EQS Group

DB: EQS

€98.3m market cap

€68 last close

EQS Group is a leading international technology provider for Investor Relations, Corporate Communications and Compliance. More than 8,000 companies worldwide use its products and services to fulfil complex national and international information obligations to the global investment community.

Investment summary

Q119 revenue growth of 9% was a little less than expected due to the lack of IPOs and corporate announcements, but the good pace of corporate sign-ups leaves full year revenue guidance unchanged. EBITDA guidance is also unchanged, but now includes the uplift arising from the application of IFRS 16. As in previous years, meeting the full year expectations will rely on a strong Q4 performance. EQS’s positioning as a provider of cloud-based IR and compliance services for corporates, with growing (recurring) SaaS revenues, remains attractive.

Y/E Dec
Revenue (€m)
EBITDA (€m)
PBT (€m)
EPS (c)
P/E (x)
P/CF (x)
2017A 30.4 2.3 0.8 16.4 414.6 48.2
2018A 36.2 0.3 (1.4) (18.5) N/A 33.5
2019E 41.8 3.6 0.0 (1.9) N/A 25.8
2020E 49.2 6.8 3.2 130.8 52.0 13.9
Last updated on 22/05/2019
Industry outlook

Gartner estimates the governance, risk and compliance segment at over US$5bn, growing at a CAGR of over 13%. 2019/20 should see a further raft of regulation on issues such as whistleblowing and increasing corporate transparency, following on from the benefits from regulation such as MiFIDII. These all increase corporate administrative loads and carry heavy penalties for non-compliance, providing a positive backdrop for sales.

Last updated on 22/05/2019
Sector
TMT
Share price graph
Balance sheet
Forecast net debt (€m) 18.7
Forecast gearing ratio (%) 68
Price performance
%
1m
3m
12m
Actual (2.8) (1.4) (13.8)
Relative* (2.4) (7.2) (6.7)
52-week high/low €82.0/€67.0
*% relative to local index
Key management
Achim Weick CEO
André Marques CFO

Content on EQS Group