EQ Inc (EQ) AI Stock Analysis

• Market Cap: C$70.29M
• Dividend Yield: N/A
• Average Volume (3M): 11.41K
• Price to Earnings (P/E): ―
• Beta (1Y): -0.03
• Revenue Growth: -0.72%
• EPS Growth: -36.11%
• Country: CA
• Employees: 42
• Sector: Utilities
• Sector Strength: 83
• Industry: Traditional Media
• EPS (TTM): -0.07
• Shares Outstanding: 69,593,956
• 10 Day Avg. Volume: 8,699
• 30 Day Avg. Volume: 11,413
• PEG Ratio: N/A
• Price to Book (P/B): N/A
• Price to Sales (P/S): 7.25
• Price to Cash Flow (P/CF): 64.40
• P/FCF Ratio: 100.40
• Enterprise Value/Market Cap: N/A
• Enterprise Value/Revenue: N/A
• Enterprise Value/Gross Profit: N/A
• Enterprise Value/Ebitda: N/A
• 1Y Price Target: N/A
• Price Target Upside: N/A
• Rating Consensus: N/A
• Number of Analyst Covering: 0

EQ Inc is facing severe financial difficulties with negative growth in revenues and profitability, compounded by a highly leveraged balance sheet and negative equity. Technical indicators show a bearish trend, and the stock lacks appeal in terms of valuation due to negative earnings and no dividend yield. Without any positive guidance or significant corporate events, the stock remains unattractive, warranting a low overall score.

EQ Inc Business Overview & Revenue Model

Company Description

EQ Inc is a provider of digital marketing services. The company uses real-time technology and advanced analytics to improve performance for web, mobile, social and video advertising initiatives. Its technical platform DSP and DMP provides managed service solutions for businesses to track and optimize campaigns. The company balances the advertising ecosystem and establishes equilibrium for reaching the right audience at the right time through any web or mobile device. Its business consists of targeted advertising and incorporates the most sophisticated advertising technologies, data analytics, and programmatic media buying capabilities into a single system.

How the Company Makes Money

EQ Inc makes money through a combination of data analytics services and digital advertising solutions. The company's primary revenue streams include subscription fees for access to their data platform, fees from analytics and consulting services, and commissions from facilitating targeted advertising campaigns for clients. EQ Inc also generates income by licensing its data sets and technology to other businesses, enhancing their marketing capabilities. Partnerships with digital ad networks and marketing agencies play a significant role in expanding EQ Inc's reach and client base, contributing to its earnings.

EQ Inc Financial Statement Overview

Summary

EQ Inc faces significant financial challenges, with declining revenues, negative profitability, and a strained balance sheet marked by negative equity. The cash flow situation, while showing some operational cash flow, remains inadequate to address the net losses. The company needs strategic restructuring to improve financial stability and profitability.

Income Statement

EQ Inc has faced negative growth with a significant decline in revenue from 2023 to 2024. The company exhibits negative profit margins with a net profit margin of -48.07% and an EBIT margin of -17.14% for TTM, indicating operational challenges and inefficiencies. This reflects a concerning profitability trajectory.

Balance Sheet

The balance sheet reveals a negative stockholders' equity of -$1.24M in TTM, indicating potential insolvency issues. The debt-to-equity ratio is not calculable due to negative equity, which is a significant red flag for financial stability. The company also shows a low equity ratio due to liabilities exceeding assets, indicating high leverage and financial risk.

Cash Flow

EQ Inc exhibits negative free cash flow growth, with free cash flow deteriorating to -$371K in TTM from -$2.29M in 2023. The operating cash flow to net income ratio is positive, suggesting some ability to cover losses with cash flow, but the overall cash flow scenario remains weak due to ongoing negative free cash flow.

Breakdown
TTM	Dec 2023	Dec 2022	Dec 2021	Dec 2020	Dec 2019
Income Statement		Total Revenue
9.69M	9.96M	10.98M	12.09M	10.42M	8.96M
	Gross Profit
2.27M	4.51M	4.05M	4.98M	4.72M	3.95M
	EBIT
-1.66M	-6.32M	-6.27M	-4.53M	-2.33M	-976.00K
	EBITDA
-3.61M	-4.92M	-5.65M	-5.22M	-2.55M	-1.21M
	Net Income Common Stockholders
-4.66M	-5.90M	-6.57M	-6.11M	-3.96M	-2.45M
Balance Sheet		Cash, Cash Equivalents and Short-Term Investments
584.00K	381.00K	1.25M	8.76M	3.21M	3.69M
	Total Assets
3.91M	5.61M	10.15M	19.05M	9.98M	7.27M
	Total Debt
1.58M	1.57M	79.00K	93.00K	2.22M	1.76M
	Net Debt
993.00K	1.19M	-1.17M	-8.67M	-990.00K	-1.93M
	Total Liabilities
4.28M	6.19M	4.91M	7.61M	5.43M	3.75M
	Stockholders Equity
-371.00K	-585.00K	5.24M	11.44M	4.55M	3.52M
Cash Flow		Free Cash Flow
-371.00K	-2.29M	-6.24M	-3.86M	-3.39M	-1.45M
	Operating Cash Flow
238.00K	-1.68M	-5.62M	-3.09M	-2.75M	-1.04M
	Investing Cash Flow
-555.00K	-637.00K	-1.88M	-1.36M	-1.58M	-978.00K
	Financing Cash Flow
380.00K	1.45M	-45.00K	10.00M	3.83M	5.15M

EQ Inc Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 1.01
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Negative
• MACD: Positive
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For TSE:EQ, the sentiment is Negative. The current price of 1.01 is below the 20-day moving average (MA) of 1.03, below the 50-day MA of 1.04, and below the 200-day MA of 1.09, indicating a bearish trend. The MACD of >-0.01 indicates Positive momentum. The RSI at 41.44 is Neutral, neither overbought nor oversold. The STOCH value of 39.39 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for TSE:EQ.

EQ Inc Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
Sector *	65 Neutral	$11.99B	15.63	6.50%	4.40%	7.00%	0.55%
IQ	61 Neutral	C$9.79M	26.40	4.63%	―	-2.75%	-89.95%
KIDZ	56 Neutral	C$33.48M	51.00	-18.71%	―	-9.92%	38.07%
QUIS	54 Neutral	$155.20M	―	-4.68%	―	-34.91%	-1331.88%
EQ	34 Underperform	C$70.29M	―	-451.55%	―	-0.72%	-36.11%

EQ Inc Corporate Events

EQ Inc. Appoints Michael Kahn as Interim CFO

EQ Inc. has appointed Michael Kahn as its interim Chief Financial Officer, bringing over 20 years of financial expertise to the company. Kahn’s extensive experience in senior financial roles within technology firms is expected to benefit EQ’s growth and leadership. This leadership change comes as the former CFO, Peter Kanniah, departs to explore new opportunities.

EQ Inc. Sees Revenue Stability and EBITDA Improvement

EQ Inc. reported steady third-quarter revenue of $2.5 million, with significant growth in its Paymi division and an improved gross margin of 44%. The company also narrowed its adjusted EBITDA loss by 25% sequentially, thanks to strategic cost optimization and a strong focus on profitability and cash flow.