EQT Corporation
EQT Corporation Fundamental Analysis
EQT Corporation (EQT) shows strong financial fundamentals with a PE ratio of 10.94, profit margin of 33.40%, and ROE of 14.34%. The company generates $10.0B in annual revenue with strong year-over-year growth of 73.74%.
Key Strengths
Areas of Concern
The stock receives a Fundamental Health Score of 80.1/100 based on profitability, valuation, growth, and balance sheet metrics. The B+ grade reflects solid fundamentals with room for improvement in valuation or growth.
Fundamental Health Score
We analyze EQT's fundamental strength across five key dimensions:
Efficiency Score
WeakEQT struggles to generate sufficient returns from assets.
Valuation Score
ExcellentEQT trades at attractive valuation levels.
Growth Score
ModerateEQT shows steady but slowing expansion.
Financial Health Score
ModerateEQT shows balanced financial health with some risks.
Profitability Score
ModerateEQT maintains healthy but balanced margins.
Key Financial Metrics
Is EQT Expensive or Cheap?
P/E Ratio
EQT trades at 10.94 times earnings. This suggests potential undervaluation.
PEG Ratio
When adjusting for growth, EQT's PEG of 0.01 indicates potential undervaluation.
Price to Book
The market values EQT Corporation at 1.46 times its book value. This may indicate undervaluation.
EV/EBITDA
Enterprise value stands at 4.21 times EBITDA. This is generally considered low.
How Well Does EQT Make Money?
Net Profit Margin
For every $100 in sales, EQT Corporation keeps $33.40 as profit after all expenses.
Operating Margin
Core operations generate 46.73 in profit for every $100 in revenue, before interest and taxes.
ROE
Management delivers $14.34 in profit for every $100 of shareholder equity.
ROA
EQT Corporation generates $8.04 in profit for every $100 in assets, demonstrating efficient asset deployment.
Following the Money - Real Cash Generation
Operating Cash Flow
EQT Corporation generates strong operating cash flow of $6.44B, reflecting robust business health.
Free Cash Flow
EQT Corporation generates strong free cash flow of $4.06B, providing ample flexibility for dividends, buybacks, or growth.
FCF Per Share
Each share generates $6.50 in free cash annually.
FCF Yield
EQT converts 11.06% of its market value into free cash.
Financial Ratios Analysis
Valuation Ratios
P/E Ratio
Price to earnings ratio
10.94
vs 25 benchmark
PEG Ratio
Price/earnings to growth ratio
0.01
vs 25 benchmark
P/B Ratio
Price to book value ratio
1.46
vs 25 benchmark
P/S Ratio
Price to sales ratio
3.65
vs 25 benchmark
Financial Health
Debt/Equity
Total debt to shareholders' equity
0.23
vs 25 benchmark
Current Ratio
Current assets to current liabilities
0.66
vs 25 benchmark
Efficiency Ratios
ROE
Return on equity percentage
0.14
vs 25 benchmark
ROA
Return on assets percentage
0.08
vs 25 benchmark
ROCE
Return on capital employed
0.12
vs 25 benchmark
How EQT Stacks Against Its Sector Peers
| Metric | EQT Value | Sector Average | Performance |
|---|---|---|---|
| P/E Ratio | 10.94 | 22.11 | Better (Cheaper) |
| ROE | 14.34% | 950.00% | Weak |
| Net Margin | 33.40% | -62400.00% (disorted) | Strong |
| Debt/Equity | 0.23 | -0.46 (disorted) | Distorted |
| Current Ratio | 0.66 | 5.09 | Weak Liquidity |
| ROA | 8.04% | -11018380.00% (disorted) | Weak |
EQT outperforms its industry in 2 out of 6 key metrics, particularly excelling in Net Margin, but lagging in ROE.
Historical Growth Performance
5-Year Growth Trajectory
This section reviews EQT Corporation's 5-year compound annual growth rate (CAGR) and compares its performance against the typical investment style of its industry.
Revenue CAGR
42.41%
Industry Style: Cyclical, Value, Commodity
High GrowthEPS CAGR
188.75%
Industry Style: Cyclical, Value, Commodity
High GrowthFCF CAGR
39.10%
Industry Style: Cyclical, Value, Commodity
High Growth