Loading...

Equiniti Group

LSE:EQN
Snowflake Description

Moderate growth potential with mediocre balance sheet.

The Snowflake is generated from 30 checks in 5 different areas, read more below.
EQN
LSE
£764M
Market Cap
  1. Home
  2. GB
  3. Software
Company description

Equiniti Group plc, together with its subsidiaries, provides administration and payment services in the United Kingdom. The last earnings update was 179 days ago. More info.


Add to Portfolio Compare Print
EQN Share Price and Events
7 Day Returns
5.1%
LSE:EQN
1.9%
GB IT
1.3%
GB Market
1 Year Returns
-20.1%
LSE:EQN
-8.7%
GB IT
-9.8%
GB Market
EQN Shareholder Return
  7 Day 30 Day 90 Day 1 Year 3 Year 5 Year
Equiniti Group (EQN) 5.1% 6.1% 0.7% -20.1% 31.2% -
GB IT 1.9% 9.5% -6.9% -8.7% 37% -24.1%
GB Market 1.3% 4.1% 0.3% -9.8% 14.2% -4.1%
1 Year Return vs Industry and Market
  • EQN underperformed the IT industry which returned -8.7% over the past year.
  • EQN underperformed the Market in United Kingdom of Great Britain and Northern Ireland which returned -9.8% over the past year.
Price Volatility
EQN
Industry
5yr Volatility vs Market

Value

 Is Equiniti Group undervalued based on future cash flows and its price relative to the stock market?

Value is all about what a company is worth versus what price it is available for. If you went into a grocery store and all the bananas were on sale at half price, they could be considered undervalued.
INTRINSIC VALUE BASED ON FUTURE CASH FLOWS
Here we compare the current share price of Equiniti Group to its discounted cash flow analysis.value.

The discounted cash flow value is simply looking at what the company is worth today, based on estimates of how much money it is expected to make in the future.
Raw Data

Below are the data sources, inputs and calculation used to determine the intrinsic value for Equiniti Group.

LSE:EQN Discounted Cash Flow Data Sources
Data Point Source Value
Valuation Model 2 Stage Free Cash Flow to Equity
Levered Free Cash Flow Average of 4 Analyst Estimates (S&P Global) See below
Discount Rate (Cost of Equity) See below 12%
Perpetual Growth Rate 10-Year GB Government Bond Rate 1.2%

An important part of a discounted cash flow is the discount rate, below we explain how it has been calculated.

Calculation of Discount Rate/ Cost of Equity for LSE:EQN
Data Point Calculation/ Source Result
Risk-Free Rate 10-Year GB Govt Bond Rate 1.2%
Equity Risk Premium S&P Global 8.8%
IT Unlevered Beta Simply Wall St/ S&P Global 0.86
Re-levered Beta = Unlevered beta (1 + (1- tax rate) (Debt/Equity))
= 0.864 (1 + (1- 19%) (51.38%))
1.224
Levered Beta Levered Beta limited to 0.8 to 2.0
(practical range for a stable firm)
1.22
Discount Rate/ Cost of Equity = Cost of Equity = Risk Free Rate + (Levered Beta * Equity Risk Premium)
= 1.23% + (1.224 * 8.77%)
11.97%

Discounted Cash Flow Calculation for LSE:EQN using 2 Stage Free Cash Flow to Equity Model

The calculations below outline how an intrinsic value for Equiniti Group is arrived at by discounting future cash flows to their present value using the 2 stage method. We use analyst's estimates of cash flows going forward 5 years for the 1st stage, the 2nd stage assumes the company grows at a stable rate into perpetuity.

LSE:EQN DCF 1st Stage: Next 5 year cash flow forecast
2019 2020 2021 2022 2023
Levered FCF (GBP, Millions) 55.69 82.13 90.11 98.88 108.50
Source Analyst x3 Analyst x2 Est @ 9.73% Est @ 9.73% Est @ 9.73%
Present Value
Discounted (@ 11.97%)
49.73 65.51 64.20 62.91 61.65
Present value of next 5 years cash flows £304.01
LSE:EQN DCF 2nd Stage: Terminal Value
Calculation Result
Terminal Value = FCF2023 × (1 + g) ÷ (Discount Rate – g)
= £108.50 × (1 + 1.23%) ÷ (11.97% – 1.23%)
£1,022.62
Present Value of Terminal Value = Terminal Value ÷ (1 + r)5
= £1,022.62 ÷ (1 + 11.97%)5
£581.12
LSE:EQN Total Equity Value
Calculation Result
Total Equity Value = Present value of next 5 years cash flows + Terminal Value
= £304.01 + £581.12
£885.13
Equity Value per Share
(GBP)
= Total value / Shares Outstanding
= £885.13 / 358.54
£2.47
LSE:EQN Discount to Share Price
Calculation Result
Value per share (GBP) From above. £2.47
Current discount Discount to share price of £2.17
= -1 x (£2.17 - £2.47) / £2.47
12.3%

Learn more about our DCF calculations in Simply Wall St’s analysis model .

