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EQTY

Equity Group HoldingsNASE:EQTY Stock Report

Market Cap

KSh186.8b

7D

0.5%

1Y

43.5%

Updated

21 Oct, 2021

Data

Company Financials +
EQTY fundamental analysis
Snowflake Score
Valuation2/6
Future Growth4/6
Past Performance4/6
Financial Health4/6
Dividends0/6

EQTY Overview

Equity Group Holdings Plc provides financial products and services to individuals, small and medium sized enterprises, and large enterprises.

Price History & Performance

Summary of all time highs, changes and price drops for Equity Group Holdings
Historical stock prices
Current Share PriceKSh49.50
52 Week HighKSh32.65
52 Week LowKSh55.00
Beta0.76
1 Month Change-4.35%
3 Month Change3.45%
1 Year Change43.48%
3 Year Change23.75%
5 Year Change60.98%
Change since IPO903.39%

Recent News & Updates

Shareholder Returns

EQTYKE BanksKE Market
7D0.5%-0.7%0.1%
1Y43.5%17.0%28.0%

Return vs Industry: EQTY exceeded the KE Banks industry which returned 17.2% over the past year.

Return vs Market: EQTY exceeded the KE Market which returned 28.2% over the past year.

Price Volatility

Is EQTY's price volatile compared to industry and market?
EQTY volatility
EQTY Beta0.76
Industry Beta0.56
Market Beta1

Stable Share Price: EQTY is not significantly more volatile than the rest of KE stocks over the past 3 months, typically moving +/- 3% a week.

Volatility Over Time: EQTY's weekly volatility (3%) has been stable over the past year.

About the Company

FoundedEmployeesCEOWebsite
19847,119James Mwangihttps://equitygroupholdings.com

Equity Group Holdings Plc provides financial products and services to individuals, small and medium sized enterprises, and large enterprises. It offers savings and current accounts, term deposits, and transaction deposits; agricultural, mortgage, asset finance, business, and development loans; and trade financing products, including bid bonds, LCs, and guarantees. The company also provides investment banking and management, stock-broking, insurance agency, custodial, consultancy, telecommunication, trustee, corporate administration, and advisory services.

Equity Group Holdings Fundamentals Summary

How do Equity Group Holdings's earnings and revenue compare to its market cap?
EQTY fundamental statistics
Market CapKSh186.80b
Earnings (TTM)KSh28.66b
Revenue (TTM)KSh77.36b

6.5x

P/E Ratio

1.3x

P/B Ratio

Earnings & Revenue

Key profitability statistics from the latest earnings report
EQTY income statement (TTM)
RevenueKSh77.36b
Cost of RevenueKSh0
Gross ProfitKSh77.36b
ExpensesKSh48.70b
EarningsKSh28.66b

Last Reported Earnings

Jun 30, 2021

Next Earnings Date

n/a

Earnings per share (EPS)7.59
Gross Margin100.00%
Net Profit Margin37.04%
Debt/Equity Ratio66.0%

How did EQTY perform over the long term?

See historical performance and comparison

Valuation

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

6.52x

Price to Earnings (PE) ratio


Share Price vs. Fair Value

Below Fair Value: EQTY (KES49.5) is trading above our estimate of fair value (KES49.29)

Significantly Below Fair Value: EQTY is trading above our estimate of fair value.


Price To Earnings Ratio

PE vs Industry: EQTY is poor value based on its PE Ratio (6.5x) compared to the KE Banks industry average (6.1x).

PE vs Market: EQTY is good value based on its PE Ratio (6.5x) compared to the KE market (6.7x).


Price to Earnings Growth Ratio

PEG Ratio: EQTY is good value based on its PEG Ratio (0.3x)


Price to Book Ratio

PB vs Industry: EQTY is overvalued based on its PB Ratio (1.3x) compared to the KE Banks industry average (0.8x).


Future Growth

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

19.1%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: EQTY's forecast earnings growth (19.1% per year) is above the savings rate (12.6%).

Earnings vs Market: EQTY's earnings (19.1% per year) are forecast to grow faster than the KE market (13.8% per year).

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

Revenue vs Market: EQTY's revenue (17.7% per year) is forecast to grow faster than the KE market (9.5% per year).

