Stock Analysis & Valuation Equitable Holdings, Inc. (AXJ.DE)

• Previous Close: €39.00
• Sector Valuation Confidence Level: High

Valuation method	Value, €	Upside, %
Artificial intelligence (AI)	n/a	n/a
Intrinsic value (DCF)		n/a
Graham-Dodd Method		n/a
Graham Formula	88.40	127

Strategic Investment Analysis

Company Overview

Equitable Holdings, Inc. (AXJ.DE) is a diversified financial services company with a strong legacy dating back to 1859. Headquartered in New York, the company operates globally through four key segments: Individual Retirement, Group Retirement, Investment Management and Research, and Protection Solutions. Equitable Holdings specializes in providing variable annuity products, retirement services, and investment management solutions tailored to affluent and high-net-worth individuals, as well as small and medium-sized businesses. The company’s Individual Retirement segment offers tax-efficient wealth accumulation strategies, while its Group Retirement segment serves educational institutions, municipalities, and nonprofits. Additionally, its Investment Management and Research segment delivers institutional-grade research and asset management services, and the Protection Solutions segment provides life, disability, and health insurance products. Formerly known as AXA Equitable Holdings, the company rebranded in 2020 to reflect its commitment to equitable financial solutions. With a market capitalization of approximately €15.5 billion, Equitable Holdings is a significant player in the insurance and financial services sector, leveraging its long-standing reputation and diversified product portfolio to maintain competitive positioning.

Investment Summary

Equitable Holdings presents a compelling investment case with its diversified revenue streams, strong cash flow generation (€2.01 billion in operating cash flow), and a solid balance sheet (€6.96 billion in cash and equivalents). The company’s focus on high-net-worth individuals and institutional clients provides stability, while its variable annuity and retirement solutions benefit from long-term demographic trends. However, risks include exposure to market volatility (beta of 1.13) and regulatory challenges in the insurance sector. The company’s net income of €1.31 billion and diluted EPS of €3.75 reflect profitability, but its debt load (€5.95 billion) warrants monitoring. The dividend yield, supported by a payout of €0.89653 per share, adds appeal for income-focused investors. Overall, Equitable Holdings is well-positioned in the financial services industry but remains sensitive to macroeconomic conditions.

Competitive Analysis

Equitable Holdings competes in the highly competitive insurance and financial services sector, where differentiation is driven by product innovation, brand trust, and distribution networks. The company’s competitive advantage lies in its diversified business model, which spans retirement solutions, investment management, and protection products. Its Individual Retirement segment, focused on variable annuities, caters to affluent clients seeking tax-deferred growth, a niche with high barriers to entry due to regulatory complexity. The Group Retirement segment benefits from long-term contracts with institutional clients, providing recurring revenue. Meanwhile, the Investment Management and Research segment leverages proprietary research to attract institutional investors. However, Equitable Holdings faces intense competition from larger insurers with broader global footprints and stronger capital reserves. Its reliance on the U.S. market also limits geographic diversification compared to multinational peers. The company’s rebranding in 2020 aimed to modernize its image, but it must continue investing in digital transformation to enhance customer engagement and operational efficiency. While its strong cash flow supports reinvestment, maintaining underwriting discipline in the Protection Solutions segment is critical amid rising claims costs.

Major Competitors

• Prudential Financial, Inc. (PRU): Prudential Financial is a major competitor with a broader international presence, particularly in Asia, giving it an edge in emerging markets. Its asset management arm, PGIM, is a strength, but the company faces challenges in U.S. retail annuity sales, where Equitable Holdings has a stronger foothold. Prudential’s scale provides cost advantages but also exposes it to higher regulatory scrutiny.
• MetLife, Inc. (MET): MetLife dominates the group insurance space, outperforming Equitable Holdings in corporate and employee benefits. Its global reach and strong brand recognition are advantages, but its limited focus on high-net-worth annuity products leaves room for Equitable to differentiate. MetLife’s stable earnings are offset by lower growth in retirement solutions compared to Equitable’s niche offerings.
• American International Group, Inc. (AIG): AIG’s strength lies in its commercial insurance and reinsurance segments, areas where Equitable Holdings does not compete directly. However, AIG’s life and retirement business overlaps with Equitable’s offerings. AIG’s post-crisis restructuring has improved its balance sheet, but its annuity products lack the customization Equitable provides to affluent clients.
• Lincoln National Corporation (LNC): Lincoln National competes closely with Equitable in variable annuities and retirement planning. Its strong distribution network and brand are positives, but its higher exposure to interest rate risk is a weakness compared to Equitable’s diversified cash flows. Lincoln’s recent capital constraints have limited growth, whereas Equitable maintains stronger liquidity.
• Principal Financial Group, Inc. (PFG): Principal Financial excels in retirement and asset management services for small and mid-sized businesses, a segment where Equitable also operates. Principal’s international expansion is a strength, but its protection solutions are less differentiated than Equitable’s high-net-worth-focused products. Principal’s lower debt-to-equity ratio provides financial flexibility.