Current Discount
Amount off the current price Equiniti Group is available for.
Intrinsic value
12%
Share price is £2.17 vs Future cash flow value of £2.47
Current Discount Checks
For Equiniti Group to be considered undervalued it must be available for at least 20% below the current price. Less than 40% is even better.
  • Equiniti Group's share price is below the future cash flow value, but not at a moderate discount (< 20%).
  • Equiniti Group's share price is below the future cash flow value, but not at a substantial discount (< 40%).
PRICE RELATIVE TO MARKET
We can also value a company based on what the stock market is willing to pay for it. This is similar to the price of fruit (e.g. Mangoes or Avocados) increasing when they are out of season, or how much your home is worth.

The amount the stock market is willing to pay for Equiniti Group's earnings, growth and assets is considered below, and whether this is a fair price.
Price based on past earnings
Are Equiniti Group's earnings available for a low price, and how does this compare to other companies in the same industry?
Raw Data
LSE:EQN PE (Price to Earnings) Ratio Data Sources
Data Point Source Value
Earnings Per Share * Company Filings (2018-06-30) in GBP £0.02
LSE:EQN Share Price ** LSE (2019-01-22) in GBP £2.17
United Kingdom of Great Britain and Northern Ireland IT Industry PE Ratio Median Figure of 24 Publicly-Listed IT Companies 29.42x
United Kingdom of Great Britain and Northern Ireland Market PE Ratio Median Figure of 815 Publicly-Listed Companies 15.68x

* Trailing twelve months (TTM) annual GAAP earnings per share excluding extraordinary items.

** Primary Listing of Equiniti Group.

LSE:EQN PE (Price to Earnings) Ratio Calculation
Calculation Outcome
PE Ratio

= LSE:EQN Share Price ÷ EPS (both in GBP)

= 2.17 ÷ 0.02

106.46x

Learn more about our ratios and growth rates in Simply Wall St’s analysis model >

  • Equiniti Group is overvalued based on earnings compared to the GB IT industry average.
  • Equiniti Group is overvalued based on earnings compared to the United Kingdom of Great Britain and Northern Ireland market.
Price based on expected Growth
Does Equiniti Group's expected growth come at a high price?
Raw Data
LSE:EQN PEG (Price to Earnings to Growth) Ratio Data Sources
Data Point Source Value
PE Ratio See PE Ratio Section 106.46x
Net Income Annual Growth Rate See Future Growth Section.
Line of Best Fit* through Consensus Estimate Earnings of 4 Analysts
Not available
United Kingdom of Great Britain and Northern Ireland IT Industry PEG Ratio Median Figure of 18 Publicly-Listed IT Companies 1.47x
United Kingdom of Great Britain and Northern Ireland Market PEG Ratio Median Figure of 574 Publicly-Listed Companies 1.28x

*Line of best fit is calculated by linear regression .

Learn more about our ratios and growth rates in Simply Wall St’s analysis model >

  • Unable to calculate PEG ratio for Equiniti Group, we can't assess if its growth is good value.
Price based on value of assets
What value do investors place on Equiniti Group's assets?
Raw Data
LSE:EQN PB (Price to Book) Ratio Data Sources
Data Point Source Value
Book Value per Share Company Filings (2018-06-30) in GBP £1.36
LSE:EQN Share Price * LSE (2019-01-22) in GBP £2.17
United Kingdom of Great Britain and Northern Ireland IT Industry PB Ratio Median Figure of 43 Publicly-Listed IT Companies 3.34x
United Kingdom of Great Britain and Northern Ireland Market PB Ratio Median Figure of 1,361 Publicly-Listed Companies 1.5x
LSE:EQN PB (Price to Book) Ratio Calculation
Calculation Outcome
PB Ratio

= LSE:EQN Share Price ÷ Book Value per Share (both in GBP)

= 2.17 ÷ 1.36

1.59x

* Primary Listing of Equiniti Group.

Learn more about our ratios and growth rates in Simply Wall St’s analysis model >

  • Equiniti Group is good value based on assets compared to the GB IT industry average.
X
Value checks
We assess Equiniti Group's value by looking at:
  1. Is the discounted cash flow value less than 20%, or 40% of the share price? (2 checks) ( Click here or on bar chart for details of DCF calculation. )
  2. Is the PE ratio less than the market average, and/ or less than the IT industry average (and greater than 0)? (2 checks)
  3. Is the PEG ratio within a reasonable range (0 to 1)? (1 check)
  4. Is the PB ratio less than the IT industry average (and greater than 0)? (1 check)
  5. Equiniti Group has a total score of 1/6, see the detailed checks below.

    Note: We use GAAP Earnings per Share in all our calculations including PE and PEG Ratio.

    Full details on the Value part of the Simply Wall St company analysis model.

Future Performance

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

The future performance of a company is measured in the same way as past performance, by looking at estimated growth and how much profit it is expected to make.

