company background image
SQI

SQLI ENXTPA:SQI Stock Report

Last Price

€37.00

Market Cap

€169.0m

7D

0%

1Y

39.6%

Updated

16 Aug, 2022

Data

Company Financials +
SQI fundamental analysis
Snowflake Score
Valuation2/6
Future Growth3/6
Past Performance4/6
Financial Health5/6
Dividends0/6

SQI Stock Overview

SQLI SA engages in digital experience and unified commerce businesses worldwide.

SQLI Competitors

Price History & Performance

Summary of all time highs, changes and price drops for SQLI
Historical stock prices
Current Share Price€37.00
52 Week High€37.50
52 Week Low€24.30
Beta0.98
1 Month Change2.21%
3 Month Change22.52%
1 Year Change39.62%
3 Year Change85.56%
5 Year Change-15.72%
Change since IPO-56.16%

Recent News & Updates

Shareholder Returns

SQIFR ITFR Market
7D0%1.3%1.7%
1Y39.6%-17.2%-4.8%

Return vs Industry: SQI exceeded the French IT industry which returned -16.8% over the past year.

Return vs Market: SQI exceeded the French Market which returned -5.2% over the past year.

Price Volatility

Is SQI's price volatile compared to industry and market?
SQI volatility
SQI Average Weekly Movement7.0%
IT Industry Average Movement4.7%
Market Average Movement4.9%
10% most volatile stocks in FR Market9.3%
10% least volatile stocks in FR Market2.8%

Stable Share Price: SQI is more volatile than 75% of French stocks over the past 3 months, typically moving +/- 7% a week.

Volatility Over Time: SQI's weekly volatility (7%) has been stable over the past year, but is still higher than 75% of French stocks.

About the Company

FoundedEmployeesCEOWebsite
19902,047Philippe Donche-Gayhttps://www.sqli.com

SQLI SA engages in digital experience and unified commerce businesses worldwide. It offers digital transformation services, including business and IT consulting, implementation, and maintenance solutions to support large companies and local authorities. The company also provides technological platforms development; big data consulting and solutions; mobile solutions and connected objects; digital and social marketing; connected commerce; data marketing; and UX and new practices solutions.

SQLI Fundamentals Summary

How do SQLI's earnings and revenue compare to its market cap?
SQI fundamental statistics
Market Cap€168.96m
Earnings (TTM)€5.30m
Revenue (TTM)€225.38m

31.9x

P/E Ratio

0.7x

P/S Ratio

Earnings & Revenue

Key profitability statistics from the latest earnings report
SQI income statement (TTM)
Revenue€225.38m
Cost of Revenue€131.52m
Gross Profit€93.86m
Other Expenses€88.56m
Earnings€5.30m

Last Reported Earnings

Dec 31, 2021

Next Earnings Date

Sep 22, 2022

Earnings per share (EPS)1.16
Gross Margin41.65%
Net Profit Margin2.35%
Debt/Equity Ratio48.5%

How did SQI perform over the long term?

See historical performance and comparison
We’ve recently updated our valuation analysis.

Valuation

Is SQI undervalued compared to its fair value, analyst forecasts and its price relative to the market?

Valuation Score

2/6

Valuation Score 2/6

  • Price-To-Earnings vs Peers

  • Price-To-Earnings vs Industry

  • Price-To-Earnings vs Fair Ratio

  • Below Fair Value

  • Significantly Below Fair Value

  • Analyst Forecast

Key Valuation Metric

Which metric is best to use when looking at relative valuation for SQI?

Other financial metrics that can be useful for relative valuation.

SQI key valuation metrics and ratios. From Price to Earnings, Price to Sales and Price to Book to Price to Earnings Growth Ratio, Enterprise Value and EBITDA.
Key Statistics
Enterprise Value/Revenue0.9x
Enterprise Value/EBITDA12.9x
PEG Ratio1x

Price to Earnings Ratio vs Peers

How does SQI's PE Ratio compare to its peers?

