EQS Group

DB: EQS

€152.1m market cap

€21.2 last close

EQS is a leading international provider of regulatory technology in the fields of corporate compliance and investor relations. Its products enable corporate clients to fulfil complex national and international disclosure obligations, minimise risks and communicate transparently with stakeholders.

Investment summary

With ever-increasing requirements and growing complexity in corporate reporting, EQS has a positive backdrop for its products and services in digital investor relations and compliance. Its main COCKPIT cloud-based platform is fully in place and the group’s peak investment phase is past, meaning that capex can now be focused on adding functionality. The main drive from this point is to add new clients and increase revenue per client, lifting annual recurring revenues and improving quality of earnings. Profitability and free cash-flow are on an improving trend.

Y/E Dec
Revenue (€m)
EBITDA (€m)
PBT (€m)
EPS (fd) (c)
P/E (x)
P/CF (x)
2018A 36.2 0.2 0.7 6.12 346.4 N/A
2019A 35.4 2.5 (0.3) (6.26) N/A N/A
2020E 37.2 4.1 0.6 10.96 193.4 N/A
2021A 43.5 8.5 4.7 43.05 49.2 N/A
Industry outlook

Virtual general meetings are now permitted across the DACH area, where voting is normally at the meeting, with questions also submitted ahead of time. Against this, the number of IPOs (which have been a useful source of group revenue historically) lined up for European markets has unsurprisingly dwindled. The length and severity of the economic impact will also affect the numbers of companies going out of business entirely, but this is not yet quantifiable. Gartner estimates the governance, risk and compliance segment at over US$5bn, growing at a CAGR of over 13%.

Last updated on 29/10/2020
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Sector
TMT
Share price graph
Balance sheet
Forecast net debt (€m) 10.4
Forecast gearing ratio (%) 35
Price performance
%
1m
3m
12m
Actual (3.6) 11.6 81.2
Relative* 6.6 23.4 102.2
52-week high/low €24.2/€10.0
*% relative to local index
Key management
Achim Weick CEO
André Marques CFO

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