NYSE:EQS

Stock Analysis Report

Executive Summary

Equus Total Return, Inc. is a business development company (BDC) specializing in leveraged buyouts, management buyouts, recapitalizations of existing businesses, special situations, equity and equity-oriented securities issued by privately owned companies, debt securities including subordinate debt, debt convertible into common or preferred stock, or debt combined with warrants and common and preferred stock, and preferred equity financing.

Rewards


Snowflake Analysis


Similar Companies

Share Price & News

How has Equus Total Return's share price performed over time and what events caused price changes?


Latest Share Price and Events

Stable Share Price: EQS has not had significant price volatility in the past 3 months.


Market Performance


7 Day Return

n/a

EQS

1.7%

US Capital Markets

1.5%

US Market


1 Year Return

-1.9%

EQS

19.0%

US Capital Markets

20.1%

US Market

Return vs Industry: EQS underperformed the US Capital Markets industry which returned 19% over the past year.

Return vs Market: EQS underperformed the US Market which returned 20.1% over the past year.


Shareholder returns

EQSIndustryMarket
7 Dayn/a1.7%1.5%
30 Day8.8%0.5%1.4%
90 Day20.9%8.6%8.7%
1 Year-1.9%-1.9%21.4%19.0%22.7%20.1%
3 Year-12.7%-12.7%40.0%32.1%50.1%40.5%
5 Year-4.6%-4.6%83.6%66.5%73.1%54.1%

Price Volatility Vs. Market

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


Simply Wall St News

Valuation

Is Equus Total Return undervalued compared to its fair value and its price relative to the market?

11.72x

Price to Earnings (PE) ratio


Share Price vs. Fair Value

Below Fair Value: EQS ($1.85) is trading above our estimate of fair value ($1.49)

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


Price To Earnings Ratio

PE vs Industry: EQS is good value based on its PE Ratio (11.7x) compared to the Capital Markets industry average (36x).

PE vs Market: EQS is good value based on its PE Ratio (11.7x) compared to the US market (18.4x).


Price to Earnings Growth Ratio

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


Price to Book Ratio

PB vs Industry: EQS is good value based on its PB Ratio (0.5x) compared to the US Capital Markets industry average (6.7x).

Future Growth

How is Equus Total Return forecast to perform in the next 1 to 3 years based on estimates from 0 analysts?

8.4%

Forecasted Diversified Financials 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 Equus Total Return 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.

Past Performance

How has Equus Total Return performed over the past 5 years?

17.0%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: EQS has a high level of non-cash earnings.

Growing Profit Margin: EQS's current net profit margins are lower than last year .


Past Earnings Growth Analysis

Earnings Trend: EQS's earnings have grown by 17% per year over the past 5 years.

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

Earnings vs Industry: EQS had negative earnings growth (-49.4%) over the past year, making it difficult to compare to the Capital Markets industry average (8.4%).


Return on Equity

High ROE: EQS's Return on Equity (4.4%) is considered low.


Return on Assets


Return on Capital Employed

Financial Health

How is Equus Total Return's financial position? (This company is analysed differently as a bank or financial institution)


Financial Position Analysis


Debt to Equity History and Analysis


Balance Sheet

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

Debt Coverage by Assets: EQS's debt is covered by short term assets (assets are 1.2x debt).


Financial Institutions Analysis

Asset Level: EQS's level of assets compared to its equity is low.

Allowance for Bad Loans: Insufficient data to determine if EQS has a sufficient allowance for bad loans.

Low Risk Liabilities: EQS reports no customer deposits, loans are made up entirely of externally borrowed funds.

Loan Level: Insufficient data to determine if EQS has an acceptable proportion of non-loan assets held.

Low Risk Deposits: EQS has advanced significantly more loans than the customer deposits it holds.

Level of Bad Loans: Insufficient data to determine if EQS has an appropriate level of bad loans.

Dividend

What is Equus Total Return's current dividend yield, its reliability and sustainability?


