OTCPK:EQGP.F

Stock Analysis Report

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

6.8%

OTCPK:EQGP.F

-1.6%

US Mortgage

-1.9%

US Market


1 Year Return

n/a

OTCPK:EQGP.F

-2.6%

US Mortgage

-3.3%

US Market

No trading data on EQGP.F.

No trading data on EQGP.F.


Share holder returns

EQGP.FIndustryMarket
7 Day6.8%-1.6%-1.9%
30 Day21.8%-2.8%-6.2%
90 Dayn/a-1.3%0.3%
1 Yearn/a-0.6%-2.6%-1.1%-3.3%
3 Year67.9%59.8%29.6%21.0%37.9%28.9%
5 Yearn/a55.3%39.0%50.8%34.1%

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

No news available

Valuation

Is Equitable Group undervalued based on future cash flows and its price relative to the stock market?

47%

Discount to future cash flow value


Intrinsic Value Based on Future Cash Flows

Equitable Group's share price is below the future cash flow value, and at a moderate discount (> 20%).

Equitable Group's share price is below the future cash flow value, and at a substantial discount (> 40%).


Price Based on Earnings

Equitable Group is good value based on earnings compared to the US Mortgage industry average.

Equitable Group is good value based on earnings compared to the United States of America market.


Price Based on Expected Growth

Equitable Group is good value based on expected growth next year.


Price Based on Value of Assets

Equitable Group is overvalued based on assets compared to the US Mortgage industry average.


Next Steps

Future Growth

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

11.7%

Forecasted annual earnings growth


Earnings and Revenue Growth Estimates


Future Annual Growth Analysis

Equitable Group's revenue is expected to grow by 11% yearly, however this is not considered high growth (20% yearly).

Equitable Group's earnings are expected to grow by 11.7% yearly, however this is not considered high growth (20% yearly).

Equitable Group's revenue growth is expected to exceed the United States of America market average.

Equitable Group's earnings growth is positive but not above the United States of America market average.

Equitable Group's earnings growth is expected to exceed the low risk savings rate of 2.7%.


Earnings per Share Growth Estimates


Future Return on Equity

Equitable Group is not expected to efficiently use shareholders’ funds in the future (Return on Equity less than 20%).


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

Equitable Group's year on year earnings growth rate has been positive over the past 5 years.

Equitable Group's 1-year earnings growth exceeds its 5-year average (18.2% vs 11.4%)

Equitable Group's earnings growth has not exceeded the US Mortgage industry average in the past year (18.2% vs 32.9%).


Return on Equity

Equitable Group has not efficiently used shareholders’ funds last year (Return on Equity less than 20%).


Return on Assets

Equitable Group used its assets less efficiently than the US Mortgage industry average last year based on Return on Assets.


Return on Capital Employed

Unable to establish if Equitable Group improved its use of capital last year versus 3 years ago (Return on Capital Employed) due to insufficient past data.


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

Information is not available.

Information is not available.


Financial Institutions Analysis

Equitable Group has an acceptable proportion of non-loan assets held.

Equitable Group has a low allowance for bad loans.

Equitable Group's liabilities are made up of primarily low risk sources of funding.

Equitable Group's level of assets compared to its equity is moderate (i.e. an appropriate level of borrowing to fund lending).

Equitable Group has advanced significantly more loans than the customer deposits it holds (i.e. bank has borrowed additional funds to lend).

Equitable Group has an acceptable level of bad loans (less than 2%).


Next Steps

Dividend

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

1.52%

Expected Dividend Yield


Upcoming Dividend Payment

Purchase Equitable Group before the 'Buy Limit' to receive their next dividend payment.


Dividend Yield and Payments Analysis

Equitable Group's pays a lower dividend yield than the bottom 25% of dividend payers in United States of America (1.52%).

Equitable Group's dividend is below the markets top 25% of dividend payers in United States of America (3.93%).

Dividends per share have been stable in the past 10 years.

Dividends per share have increased over the past 10 years.


Current Payout to Shareholders

Dividends paid are thoroughly covered by earnings (9.3x coverage).


Future Payout to Shareholders

Dividends after 3 years are expected to be thoroughly covered by earnings (8x coverage).