Future estimates come from professional analysts. Just like forecasting the weather, they don’t always get it right!
Annual Growth Rate
22.6%
Expected annual growth in earnings per share.
Earnings growth vs Low Risk Savings
Is Equiniti Group expected to grow at an attractive rate?
  • Equiniti Group's earnings growth is expected to exceed the low risk savings rate of 1.2%.
Growth vs Market Checks
  • Equiniti Group's earnings growth is expected to exceed the United Kingdom of Great Britain and Northern Ireland market average.
  • Equiniti Group's revenue growth is positive but not above the United Kingdom of Great Britain and Northern Ireland market average.
Annual Growth Rates Comparison
Raw Data
LSE:EQN Future Growth Rates Data Sources
Data Point Source Value (per year)
LSE:EQN Future Earnings per Share Growth Rate Line of Best Fit* through Consensus Estimate Revenue of 4 Analysts 22.6%
LSE:EQN Future Revenue Growth Rate Line of Best Fit* through Consensus Estimate Revenue of 4 Analysts 3.6%
United Kingdom of Great Britain and Northern Ireland IT Industry Earnings Growth Rate Market Cap Weighted Average 17.4%
United Kingdom of Great Britain and Northern Ireland IT Industry Revenue Growth Rate Market Cap Weighted Average 9.6%
United Kingdom of Great Britain and Northern Ireland Market Earnings Growth Rate Market Cap Weighted Average 11.3%
United Kingdom of Great Britain and Northern Ireland Market Revenue Growth Rate Market Cap Weighted Average 3.8%

*Line of best fit is calculated by linear regression .

Industry and Market average data is calculated daily.

Learn more about our growth rate calculations in Simply Wall St’s analysis model.

Analysts growth expectations
Raw Data
LSE:EQN Analysts Growth Expectations Data Sources
Data Point Source Value
Past Financials Company Filings (6 months ago) See Below
Future Estimates Average of up to 4 Analyst Estimates (S&P Global) See Below
All numbers in GBP Millions and using Trailing twelve months (TTM) annual period rather than quarterly.
LSE:EQN Future Estimates Data
Date (Data in GBP Millions) Revenue Cash Flow Net Income * Avg. No. Analysts
2023-12-31 599 1
2022-12-31 574 1
2021-12-31 560 2
2020-12-31 554 121 4
2019-12-31 532 113 4
2018-12-31 507 86 3
LSE:EQN Past Financials Data
Date (Data in GBP Millions) Revenue Cash Flow Net Income *
2018-06-30 465 74 7
2018-03-31 436 72 10
2017-12-31 406 70 12
2017-09-30 396 74 21
2017-06-30 386 78 30
2017-03-31 384 65 30
2016-12-31 383 52 31
2016-09-30 381 36 7
2016-06-30 380 20 -16
2016-03-31 374 31 -33
2015-12-31 369 42 -50
2015-09-30 355 56 -44

*GAAP earnings excluding extraordinary items.

Super high growth metrics
High Growth Checks
  • Equiniti Group's earnings are expected to grow significantly at over 20% yearly.
  • Equiniti Group's revenue is expected to grow by 3.6% yearly, however this is not considered high growth (20% yearly).
Past and Future Earnings per Share
The accuracy of the analysts who estimate the future performance data can be gauged below. We look back 3 years and see if they were any good at predicting what actually occurred. We also show the highest and lowest estimates looking forward to see if there is a wide range.
Raw Data
LSE:EQN Past and Future Earnings per Share
Data Point Source Value
Past Financials Company Filings (6 months ago) See Below
Future Estimates Average of up to 4 Analyst Estimates (S&P Global) See Below

All data from Equiniti Group Company Filings, last reported 6 months ago, and in Trailing twelve months (TTM) annual period rather than quarterly.

LSE:EQN Future Estimates Data
Date (Data in GBP Millions) EPS * EPS High Estimate EPS Low Estimate Avg. No. Analysts
2023-12-31
2022-12-31
2021-12-31
2020-12-31 0.22 0.22 0.22 1.00
2019-12-31 0.21 0.21 0.21 1.00
2018-12-31 0.18 0.18 0.18 1.00
LSE:EQN Past Financials Data
Date (Data in GBP Millions) EPS *
2018-06-30 0.02
2018-03-31 0.03
2017-12-31 0.04
2017-09-30 0.06
2017-06-30 0.10
2017-03-31 0.10
2016-12-31 0.10
2016-09-30 0.02
2016-06-30 -0.08
2016-03-31 -0.26
2015-12-31 -0.93
2015-09-30 -1.49

*GAAP earnings excluding extraordinary items.