Dividend Yield vs Market

company0%marketbottom25%1.4%markettop25%3.7%industryaverage1.9%forecastin3Yearsn/a

Current dividend yield vs market & industry

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

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

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


Current Payout to Shareholders

Dividend Coverage: EQS is not paying a notable dividend for the US market.


Future Payout to Shareholders

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

Management

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

13.3yrs

Average management tenure


CEO

John Hardy (67yo)

8.7yrs

Tenure

US$647,500

Compensation

Mr. John A. Hardy has been the Chief Executive Officer of Equus Total Return, Inc. since June 2011. Mr. Hardy served as the Chief Executive Officer of Versatile Systems Inc. from January 1997 to December 3 ...


CEO Compensation Analysis

Compensation vs Market: John's total compensation ($USD647.50K) is about average for companies of similar size in the US market ($USD521.92K).

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


Leadership Team

NamePositionTenureCompensationOwnership
John Hardy
CEO & Director8.7yrsUS$647.50k3.7% $925.0k
L'Sheryl Hudson
CFO, Senior VP & Treasurer13.3yrsUS$231.22kno data
Kenneth Denos
Chief Compliance Officer12.1yrsUS$367.13k1.97% $491.6k
Sharon Clayton
Vice Chairman0yrsno datano data
Paula Douglass
Vice President and Vice Chairman of Moore14.7yrsno datano data
Dawn Clark
Assistant Secretary and Assistant Secretary of MCCA0yrsno datano data

13.3yrs

Average Tenure

55yo

Average Age

Experienced Management: EQS's management team is seasoned and experienced (13.3 years average tenure).


Board Members

NamePositionTenureCompensationOwnership
John Hardy
CEO & Director8.7yrsUS$647.50k3.7% $925.0k
Kenneth Denos
Chief Compliance Officer12.1yrsUS$367.13k1.97% $491.6k
Sharon Clayton
Vice Chairman0yrsno datano data
Paula Douglass
Vice President and Vice Chairman of Moore14.7yrsno datano data
Robert Knauss
Chairman6.1yrsUS$124.50k0.69% $171.4k
Fraser Atkinson
Independent Director9.8yrsUS$120.60k0.16% $39.6k
Henry Hankinson
Independent Director14.7yrsUS$123.60k0.14% $36.1k

10.9yrs

Average Tenure

67yo

Average Age

Experienced Board: EQS's board of directors are seasoned and experienced ( 10.9 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

Equus Total Return, Inc.'s company bio, employee growth, exchange listings and data sources


Key Information

  • Name: Equus Total Return, Inc.
  • Ticker: EQS
  • Exchange: NYSE
  • Founded: 1991
  • Industry: Asset Management and Custody Banks
  • Sector: Diversified Financials
  • Market Cap: US$25.009m
  • Shares outstanding: 13.52m
  • Website: https://www.equuscap.com

Location

  • Equus Total Return, Inc.
  • 700 Louisiana Street
  • 48th Floor
  • Houston
  • Texas
  • 77002
  • United States

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
EQSNYSE (New York Stock Exchange)YesCommon StockUSUSDSep 1992

Biography

Equus Total Return, Inc. is a business development company (BDC) specializing in leveraged buyouts, management buyouts, recapitalizations of existing businesses, special situations, equity and equity-oriented securities issued by privately owned companies, debt securities including subordinate debt, debt convertible into common or preferred stock, or debt combined with warrants and common and preferred stock, and preferred equity financing. The fund invests in small to mid sized companies and acts as a lead investor. It invests in companies engaged in the alternative energy, real estate, healthcare, education, e-learning, leisure and entertainment, and foreign investment sector in the United States, China, India, and Europe. The fund's investments include common and preferred stock, debt convertible into common or preferred stock, debt combined with warrants and options, and other rights to acquire common or preferred stock. The fund seeks to invest in companies with revenues between $10 million and $100 million. Equus Total Return, Inc. was founded in 1991 and is based in Houston, Texas with additional office in Vancouver, Canada. 


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2020/02/17 00:01
End of Day Share Price2020/02/14 00:00
Earnings2019/09/30
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.