Equasens Société anonyme (EQS.PA) fair value

ACCE thesis

Equasens sells pharmacy-facing software and data services in France, including the Medicine Information Systems and related tools that pharmacies and pharmaceutical manufacturers use for patient-level data and marketing compliance. The business has a sticky installed base, since pharmacies rarely switch core systems, which supports the 7.4% revenue growth and an 18.8% operating margin. The more pressing question is valuation: at 11.2 times trailing earnings and 8.8 times forward, a 437M EUR company with a 17.2% return on equity is priced well below what its margins would suggest, and the gap needs an explanation. The likely explanations are a small float, thin coverage and a French domestic focus, so a deeper look should start with whether the forward earnings estimates hold up and whether the cash generation converts from the reported operating profit.