Next Steps

Management

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

7.6yrs

Average management tenure


CEO

Andrew R. Moor (59yo)

12.4yrs

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

Andrew R.'s remuneration is about average for companies of similar size in United States of America.

Andrew R.'s compensation has been consistent with company performance over the past year, both up more than 20%.


Management Age and Tenure

7.6yrs

Average Tenure

The average tenure for the Equitable Group management team is over 5 years, this suggests they are a seasoned and experienced team.


Board Age and Tenure

5.8yrs

Average Tenure

61yo

Average Age

The tenure for the Equitable Group board of directors is about average.


Insider Trading

Equitable Group individual insiders have only sold shares in the past 3 months.


Recent Insider Transactions

SellCA$95,80821 Aug 19
Mahima Poddar
EntityIndividual
Role
Head of Corporate Development
Vice-President of Product & Corporate Development
Shares1,330
Max PriceCA$72.04
BuyCA$178,45513 Aug 19
Benjamin Beutel Holdings Ltd
EntityCompany
Shares2,500
Max PriceCA$71.38
SellCA$181,81113 Aug 19
Benjamin Beutel Holdings Ltd
EntityCompany
Shares2,500
Max PriceCA$72.72
BuyCA$24,68002 Apr 19
Susan Ericksen
EntityIndividual
Shares500
Max PriceCA$49.36

Ownership Breakdown


Management Team

  • Andrew R. Moor (59yo)

    President

    • Tenure: 12.4yrs
    • Compensation: CA$2.81m
  • Kim Kukulowicz

    Senior VP of Marketing & Residential Sales

    • Tenure: 0.0yrs
    • Compensation: CA$236.48k
  • Tim Wilson

    Senior VP & CFO

    • Tenure: 7.6yrs
    • Compensation: CA$1.00m
  • Jody Sperling

    Senior Vice President of Human Resources

    • Tenure: 0.0yrs
  • Ron Tratch

    Senior VP & Chief Risk Officer

    • Tenure: 0.0yrs
    • Compensation: CA$803.99k
  • Dan Dickinson

    Senior VP & Chief Information Officer

    • Tenure: 0.3yrs
    • Compensation: CA$575.69k
  • Darren Lorimer

    Senior Vice President of Commercial Lending

    • Tenure: 0.0yrs
    • Compensation: CA$498.00k
  • Mahima Poddar

    Vice-President of Product & Corporate Development

    • Tenure: 0.0yrs
  • Michael Mignardi

    VP & General Counsel

    • Tenure: 0.0yrs
  • Lisa Cinelli

    VP & Chief Compliance Officer

    • Tenure: 0.0yrs

Board Members

  • Andrew R. Moor (59yo)

    President

    • Tenure: 12.4yrs
    • Compensation: CA$2.81m
  • David Malcolm LeGresley (60yo)

    Chairman of the Board

    • Tenure: 5.3yrs
    • Compensation: CA$192.50k
  • Michael Emory (63yo)

    Independent Director

    • Tenure: 5.3yrs
    • Compensation: CA$118.35k
  • Austin Beutel (87yo)

    Honorary Chairman

    • Tenure: 5.3yrs
    • Compensation: CA$23.44k
  • Eric Beutel (56yo)

    Independent Director

    • Tenure: 15.6yrs
    • Compensation: CA$119.10k
  • Kish Kapoor (62yo)

    Independent Director

    • Tenure: 2.8yrs
    • Compensation: CA$124.73k
  • Mike Stramaglia (59yo)

    Independent Director

    • Tenure: 5.3yrs
    • Compensation: CA$117.10k
  • Rowan Saunders (55yo)

    Independent Director

    • Tenure: 6.3yrs
    • Compensation: CA$106.98k
  • Lynn McDonald (67yo)

    Independent Director

    • Tenure: 8.3yrs
    • Compensation: CA$121.98k
  • Vincenza Sera (62yo)

    Independent Director

    • Tenure: 6.3yrs
    • 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: EQGP.F
  • Exchange: OTCPK
  • Founded: 1970
  • Industry: Thrifts and Mortgage Finance
  • Sector: Banks
  • Market Cap: CA$1.589b
  • Listing Market Cap: CA$1.194b
  • Shares outstanding: 16.67m
  • 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 Analysis2019/08/26 00:42
End of Day Share Price2019/08/22 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.