High Growth Revenue: EQTY's revenue (17.7% per year) is forecast to grow slower than 20% per year.


Earnings per Share Growth Forecasts


Future Return on Equity

Future ROE: EQTY's Return on Equity is forecast to be high in 3 years time (22%)


Past Performance

How has Equity Group Holdings performed over the past 5 years?

6.5%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: EQTY has a high level of non-cash earnings.

Growing Profit Margin: EQTY's current net profit margins (37%) are higher than last year (31.9%).


Past Earnings Growth Analysis

Earnings Trend: EQTY's earnings have grown by 6.5% per year over the past 5 years.

Accelerating Growth: EQTY's earnings growth over the past year (47%) exceeds its 5-year average (6.5% per year).

Earnings vs Industry: EQTY earnings growth over the past year (47%) exceeded the Banks industry -5.6%.


Return on Equity

High ROE: EQTY's Return on Equity (18.7%) is considered low.


Financial Health

How is Equity Group Holdings'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: EQTY's Assets to Equity ratio (7.2x) is low.

Allowance for Bad Loans: EQTY has a low allowance for bad loans (82%).

Low Risk Liabilities: 85% of EQTY's liabilities are made up of primarily low risk sources of funding.

Loan Level: EQTY has an appropriate level of Loans to Assets ratio (45%).

Low Risk Deposits: EQTY's Loans to Deposits ratio (62%) is appropriate.

Level of Bad Loans: EQTY has a high level of bad loans (11.9%).


Dividend

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

7.93%

Forecast Dividend Yield


Dividend Yield vs Market

Notable Dividend: Unable to evaluate EQTY's dividend yield against the bottom 25% of dividend payers, as the company has not reported any recent payouts.

High Dividend: Unable to evaluate EQTY's dividend yield against the top 25% of dividend payers, as the company has not reported any recent payouts.


Stability and Growth of Payments

Stable Dividend: Insufficient data to determine if EQTY's dividends per share have been stable in the past.

Growing Dividend: Insufficient data to determine if EQTY's dividend payments have been increasing.


Current Payout to Shareholders

Dividend Coverage: EQTY is not paying a notable dividend for the KE market.


Future Payout to Shareholders

Future Dividend Coverage: No need to calculate the sustainability of EQTY's dividend in 3 years as they are not forecast to pay a notable one for the KE market.


Next Steps

Management

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

3.3yrs

Average management tenure


CEO

James Mwangi (56 yo)

17.75yrs

Tenure

KSh278,531,000

Compensation

Dr. James Njuguna Mwangi, CBS, is Group Managing Director and Chief Executive Officer at Equity Bank (Kenya) Ltd. He serves as a Non-Executive Director at Equity Bank Congo Sarl. He serves as the Chief Exe...


CEO Compensation Analysis

Compensation vs Market: James's total compensation ($USD2.51M) is above average for companies of similar size in the KE market ($USD944.32K).

Compensation vs Earnings: James's compensation has increased by more than 20% in the past year.


Leadership Team

Experienced Management: EQTY's management team is considered experienced (3.3 years average tenure).


Board Members

Experienced Board: EQTY's board of directors are not considered experienced ( 2.8 years average tenure), which suggests a new board.


Ownership

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


Insider Trading Volume

Insider Buying: Insufficient data to determine if insiders have bought more shares than they have sold in the past 3 months.


Ownership Breakdown

Dilution of Shares: Shareholders have not been meaningfully diluted in the past year.


Top Shareholders

Company Information

Equity Group Holdings Plc's employee growth, exchange listings and data sources


Key Information

  • Name: Equity Group Holdings Plc
  • Ticker: EQTY
  • Exchange: NASE
  • Founded: 1984
  • Industry: Diversified Banks
  • Sector: Banks
  • Market Cap: KSh186.797b
  • Shares outstanding: 3.77b
  • Website: https://equitygroupholdings.com

Number of Employees


Location

  • Equity Group Holdings Plc
  • Equity Centre
  • 9th Floor
  • Nairobi
  • 200
  • Kenya

Listings


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2021/10/21 18:13
End of Day Share Price2021/10/21 00:00
Earnings2021/06/30
Annual Earnings2020/12/31


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.