SQI PE Ratio vs Peers
The above table shows the PE ratio for SQI vs its peers. Here we also display the market cap and forecasted growth for additional consideration.
CompanyPEEstimated GrowthMarket Cap
Peer Average21.1x
MLCHE Cheops Technology France
26.3xn/a€150.7m
ALVIV Visiativ
15.6x21.3%€151.1m
INF Infotel
26x14.8%€356.8m
ALKEY Keyrus
16.7xn/a€66.4m
SQI SQLI
31.9x33.3%€169.0m

Price-To-Earnings vs Peers: SQI is expensive based on its Price-To-Earnings Ratio (31.9x) compared to the peer average (21.1x).


Price to Earnings Ratio vs Industry

How does SQI's PE Ratio compare vs other companies in the FR IT Industry?

Price-To-Earnings vs Industry: SQI is expensive based on its Price-To-Earnings Ratio (31.9x) compared to the French IT industry average (22x)


Price to Earnings Ratio vs Fair Ratio

What is SQI's PE Ratio compared to its Fair PE Ratio? This is the expected PE Ratio taking into account the company's forecast earnings growth, profit margins and other risk factors.

SQI PE Ratio vs Fair Ratio.
Fair Ratio
Current PE Ratio31.9x
Fair PE Ratio28.9x

Price-To-Earnings vs Fair Ratio: SQI is expensive based on its Price-To-Earnings Ratio (31.9x) compared to the estimated Fair Price-To-Earnings Ratio (28.9x).


Share Price vs Fair Value

What is the Fair Price of SQI when looking at its future cash flows? For this estimate we use a Discounted Cash Flow model.

Below Fair Value: SQI (€37) is trading below our estimate of fair value (€73.58)

Significantly Below Fair Value: SQI is trading below fair value by more than 20%.


Analyst Price Targets

What is the analyst 12-month forecast and do we have any statistical confidence in the consensus price target?

Analyst Forecast: Target price is lower than the current share price.


Discover undervalued companies

Future Growth

How is SQLI forecast to perform in the next 1 to 3 years based on estimates from 2 analysts?

Future Growth Score

3/6

Future Growth Score 3/6

  • Earnings vs Savings Rate

  • Earnings vs Market

  • High Growth Earnings

  • Revenue vs Market

  • High Growth Revenue

  • Future ROE


33.3%

Forecasted annual earnings growth

Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: SQI's forecast earnings growth (33.3% per year) is above the savings rate (0.3%).

Earnings vs Market: SQI's earnings (33.3% per year) are forecast to grow faster than the French market (11.7% per year).

High Growth Earnings: SQI's earnings are expected to grow significantly over the next 3 years.

Revenue vs Market: SQI's revenue (5% per year) is forecast to grow slower than the French market (5.4% per year).

High Growth Revenue: SQI's revenue (5% per year) is forecast to grow slower than 20% per year.


Earnings per Share Growth Forecasts


Future Return on Equity

Future ROE: SQI's Return on Equity is forecast to be low in 3 years time (9.7%).


Discover growth companies

Past Performance

How has SQLI performed over the past 5 years?

Past Performance Score

4/6

Past Performance Score 4/6

  • Quality Earnings

  • Growing Profit Margin

  • Earnings Trend

  • Accelerating Growth

  • Earnings vs Industry

  • High ROE


-6.3%

Historical annual earnings growth

Earnings and Revenue History

Quality Earnings: SQI has high quality earnings.

Growing Profit Margin: SQI's current net profit margins (2.4%) are higher than last year (0.08%).


Past Earnings Growth Analysis

Earnings Trend: SQI's earnings have declined by 6.3% per year over the past 5 years.

Accelerating Growth: SQI's earnings growth over the past year (2961.9%) exceeds its 5-year average (-6.3% per year).

Earnings vs Industry: SQI earnings growth over the past year (2961.9%) exceeded the IT industry 31.7%.


Return on Equity

High ROE: SQI's Return on Equity (5.2%) is considered low.


Discover strong past performing companies

Financial Health

How is SQLI's financial position?

