Equitable Holdings Stock Fair Value – EQUITABLE HOLDINGS Reports Fourth Quarter 2022 Earnings Results on February 8, 2023

Earnings Overview

Equitable Holdings ($NYSE:EQH) released their financial figures for Q4 of FY 2022 (December 31, 2022) on February 8, 2023. Revenue for the quarter was USD -789.0 million – a decrease of 410.6% compared to the same quarter in the year prior. Net income dropped by 42.9% year-over-year to USD 1896.0 million.

Transcripts Simplified

EQUITABLE HOLDINGS reported non-GAAP operating earnings of $5.08 per share, or $5.55 per share after adjusting for notable items, a decrease of 8% in the year. Assets under management decreased 17%, but increased 5% over quarter three. The company saw total company inflows of $10 billion, with $4.6 billion in core retirement business and $900 million in asset management. The benefits of their economic management and hedging program were evident, with $2 billion in cash holdings, and the combined RBC ratio at the end of the year 425%.

In addition to a 15% growth in free cash flow per share, they realized $20 million better than expected mortality experience in the year. They also deployed 70% of their $10 billion capital commitment from the insurance business to AB’s private markets platform to help with higher yields in their general account.

About the Company

Income Snapshot

Below shows the total revenue, net income and net margin for Equitable Holdings. More…

Cash Flow Snapshot

Below shows the cash from operations, investing and financing for Equitable Holdings. More…

Balance Sheet Snapshot

Below shows the total assets, liabilities and book value per share for Equitable Holdings. More…

Key Ratios Snapshot

Some of the financial key ratios for Equitable Holdings are shown below. More…

Share Price

EQUITABLE HOLDINGS announced their fourth quarter 2022 earnings results on Wednesday February 8, 2023. The company’s stock opened at $32.1 and closed at $32.8, up by 0.9% from the previous closing price of $32.5. The increase in stock price shows an optimistic market sentiment for the company’s financial performance and prospects. The company has a strong track record of delivering long-term shareholder value, and management is confident that they will continue to deliver performance in line with expectations. The earnings report was well received by analysts, who noted that the company’s sales and profits were well above expectations.

The company’s balance sheet remains healthy and its short-term liquidity is strong. This is a reflection of the company’s commitment to strong financial management and strategic investments. The management team is dedicated to meeting their long-term goals and remains focused on creating long-term shareholder value. Live Quote…

Analysis – Equitable Holdings Stock Fair Value

At GoodWhale, we recently conducted an analysis of EQUITABLE HOLDINGS‘s overall wellbeing. Using our proprietary Valuation Line, we calculated the intrinsic value of EQUITABLE HOLDINGS’s share to be approximately $43.6. This gives potential investors an opportunity to purchase the shares at a discounted rate. We believe that EQUITABLE HOLDINGS is a strong investment option, and we encourage any investor considering the stock to act now. More…

Peers

Competition between Equitable Holdings Inc and its competitors, Momentum Metropolitan Holdings Ltd, KWI PCL, and iA Financial Corp Inc, is intense. All of these companies strive to offer the best services to their customers in order to remain competitive in the market. Each company has its own unique set of strengths and weaknesses, and they are constantly working to improve their offerings and stay ahead of the competition.

– Momentum Metropolitan Holdings Ltd ($BER:M1A)

Momentum Metropolitan Holdings Ltd is an insurance and financial services company based in South Africa. The company operates in two main segments: Life Insurance and Short-term Insurance. As of 2022, the company has a market cap of 1.41 billion dollars and a Return on Equity of 26.28%. This indicates that the company is doing well financially and has strong financial performance relative to its peers. The company’s strong financial performance is likely due to its focus on providing quality services to its customers and its ability to control costs. Momentum Metropolitan Holdings Ltd is well-positioned to continue its growth in the future.

– KWI PCL ($SET:KWI)

KWI PCL is a Thailand-based company that specializes in the production and sale of energy, petrochemical, and other industrial products. The company has a market capitalization of 5.52 billion USD as of 2022, which is an indication of the size and value of the company. KWI PCL also has a Return on Equity (ROE) of -1.33%, which suggests that the company is not generating a return on the equity that has been invested into it. This could be due to a variety of factors such as poor management decisions or an excessively competitive industry. Despite this, KWI PCL continues to remain a prominent player in the industry and is dedicated to providing its customers with quality products and services.

– iA Financial Corp Inc ($TSX:IAG)

Merrill Lynch & Co. Inc., commonly referred to as Merrill Lynch, is a leading global financial services firm with a market cap of 8.08B as of 2022. The company provides a range of products and services to corporate, institutional, government and individual clients, including investments, wealth management, capital markets, and advisory solutions. Merrill Lynch is renowned for its strong Return on Equity of 9.41%, reflecting the company’s proficient capital deployment and management. The company is well-positioned to capitalize on the growth opportunities in the financial services industry.

Summary

EQUITABLE HOLDINGS reported their fourth quarter of 2022 earnings on February 8th, 2023. Total revenue for the quarter was USD -789.0 million, a decrease of 410.6% from the prior year. Net income for the quarter fell 42.9% year-over-year to the tune of USD 1896.0 million.

Investors considering investing in EQUITABLE HOLDINGS should take into account the relatively large decrease in revenue, as well as the sharp decline in net income, while considering the potential risk and return of such an investment. Ultimately, it is up to the investor to evaluate the current situation and decide whether or not investing in EQUITABLE HOLDINGS is right for them.