EQS Group

DB: EQS

€245.3m market cap

€32.8 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

EQS had a clear benefit in FY20 from the demand for virtual corporate communications but the key to future growth is in the corporate compliance segment. Its cloud-based products are set to be the core growth driver over the medium term. With the imminent implementation of European whistleblowing regulation, there is a short-term opportunity to gain new clients, with the potential to expand accounts after. To make the most of this, the group is investing an additional €5.6m in sales and marketing in FY21, reflected in revised consensus estimates.

Y/E Dec
Revenue (€m)
EBITDA (€m)
PBT (€m)
EPS (fd) (c)
P/E (x)
P/CF (x)
2019A 35.4 2.6 (0.3) (7.41) N/A N/A
2020A 37.6 4.8 0.4 4.12 791.3 N/A
2021E 45.5 1.1 (3.1) (26.68) N/A N/A
2022E 53.2 4.3 0.1 (0.32) N/A N/A
Industry outlook

The EU Directive on whistleblowing needs to be incorporated into member state legislation by end 2021, giving a good opportunity to win new clients, who can then be cross- and upsold to. The pandemic has provided fertile territory for selling online communications solutions, with virtual general meetings being used broadly across the DACH area, where voting is normally at the meeting, with questions also submitted ahead of time. Against this, the number of IPOs in European markets has unsurprisingly dwindled.

Last updated on 12/04/2021
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Sector
TMT
Share price graph
Balance sheet
Forecast net cash (€m) 3.9
Forecast gearing ratio (%) N/A
Price performance
%
1m
3m
12m
Actual (7.4) 2.5 120.3
Relative* (11.8) (6.2) 52.8
52-week high/low €39.6/€15.1
*% relative to local index
Key management
Achim Weick CEO
André Marques CFO

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