Performance in 3 years
In the same way as past performance we look at the future estimated return (profit) compared to the available funds. We do this looking forward 3 years.
  • Unable to establish if Equiniti Group will efficiently use shareholders’ funds in the future without estimates of Return on Equity.
X
Future performance checks
We assess Equiniti Group's future performance by looking at:
  1. Is the annual earnings growth rate expected to beat the low risk savings rate, plus a premium to keep pace with inflation?
  2. Is the annual earnings growth rate expected to beat the average growth rate in earnings of the United Kingdom of Great Britain and Northern Ireland market? (1 check)
  3. Is the annual revenue growth rate expected to beat the average growth rate in revenue of the United Kingdom of Great Britain and Northern Ireland market? (1 check)
  4. Is the annual earnings growth rate expected to be above 20%? (1 check)
  5. Is the annual revenue growth rate expected to be above 20%? (1 check)
  6. Is the Return on Equity in 3 years expected to be over 20%? (1 check)
Some of the above checks will fail if the company is expected to be loss making in the relevant year.
Equiniti Group has a total score of 3/6, see the detailed checks below.

Note 1: We use GAAP Net Income Excluding Exceptional Items for our Earnings in all our calculations.

Full details on the Future part of the Simply Wall St company analysis model.

Past Performance

  How has Equiniti Group performed over the past 5 years?

The past performance of a company can be measured by how much growth it has experienced and how much profit it makes relative to the funds and assets it has available.
Past earnings growth
Below we compare Equiniti Group's growth in the last year to its industry (IT).
Past Earnings growth analysis
We also check if the company has grown in the past 5 years, and whether it has maintained that growth in the year.
  • Equiniti Group has delivered over 20% year on year earnings growth in the past 5 years.
  • Equiniti Group's 1-year earnings growth is negative, it can't be compared to the 5-year average.
  • Equiniti Group's 1-year earnings growth is negative, it can't be compared to the GB IT industry average.
Earnings and Revenue History
Equiniti Group's revenue and profit over the past 5 years is shown below, any years where they have experienced a loss will show up in red.
Raw Data

All data from Equiniti Group Company Filings, last reported 6 months ago, and in Trailing twelve months (TTM) annual period rather than quarterly.

LSE:EQN Past Revenue, Cash Flow and Net Income Data
Date (Data in GBP Millions) Revenue Net Income * G+A Expenses R&D Expenses
2018-06-30 465.30 7.40 351.90
2018-03-31 435.70 9.65 330.05
2017-12-31 406.10 11.90 308.20
2017-09-30 395.80 20.85 445.55
2017-06-30 385.50 30.00 436.80
2017-03-31 384.05 30.25 363.80
2016-12-31 382.60 30.50 290.80
2016-09-30 381.15 7.05 152.10
2016-06-30 379.70 -16.40 13.40
2016-03-31 374.35 -33.40 13.05
2015-12-31 369.00 -50.40 12.70
2015-09-30 354.80 -44.05 13.20
2015-06-30 340.60 -37.70 13.70
2015-03-31 316.45 -38.35 14.20
2014-12-31 292.30 -39.00 14.70
2013-12-31 274.70 -52.10 12.50
2012-12-31 266.50 -35.80 12.00

*GAAP earnings excluding extraordinary items.

Performance last year
We want to ensure a company is making the most of what it has available. This is done by comparing the return (profit) to a company's available funds, assets and capital.
  • Equiniti Group has not efficiently used shareholders’ funds last year (Return on Equity less than 20%).
  • Equiniti Group used its assets less efficiently than the GB IT industry average last year based on Return on Assets.
  • Equiniti Group has improved its use of capital last year versus 3 years ago (Return on Capital Employed).
X
Past performance checks
We assess Equiniti Group's performance over the past 5 years by checking for:
  1. Has earnings increased in past 5 years? (1 check)
  2. Has the earnings growth in the last year exceeded that of the IT industry? (1 check)
  3. Is the recent earnings growth over the last year higher than the average annual growth over the past 5 years? (1 check)
  4. Is the Return on Equity (ROE) higher than 20%? (1 check)
  5. Is the Return on Assets (ROA) above industry average? (1 check)
  6. Has the Return on Capital Employed (ROCE) increased from 3 years ago? (1 check)
The above checks will fail if the company has reported a loss in the most recent earnings report. Some checks require at least 3 or 5 years worth of data.
Equiniti Group has a total score of 2/6, see the detailed checks below.

Note: We use GAAP Net Income excluding extraordinary items in all our calculations.

Full details on the Past part of the Simply Wall St company analysis model.

Health

 How is Equiniti Group's financial health and their level of debt?

A company's financial position is much like your own financial position, it includes everything you own (assets) and owe (liabilities).

The boxes below represent the relative size of what makes up Equiniti Group's finances.

The net worth of a company is the difference between its assets and liabilities.
Net Worth
  • Equiniti Group is able to meet its short term (1 year) commitments with its holdings of cash and other short term assets.
  • Equiniti Group's long term commitments exceed its cash and other short term assets.
Balance sheet
This treemap shows a more detailed breakdown of Equiniti Group's finances. If any of them are yellow this indicates they may be out of proportion and red means they relate to one of the checks below.
Assets
Liabilities and shares
The 'shares' portion represents any funds contributed by the owners (shareholders) and any profits.
  • Low level of unsold assets.
  • Debt is not covered by short term assets, assets are 0.6x debt.
Historical Debt
Nearly all companies have debt. Debt in itself isn’t bad, however if the debt is too high, or the company can’t afford to pay the interest on its debts this may have impacts in the future.

