EQS Group (SCALE: EQS)

Currency in EUR

Last close As at 26/09/2023

EUR26.80

0.10 (0.37%)

Market capitalisation

EUR269m

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.

EQS should now (finally) have the impetus of full legislative implementation regarding digital whistleblowing in its home market of Germany. The boost should kick in relatively quickly, given the group’s experience in other markets, such as France, Spain and Italy. We regard the strategy of establishing a much wider pool of customers for cross- and up-selling of other corporate compliance cloud-based services to be sound. Upcoming EU regulation on ESG monitoring and reporting should also provide substantial opportunities.

Latest Insights

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Sector

TMT

Equity Analyst

Fiona Orford-Williams

Fiona Orford-Williams

Director, TMT

Key Management

  • Achim Weick

    CEO

  • André Marques

    CFO

Balance Sheet

Forecast net debt (€m)

27.3

Forecast gearing ratio (%)

25

Share Price Performance

Price Performance
% 1M 3M 12M
Actual (6.3) (4.3) (0.7)
Relative (4.0) (0.8) (20.4)
52 week high/low €30.2/€20.8

Financials

After repeated delays, the German whistleblowing regulation came into law on 1 July and pent-up demand is now set to flow through into new customers and growing recurring revenues. Those customers present a pipeline of warm leads for selling EQS’s broader suite of cloud-based products and services, particularly in the Compliance segment, underpinning management’s medium-term ambitions for the top line and EBITDA margins, targeted at €130m and 30% respectively on a time frame of FY26 or FY27. We have edged up our FY23 and FY24 estimates to reflect the momentum and greater degree of confidence in the rest of H223. The shares continue to trade well below the level indicated by our DCF.

Y/E Dec Revenue (€m) EBITDA (€m) PBT (€m) EPS (fd) (c) P/E (x) P/CF (x)
2021A 50.2 1.7 (5.4) (64.53) N/A N/A
2022A 61.4 4.6 (3.1) (19.76) N/A 93.3
2023E 72.5 10.0 1.5 9.71 276.0 47.3
2024E 90.0 17.3 9.3 62.16 43.1 24.4

Further insights

insight

Consumer

Deutsches Eigenkapitalforum (EKF) 2022 CMT

insight

Consumer

Deutsches Eigenkapitalforum (EKF) 2022

Thematics

thematic

TMT

MediaWatch – April 2023

Digital Marketing and Internet Media Technology Platform

thematic

TMT

MediaWatch – January 2023

thematic

Consumer

IPO apocalypse

thematic

TMT

ESG, moving beyond the box tick

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