ENXTPA:SQI

Stock Analysis Report

Executive Summary

SQLI SA engages in digital commerce and digital technologies businesses.

Rewards

Earnings are forecast to grow 40.22% per year

Earnings grew by 282.4% over the past year

Risk Analysis

Has a high level of debt

Highly volatile share price over past 3 months

Large one-off items impacting financial results

Shareholders have been diluted in the past year



Snowflake Analysis

Adequate balance sheet with acceptable track record.


Similar Companies

Share Price & News

How has SQLI's share price performed over time and what events caused price changes?


Latest Share Price and Events

Stable Share Price: SQI's share price has been volatile over the past 3 months.


Market Performance


7 Day Return

-0.4%

SQI

1.0%

FR IT

1.4%

FR Market


1 Year Return

3.5%

SQI

18.7%

FR IT

17.0%

FR Market

Return vs Industry: SQI underperformed the French IT industry which returned 19.2% over the past year.

Return vs Market: SQI underperformed the French Market which returned 17.2% over the past year.


Shareholder returns

SQIIndustryMarket
7 Day-0.4%1.0%1.4%
30 Day2.8%3.3%-0.02%
90 Day29.8%13.6%3.9%
1 Year3.5%3.5%26.2%18.7%21.1%17.0%
3 Year-41.5%-42.6%51.8%34.5%44.4%30.8%
5 Year29.5%22.5%131.7%100.8%56.1%34.0%

Price Volatility Vs. Market

How volatile is SQLI's share price compared to the market and industry in the last 5 years?


Simply Wall St News

Valuation

Is SQLI undervalued compared to its fair value and its price relative to the market?

19.87x

Price to Earnings (PE) ratio


Share Price vs. Fair Value

Below Fair Value: SQI (€23.5) is trading above our estimate of fair value (€15.82)

Significantly Below Fair Value: SQI is trading above our estimate of fair value.


Price To Earnings Ratio

PE vs Industry: SQI is poor value based on its PE Ratio (19.9x) compared to the IT industry average (18.7x).

PE vs Market: SQI is poor value based on its PE Ratio (19.9x) compared to the French market (18.6x).


Price to Earnings Growth Ratio

PEG Ratio: SQI is good value based on its PEG Ratio (0.5x)


Price to Book Ratio

PB vs Industry: SQI is good value based on its PB Ratio (1.2x) compared to the FR IT industry average (2.3x).


Next Steps

Future Growth

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

40.2%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: SQI's forecast earnings growth (40.2% per year) is above the savings rate (-0.1%).

Earnings vs Market: SQI's earnings (40.2% per year) are forecast to grow faster than the French market (13.4% per year).

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

Revenue vs Market: SQI's revenue (3.9% per year) is forecast to grow slower than the French market (4.5% per year).

High Growth Revenue: SQI's revenue (3.9% 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 (9.5%).


Next Steps

Past Performance

How has SQLI performed over the past 5 years?

-8.0%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: SQI has a large one-off loss of €2.7M impacting its June 30 2019 financial results.

Growing Profit Margin: SQI's current net profit margins (2.1%) are higher than last year (0.6%).


Past Earnings Growth Analysis

Earnings Trend: SQI's earnings have declined by -8% per year over the past 5 years.

Accelerating Growth: SQI's earnings growth over the past year (282.4%) exceeds its 5-year average (-8% per year).

Earnings vs Industry: SQI earnings growth over the past year (282.4%) exceeded the IT industry 11.9%.


Return on Equity

High ROE: SQI's Return on Equity (5.8%) is considered low.


Return on Assets


Return on Capital Employed


Next Steps

Financial Health

How is SQLI's financial position?


Financial Position Analysis

Short Term Liabilities: SQI's short term assets (€125.0M) exceed its short term liabilities (€110.1M).

Long Term Liabilities: SQI's short term assets (€125.0M) exceed its long term liabilities (€76.6M).


Debt to Equity History and Analysis

Debt Level: SQI's debt to equity ratio (42.1%) is considered high.

Reducing Debt: SQI's debt to equity ratio has increased from 10.9% to 42.1% over the past 5 years.