The graphic below shows equity (available funds) and debt, we ideally want to see the red area (debt) decreasing.

If there is any debt we look at the companies capability to repay it, and whether the level has increased over the past 5 years.
Raw Data

All data from Equiniti Group Company Filings, last reported 6 months ago.

LSE:EQN Past Debt and Equity Data
Date (Data in GBP Millions) Total Equity Total Debt Cash & Short Term Investments
2018-06-30 515.20 392.40 85.00
2018-03-31 515.20 392.40 85.00
2017-12-31 510.60 249.10 115.20
2017-09-30 510.60 249.10 115.20
2017-06-30 397.40 326.30 69.60
2017-03-31 397.40 326.30 69.60
2016-12-31 402.20 306.50 56.70
2016-09-30 402.20 306.50 56.70
2016-06-30 389.80 313.90 52.90
2016-03-31 389.80 313.90 52.90
2015-12-31 380.50 315.20 76.50
2015-09-30 380.50 315.20 76.50
2015-06-30 -279.70 938.30 29.70
2015-03-31 -279.70 938.30 29.70
2014-12-31 -251.90 902.60 30.10
2013-12-31 -232.20 820.60 15.40
2012-12-31 -182.30 888.00 57.80
  • Equiniti Group's level of debt (76.2%) compared to net worth is high (greater than 40%).
  • Equiniti Group had negative shareholder equity 5 years ago, it is now positive therefore their debt level has improved.
  • Debt is not well covered by operating cash flow (18.8%, less than 20% of total debt).
  • Interest payments on debt are well covered by earnings (EBIT is 4.9x coverage).
X
Financial health checks
We assess Equiniti Group's financial health by checking for:
  1. Are short term assets greater than short term liabilities? (1 check)
  2. Are short term assets greater than long term liabilities? (1 check)
  3. Has the debt to equity ratio increased in the past 5 years? (1 check)
  4. Is the debt to equity ratio over 40%? (1 check)
  5. Is the debt covered by operating cash flow? (1 check)
  6. Are earnings greater than 5x the interest on debt (if company pays interest at all)? (1 check)
  7. Equiniti Group has a total score of 3/6, see the detailed checks below.
For companies that are loss making and have been so on average in the past we replace the last 2 checks with:
  1. Does cash and short term investments cover stable operating expenses (recurring G&A and R&D) for more than 3 years? (1 check)
  2. Does cash and short term investments cover growing operating expenses (recurring G&A and R&D) for more than 3 years? (1 check)


Full details on the Health part of the Simply Wall St company analysis model.

Dividends

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

Dividends are regular cash payments to you from the company, similar to a bank paying you interest on a savings account.
Annual Dividend Income
Dividend payments
2.07%
Current annual income from Equiniti Group dividends. Estimated to be 2.92% next year.
If you bought £2,000 of Equiniti Group shares you are expected to receive £41 in your first year as a dividend.
Dividend Amount
Here we look how much dividend is being paid, if any. Is it above what you can get in a savings account? It is up there with the best dividend paying companies?
  • Equiniti Group's pays a higher dividend yield than the bottom 25% of dividend payers in United Kingdom of Great Britain and Northern Ireland (1.96%).
  • Equiniti Group's dividend is below the markets top 25% of dividend payers in United Kingdom of Great Britain and Northern Ireland (5.28%).
Annualized Historical and Future Dividends
It is important to see if the dividend for a company is stable, and not wildly increasing/decreasing each year. This graph shows you the historical rate to count toward your assessment of the stock.

We also check to see if the dividend has increased in the past 10 years.
Raw Data
LSE:EQN Annualized Past and Future Dividends
Data Point Source Value
Past Annualized Dividend Yield S&P Global Market Data See Below
Past Dividends per Share Company Filings/ Annualized Dividend Payments See Below
Future Dividends per Share Estimates Average of up to 4 Analyst Estimates (S&P Global) See Below
United Kingdom of Great Britain and Northern Ireland IT Industry Average Dividend Yield Market Cap Weighted Average of 19 Stocks 2.5%
United Kingdom of Great Britain and Northern Ireland Market Average Dividend Yield Market Cap Weighted Average of 710 Stocks 4.3%
United Kingdom of Great Britain and Northern Ireland Minimum Threshold Dividend Yield 10th Percentile 1.1%
United Kingdom of Great Britain and Northern Ireland Bottom 25% Dividend Yield 25th Percentile 2%
United Kingdom of Great Britain and Northern Ireland Top 25% Dividend Yield 75th Percentile 5.3%

Industry and Market average data is calculated daily.

Note all dividend per share amounts are annualized and not quarterly or other period.

