
TSE:EQB
This summary was created by AI, based on 11 opinions in the last 12 months.
Equitable Group Inc. (EQB-T) is recognized as a growing alternative banking option in Canada, notably after its acquisition of President's Choice Financial, which is seen as a strategic move to access a larger customer base. Analysts appreciate its digital-only model, which allows for leaner operations and competitive rates, especially in comparison to the major Canadian banks. However, the stock carries higher risk given its exposure to the residential mortgage market and credit cycles, which raises concerns amidst the current economic climate. While some experts highlight its potential for substantial growth and commend its management, others advise caution due to its lack of diversification compared to larger banking institutions. The shares currently trade at attractive multiples, with an attractive dividend yield, but a number of analysts suggest waiting for a better entry point given the ongoing credit challenges.
He thinks this mortgage lender has a dividend that is growing and trades at a low PE ratio. It is not a low risk company, as it makes loans to non-conventional borrowers. At this point in the market cycle, with high consumer debt, he would prefer to own a bank with larger market cap and higher liquidity. Yield 1.5%.
Mortgage financing when housing has cooled off. But EQB just announced they will relinquish some of their standby facilities that they took on during the Home Capital crisis last year--this will save them 25-cents a share in earnings next year and cost them a non-cash write-off. It boasts 5.5x earnings and a solid dividend. A potential for buybacks. This stock will be much higher in 2019. (Analysts' price target: $70.00)
(A Top Pick Jun. 26/17, Down 5%) They are now the largest in the industry. They are extremely well managed. They had record results and raised the dividend several times since he recommended it. It is trading below book value. It is a great value investment and is growing well despite the new mortgage rules. Customers wanting to take mortgages elsewhere are subject to the new stress tests.
Canadian Banks? He looks favourably on Canadian banks in general, because he likes the backdrop for energy. This is his favourite, and is actually the smallest of the group. Trades at the lowest valuation of the entire group. Trades at 1X Book compared to the National Bank (NA-T) at 2X. The Canadian bank trade should continue to drift higher.