EQ INC (EQ.CA) Stock Fundamental Analysis
Canada - TSX Venture Exchange - TSX-V:EQ - CA26884V1076 - Common Stock
0.95 CAD
-0.01 (-1.04%)
EQ gets a fundamental rating of 2 out of 10. The analysis compared the fundamentals against 10 industry peers in the Interactive Media & Services industry. EQ has a bad profitability rating. Also its financial health evaluation is rather negative. EQ has a decent growth rate and is not valued too expensively.
1. Profitability
1.1 Basic Checks
- EQ had negative earnings in the past year.
- EQ had a positive operating cash flow in the past year.
- In the past 5 years EQ always reported negative net income.
- EQ had negative operating cash flow in 4 of the past 5 years.
1.2 Ratios
- EQ's Return On Assets of -40.72% is in line compared to the rest of the industry. EQ outperforms 60.00% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | -40.72% | ||
| ROE | N/A | ||
| ROIC | N/A |
ROA(3y)-61.12%
ROA(5y)-49.79%
ROE(3y)N/A
ROE(5y)N/A
ROIC(3y)N/A
ROIC(5y)N/A
1.3 Margins
- The Gross Margin of EQ (41.98%) is better than 70.00% of its industry peers.
- EQ's Gross Margin has been stable in the last couple of years.
- The Profit Margin and Operating Margin are not available for EQ so they could not be analyzed.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | N/A | ||
| PM (TTM) | N/A | ||
| GM | 41.98% |
OM growth 3YN/A
OM growth 5YN/A
PM growth 3YN/A
PM growth 5YN/A
GM growth 3Y0.06%
GM growth 5Y-1.31%
2. Health
2.1 Basic Checks
- EQ does not have a ROIC to compare to the WACC, probably because it is not profitable.
- EQ has about the same amout of shares outstanding than it did 1 year ago.
- EQ has more shares outstanding than it did 5 years ago.
- The debt/assets ratio for EQ is higher compared to a year ago.
2.2 Solvency
- Based on the Altman-Z score of -31.01, we must say that EQ is in the distress zone and has some risk of bankruptcy.
- The Altman-Z score of EQ (-31.01) is worse than 70.00% of its industry peers.
- EQ has a debt to FCF ratio of 2.38. This is a good value and a sign of high solvency as EQ would need 2.38 years to pay back of all of its debts.
- Looking at the Debt to FCF ratio, with a value of 2.38, EQ is in the better half of the industry, outperforming 80.00% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | N/A | ||
| Debt/FCF | 2.38 | ||
| Altman-Z | -31.01 |
ROIC/WACCN/A
WACC7.96%
2.3 Liquidity
- EQ has a Current Ratio of 0.52. This is a bad value and indicates that EQ is not financially healthy enough and could expect problems in meeting its short term obligations.
- With a Current ratio value of 0.52, EQ perfoms like the industry average, outperforming 60.00% of the companies in the same industry.
- EQ has a Quick Ratio of 0.52. This is a bad value and indicates that EQ is not financially healthy enough and could expect problems in meeting its short term obligations.
- EQ has a Quick ratio of 0.52. This is comparable to the rest of the industry: EQ outperforms 60.00% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 0.52 | ||
| Quick Ratio | 0.52 |
3. Growth
3.1 Past
- The Earnings Per Share has grown by an impressive 69.21% over the past year.
- The Revenue has been growing slightly by 5.43% in the past year.
- The Revenue has been growing slightly by 1.90% on average over the past years.
EPS 1Y (TTM)69.21%
EPS 3YN/A
EPS 5YN/A
EPS Q2Q%-155.81%
Revenue 1Y (TTM)5.43%
Revenue growth 3Y-6.59%
Revenue growth 5Y1.9%
Sales Q2Q%0.24%
3.2 Future
- Based on estimates for the next years, EQ will show a very strong growth in Earnings Per Share. The EPS will grow by 39.31% on average per year.
- The Revenue is expected to grow by 3.57% on average over the next years.
EPS Next Y188.89%
EPS Next 2Y58.7%
EPS Next 3Y39.31%
EPS Next 5YN/A
Revenue Next Year46.67%
Revenue Next 2Y-3.83%
Revenue Next 3Y3.57%
Revenue Next 5YN/A
3.3 Evolution
- The Revenue growth rate is accelerating: in the next years the growth will be better than in the last years.
4. Valuation
4.1 Price/Earnings Ratio
- EQ reported negative earnings for the last year, which makes the Price/Earnings Ratio negative.
- The Price/Forward Earnings ratio is 6.65, which indicates a rather cheap valuation of EQ.
- 80.00% of the companies in the same industry are more expensive than EQ, based on the Price/Forward Earnings ratio.
- EQ's Price/Forward Earnings ratio indicates a rather cheap valuation when compared to the S&P500 average which is at 25.98.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | N/A | ||
| Fwd PE | 6.65 |
4.2 Price Multiples
- Based on the Price/Free Cash Flow ratio, EQ is valued a bit cheaper than 70.00% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 119.51 | ||
| EV/EBITDA | N/A |
4.3 Compensation for Growth
- The low PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates a rather cheap valuation of the company.
- A more expensive valuation may be justified as EQ's earnings are expected to grow with 39.31% in the coming years.
PEG (NY)N/A
PEG (5Y)N/A
EPS Next 2Y58.7%
EPS Next 3Y39.31%
5. Dividend
5.1 Amount
- EQ does not give a dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0% |
EQ INC / EQ.CA FAQ
Can you provide the ChartMill fundamental rating for EQ INC?
ChartMill assigns a fundamental rating of 2 / 10 to EQ.CA.
Can you provide the valuation status for EQ INC?
ChartMill assigns a valuation rating of 5 / 10 to EQ INC (EQ.CA). This can be considered as Fairly Valued.
What is the profitability of EQ stock?
EQ INC (EQ.CA) has a profitability rating of 1 / 10.
What is the earnings growth outlook for EQ INC?
The Earnings per Share (EPS) of EQ INC (EQ.CA) is expected to grow by 188.89% in the next year.