Equitable Group

EQB-T

Analysis and Opinions about EQB-T

Signal
Opinion
Expert
BUY
BUY
July 29, 2020
A great business with a strong management team. They take advantage of inefficiencies in Canadian industry that banks are not doing. Their bank offering is doing well with increase in account openings. They have seen big deferrals from last quarter but it has now stabilized. There is good organic growth and a possible expansion of the addressable market.
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A great business with a strong management team. They take advantage of inefficiencies in Canadian industry that banks are not doing. Their bank offering is doing well with increase in account openings. They have seen big deferrals from last quarter but it has now stabilized. There is good organic growth and a possible expansion of the addressable market.
PARTIAL SELL
PARTIAL SELL
December 2, 2019
We aren't to going to have enough homes for retirees. Living in your home is going to be a big thing and reverse mortgages are going to be a big thing. He does not know if equitable is going to be the place to play this. He would partial sell these REITs at the moment.
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Equitable Group (EQB-T)
December 2, 2019
We aren't to going to have enough homes for retirees. Living in your home is going to be a big thing and reverse mortgages are going to be a big thing. He does not know if equitable is going to be the place to play this. He would partial sell these REITs at the moment.
PAST TOP PICK
PAST TOP PICK
May 29, 2019
(A Top Pick Jun 27/18, Up 17%) It had been dragged down with the Home Capital concerns a year ago. They had three dividend bumps over the year. It trades at 6.5 times earnings.
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(A Top Pick Jun 27/18, Up 17%) It had been dragged down with the Home Capital concerns a year ago. They had three dividend bumps over the year. It trades at 6.5 times earnings.
DON'T BUY
DON'T BUY
September 19, 2018

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%.

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Equitable Group (EQB-T)
September 19, 2018

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%.

TOP PICK
TOP PICK
June 27, 2018

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)

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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)

PAST TOP PICK
PAST TOP PICK
June 14, 2018

(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.

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(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.

COMMENT
COMMENT
June 14, 2018

Small financial in Canadian mortgage business. Stock struggling because it is in the Canadian mortgage business. Cheap stock and well run. He does not think that mortgages will be a massive problem.

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Small financial in Canadian mortgage business. Stock struggling because it is in the Canadian mortgage business. Cheap stock and well run. He does not think that mortgages will be a massive problem.

COMMENT
COMMENT
November 24, 2017

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.

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Equitable Group (EQB-T)
November 24, 2017

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.

BUY WEAKNESS
BUY WEAKNESS
September 25, 2017

It has been thriving. It is an extremely well managed and well capitalized company. Their business is growing dramatically. Buy it whenever it is below book value.

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Equitable Group (EQB-T)
September 25, 2017

It has been thriving. It is an extremely well managed and well capitalized company. Their business is growing dramatically. Buy it whenever it is below book value.

COMMENT
COMMENT
July 21, 2017

There is nothing wrong with this company’s balance sheet. The overwhelming problem with the group was the issue of whether lenders, the people who bought the GICs, etc., wouldn’t freak out and panic when some of the US hedge funds started Shorting.

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There is nothing wrong with this company’s balance sheet. The overwhelming problem with the group was the issue of whether lenders, the people who bought the GICs, etc., wouldn’t freak out and panic when some of the US hedge funds started Shorting.

PAST TOP PICK
PAST TOP PICK
June 27, 2017

(A Top Pick July 5/16. Up 14.74%.) The whole alternative lending sector took big tumbles on the Home Capital (HCG-T) situation. This is in a much better shape in this group.

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(A Top Pick July 5/16. Up 14.74%.) The whole alternative lending sector took big tumbles on the Home Capital (HCG-T) situation. This is in a much better shape in this group.

TOP PICK
TOP PICK
June 26, 2017

It was caught up in the HCG-T issues. The short sellers started pouncing on these players. They secured loans at very low interest rates. They pre-empted potential contagion in the industry. They are getting so much new business that they can cherry pick their new customers. It is trading just above book. (Analysts’ target: $62.00).

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It was caught up in the HCG-T issues. The short sellers started pouncing on these players. They secured loans at very low interest rates. They pre-empted potential contagion in the industry. They are getting so much new business that they can cherry pick their new customers. It is trading just above book. (Analysts’ target: $62.00).

