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Market Cap

UK£629.6m

Last Updated

2021/05/16 02:27 UTC

Data Sources

Company Financials +

Executive Summary

Equiniti Group plc, together with its subsidiaries, provides administration and payment services worldwide. More Details


Snowflake Analysis

Mediocre balance sheet with moderate growth potential.


Similar Companies

Share Price & News

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


Latest Share Price and Events

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

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


Market Performance


7 Day Return

-0.6%

EQN

-3.2%

GB IT

-1.2%

GB Market


1 Year Return

25.2%

EQN

51.6%

GB IT

27.6%

GB Market

Return vs Industry: EQN underperformed the UK IT industry which returned 51.7% over the past year.

Return vs Market: EQN underperformed the UK Market which returned 27.6% over the past year.


Shareholder returns

EQNIndustryMarket
7 Day-0.6%-3.2%-1.2%
30 Day25.0%-6.8%0.6%
90 Day19.1%7.0%5.3%
1 Year25.2%25.2%54.3%51.6%33.1%27.6%
3 Year-36.1%-38.1%70.1%61.4%11.1%-1.6%
5 Year5.3%-8.5%180.0%152.8%48.7%20.7%

Long-Term Price Volatility Vs. Market

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


Simply Wall St News

Valuation

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

1.23x

Price to Book (PB) ratio


Share Price vs. Fair Value

Below Fair Value: EQN (£1.72) is trading above our estimate of fair value (£1.27)

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


Price To Earnings Ratio

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

PE vs Market: EQN 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 EQN's PEG Ratio to determine if it is good value.


Price to Book Ratio

PB vs Industry: EQN is good value based on its PB Ratio (1.2x) compared to the GB IT industry average (4.6x).


Future Growth

How is Equiniti Group forecast to perform in the next 1 to 3 years based on estimates from 4 analysts?

44.1%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: EQN is forecast to become profitable over the next 3 years, which is considered faster growth than the savings rate (0.9%).

Earnings vs Market: EQN is forecast to become profitable over the next 3 years, which is considered above average market growth.

High Growth Earnings: EQN's is expected to become profitable in the next 3 years.

Revenue vs Market: EQN's revenue (2.2% per year) is forecast to grow slower than the UK market (5.3% per year).

High Growth Revenue: EQN's revenue (2.2% per year) is forecast to grow slower than 20% per year.


Earnings per Share Growth Forecasts


Future Return on Equity

Future ROE: EQN's Return on Equity is forecast to be low in 3 years time (9.8%).


Past Performance

How has Equiniti Group performed over the past 5 years?

32.3%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: EQN is currently unprofitable.

Growing Profit Margin: EQN is currently unprofitable.


Past Earnings Growth Analysis

Earnings Trend: EQN is unprofitable, but has reduced losses over the past 5 years at a rate of 32.3% per year.

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

Earnings vs Industry: EQN is unprofitable, making it difficult to compare its past year earnings growth to the IT industry (6.1%).


Return on Equity

High ROE: EQN has a negative Return on Equity (-0.21%), as it is currently unprofitable.


Financial Health

How is Equiniti Group's financial position?


Financial Position Analysis

Short Term Liabilities: EQN's short term assets (£149.8M) exceed its short term liabilities (£141.2M).

Long Term Liabilities: EQN's short term assets (£149.8M) do not cover its long term liabilities (£375.8M).


Debt to Equity History and Analysis

Debt Level: EQN's debt to equity ratio (60.1%) is considered high.

Reducing Debt: EQN's debt to equity ratio has reduced from 82.5% to 60.1% over the past 5 years.

Debt Coverage: EQN's debt is well covered by operating cash flow (24%).

Interest Coverage: EQN is unprofitable, therefore interest payments are not well covered by earnings.


Balance Sheet


Dividend

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

1.88%

Forecast Dividend Yield


Dividend Yield vs Market

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

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

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


Current Payout to Shareholders

Dividend Coverage: EQN is not paying a notable dividend for the UK market.


Future Payout to Shareholders

Future Dividend Coverage: No need to calculate the sustainability of EQN'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?

4.3yrs

Average management tenure


CEO

Paul Lynam (52 yo)

0.083

Tenure

Mr. Paul Anthony Lynam, ACIB, AMCT, FIFS, has been Chief Executive and Director at Equiniti Group PLC since April 01, 2021. He was Chief Executive of Secure Trust Bank Plc since September 13, 2010 until Ja...


Leadership Team

Experienced Management: EQN's management team is considered experienced (4.3 years average tenure).


Board Members

Experienced Board: EQN's board of directors are considered experienced (3.1 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.


Recent Insider Transactions

Ownership Breakdown

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


Top Shareholders

Company Information

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


Key Information

  • Name: Equiniti Group plc
  • Ticker: EQN
  • Exchange: LSE
  • Founded: 2007
  • Industry: Data Processing and Outsourced Services
  • Sector: Software
  • Market Cap: UK£629.565m
  • Shares outstanding: 366.03m
  • Website: https://www.equiniti.com

Number of Employees


Location

  • Equiniti Group plc
  • Sutherland House
  • Russell Way
  • Crawley
  • West Sussex
  • RH10 1UH
  • United Kingdom

Listings


Biography

Equiniti Group plc, together with its subsidiaries, provides administration and payment services worldwide. The company operates in five segments: EQ Boardroom, EQ Digital, EQ Paymaster, EQ US, and Interes...


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2021/05/16 02:27
End of Day Share Price2021/05/14 00:00
Earnings2020/12/31
Annual Earnings2020/12/31


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.