€113.4m market cap
€79 last close
EQS Group is a leading international technology provider for digital IR, corporate communications and compliance. Over 8,000 clients use its products and services to securely, efficiently and simultaneously fulfil complex national and international information obligations to the global investment community.
Investment summary
EQS is making progress on its journey to become a fully embedded provider of investor relations and compliance platforms and products to corporate customers. While conversion of sales leads has been slower than initially hoped, the group returned to EBITDA profitability in Q3 and is set to build a sustainable business model in markets driven by increasing regulation. FY19 guidance, revised with the Q3 figures, was for revenue growth of 10–15% pro-forma (down from 18–25%), taking €0.5m off EBITDA. The valuation is well below a DCF based on targeted growth.
Y/E Dec |
Revenue (€m) |
EBITDA (€m) |
PBT (€m) |
EPS (c) |
P/E (x) |
P/CF (x) |
|---|---|---|---|---|---|---|
| 2017A | 30.4 | 2.4 | 0.8 | 36.97 | 213.7 | N/A |
| 2018A | 36.2 | 0.3 | 0.7 | 51.09 | 154.6 | N/A |
| 2019E | 35.2 | 2.6 | (1.2) | (50.61) | N/A | N/A |
| 2020E | 37.2 | 3.5 | (0.3) | (12.03) | N/A | N/A |
Industry outlook
Gartner estimates the governance, risk and compliance segment at over US$5bn, growing at a CAGR of over 13%. 2020 should see a further raft of regulation, following on from the benefits from regulation such as MiFID II, with a major impetus from the implementation of the EU whistleblowing directive in December 2019. These regulations all increase corporate administrative loads and carry heavy penalties for non-compliance, providing a positive backdrop for sales.
Last updated on 18/02/2020
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Share price graph
Balance sheet |
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| Forecast net debt (€m) | 15.4 |
| Forecast gearing ratio (%) | 53 |
Price performance
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12m |
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Key management |
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| Achim Weick | CEO |
| André Marques | CFO |
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