eQ: Quality simply costs too much
eQ’s Q1 report was operationally in line with our expectations and the earnings growth outlook for the next few years remained very strong. We do, however, feel that the strong earnings growth outlook is fully priced in the share and without higher than current earnings estimates, the return expectation is in danger of relying fully on the dividend, which we do not consider sufficient compensation for bearing the risk related to valuation multiples normalizing.
eQ
eQ operates in the financial industry. The company acts as a stockbroker and has a wide range of financial services in corporate finance and asset management. Financial services include a range of structured products, insurance, private-equity funds, and other investment options. Investments are found worldwide around the financial market and in a number of sectors. The company is headquartered in Helsinki.
Read more on company pageKey Estimate Figures27.04.2021
2020 | 21e | 22e | |
---|---|---|---|
Revenue | 56.7 | 73.7 | 74.4 |
growth-% | 11.93 % | 30.06 % | 0.98 % |
EBIT (adj.) | 30.8 | 44.3 | 43.5 |
EBIT-% (adj.) | 54.32 % | 60.19 % | 58.49 % |
EPS (adj.) | 0.63 | 0.89 | 0.86 |
Dividend | 0.70 | 0.91 | 0.86 |
Dividend % | 4.18 % | 7.17 % | 6.80 % |
P/E (adj.) | 26.44 | 14.25 | 14.71 |
EV/EBITDA | 19.30 | 10.17 | 10.53 |