EQT Corp (EQT) stock analysis

P/E below its 5-year median

EQT's P/E of 12.3 is below its own 5-year median of 20.7.

P/E above the industry

EQT's P/E of 12.3 is above the Crude Petroleum and Natural Gas median of 10.4.

EV/EBITDA below its 5-year median

EQT's EV/EBITDA of 6.3 is below its 5-year median of 7.4.

P/B below the industry

EQT's price-to-book of 1.28 is below the Crude Petroleum and Natural Gas median of 1.33.

Trading below fair value

The share price of $52.00 is below our fair value estimate of $56.56.

Margin of safety under 20%

The price is 8.1% below fair value, less than the 20% cushion we look for.

Revenue growing under 10% a year

Revenue grew 4.9% a year over the last three fiscal years, short of the 10% we look for.

EPS growing under 10% a year

Diluted EPS grew -8.9% a year over the last three fiscal years.

Earnings acceleration

Needs positive net income now, a year ago and five years ago.

Growing faster than the industry

Revenue grew 18.6% over the last twelve months; the Crude Petroleum and Natural Gas median is 8.7%.

Guidance raised

EQT raised its Full Year 2026 Distributions to PipeBox LLC (the Midstream JV) noncontrolling interest outlook on Oct 27, 2026.

Gross margin improving

Gross margin was 83.5% over the last twelve months, against 80.6% a year earlier.

Return on equity under 15%

Return on equity was 10.9% over the last twelve months and averaged 5.7% over five years; we look for 15% on both.

Return on capital under 10%

Return on invested capital was 9.8%, below the 10% that usually covers the cost of capital.

Return on equity above the industry

EQT's return on equity of 10.9% is above the Crude Petroleum and Natural Gas median of 5.5%.

Earnings over 5 years

Needs positive net income five years ago and in the latest year.

Net margin above its 5-year average

Net margin was 28.4% over the last twelve months, against a 5-year average of 7.9%.

Net margin above the industry

EQT's net margin of 28.4% is above the Crude Petroleum and Natural Gas median of 3.8%.

Low debt

Debt is 21.8% of shareholders' equity, under the 40% we consider low.

Debt falling against equity

Debt to equity fell from 53.2% five years ago to 21.8%.

Debt covered by cash flow

Operating cash flow over the last twelve months equals 114% of total debt.

Interest well covered

Operating income covers interest expense 11.2 times.

Short-term assets don't cover short-term debts

Current assets are 0.71 times current liabilities.

Bankruptcy risk in the grey zone

The Altman Z-score is 2.29; above 3 is the safe zone and below 1.8 the distress zone.

Pays a dividend

EQT paid dividends worth 1.0% of the share price over the last twelve months.

Yield below Treasuries

The 1.0% yield is below the 4.4% on a 1-year Treasury.

Yield below the top quarter

The top quarter of US dividend payers yield 3.8% or more; EQT yields 1.0%.

Dividend was cut

The dividend per share fell by more than 10% at least once in the last 9 fiscal years.

Covered by earnings

Dividends take 15.5% of net income.

Covered by free cash flow

Dividends take 10.8% of free cash flow.