WATCH
WATCH
May 15, 2017

When he asks about buying Home Capital (HCG-T), he gets “Buy Equitable”, which is way safer and has financial backing. It doesn’t do alternative lending, but does kind of niche lending. Home Capital’s problems are going to blow over, but even if it doesn’t, that is not going to come to this company. Wait for the next Home Capital headline, and then when this drops to $45, then you have more of a ramp to do something.

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When he asks about buying Home Capital (HCG-T), he gets “Buy Equitable”, which is way safer and has financial backing. It doesn’t do alternative lending, but does kind of niche lending. Home Capital’s problems are going to blow over, but even if it doesn’t, that is not going to come to this company. Wait for the next Home Capital headline, and then when this drops to $45, then you have more of a ramp to do something.

PAST TOP PICK
PAST TOP PICK
May 9, 2017

(A Top Pick July 5/16. Down 15%.) Believed that the model was very good. He began selling it at $60, and by the time he was done it was trading at a little above $48-$49.

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(A Top Pick July 5/16. Down 15%.) Believed that the model was very good. He began selling it at $60, and by the time he was done it was trading at a little above $48-$49.

HOLD
HOLD
May 1, 2017

It is a quality company. They have an impeccable portfolio. Their bad loans are miniscule. They got thrown in with HCG-T. He can’t say anything bad about it. Their earnings were fine when they came out. He does not think the latest budget will have any effect on them.

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It is a quality company. They have an impeccable portfolio. Their bad loans are miniscule. They got thrown in with HCG-T. He can’t say anything bad about it. Their earnings were fine when they came out. He does not think the latest budget will have any effect on them.

COMMENT
COMMENT
May 1, 2017

Very similar to Home Capital (HCG-T) in how they run things. The issue a lot of these companies face is that they are borrowing money at a retail level, which has hurt them a fair bit. Everybody worries about the mortgages, but those are probably fine. The problem is, they have to be funded and the funding is the bad part. If somebody doesn’t trust you when you are funding things, it becomes very difficult. That is exactly what happened in the US in 2008. (CEO just stated that there was no material decline in deposits, and they have just lined up a $2 billion standby credit facility, just in case.)

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Very similar to Home Capital (HCG-T) in how they run things. The issue a lot of these companies face is that they are borrowing money at a retail level, which has hurt them a fair bit. Everybody worries about the mortgages, but those are probably fine. The problem is, they have to be funded and the funding is the bad part. If somebody doesn’t trust you when you are funding things, it becomes very difficult. That is exactly what happened in the US in 2008. (CEO just stated that there was no material decline in deposits, and they have just lined up a $2 billion standby credit facility, just in case.)

COMMENT
COMMENT
April 28, 2017

Assuming that the contagion is not so devastating, and assuming that they can still raise capital at a reasonable cost, he thinks this company will pull through. A year from now, many of these companies will regain their losses.

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Equitable Group (EQB-T)
April 28, 2017

Assuming that the contagion is not so devastating, and assuming that they can still raise capital at a reasonable cost, he thinks this company will pull through. A year from now, many of these companies will regain their losses.

PAST TOP PICK
PAST TOP PICK
July 7, 2016

(A Top Pick July 2/15. Down 12.9%.) An alternative mortgage lender. A segment that people love to hate at the moment. There is concern that the housing market, particularly in Toronto and Vancouver, are going to explode and that mortgage lenders are going to be like the ones in the US, left for dead on the battlefield. A terrific opportunity to buy a quality company.

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(A Top Pick July 2/15. Down 12.9%.) An alternative mortgage lender. A segment that people love to hate at the moment. There is concern that the housing market, particularly in Toronto and Vancouver, are going to explode and that mortgage lenders are going to be like the ones in the US, left for dead on the battlefield. A terrific opportunity to buy a quality company.

TOP PICK
TOP PICK
July 5, 2016

Mortgages. They also have a fin Tech spin to them. The fin Tech bank can get deposits that others can’t. Trading at a very low multiple, at about 7X this year’s earnings and 6X next year’s earnings. Dividend yield of 1.53%.

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Mortgages. They also have a fin Tech spin to them. The fin Tech bank can get deposits that others can’t. Trading at a very low multiple, at about 7X this year’s earnings and 6X next year’s earnings. Dividend yield of 1.53%.

