Intrinsic Value Equitable Holdings, Inc. (AXJ.DE)

• Previous Close: €39.00
• Intrinsic Value: n/a
• Upside potential: n/a%

Stock Valuation Context

Business Model And Market Position

Equitable Holdings, Inc. is a diversified financial services company operating globally, with a strong focus on retirement and protection solutions. The company serves affluent and high-net-worth individuals, as well as small and medium-sized businesses, through its four core segments: Individual Retirement, Group Retirement, Investment Management and Research, and Protection Solutions. Its Individual Retirement segment offers variable annuity products, while Group Retirement provides tax-deferred investment services to educational, municipal, and nonprofit entities. The Investment Management segment delivers institutional and retail investment solutions, and the Protection Solutions segment includes life, disability, and health insurance products. Equitable Holdings maintains a competitive edge through its long-standing reputation, diversified product portfolio, and strategic focus on high-margin client segments. The company operates in a highly regulated and competitive industry, where scale and brand trust are critical. Its market position is reinforced by its historical roots, dating back to 1859, and its ability to adapt to evolving financial needs while maintaining a strong capital base.

Revenue Profitability And Efficiency

Equitable Holdings reported revenue of €12.44 billion, with net income of €1.31 billion, reflecting a net margin of approximately 10.5%. The company generated €2.01 billion in operating cash flow, indicating strong cash conversion from its core operations. Capital expenditures were modest at -€153 million, suggesting disciplined reinvestment. The diluted EPS of €3.75 underscores solid earnings generation per share.

Earnings Power And Capital Efficiency

The company demonstrates robust earnings power, supported by its diversified revenue streams and efficient capital deployment. With an operating cash flow of €2.01 billion, Equitable Holdings efficiently converts revenue into cash, enabling reinvestment and shareholder returns. The net income margin of 10.5% highlights effective cost management and pricing power in its core segments.

Balance Sheet And Financial Health

Equitable Holdings maintains a strong balance sheet, with €6.96 billion in cash and equivalents, providing ample liquidity. Total debt stands at €5.95 billion, resulting in a conservative leverage profile. The company’s financial health is further supported by its ability to generate consistent operating cash flow, ensuring flexibility for growth and debt servicing.

Growth Trends And Dividend Policy

The company has demonstrated steady growth, supported by its diversified business model. A dividend per share of €0.90 reflects a commitment to returning capital to shareholders. Given its strong cash flow generation, Equitable Holdings is well-positioned to sustain dividend payouts while pursuing strategic growth initiatives.

Valuation And Market Expectations

With a market capitalization of €15.5 billion and a beta of 1.13, Equitable Holdings is viewed as a moderately volatile investment relative to the broader market. The company’s valuation reflects its stable earnings, diversified revenue streams, and strong market position in financial services.

Strategic Advantages And Outlook

Equitable Holdings benefits from its long-standing brand, diversified product offerings, and focus on high-margin client segments. The outlook remains positive, supported by demographic trends favoring retirement and protection solutions. Regulatory expertise and strong capital management further enhance its competitive positioning in the financial services sector.

Sources

Company filings, market data