadian Mortgage industry which returned -26.6% over the past year.

Return vs Market: EQB underperformed the Canadian Market which returned -4.3% over the past year.


Shareholder returns

EQBIndustryMarket
7 Day0.1%0.1%-0.5%
30 Day7.5%4.1%3.0%
90 Day15.4%9.1%2.4%
1 Year-28.9%-30.2%-19.2%-26.7%-0.06%-3.5%
3 Year43.6%36.4%26.5%2.5%7.1%-3.3%
5 Year51.3%39.5%30.4%1.6%36.8%15.8%

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?

>50%

Undervalued compared to fair value


Share Price vs. Fair Value

Below Fair Value: EQB (CA$80.94) is trading below our estimate of fair value (CA$163.98)

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 (7.3x) compared to the CA Mortgage industry average (9.5x).

PE vs Market: EQB is good value based on its PE Ratio (7.3x) compared to the Canadian market (16.4x).


Price to Earnings Growth Ratio

PEG Ratio: EQB is good value based on its PEG Ratio (0.6x)


Price to Book Ratio

PB vs Industry: EQB's PB Ratio (1x) is in line with the CA Mortgage industry average.


Next Steps

Future Growth

How is Equitable Group forecast to perform in the next 1 to 3 years based on estimates from 7 analysts?

12.8%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: EQB's forecast earnings growth (12.8% per year) is above the savings rate (1.7%).

Earnings vs Market: EQB's earnings (12.8% per year) are forecast to grow slower than the Canadian market (22.6% per year).

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

Revenue vs Market: EQB's revenue (6.2% per year) is forecast to grow faster than the Canadian market (5.8% per year).

High Growth Revenue: EQB's revenue (6.2% 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 (13.3%).


Next Steps

Past Performance

How has Equitable Group performed over the past 5 years?

10.8%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: EQB has high quality earnings.

Growing Profit Margin: EQB's current net profit margins (39.6%) are lower than last year (42.5%).


Past Earnings Growth Analysis

Earnings Trend: EQB's earnings have grown by 10.8% per year over the past 5 years.

Accelerating Growth: EQB's earnings growth over the past year (3.2%) is below its 5-year average (10.8% per year).

Earnings vs Industry: EQB earnings growth over the past year (3.2%) exceeded the Mortgage industry 3%.


Return on Equity

High ROE: EQB's Return on Equity (12.6%) 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


Financial Institutions Analysis

Asset Level: EQB's Assets to Equity ratio (20x) is moderate.

Allowance for Bad Loans: EQB has a low allowance for bad loans (47%).

Low Risk Liabilities: 55% 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 (178%) is high.

Level of Bad Loans: EQB has an appropriate level of bad loans (0.6%).


Next Steps

Dividend

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

1.83%

Current Dividend Yield


Dividend Yield vs Market

Notable Dividend: EQB's dividend (1.83%) is higher than the bottom 25% of dividend payers in the Canadian market (1.69%).

High Dividend: EQB's dividend (1.83%) is low compared to the top 25% of dividend payers in the Canadian market (5.83%).


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 (12.9%), 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 (13.1% payout ratio).


Next Steps

Management

How experienced are the management team and are they aligned to shareholders interests?

6.4yrs

Average board tenure


CEO

Andrew R. Moor (60 yo)

13.58yrs

Tenure

CA$2,972,365

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 ($USD2.26M) is above average for companies of similar size in the Canadian market ($USD1.31M).

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


Board Members

NamePositionTenureCompensationOwnership
Andrew R. Moor
President13.58yrsCA$2.97m1.25%
CA$ 16.8m
David Malcolm LeGresley
Independent Chairman of the Board6.42yrsCA$226.25k0.11%
CA$ 1.4m
Michael Emory
Independent Director6.42yrsCA$115.00k0.0095%
CA$ 128.5k
Austin Beutel
Honorary Chairman6.42yrsCA$23.44kno data
Eric Beutel
Independent Director16.75yrsCA$105.00k0.17%
CA$ 2.3m
Kishore Kapoor
Independent Director3.92yrsCA$130.00k0.0085%
CA$ 114.5k
Michael Stramaglia
Independent Director6.42yrsCA$115.00k0.012%
CA$ 160.6k
Rowan Saunders
Independent Director7.42yrsCA$100.00k0.012%
CA$ 160.6k
Susan Ericksen
Independent Director1.92yrsCA$100.00k0.0053%
CA$ 72.2k
Lynn McDonald
Independent Director9.42yrsCA$115.00k0.024%
CA$ 325.3k
Vincenza Sera
Independent Director7.42yrsCA$136.88k0.012%
CA$ 160.6k

6.4yrs

Average Tenure

61yo

Average Age

Experienced Board: EQB's board of directors are considered experienced (6.4 years average tenure).


Ownership

Who are the major shareholders and have insiders been buying or selling?


Insider Trading Volume

Insider Buying: EQB insiders have only sold shares 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$1.350b
  • Shares outstanding: 16.81m
  • 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 Analysis2020/10/23 00:17
End of Day Share Price2020/10/22 00:00
Earnings2020/06/30
Annual Earnings2019/12/31


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.