DON'T BUY
DON'T BUY
April 26, 2016

Had launched a bank, and got quite a bit of attention in January when they had a savings account that was paying 3%. It was remarkably successful, and probably more than they had anticipated. Since then it has scaled back to about 2.25%. If you are lending in mortgages and paying 3% on deposits, that is going to have a real squeeze on your net interest margin. On top of that, they did a fair amount of marketing and advertising in Q1, which may have an impact on their Q1 numbers. Also, have about an 8% exposure in Alberta.

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Equitable Group (EQB-T)
April 26, 2016

Had launched a bank, and got quite a bit of attention in January when they had a savings account that was paying 3%. It was remarkably successful, and probably more than they had anticipated. Since then it has scaled back to about 2.25%. If you are lending in mortgages and paying 3% on deposits, that is going to have a real squeeze on your net interest margin. On top of that, they did a fair amount of marketing and advertising in Q1, which may have an impact on their Q1 numbers. Also, have about an 8% exposure in Alberta.

TOP PICK
TOP PICK
October 27, 2015

This got tarnished with the Home Capital (HCG-T) brush. The big decline that occurred in the spring and summer was partly due to Home Capital. He has a lot more confidence in their due diligence that they do on their lenders and the systems they have set up. Trading at 1.2X BV and 1.5X earnings.

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Equitable Group (EQB-T)
October 27, 2015

This got tarnished with the Home Capital (HCG-T) brush. The big decline that occurred in the spring and summer was partly due to Home Capital. He has a lot more confidence in their due diligence that they do on their lenders and the systems they have set up. Trading at 1.2X BV and 1.5X earnings.

TOP PICK
TOP PICK
July 2, 2015

Mortgage lending to those without a T4 slip like contractors and the self-employed. It is a prudent lender. Loan losses are minimal as they have great credit judgment. 8 times earnings and pretty good growth rate. The dividend is half of the banks, however.

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Mortgage lending to those without a T4 slip like contractors and the self-employed. It is a prudent lender. Loan losses are minimal as they have great credit judgment. 8 times earnings and pretty good growth rate. The dividend is half of the banks, however.

DON'T BUY
DON'T BUY
December 30, 2014

Despite its size, this stock is quite illiquid and doesn’t trade very much. One of his concerns is that they have a lot more exposure to Western Canada then some of its peers. Has also had outperformance this year and its valuations are lofty relative to its peers.

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Equitable Group (EQB-T)
December 30, 2014

Despite its size, this stock is quite illiquid and doesn’t trade very much. One of his concerns is that they have a lot more exposure to Western Canada then some of its peers. Has also had outperformance this year and its valuations are lofty relative to its peers.

BUY
BUY
October 24, 2014

Good company. Screens very well right now. He has made his bets on Home Capital (HCG-T), which has a higher return on equity. In the context of everything he looks at, both of these would be a Buy.

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Equitable Group (EQB-T)
October 24, 2014

Good company. Screens very well right now. He has made his bets on Home Capital (HCG-T), which has a higher return on equity. In the context of everything he looks at, both of these would be a Buy.

PAST TOP PICK
PAST TOP PICK
April 21, 2014

(A Top Short May 27/13. Down 66.77%.) A subprime mortgage lender. Has taken a couple of shots at this thinking that the housing market in Canada was going to roll, especially when he saw the interest rates rise last summer. Highly speculative and a risky stock to own.

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Equitable Group (EQB-T)
April 21, 2014

(A Top Short May 27/13. Down 66.77%.) A subprime mortgage lender. Has taken a couple of shots at this thinking that the housing market in Canada was going to roll, especially when he saw the interest rates rise last summer. Highly speculative and a risky stock to own.

BUY
BUY
December 3, 2013

Very well run. He has taken some profits. Done an excellent job of turning around the company. Trading above tangible book (1.4 times). Could be a merger or takeover target. Have increased their dividend and returned earnings to shareholders. 1.5% dividend.

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Equitable Group (EQB-T)
December 3, 2013

Very well run. He has taken some profits. Done an excellent job of turning around the company. Trading above tangible book (1.4 times). Could be a merger or takeover target. Have increased their dividend and returned earnings to shareholders. 1.5% dividend.