LSE:EQN Future Dividends Estimate Data
Date (Data in £) Dividend per Share (annual) Avg. No. Analysts
2023-12-31
2022-12-31
2021-12-31 0.08 1.00
2020-12-31 0.06 5.00
2019-12-31 0.06 5.00
2018-12-31 0.05 6.00
LSE:EQN Past Annualized Dividends Data
Date (Data in £) Dividend per share (annual) Avg. Yield (%)
2018-05-03 0.045 1.958
2017-04-25 0.048 1.751
2016-07-29 0.033 1.732
2016-03-23 0.007 0.398
2016-03-08 0.007 0.450

Learn more about our ratios and growth rates in Simply Wall St’s analysis model >

  • Whilst dividend payments have been stable, Equiniti Group has been paying a dividend for less than 10 years.
  • Dividend payments have increased, but Equiniti Group only paid a dividend in the past 3 years.
Current Payout to shareholders
What portion of Equiniti Group's earnings are paid to the shareholders as a dividend.
  • Dividends paid are not well covered by earnings (0.4x coverage).
Future Payout to shareholders
  • Dividends after 3 years are expected to be well covered by earnings (3.1x coverage).
X
Income/ dividend checks
We assess Equiniti Group's dividend by checking for:
  1. Firstly is the company paying a notable dividend (greater than 1.1%) - if not then the rest of the checks are ignored.
  2. Is current dividend yield above the bottom 25% of dividend payers? (1 check)
  3. Is current dividend yield above the top 25% of dividend payers? (1 check)
  4. Have they paid a dividend for 10 years, and during this period has the dividend been volatile (drop of more than 25%)? (1 check)
  5. If they have paid a dividend for 10 years has it increased in this time? (1 check)
  6. How sustainable is the dividend, can Equiniti Group afford to pay it from its earnings today and in 3 years (Payout ratio less than 90%)? (2 checks)
  7. Equiniti Group has a total score of 2/6, see the detailed checks below.


Full details on the Dividends part of the Simply Wall St company analysis model.

Management

 What is the CEO of Equiniti Group's salary, the management and board of directors tenure and is there insider trading?

Management is one of the most important areas of a company. We look at unreasonable CEO compensation, how long the team and board of directors have been around for and insider trading.
CEO
Guy Wakeley
COMPENSATION £3,106,000
AGE 47
TENURE AS CEO 5 years
CEO Bio

Mr. Guy Richard Wakeley has been the Group Chief Executive Officer of Equiniti Group plc since June 2018. Mr. Wakeley was Chief Executive Officer of Equiniti Group plc since January 27,2014 until June 2018. Mr. Wakeley served as Chief Executive Officer of Morrison Facilities Services Limited. He served as Chief Executive Officer of Morrison Limited (formerly, Morrison PLC) for 5 years. He was responsible for the delivery of outsourcing solutions in the public and housing industries. During his tenure he transformed the level of client service and innovation, grew the business rapidly and delivered consistent strong cash generation. Prior to Morrison, he served as Managing Director of the Built Environment division of Amey and Rok Maintenance. He previously worked at The Berkeley Group, General Electric and Rolls-Royce. He has been an Executive Director at Equiniti Group plc since January 2014. He serves as a Director of Equiniti Limited, Equiniti Solutions Limited and Paymaster (1836) Limited. He has been a Non-Executive Director of MyCSP Limited since April 2014. He is a member of CBI’s Public Services Strategy Board, promoting the role of business in transforming the UK’s public services and is an FCA Approved Person. He is a transformation specialist. He is a Chartered Engineer, a Fellow of the Royal Institution of Chartered Surveyors and a commercial pilot and flight instructor. Mr. Wakeley holds an MA in Engineering Science from the University of Cambridge and a PhD in applications of artificial intelligence to engineering design from Newcastle University.

CEO Compensation
  • Guy's compensation has increased by more than 20% whilst company earnings have fallen more than 20% in the past year.
  • Guy's remuneration is higher than average for companies of similar size in United Kingdom of Great Britain and Northern Ireland.
Management Team Tenure

Average tenure and age of the Equiniti Group management team in years:

3.6
Average Tenure
49.5
Average Age
  • The tenure for the Equiniti Group management team is about average.
Management Team

Guy Wakeley

TITLE
Group CEO & Director
COMPENSATION
£3M
AGE
47
TENURE
5 yrs

John Stier

TITLE
CFO & Director
COMPENSATION
£2M
AGE
52
TENURE
3.6 yrs

Thera Prins

TITLE
COO & CEO of EFSL
TENURE
0.3 yrs

Kevin O’Connor

TITLE
Chief Information Officer
AGE
54

Frances Gibbons

TITLE
Head of Investor Relations

Lina Brown

TITLE
Commercial & Legal Director

Jim Brown

TITLE
Director of Corporate Development

Rebecca Grattan

TITLE
Chief People & Transformation Officer
TENURE
0.3 yrs

Adam Green

TITLE
Chief Risk Officer
AGE
39
TENURE
4 yrs

Phil Ainsley

TITLE
Managing Director of Employee Services
Board of Directors Tenure

Average tenure and age of the Equiniti Group board of directors in years:

