Is EQT getting woozy?
 | By Ellen Johnson | Macroaxis Story |
The company current daily volatility is 2.99 percent, with beta of -0.31 and alpha of 0.1 over S&P 500. What is EQT Target Price Odds to finish over Current Price? Attributed to normal probability distribution, the odds of EQT to move above current price in 30 days from now is about 16.49%. The EQT Corporation probability density function shows the probability of EQT Stock to fall within a particular range of prices over 30 days . Considering 30-days investment horizon, EQT Corporation has beta of -0.3144 suggesting as returns on benchmark increase, returns on holding EQT are expected to decrease at a much smaller rate. During bear market, however, EQT Corporation is likely to outperform the market. Additionally, the company has an alpha of 0.1039 implying that it can potentially generate 0.1039% excess return over S&P 500 after adjusting for the inherited market risk (beta).
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Reviewed by Rifka Kats
EQT Corporation has 5.5B in debt with debt to equity (D/E) ratio of 50.1 . This implies that the organisation may be unable to create cash to meet all of its financial commitments. This firm dividends can provide a clue to current valuation of the stock. EQT one year expected dividend income is about $0.06 per share. Let me now analyze EQT Shares Owned by Insiders. Based on latest financial disclosure 0.74% of EQT Corporation are shares owned by insiders. This is much higher than that of the Energy sector, and significantly higher than that of Oil & Gas E&P industry, The Shares Owned by Insiders for all stocks is notably lower than EQT Corporation. EQT financial leverage ratio helps determine the effect of debt on the overall profitability of the company. It measures the total debt position of EQT, including all of EQT's outstanding debt obligations, and compares it with the equity. In simple terms, the high financial leverage means the cost of production, together with running the business day-to-day, is high, whereas, lower financial leverage implies lower fixed cost investment in the business and generally considered by investors to be a good sign. So if creditors own a majority of EQT assets, the company is considered highly leveraged. Understanding the composition and structure of overall EQT debt and outstanding corporate bonds gives a good idea of how risky the capital structure of a business is and if it is worth investing in it. Please read more on our technical analysis page.
Understanding EQT Total Liabilities
EQT Corporation liabilities are broken down into two parts on the balance sheet. These are short-term (or current) obligations and long-term debt. EQT Corporation has to fulfill its short-term liabilities in this reporting year and should be no more than 12 months old. Long-term debt, on the other hand, is anything beyond the 12-month payment timeframe. Common short-term liabilities found on EQT balance sheet include debt obligations and money owed to different EQT vendors, workers, and loan providers. Below is the chart of EQT short long-term liabilities accounts currently reported on its balance sheet. You can use EQT Corporation financial leverage analysis tool to get a better grip on understanding its financial positionHow important is EQT's Liquidity
EQT financial leverage refers to using borrowed capital as a funding source to finance EQT Corporation ongoing operations. It is usually used to expand the firm's asset base and generate returns on borrowed capital. EQT 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 EQT'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 EQT'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 EQT's total debt and its cash.
A Deeper Analysis
The modest gains experienced by current holders of EQT could raise concerns from investors as the firm closed today at a share price of 19.46 on 2161224 in volume. The company directors and management have been quite successful with maneuvering the stock at opportune times to take advantage of all market conditions in February. The stock standard deviation of daily returns for 30 days (very short) investing horizon is currently 2.9938. The current volatility is consistent with the ongoing market swings in February 2019 as well as with EQT unsystematic, company specific events. EQT discloses 5.5b in total debt. EQT is trading at 20.06 which is 3.7 percent down. Today highest was 20.42. EQT Net Loss Income from Discontinued Operations is increasing over the last 4 years. Moreover, EQT Return on Sales is decreasing over the last 5 years. The previous year value of EQT Return on Sales was 0.05. To conclude, our immediate Buy/Hold/Sell recommendation on the firm is Strong Sell. We believe EQT is undervalued with below average probability of distress for the next two years.
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