Debt Coverage: SQI's debt is well covered by operating cash flow (45.3%).

Interest Coverage: SQI's interest payments on its debt are well covered by EBIT (6.2x coverage).


Balance Sheet

Inventory Level: SQI has a low level of unsold assets or inventory.

Debt Coverage by Assets: SQI's debt is covered by short term assets (assets are 3.4x debt).


Next Steps

Dividend

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

4.26%

Forecast Dividend Yield


Dividend Yield vs Market

company0%marketbottom25%1.5%markettop25%4.5%industryaverage1.8%forecastin3Years4.3%

Current dividend yield vs market & industry

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

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


Current Payout to Shareholders

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


Future Payout to Shareholders

Future Dividend Coverage: No need to calculate the sustainability of SQI's dividend in 3 years as they are not forecast to pay a notable one for the French market.


Next Steps

Management

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

6.8yrs

Average management tenure


CEO

Didier Fauque (55yo)

6.8yrs

Tenure

€478,629

Compensation

Mr. Didier Fauque has been the Chief Executive Officer and Member of Executive Board at SQLi since May 07, 2013 and May 15, 2013 respectively. 


CEO Compensation Analysis

Compensation vs Market: Didier's total compensation ($USD518.56K) is above average for companies of similar size in the French market ($USD305.05K).

Compensation vs Earnings: Didier's compensation has been consistent with company performance over the past year.


Leadership Team

NamePositionTenureCompensationOwnership
Didier Fauque
CEO & Member of Executive Board6.8yrs€478.63k2.08% 2.2m
Roland Fitoussi
Chairman of Executive Board & Executive Manager8.7yrs€119.25kno data
Nicolas Rebours
Executive & Financial Manager and Delegated Executive Officer11.7yrs€216.39kno data
Hervé de Beublain
Member of the Executive Board8.7yrs€87.88kno data
Véronique de Dalmatie
Member of the Executive Board5.7yrs€14.00kno data
Thierry Chemla
Director of Strategy & Development and Delegated Executive Officer6.1yrs€281.85kno data
Christine Julien
Head of Investor Relations0yrsno datano data
Didier Leclere
Head of Computer Department0yrsno datano data
Eric Chanal
Head of ISCS Offshore5.6yrsno datano data

6.8yrs

Average Tenure

56.5yo

Average Age

Experienced Management: SQI's management team is seasoned and experienced (6.8 years average tenure).


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.


Ownership Breakdown

Dilution of Shares: Shareholders have been diluted in the past year, with total shares outstanding growing by 5.9%.


Top Shareholders

Company Information

SQLI SA's company bio, 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
  • Market Cap: €107.573m
  • Shares outstanding: 4.55m
  • Website: https://www.sqli.com

Number of Employees


Location

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

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
SSXNDB (Deutsche Boerse AG)YesOrdinary SharesDEEURJul 2000
0Q90LSE (London Stock Exchange)YesOrdinary SharesGBEURJul 2000
SQIENXTPA (Euronext Paris)YesOrdinary SharesFREURJul 2000
SQIPBATS-CHIXE (BATS 'Chi-X Europe')YesOrdinary SharesGBEURJul 2000

Biography

SQLI SA engages in digital commerce and digital technologies businesses. The company offers comprehensive solutions for business performance, such as customer relationship management, digital and social marketing, connected commerce, data management platform, predictive commerce, ergonomics, mobility, and new practices under the WAX Interactive brand. It also provides company performance comprising digital industrialization factories, development of scalable cross-channel platforms, big data and analytics consulting and solutions, mobile technology and connected objects, collaborative enterprise and business solutions, etc. under the SQLI Enterprise brand. The company operates in France, Switzerland, Luxembourg, Belgium, the United Kingdom, Ireland, Germany, Sweden, the Netherlands, Denmark, Spain, South Africa, and Morocco. SQLI was founded in 1990 and is headquartered in Levallois-Perret, France. 


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2020/02/17 22:01
End of Day Share Price2020/02/17 00:00
Earnings2019/06/30
Annual Earnings2018/12/31


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.