EQ Inc (EQ) AI Stock Analysis

• Market Cap: C$67.51M
• Dividend Yield: N/A
• Average Volume (3M): 11.21K
• Price to Earnings (P/E): ―
• Beta (1Y): 0.13
• Revenue Growth: -1.01%
• EPS Growth: 84.17%
• Country: CA
• Employees: 35
• Sector: Utilities
• Sector Strength: 69
• Industry: Advertising Agencies
• EPS (TTM): N/A
• Shares Outstanding: 69,593,956
• 10 Day Avg. Volume: 6,015
• 30 Day Avg. Volume: 11,215
• PEG Ratio: -14.55
• Price to Book (P/B): -36.29
• Price to Sales (P/S): 0.00
• P/FCF Ratio: -1.11K
• 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: C$1.00
• Price Target Upside: 3.09% Upside
• Rating Consensus: Hold
• Number of Analyst Covering: 1

• Rating: 42 Neutral
• Price Target: C$1.00 ▲(3.09%Upside)

The overall score reflects significant financial challenges due to negative profitability and high leverage, which are the most impactful factors. While there are some positive developments in corporate strategy and potential future growth, these are outweighed by current financial instability and valuation concerns.

EQ Inc Business Overview & Revenue Model

Company Description

EQ Inc (EQ) is a technology company that specializes in data-driven solutions, focusing primarily on data analytics and insights. The company is dedicated to helping businesses better understand their customers and markets through the innovative use of data. EQ operates in sectors such as advertising technology, consumer insights, and data analytics, offering products and services that enable businesses to make informed decisions and optimize their strategies.

How the Company Makes Money

EQ Inc generates revenue by leveraging its data analytics platform to provide businesses with actionable insights and targeted advertising solutions. The company earns money through subscription fees for access to its analytics services, licensing its technology to other businesses, and offering consultancy services to help clients implement data-driven strategies. Additionally, EQ may form partnerships with advertising agencies and other technology firms to enhance its offerings, driving further revenue through collaborative projects and revenue-sharing agreements.

EQ Inc Financial Statement Overview

Summary

EQ Inc is struggling financially, with declining revenues, persistent losses, and a precarious balance sheet characterized by negative equity. While there has been a slight improvement in operating cash flow, the company's financial health remains weak with limited signs of a turnaround. The high leverage and ongoing liquidity issues pose significant risks to future operations.

Income Statement

EQ Inc has experienced a decline in revenue with a decrease from $10,979,000 in 2022 to $9,850,000 in 2024, marking a negative revenue growth trend. The company also faces persistent net losses, as evidenced by a negative net profit margin and EBIT margin. Despite some gross profit, the company struggles to cover operational costs, resulting in negative EBITDA and EBIT margins, which are indicative of financial instability in operations.

Balance Sheet

EQ Inc's financial position is concerning, given the negative stockholders' equity of $-1,023,000 in 2024, which suggests more liabilities than assets. The debt-to-equity ratio cannot be meaningfully calculated due to negative equity, indicating potential solvency risks. The equity ratio is also negative, highlighting a weak capital structure and increased financial risk.

Cash Flow

The company's cash flow statement indicates some improvement in operating cash flow, from negative in 2023 to positive in 2024. However, free cash flow remains negative, suggesting ongoing liquidity challenges. The operating cash flow to net income ratio is positive, which is a slight positive, but the free cash flow to net income ratio is negative, pointing to insufficient cash generation relative to net losses.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	9.73M	9.85M	9.96M	10.98M	12.09M	10.42M
Gross Profit	4.00M	4.06M	4.51M	4.05M	4.98M	4.72M
EBITDA	23.00K	41.00K	-4.92M	-5.65M	-5.22M	-2.55M
Net Income	-855.00K	-897.00K	-5.90M	-6.43M	-6.11M	-3.96M
Balance Sheet
Total Assets	3.34M	6.12M	5.61M	10.15M	19.05M	9.98M
Cash, Cash Equivalents and Short-Term Investments	626.00K	634.00K	381.00K	1.25M	8.76M	3.21M
Total Debt	1.06M	2.08M	1.57M	79.00K	93.00K	2.22M
Total Liabilities	5.20M	7.14M	6.19M	4.91M	7.61M	5.43M
Stockholders Equity	-1.86M	-1.02M	-585.00K	5.24M	11.44M	4.55M
Cash Flow
Free Cash Flow	-61.00K	-213.00K	-2.29M	-6.24M	-3.86M	-3.39M
Operating Cash Flow	615.00K	463.00K	-1.68M	-5.62M	-3.09M	-2.75M
Investing Cash Flow	-668.00K	-668.00K	-637.00K	-1.88M	-1.36M	-1.58M
Financing Cash Flow	323.00K	452.00K	1.45M	-45.00K	10.00M	3.83M

EQ Inc Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 0.97
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Negative
• MACD: Negative
• 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 0.97 is below the 20-day moving average (MA) of 0.97, below the 50-day MA of 0.99, and below the 200-day MA of 1.04, indicating a bearish trend. The MACD of >-0.01 indicates Negative momentum. The RSI at 45.11 is Neutral, neither overbought nor oversold. The STOCH value of 77.78 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
BRM	80 Outperform	C$39.17M	13.44	30.34%	―	29.80%	-11.58%
Sector *	67 Neutral	$16.35B	16.91	4.45%	3.59%	4.76%	6.21%
KDOZ	63 Neutral	C$26.92M	16.67	15.79%	―	7.31%	―
SPN	58 Neutral	C$20.03M	―	-0.29%	―	-11.74%	99.29%
ILLM	52 Neutral	C$104.26M	558.33	0.19%	―	15.82%	―
EQ	42 Neutral	C$67.51M	―	-451.55%	―	-1.01%	84.17%
ADX	39 Underperform	C$1.33M	―	18.87%	―	29.37%	-5.43%

EQ Inc Corporate Events

EQ Inc. Reports Steady Q1 Revenue and Strategic Board Appointments

EQ Inc. reported steady revenue of $1.4 million for the first quarter of 2025, with a significant growth in pipeline activities and proposals. The company is focusing on expanding into new customer segments and leveraging its AI-driven products to enhance client value and establish a sustainable revenue model. EQ’s gross margin improved to 40%, and the company anticipates higher revenues in the upcoming quarters. Additionally, EQ elected three new board members, aiming to strengthen its strategic vision and shareholder value.

EQ Inc. Achieves Profitability and Growth in 2024

EQ Inc. reported a profitable fourth quarter for 2024, with a revenue increase of 33% sequentially and a positive EBITDA. The company’s focus on profitability and strategic investments in technology and data platforms have resulted in improved financial performance and increased client interest. Significant milestones include new contracts with leading companies and a substantial increase in Paymi’s revenue. These developments position EQ Inc. well for future growth and innovation in delivering impactful solutions.