1.3
Average Tenure
55
Average Age
  • The average tenure for the Equiniti Group board of directors is less than 3 years, this suggests a new board.
Board of Directors

Phil Yea

TITLE
Independent non-executive Chairman
COMPENSATION
£100K
AGE
64
TENURE
1.3 yrs

Guy Wakeley

TITLE
Group CEO & Director
COMPENSATION
£3M
AGE
47
TENURE
5 yrs

John Stier

TITLE
CFO & Director
COMPENSATION
£2M
AGE
52
TENURE
3.6 yrs

Sally-Ann Hibberd

TITLE
Independent Non-Executive Director
COMPENSATION
£65K
AGE
59
TENURE
2.4 yrs

Darren Pope

TITLE
Senior Independent Director
COMPENSATION
£57K
AGE
53
TENURE
0.7 yrs

Tim Miller

TITLE
Independent Non-Executive Director
COMPENSATION
£115K
AGE
61
TENURE
3.9 yrs

Alison Burns

TITLE
Independent Non-Executive Director
AGE
55
TENURE
0.8 yrs

Cheryl Millington

TITLE
Independent Non-Executive Director
TENURE
0.2 yrs

Mark Brooker

TITLE
Independent Non-Executive Director
TENURE
0.2 yrs
Who owns this company?
Recent Insider Trading
  • More shares have been bought than sold by Equiniti Group insiders in the past 3 months.
Recent Insider Transactions
Announced Type Name Entity Role Start End Shares Max Price (£) Value (£)
19. Dec 18 Buy Timothy John Miller Individual 11. Dec 18 18. Dec 18 54,168 £2.03 £107,796
19. Dec 18 Buy Philip Yea Individual 18. Dec 18 18. Dec 18 12,000 £1.97 £23,659
01. Aug 18 Buy Equiniti Group PLC, ESOP Company 27. Jul 18 27. Jul 18 6,000,000 £2.32 £13,918,800
30. Jul 18 Buy Philip Yea Individual 27. Jul 18 27. Jul 18 63,000 £2.38 £149,707
27. Jul 18 Buy Paul Matthews Individual 27. Jul 18 27. Jul 18 2,138 £2.33 £4,975
27. Jul 18 Buy Guy Wakeley Individual 27. Jul 18 27. Jul 18 25,000 £2.33 £58,170
27. Jul 18 Buy John Stier Individual 27. Jul 18 27. Jul 18 10,000 £2.33 £23,268
27. Jul 18 Buy Timothy John Miller Individual 27. Jul 18 27. Jul 18 25,000 £2.33 £58,170
03. May 18 Sell Adam Green Individual 03. May 18 03. May 18 -18,052 £2.77 £-50,002
03. May 18 Buy Guy Wakeley Individual 03. May 18 03. May 18 7,179 £2.77 £19,899
03. May 18 Buy Philip Yea Individual 03. May 18 03. May 18 36,198 £2.78 £100,696
09. Apr 18 Buy Guy Wakeley Individual 09. Apr 18 09. Apr 18 6,869 £2.90 £19,894
08. Mar 18 Sell Guy Wakeley Individual 08. Mar 18 08. Mar 18 -350,000 £3.01 £-1,054,025
X
Management checks
We assess Equiniti Group's management by checking for:
  1. Is the CEO's compensation unreasonable compared to market cap? (1 check)
  2. Has the CEO's compensation increased more than 20% whilst the EPS is down more then 20%? (1 check)
  3. Is the average tenure of the management team less than 2 years? (1 check)
  4. Is the average tenure of the board of directors team less than 3 years? (1 check)
  5. Equiniti Group has a total score of 0/6, this is not included on the snowflake, see the detailed checks below.


Note: We use the top 6 management executives and board members in our calculations.

Note 2: Insider trading include any internal stakeholders and these transactions .

Full details on the Management part of the Simply Wall St company analysis model.

News

Simply Wall St News

What does Equiniti Group plc's (LON:EQN) Balance Sheet Tell Us About Its Future?

While small-cap stocks, such as Equiniti Group plc (LON:EQN) with its market cap of UK£739m, are popular for their explosive growth, investors should also be aware of their balance sheet to judge whether the company can survive a downturn.

Simply Wall St -

Should You Be Worried About Equiniti Group plc's (LON:EQN) 2.2% Return On Equity?

By way of learning-by-doing, we'll look at ROE to gain a better understanding of Equiniti Group plc (LON:EQN). … That means that for every £1 worth of shareholders' equity, it generated £0.022 in profit. … Return on Equity = Net Profit ÷ Shareholders' Equity

Simply Wall St -

Investors Are Undervaluing Equiniti Group plc (LON:EQN) By 20.12%

Today, I will calculate the stock's intrinsic value. … by projecting its future cash flows and then discounting them to today's value. … Anyone interested in learning a bit more about intrinsic value should have a read of the Simply Wall St analysis model

Simply Wall St -

Should You Worry About Equiniti Group plc's (LON:EQN) CEO Pay Check?