Financial Health Score

5/6

Financial Health Score 5/6

  • Short Term Liabilities

  • Long Term Liabilities

  • Debt Level

  • Reducing Debt

  • Debt Coverage

  • Interest Coverage

Financial Position Analysis

Short Term Liabilities: SQI's short term assets (€122.3M) exceed its short term liabilities (€93.5M).

Long Term Liabilities: SQI's short term assets (€122.3M) exceed its long term liabilities (€58.2M).


Debt to Equity History and Analysis

Debt Level: SQI's net debt to equity ratio (16.3%) is considered satisfactory.

Reducing Debt: SQI's debt to equity ratio has increased from 18.8% to 48.5% over the past 5 years.

Debt Coverage: SQI's debt is well covered by operating cash flow (32.5%).

Interest Coverage: SQI's interest payments on its debt are well covered by EBIT (7x coverage).


Balance Sheet


Discover healthy companies

Dividend

What is SQLI current dividend yield, its reliability and sustainability?

Dividend Score

0/6

Dividend Score 0/6

  • Notable Dividend

  • High Dividend

  • Stable Dividend

  • Growing Dividend

  • Earnings Coverage

  • Cash Flow Coverage


2.16%

Forecast Dividend Yield

Dividend Yield vs Market

Notable Dividend: Unable to evaluate SQI's dividend yield against the bottom 25% of dividend payers, as the company has not reported any recent payouts.

High Dividend: Unable to evaluate SQI's dividend yield against the top 25% of dividend payers, as the company has not reported any recent payouts.


Stability and Growth of Payments

Stable Dividend: Insufficient data to determine if SQI's dividends per share have been stable in the past.

Growing Dividend: Insufficient data to determine if SQI's dividend payments have been increasing.


Earnings Payout to Shareholders

Earnings Coverage: SQI is not paying a notable dividend for the French market.


Cash Payout to Shareholders

Cash Flow Coverage: Unable to calculate sustainability of dividends as SQI has not reported any payouts.


Discover strong dividend paying companies

Management

How experienced are the management team and are they aligned to shareholders interests?

2.6yrs

Average board tenure


CEO

Philippe Donche-Gay (65 yo)

no data

Tenure

€720,000

Compensation

Mr. Philippe Donche-Gay serves as Chief Executive Officer at SQLI SA and serves as its President of the Board of Directors since June 2019 and served as its General Manager. Mr. Donche-Gay served as Deputy...


CEO Compensation Analysis

Compensation vs Market: Philippe's total compensation ($USD732.68K) is above average for companies of similar size in the French market ($USD492.44K).

Compensation vs Earnings: Philippe's compensation has increased by more than 20% in the past year.


Board Members

Experienced Board: SQI's board of directors are not considered experienced ( 2.6 years average tenure), which suggests a new board.


Ownership

Who are the major shareholders and have insiders been buying or selling?


Insider Trading Volume

Insider Buying: Insufficient data to determine if insiders have bought more shares than they have sold in the past 3 months.


Recent Insider Transactions

Ownership Breakdown

Dilution of Shares: Shareholders have not been meaningfully diluted in the past year.


Top Shareholders

Company Information

SQLI SA's employee growth, exchange listings and data sources


Key Information

  • Name: SQLI SA
  • Ticker: SQI
  • Exchange: ENXTPA
  • Founded: 1990
  • Industry: IT Consulting and Other Services
  • Sector: Software
  • Implied Market Cap: €168.961m
  • Shares outstanding: 4.57m
  • Website: https://www.sqli.com

Number of Employees


Location

  • SQLI SA
  • 166 rue Jules Guesde
  • Levallois-perret
  • Ile-de-France
  • 92300
  • France

Listings


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2022/08/16 00:00
End of Day Share Price2022/08/16 00:00
Earnings2021/12/31
Annual Earnings2021/12/31


Unless specified all financial data is based on a yearly period but updated quarterly. This is known as Trailing Twelve Month (TTM) or Last Twelve Month (LTM) Data. Learn more here.