EQT Corp (EQT) Stock Analysis
EQT Corp (EQT) Stock Analysis
Analysis from 10-Q filed 2025-10-22. Data as of Q4 2025.
Overall Grade: F (Concerning)
EQT Corp faces challenges in financial performance that warrant careful analysis.
| Metric | Value | Context |
|---|---|---|
| ROIC | 7.5% | Below expectations |
| FCF Margin | 32.8% | Strong cash generation |
| Debt/Equity | 0.3x | Conservative leverage |
Investment Thesis: Healthy free cash flow margin of 32.8% provides financial flexibility for growth and shareholder returns.
Explore EQT Corp: Earnings History | Filing Intelligence | ROIC Analysis
Profitability: EQT Corp earns 7.5% ROIC, Top 50% in Energy
EQT Corp's trailing-twelve-month ROIC of 7.5% ranks Top 50% in Energy companies (sector median: 6.9%), driven by NOPAT margin of 29.4% combined with asset turnover of 0.2x. Source: 10-Q filed 2025-10-22. Gross margin of 82.3% with operating margin at 37.6% reflects strong pricing power.
| Metric | EQT | Rating | Context |
|---|---|---|---|
| Return on Invested Capital (ROIC) | 7.5% | Warning | Above sector median of 6.9% |
| Return on Equity (ROE) | 9.3% | Adequate | Moderate equity returns |
| Gross Margin | 82.3% | Excellent | Strong pricing power |
| Operating Margin | 37.6% | Excellent | Efficient operations |
Cash Flow: EQT Corp generates $2.8B FCF at 32.8% margin, positive NaN/8 quarters
EQT Corp generated $2.8B in free cash flow (TTM), a 32.8% FCF margin, a margin that ranks Top 50% in Energy. Operating cash flow exceeds net income by 2.5x, indicating high earnings quality. FCF was positive in N/A of the last 8 quarters. Source: 10-Q filed 2025-10-22.
| Metric | EQT | Rating | Context |
|---|---|---|---|
| Free Cash Flow Margin | 32.8% | Excellent | Excellent cash conversion |
| Free Cash Flow (TTM) | $2.8B | Good | Positive cash generation |
| OCF/Net Income | 2.5x | Excellent | High earnings quality |
| FCF Consistency (8Q) | N/A | Warning | Variable cash flow |
Balance Sheet: EQT Corp at 0.3x leverage
EQT Corp's debt-to-equity ratio of 0.3x reflects moderate leverage. Total debt of $7.8B offset by $110.8M in cash. Source: 10-Q filed 2025-10-22.
| Metric | EQT | Rating | Context |
|---|---|---|---|
| Debt to Equity | 0.3x | Good | Conservative capital structure |
| Net Cash Position | $-7.7B | Warning | Net debt position |
Valuation: EQT Corp trades at 16.0x earnings
EQT Corp trades at a P/E of 16.0x. Free cash flow yield of 8.7% offers attractive cash returns relative to price.
| Metric | EQT | Rating | Context |
|---|---|---|---|
| P/E Ratio | 16.0x | Adequate | Reasonable valuation |
| EV/Sales | 4.7x | Good | Growth premium priced in |
| FCF Yield | 8.7% | Excellent | Attractive cash return |
| Dividend Yield | 1.2% | Adequate | Growth focus over income |
Capital Allocation: EQT Corp returns 1.2% shareholder yield
EQT Corp's total shareholder yield is 1.2% (dividends 1.2% + buybacks). Source: 10-Q filed 2025-10-22.
| Metric | EQT | Rating | Context |
|---|---|---|---|
| Total Shareholder Yield | 1.2% | Adequate | Dividend + buyback yield combined |
| Total Capital Returned (TTM) | $389.6M | Good | Dividends + buybacks returned to shareholders |
Sector Rankings
| Metric | Value | Percentile | vs Median |
|---|---|---|---|
| Return on Invested Capital (ROIC) | 7.5% | Top 50% | 1.1x above |
| Free Cash Flow Margin | 32.8% | Top 50% | 3.8x above |
| Gross Margin | 82.3% | Top 25% | 2.6x above |
| Operating Margin | 37.6% | Top 25% | 4.2x above |
| Return on Equity (ROE) | 9.3% | Top 50% | 1.1x above |
| P/E Ratio | 16.0x | N/A | - |
Financial Scorecard
| Metric | EQT | Rating | Sector Context |
|---|---|---|---|
| Return on Invested Capital (ROIC) | 7.5% | Warning | Top 50% of sector (median: 6.9%) |
| Free Cash Flow Margin | 32.8% | Excellent | Top 50% of sector (median: 8.6%) |
| Gross Margin | 82.3% | Excellent | Top 25% of sector (median: 31.2%) |
| Debt to Equity Ratio | 32.8% | Good | Moderate leverage |
| P/E Ratio (Price-to-Earnings) | 16.0x | Adequate | Fair value |
| Free Cash Flow Yield | 8.7% | Excellent | High cash return |
Frequently Asked Questions
Q: What is EQT Corp's Return on Invested Capital (ROIC)?
EQT Corp (EQT) has a trailing twelve-month Return on Invested Capital (ROIC) of 7.5%. This compares above the sector median of 6.9%. An ROIC below 8% suggests the company may be destroying shareholder value.
Q: What is EQT Corp's Free Cash Flow Margin?
EQT Corp (EQT) has a free cash flow margin of 32.8%, generating $2.8 billion in free cash flow over the trailing twelve months. A FCF margin above 20% indicates excellent cash conversion and a high-quality business model.
Q: Is EQT Corp stock overvalued or undervalued?
EQT Corp (EQT) trades at a P/E ratio of 16.0x, which is above the sector median of N/A. The EV/Sales multiple is 4.7x. Free cash flow yield is 8.7%, which represents an attractive cash return to investors.
Q: Does EQT Corp pay a dividend?
EQT Corp (EQT) currently pays a dividend yield of 1.2%. Including share buybacks, the total shareholder yield is 1.2%. The relatively low yield suggests the company prioritizes growth reinvestment over income distribution.
Q: What is EQT Corp's revenue and earnings growth?
EQT Corp (EQT) grew revenue by 121.9% year-over-year. Earnings per share increased by 501.8% compared to the prior year. Double-digit revenue growth indicates strong demand and market share gains.
Q: How does EQT Corp compare to competitors in Energy?
Compared to other companies in Energy, EQT Corp (EQT) shows: ROIC of 7.5% is above the sector median of 6.9% (Top 47%). FCF margin of 32.8% exceeds the sector median of 8.6% (Top 30% of sector). Gross margin at 82.3% is 51.1 percentage points higher than sector peers. These rankings are based on MetricDuck's analysis of all Energy companies with available SEC filings.
Q: What warning signs should I watch for with EQT Corp?
EQT Corp (EQT) shows no major financial warning signs based on current metrics. However, investors should always monitor: 1) Margin compression trends, 2) Cash flow consistency, 3) Debt levels relative to cash generation, and 4) Changes in competitive positioning.
Data Source: Data sourced from 10-Q filed 2025-10-22. TTM metrics as of Q4 2025.
Methodology: Financial metrics calculated from SEC 10-K and 10-Q filings using standardized formulas. Sector comparisons use peer group based on SIC code.
Scope: This analysis covers SEC filing fundamentals — profitability, cash flow, balance sheet, and valuation metrics. For analyst estimates and price targets, consult sell-side research.
This analysis is for informational purposes only and does not constitute investment advice.