First, this article will compare CEO compensation with compensation at similar sized companies. … How Does Guy Wakeley's Compensation Compare With Similar Sized Companies. … Thus we can conclude that Guy Wakeley receives more in total compensation than the median of a group of companies in the same market, and of similar size to Equiniti Group plc

Simply Wall St -

Is It Time To Consider Buying Equiniti Group plc (LON:EQN)?

Equiniti Group plc (LON:EQN), which is in the it business, and is based in United Kingdom,. … A question to answer is whether Equiniti Group's current trading price of £2.13 reflective of the actual value of the? … Let’s take a look at Equiniti Group’s outlook and value based on the most recent financial data to see if there are any catalysts for a price change

Simply Wall St -

Should You Follow This Trend For Equiniti Group plc (LON:EQN)?

Equiniti Group's insiders have invested. … Generally, insiders buying more shares in their own firm sends a bullish signal … A two-decade research published in The MIT Press (1998) showed that stocks following insider buying outperformed the market by 4.5%

Simply Wall St -

Equiniti Group plc (LON:EQN) Is Trading At A 26.91% Discount

by taking the foreast future cash flows of the company and discounting them back to today's value. … discounted cash flows (DCF). … If you want to learn more about discounted cash flow, the basis for my calcs can be read in detail in the Simply Wall St analysis model

Simply Wall St -

Have Investors Priced In Equiniti Group plc's (LON:EQN) Growth?

This high level of volatility gives investors the opportunity to enter into the stock, and potentially buy at an artificially low price? … A question to answer is whether Equiniti Group's current trading price of £2.34 reflective of the actual value of the? … Let’s take a look at Equiniti Group’s outlook and value based on the most recent financial data to see if there are any catalysts for a price change

Simply Wall St -

Should You Be Holding Equiniti Group plc (LON:EQN)?

Building up an investment case requires looking at a stock holistically. … Today I've chosen to put the spotlight on Equiniti Group plc (LON:EQN) due to its excellent fundamentals in more than one area.

Simply Wall St -

Should You Sell Equiniti Group plc (LON:EQN) At This PE Ratio?

and want to begin learning the link between Equiniti Group plc (LON:EQN)’s fundamentals and stock market performance. … Equiniti Group plc (LON:EQN) is trading with a trailing P/E of 71.6x, which is higher than the industry average of 27.1x. … While EQN might seem like a stock to avoid or sell if you own it, it is important to understand the assumptions behind the P/E ratio before you make any investment decisions.

Simply Wall St -

Company Info

Map
Description

Equiniti Group plc, together with its subsidiaries, provides administration and payment services in the United Kingdom. The company operates in four segments: Investment Solutions, Intelligent Solutions, Pension Solutions, and Interest Income. It offers registration services, including share registration, company secretarial, and investor analytic services; and employee services, such as employee share plans, executive and discretionary share plans, trustee, and creative services, as well as guides customers through the bereavement process. The company also provides solutions for financial crime threats; complaints solutions comprising end-to-end complaints and remediation, complaints handling software, and resourcing solutions; credit services, such as outsourced credit services, lending software, and sourcing solutions; biometrics, case management, robotics, and covert management solutions; cyber security and document management solutions; and data solutions. In addition, it offers pension administration solutions; CompendiaTouch, a pensions and payroll administration system; SuperVal, an actuarial valuation platform used by consulting firms and pension industry actuaries; RetireMe App, a retirement planning app; rewards and benefits solutions; HR, payroll, and appraisal systems; and life and pensions solutions. Further, the company provides investment administration, executive and employee share dealing, international payments, and personal investments services. It serves clients in various sectors, including banking and financial services; communication, media, and technology; health; life and pensions; public services; and retail. Equiniti Group plc was incorporated in 2009 and is based in Crawley, the United Kingdom.

Details
Name: Equiniti Group plc
EQN
Exchange: LSE
Founded: 2009
£763,683,098
358,536,666
Website: http://www.equiniti.com
Address: Equiniti Group plc
Sutherland House,
Russell Way,
Crawley,
West Sussex, RH10 1UH,
United Kingdom
Listings
Exchange Symbol Ticker Symbol Security Exchange Country Currency Listed on
LSE EQN Ordinary Shares London Stock Exchange GB GBP 27. Oct 2015
DB 2EQ Ordinary Shares Deutsche Boerse AG DE EUR 27. Oct 2015
Number of employees
Current staff
Staff numbers
4,511
Equiniti Group employees.
Industry
Data Processing and Outsourced Services
Software
Company Analysis and Financial Data Status
Area Date (UTC time)
Company Analysis updated: 2019/01/22 22:02
End of day share price update: 2019/01/22 00:00
Last estimates confirmation: 2019/01/22
Last earnings filing: 2018/07/27
Last earnings reported: 2018/06/30
Last annual earnings reported: 2017/12/31


All dates and times in UTC. All financial data provided by Standard & Poor’s Capital IQ.

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.