PAST TOP PICK
PAST TOP PICK
September 20, 2013

(A Top Pick September 10/12. Up 48.27%.) Well run company. Similar to Home Capital (HCG-T), nonstandard mortgages. Trimmed his position because it became well over 10% of his portfolio. Expect it will go higher. Cheap.

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Equitable Group (EQB-T)
September 20, 2013

(A Top Pick September 10/12. Up 48.27%.) Well run company. Similar to Home Capital (HCG-T), nonstandard mortgages. Trimmed his position because it became well over 10% of his portfolio. Expect it will go higher. Cheap.

TOP PICK
TOP PICK
May 27, 2013

SHORT. Is running at about 20 times assets to equity and are very levered. It won’t take much to wipe out the equity as housing market slows.

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SHORT. Is running at about 20 times assets to equity and are very levered. It won’t take much to wipe out the equity as housing market slows.

TOP PICK
TOP PICK
September 10, 2012

Non-bank financials are one of his two top sectors. Stock has done well but can do better. Just had an excellent quarter. Excellent management. Could be a merger / takeover candidate. 1.8% dividend and just increased.

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Equitable Group (EQB-T)
September 10, 2012

Non-bank financials are one of his two top sectors. Stock has done well but can do better. Just had an excellent quarter. Excellent management. Could be a merger / takeover candidate. 1.8% dividend and just increased.

PAST TOP PICK
PAST TOP PICK
June 22, 2012
(A Top Pick July 8/11. Down 13.95%.)
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(A Top Pick July 8/11. Down 13.95%.)
TOP PICK
TOP PICK
July 8, 2011
(A Top Pick Aug 13/10. Up 40.81%.) Trust company in 1st mortgages. Book Value of about $26 and will earn $4-$4.10 this year and could be $4.75 in 2012. Very well run.
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(A Top Pick Aug 13/10. Up 40.81%.) Trust company in 1st mortgages. Book Value of about $26 and will earn $4-$4.10 this year and could be $4.75 in 2012. Very well run.
BUY
BUY
April 27, 2011
Mortgage and Trust company that supplies mortgages. BV of approximately $24.5-$25 million and expect they’ll earn as high as $3.25 and as high as $3.50. Excellent management. Ripe as an acquisition or can continue as an independent.
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Equitable Group (EQB-T)
April 27, 2011
Mortgage and Trust company that supplies mortgages. BV of approximately $24.5-$25 million and expect they’ll earn as high as $3.25 and as high as $3.50. Excellent management. Ripe as an acquisition or can continue as an independent.
PAST TOP PICK
PAST TOP PICK
February 18, 2011
(A Top Pick Aug 13/10. Up 38.06%.) Easy money has been made.
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Equitable Group (EQB-T)
February 18, 2011
(A Top Pick Aug 13/10. Up 38.06%.) Easy money has been made.
BUY
BUY
October 1, 2010
Issues non-standard mortgages primarily in the single family financing. Expect them to earn $3 a share this year. Trading around $21 and will probably have a BV of about $26 by year-end. Well run. Suspect there will be dividend increases of $.60-$.80 this year.
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Equitable Group (EQB-T)
October 1, 2010
Issues non-standard mortgages primarily in the single family financing. Expect them to earn $3 a share this year. Trading around $21 and will probably have a BV of about $26 by year-end. Well run. Suspect there will be dividend increases of $.60-$.80 this year.
TOP PICK
TOP PICK
August 13, 2010
Mortgage lender with about $3.2 billion mortgages on the books, mainly single-family homes. Trades at .9X book. BV of $23.38 in stock is trading at around $21. Yield of about 2%. Expected to earn about $3.15 this year and paying out less than 12% of their earnings. Good move well into the $30's.
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Equitable Group (EQB-T)
August 13, 2010
Mortgage lender with about $3.2 billion mortgages on the books, mainly single-family homes. Trades at .9X book. BV of $23.38 in stock is trading at around $21. Yield of about 2%. Expected to earn about $3.15 this year and paying out less than 12% of their earnings. Good move well into the $30's.
BUY
BUY
May 21, 2010
Trust Company. Book value is $22.64. Overly capitalized. 1.8% dividend. Good management.
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Trust Company. Book value is $22.64. Overly capitalized. 1.8% dividend. Good management.