LSE:EQN

Stock Analysis Report

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Executive Summary

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


Snowflake Analysis

Adequate balance sheet and fair value.

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 +/- 5% a week.

Volatility Over Time: EQN's weekly volatility (5%) has been stable over the past year.


Market Performance


7 Day Return

1.5%

EQN

-0.9%

GB IT

-1.5%

GB Market


1 Year Return

-43.2%

EQN

4.7%

GB IT

-10.7%

GB Market

Return vs Industry: EQN underperformed the UK IT industry which returned 4.3% over the past year.

Return vs Market: EQN underperformed the UK Market which returned -10% over the past year.


Shareholder returns

EQNIndustryMarket
7 Day1.5%-0.9%-1.5%
30 Day6.2%5.2%12.4%
90 Day-0.4%-4.0%6.5%
1 Year-43.2%-43.2%5.8%4.7%-7.2%-10.7%
3 Year-61.3%-62.9%55.9%48.5%-0.7%-12.9%
5 Year-31.0%-40.3%141.6%117.7%25.2%-3.5%

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?

18.22x

Price to Earnings (PE) ratio


Share Price vs. Fair Value

Below Fair Value: EQN (£1.1) is trading above our estimate of fair value (£0.93)

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


Price To Earnings Ratio

PE vs Industry: EQN is good value based on its PE Ratio (18.2x) compared to the GB IT industry average (37.4x).

PE vs Market: EQN is good value based on its PE Ratio (18.2x) compared to the UK market (21.2x).


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 (0.8x) compared to the GB IT industry average (2.7x).


Next Steps

Future Growth

How is Equiniti Group forecast to perform in the next 1 to 3 years based on estimates from 6 analysts?

3.0%

Forecasted annual revenue growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: Insufficient data to determine if EQN's forecast earnings growth is above the savings rate (1.2%).

Earnings vs Market: Insufficient data to determine if EQN's earnings are forecast to grow faster than the UK market

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

Revenue vs Market: EQN's revenue (3% per year) is forecast to grow slower than the UK market (6.8% per year).

High Growth Revenue: EQN's revenue (3% 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 (9.2%).


Next Steps

Past Performance

How has Equiniti Group performed over the past 5 years?

52.6%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: EQN has high quality earnings.

Growing Profit Margin: EQN's current net profit margins (4.2%) are lower than last year (4.6%).


Past Earnings Growth Analysis

Earnings Trend: EQN has become profitable over the past 5 years, growing earnings by 52.6% per year.

Accelerating Growth: EQN's has had negative earnings growth over the past year, so it can't be compared to its 5-year average.

Earnings vs Industry: EQN had negative earnings growth (-11.7%) over the past year, making it difficult to compare to the IT industry average (8.2%).


Return on Equity

High ROE: EQN's Return on Equity (4.3%) is considered low.


Next Steps

Financial Health

How is Equiniti Group's financial position?


Financial Position Analysis

Short Term Liabilities: EQN's short term assets (£204.8M) exceed its short term liabilities (£150.9M).

Long Term Liabilities: EQN's short term assets (£204.8M) do not cover its long term liabilities (£432.9M).


Debt to Equity History and Analysis

Debt Level: EQN's debt to equity ratio (66.9%) is considered high.

Reducing Debt: EQN had negative shareholder equity 5 years ago, but is now positive and has therefore improved.

Debt Coverage: EQN's debt is well covered by operating cash flow (23.9%).

Interest Coverage: EQN's interest payments on its debt are well covered by EBIT (3.1x coverage).


Balance Sheet


Next Steps

Dividend

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

2.32%

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?

5.4yrs

Average management tenure


CEO

Guy Wakeley (49 yo)

6.83yrs

Tenure

UK£664,500

Compensation

Mr. Guy Richard Wakeley has been the Group Chief Executive Officer of Equiniti Group plc since June 2018. Mr. Wakeley serves as a Chief Executive Officer at Equiniti Solutions Limited. Mr. Wakeley was Chie...


CEO Compensation Analysis

Compensation vs Market: Guy's total compensation ($USD886.44K) is about average for companies of similar size in the UK market ($USD883.73K).

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


Leadership Team

NamePositionTenureCompensationOwnership
Guy Wakeley
Group CEO & Executive Director6.83yrsUK£664.50k0.35%
£ 1.4m
John Stier
CFO & Executive Director5.42yrsUK£490.00k0.11%
£ 434.0k
Thera Roeline Prins
COO & CEO of EQ Invest - Investment Solution Division2.17yrsno datano data
Kevin O'Connor
Chief Information Officerno datano datano data
Frances Gibbons
Head of Investor Relationsno datano datano data
James Brown
Director of Corporate Developmentno datano datano data
Adam Green
Chief Risk Officer5.83yrsno data0.0097%
£ 38.8k
Phil Ainsley
Managing Director of Employee Servicesno datano datano data
Lina Brown
Chief Commercial Officer1.83yrsno datano data
Stuart Ellen
Managing Director of Registration Servicesno datano datano data
Amy Madden
Chief Customer Officerno datano datano data
Mark Churley
Chief Growth Officerno datano datano data

5.4yrs

Average Tenure

49yo

Average Age

Experienced Management: EQN's management team is seasoned and experienced (5.4 years average tenure).


Board Members

NamePositionTenureCompensationOwnership
Guy Wakeley
Group CEO & Executive Director6.83yrsUK£664.50k0.35%
£ 1.4m
John Stier
CFO & Executive Director5.42yrsUK£490.00k0.11%
£ 434.0k
Philip Yea
Independent non-executive Chairman3.17yrsUK£200.00k0.049%
£ 197.6k
Timothy John Miller
Independent Non-Executive Director5.67yrsUK£115.00k0.044%
£ 174.7k
Darren Pope
Senior Independent Director2.5yrsUK£75.00kno data
Sally-Ann Hibberd
Independent Non-Executive Director4.25yrsUK£65.00kno data
Cheryl Millington
Independent Non-Executive Director2yrsUK£55.00kno data
Mark David Brooker
Independent Non-Executive Director2yrsUK£55.00kno data
Alison Burns
Independent Non-Executive Director2.58yrsUK£55.00kno data

3.2yrs

Average Tenure

55yo

Average Age

Experienced Board: EQN's board of directors are considered experienced (3.2 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: 2009
  • Industry: Data Processing and Outsourced Services
  • Sector: Software
  • Market Cap: UK£399.849m
  • Shares outstanding: 364.16m
  • Website: https://www.equiniti.com

Number of Employees


Location

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

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
EQNLSE (London Stock Exchange)YesOrdinary SharesGBGBPOct 2015
EQNLBATS-CHIXE (BATS 'Chi-X Europe')YesOrdinary SharesGBGBPOct 2015
2EQDB (Deutsche Boerse AG)YesOrdinary SharesDEEUROct 2015
EQUG.FOTCPK (Pink Sheets LLC)YesOrdinary SharesUSUSDOct 2015

Biography

Equiniti Group plc, together with its subsidiaries, provides administration and payment services worldwide. The company operates in five segments: Investment Solutions, Intelligent Solutions, Pension Solut...


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2020/11/30 20:25
End of Day Share Price2020/11/30 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.