Equitable Group (CA:EQB) presents an intriguing investment opportunity as we step into the new year. The company's operating margin stands at a modest 0.58%, indicating efficient operations. The bank's robust net asset value of $51.14 billion, coupled with net income from continuing operations at $270.2 million, demonstrates its financial strength. The company's revenue per share is commendable at 26.315, with the last dividend paid being $1.36, hinting at a profitable return for shareholders. Equitable Group's price to earnings ratio is 7.77X, relatively low, suggesting that the stock could be undervalued. Furthermore, the bank's debt to equity ratio is 0.38%, indicating a low level of debt relative to equity, which is a positive sign for potential investors. With a five-year return of 1.56% and a market capitalization of $3 billion, Equitable Group is a key player in the Regional Banks industry. The 50-day moving average of $72.98 and the 200-day moving average of $69.25 reflect a stable stock performance. The bank's stock is majorly held by insiders and institutions, with shares owned by insiders at 29.17% and shares owned by institutions at 24.53%. This could potentially signal confidence in the company's
future performance. It appears that Laurentian Bank is on a faster recovery path, as its share price experienced a surge of 1.19% today, compared to Equitable's 1.2%. With increasing investor interest in the banking sector, Equitable and Laurentian Bank may be heading in divergent directions. We will concentrate on some of the competitive aspects of both Equitable and Laurentian.
Investment perspective, in general, refers to a viewpoint or opinion regarding investment opportunity in Equitable. It encompasses the assessment of an investment's potential risks and rewards, and expectations for its
performance over time. Several factors influence the investment perspective on Equitable, including investment goals, risk tolerance, time horizon, market conditions, and research and analysis. Investors have varying goals, such as capital preservation, income generation, or long-term growth. Risk tolerance plays a significant role in shaping an investor's perspective, with some being more risk-averse and others willing to take on higher risks for potential returns.
How important is Equitable's Liquidity
Equitable
financial leverage refers to using borrowed capital as a funding source to finance Equitable Group ongoing operations. It is usually used to expand the firm's asset base and generate returns on borrowed capital. Equitable financial leverage is typically calculated by taking the company's all interest-bearing debt and dividing it by total capital. So the higher the debt-to-capital ratio (i.e., financial leverage), the riskier the company. Financial leverage can amplify the potential profits to Equitable's owners, but it also increases the potential losses and risk of financial distress, including bankruptcy, if the firm cannot cover its debt costs. The degree of Equitable's financial leverage can be measured in several ways, including by ratios such as the debt-to-equity ratio (total debt / total equity), equity multiplier (total assets / total equity), or the debt ratio (total debt / total assets). Please check the
breakdown between Equitable's total debt and its cash.
Breaking down Equitable Further
Revenue is income that a firm generates from business activities such us rendering services or selling goods to customers. It is a crucial part of a business and an essential item when evaluating a company's financial statements. Revenues from a firm's primary business operations can be reported on the income statement as sales revenue, net sales, or simply sales, depending on the industry in which a given company operates.
Revenue is typically recorded when cash or cash equivalents are exchanged for services or goods and can include product or services discounts, promotions, as well as early payments on invoices or services rendered in advance.
Revenue Breakdown
Now, let's check Equitable revenue. Based on the latest financial disclosure, Equitable Group reported 782.19
M of revenue. This is 93.02% lower than that of the Banks sector and significantly higher than that of the
Financials industry. The revenue for all Canada stocks is 91.71% higher than that of Equitable.
As for Laurentian Bank we see revenue of 1.03
B, which is much higher than that of the Financials
| Equitable | 782.19 Million |
| Sector | 0.0 |
| Laurentian | 1.03 Billion |
Every cloud has a silver lining, and for investors, that silver lining could be Equitable Group (CA:EQB). Despite a high probability of bankruptcy at 72.12%, the company's robust net income of $270.18M and operating income of $1.2B suggest a strong financial foundation. With a market capitalization of $2.96B and a book value per share of 67.28X, the company is undervalued, trading at a price to book ratio of just 1.16X. The company's five-year return stands at 1.56%, indicating steady growth over the years. Furthermore, the company's EPS estimate for next year is 12.1, suggesting potential for future growth. However, investors should be cautious due to the company's high beta of 1.68, indicating higher volatility compared to the market. In conclusion, Equitable Group presents a promising investment opportunity for those willing to weather potential storms. .
Will Equitable pull back in January 2024?
The recent semi-variance of 2.34 for Equitable Group indicates a certain level of volatility in the stock's returns. This could potentially suggest that the stock might experience a pullback in January 2024. Investors should closely monitor the company's
financial health and market conditions, as a higher semi-variance often signifies a higher risk of negative returns. However, it's also important to consider other factors such as the company's earnings reports, industry trends, and broader
economic indicators before making any investment decisions. As of December 7th, Equitable Group shows a Downside Deviation of 1.59, a mean deviation of 1.25, and a Coefficient Of Variation of 3950.56. Technical analysis of Equitable Group allows you to utilize historical prices and volume patterns to determine a pattern that predicts the direction of the firm's future prices. In other words, you can use this information to find out if the firm will indeed mirror its model of historical prices and volume momentum, or if the prices will eventually revert. We have analyzed nineteen technical drivers for Equitable Group, which can be compared to its rivals.
Please confirm Equitable Group's maximum drawdown, as well as the relationship between the downside variance and skewness to decide if Equitable Group is priced favorably, assuming the market reflects its regular price of 79.34 per share. In conclusion, Equitable Group's stock performance today has been impressive, yet the question of a potential surge remains uncertain. Analysts' consensus suggests a 'Hold' stance with an equal number of 'Buy' and 'Hold' recommendations at
1 each, and
2 'Strong Buy' recommendations. The highest estimated target price stands at a significant
$20.2M, while the possible downside price is at $77.77. The valuation real value is currently $44.77, which is significantly lower than the valuation market value of $79.34. The naive expected forecast value is $79.37, suggesting a possible upside price of $80.97. However, investors should consider the EPS estimate for the next fiscal year ending in December, which is projected at $12.1. Therefore, while today's advance is encouraging, a cautious approach is recommended given the varying analyst opinions and potential downside risk. .
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Ellen Johnson is a Member of Macroaxis Editorial Board. Ellen covers public companies in North America, focusing primarily on valuation and volatility. Six years of experience in predictive investment analytics and risk management.
View Profile This story should be regarded as informational only and should not be considered a solicitation to sell or buy any financial products. Macroaxis does not express any opinion as to the present or future value of any investments referred to in this post. This post may not be reproduced without the consent of Macroaxis LLC. Macroaxis LLC and Ellen Johnson do not own shares of Equitable Group. Please refer to our
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