AIM:EQLS

Stock Analysis Report

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Executive Summary

Equals Group plc, through its subsidiaries, primarily provides foreign exchange payment services and banking services to private clients and corporations through prepaid currency cards, travel cash, international money transfers, and current accounts in the United Kingdom. More Details


Snowflake Analysis

Adequate balance sheet and overvalued.


Similar Companies

Share Price & News

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


Latest Share Price and Events

Stable Share Price: EQLS is not significantly more volatile than the rest of UK stocks over the past 3 months, typically moving +/- 7% a week.

Volatility Over Time: EQLS's weekly volatility (7%) has been stable over the past year.


Market Performance


7 Day Return

-2.8%

EQLS

4.6%

GB IT

1.2%

GB Market


1 Year Return

-64.7%

EQLS

8.7%

GB IT

-9.6%

GB Market

Return vs Industry: EQLS underperformed the UK IT industry which returned 8.7% over the past year.

Return vs Market: EQLS underperformed the UK Market which returned -9.1% over the past year.


Shareholder returns

EQLSIndustryMarket
7 Day-2.8%4.6%1.2%
30 Day19.0%1.3%8.6%
90 Day3.2%-2.3%5.4%
1 Year-64.7%-64.7%9.8%8.7%-6.1%-9.6%
3 Year-65.1%-65.1%54.5%47.3%-0.6%-12.6%
5 Year12.1%12.1%148.0%123.8%23.3%-4.4%

Long-Term Price Volatility Vs. Market

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


Simply Wall St News

Valuation

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

1.13x

Price to Book (PB) ratio


Share Price vs. Fair Value

Below Fair Value: Insufficient data to calculate EQLS's fair value to establish if it is undervalued.

Significantly Below Fair Value: Insufficient data to calculate EQLS's fair value to establish if it is undervalued.


Price To Earnings Ratio

PE vs Industry: EQLS is unprofitable, so we can't compare its PE Ratio to the GB IT industry average.

PE vs Market: EQLS is unprofitable, so we can't compare its PE Ratio to the UK market.


Price to Earnings Growth Ratio

PEG Ratio: Insufficient data to calculate EQLS's PEG Ratio to determine if it is good value.


Price to Book Ratio

PB vs Industry: EQLS is good value based on its PB Ratio (1.1x) compared to the GB IT industry average (2.7x).


Next Steps

Future Growth

How is Equals Group forecast to perform in the next 1 to 3 years based on estimates from 0 analysts?

24.5%

Forecasted Software industry annual growth in earnings


In this section we usually present revenue and earnings growth projections based on the consensus estimates of professional analysts to help investors understand the company’s ability to generate profit. But as Equals Group has not provided enough past data and has no analyst forecast, its future earnings cannot be reliably calculated by extrapolating past data or using analyst predictions.

This is quite a rare situation as 97% of companies covered by SimplyWall St do have past financial data.


Next Steps

Past Performance

How has Equals Group performed over the past 5 years?

-3.6%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: EQLS is currently unprofitable.

Growing Profit Margin: EQLS is currently unprofitable.


Past Earnings Growth Analysis

Earnings Trend: EQLS is unprofitable, and losses have increased over the past 5 years at a rate of 3.6% per year.

Accelerating Growth: Unable to compare EQLS's earnings growth over the past year to its 5-year average as it is currently unprofitable

Earnings vs Industry: EQLS is unprofitable, making it difficult to compare its past year earnings growth to the IT industry (11.6%).


Return on Equity

High ROE: EQLS has a negative Return on Equity (-19.48%), as it is currently unprofitable.


Next Steps

Financial Health

How is Equals Group's financial position?


Financial Position Analysis

Short Term Liabilities: EQLS's short term assets (£22.3M) exceed its short term liabilities (£10.5M).

Long Term Liabilities: EQLS's short term assets (£22.3M) exceed its long term liabilities (£10.0M).


Debt to Equity History and Analysis

Debt Level: EQLS is debt free.

Reducing Debt: EQLS has no debt compared to 5 years ago when its debt to equity ratio was 242.6%.


Balance Sheet


Cash Runway Analysis

For companies that have on average been loss making in the past we assess whether they have at least 1 year of cash runway.

Stable Cash Runway: Insufficient data to determine if EQLS has enough cash runway based on its current free cash flow.

Forecast Cash Runway: Insufficient data to determine if EQLS has enough cash runway if its free cash flow continues to grow or shrink based on historical rates.


Next Steps

Dividend

What is Equals Group current dividend yield, its reliability and sustainability?


Dividend Yield vs Market

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

High Dividend: Unable to evaluate EQLS'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 EQLS's dividends per share have been stable in the past.

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


Current Payout to Shareholders

Dividend Coverage: Insufficient data to calculate payout ratio to determine if its dividend payments are covered by earnings.


Future Payout to Shareholders

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


Next Steps

Management

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

1.1yrs

Average board tenure


CEO

Ian Alexander Strafford-Taylor (59 yo)

8.83yrs

Tenure

UK£545,563

Compensation

Mr. Ian Alexander Irving Strafford-Taylor serves as the Chief Executive Officer of Equals Group plc (formerly known as FairFX Group Plc) and served as its Company Secretary. Mr. Strafford-Taylor serves as ...


CEO Compensation Analysis

Compensation vs Market: Ian Alexander's total compensation ($USD725.17K) is above average for companies of similar size in the UK market ($USD344.92K).

Compensation vs Earnings: Ian Alexander's compensation has increased whilst the company is unprofitable.


Board Members

NamePositionTenureCompensationOwnership
Ian Alexander Strafford-Taylor
CEO & Executive Director8.83yrsUK£545.56k1.22%
£ 634.8k
Richard Cooper
Group CFO & Director1.08yrsUK£257.72k0.050%
£ 25.9k
Ajay Chowdhury
Independent Non-Executive Director6.33yrsUK£50.00kno data
Alan Renatus Hughes
Independent Non-Executive Chairman0.42yrno data0.019%
£ 9.9k
Sian Herbert
Independent Non-Executive Director0.083yrno datano data

1.1yrs

Average Tenure

59yo

Average Age

Experienced Board: EQLS's board of directors are not considered experienced ( 1.1 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: EQLS 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

Equals Group plc's company bio, employee growth, exchange listings and data sources


Key Information

  • Name: Equals Group plc
  • Ticker: EQLS
  • Exchange: AIM
  • Founded: 2014
  • Industry: Data Processing and Outsourced Services
  • Sector: Software
  • Market Cap: UK£52.063m
  • Shares outstanding: 178.60m
  • Website: https://www.equalsplc.com

Number of Employees


Location

  • Equals Group plc
  • Thames House
  • 3rd Floor
  • London
  • Greater London
  • EC4V 3BJ
  • United Kingdom

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
EQLSAIM (London Stock Exchange AIM Market)YesOrdinary SharesGBGBPAug 2014
2FXDB (Deutsche Boerse AG)YesOrdinary SharesDEEURAug 2014

Biography

Equals Group plc, through its subsidiaries, primarily provides foreign exchange payment services and banking services to private clients and corporations through prepaid currency cards, travel cash, intern...


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2020/11/22 22:29
End of Day Share Price2020/11/20 00:00
Earnings2020/06/30
Annual Earnings2019/12/31


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.