EQUIFAX INC (EFX) Stock Fundamental Analysis
USA - NYSE:EFX - US2944291051 - Common Stock
207.59 USD
+3.4 (+1.67%)
207.492 USD
-0.1 (-0.05%)
Taking everything into account, EFX scores 5 out of 10 in our fundamental rating. EFX was compared to 87 industry peers in the Professional Services industry. While EFX belongs to the best of the industry regarding profitability, there are concerns on its financial health. While showing a medium growth rate, EFX is valued expensive at the moment.
1. Profitability
1.1 Basic Checks
EFX had positive earnings in the past year.
In the past year EFX had a positive cash flow from operations.
Each year in the past 5 years EFX has been profitable.
EFX had a positive operating cash flow in each of the past 5 years.
1.2 Ratios
The Return On Assets of EFX (5.57%) is better than 63.22% of its industry peers.
EFX has a Return On Equity of 13.34%. This is in the better half of the industry: EFX outperforms 64.37% of its industry peers.
The Return On Invested Capital of EFX (9.15%) is better than 65.52% of its industry peers.
EFX had an Average Return On Invested Capital over the past 3 years of 8.03%. This is significantly below the industry average of 13.25%.
The 3 year average ROIC (8.03%) for EFX is below the current ROIC(9.15%), indicating increased profibility in the last year.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 5.57% | ||
| ROE | 13.34% | ||
| ROIC | 9.15% |
ROA(3y)5.2%
ROA(5y)5.55%
ROE(3y)14.07%
ROE(5y)15.88%
ROIC(3y)8.03%
ROIC(5y)8.32%
1.3 Margins
EFX has a better Profit Margin (11.08%) than 83.91% of its industry peers.
EFX's Profit Margin has declined in the last couple of years.
With an excellent Operating Margin value of 20.14%, EFX belongs to the best of the industry, outperforming 87.36% of the companies in the same industry.
In the last couple of years the Operating Margin of EFX has declined.
EFX has a better Gross Margin (56.26%) than 70.11% of its industry peers.
In the last couple of years the Gross Margin of EFX has remained more or less at the same level.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 20.14% | ||
| PM (TTM) | 11.08% | ||
| GM | 56.26% |
OM growth 3Y-6.25%
OM growth 5YN/A
PM growth 3Y-11.06%
PM growth 5YN/A
GM growth 3Y-2.34%
GM growth 5Y-0.34%
2. Health
2.1 Basic Checks
EFX has a Return on Invested Capital (ROIC), which is just above the Cost of Capital (WACC), which means it is creating some value.
Compared to 1 year ago, EFX has more shares outstanding
The number of shares outstanding for EFX has been increased compared to 5 years ago.
EFX has a better debt/assets ratio than last year.
2.2 Solvency
EFX has an Altman-Z score of 3.73. This indicates that EFX is financially healthy and has little risk of bankruptcy at the moment.
Looking at the Altman-Z score, with a value of 3.73, EFX is in the better half of the industry, outperforming 68.97% of the companies in the same industry.
EFX has a debt to FCF ratio of 4.82. This is a neutral value as EFX would need 4.82 years to pay back of all of its debts.
EFX's Debt to FCF ratio of 4.82 is in line compared to the rest of the industry. EFX outperforms 56.32% of its industry peers.
A Debt/Equity ratio of 0.84 indicates that EFX is somewhat dependend on debt financing.
EFX has a Debt to Equity ratio of 0.84. This is in the lower half of the industry: EFX underperforms 63.22% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.84 | ||
| Debt/FCF | 4.82 | ||
| Altman-Z | 3.73 |
ROIC/WACC1.18
WACC7.77%
2.3 Liquidity
A Current Ratio of 0.74 indicates that EFX may have some problems paying its short term obligations.
Looking at the Current ratio, with a value of 0.74, EFX is doing worse than 83.91% of the companies in the same industry.
EFX has a Quick Ratio of 0.74. This is a bad value and indicates that EFX is not financially healthy enough and could expect problems in meeting its short term obligations.
EFX has a worse Quick ratio (0.74) than 83.91% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 0.74 | ||
| Quick Ratio | 0.74 |
3. Growth
3.1 Past
The Earnings Per Share has grown by an nice 10.17% over the past year.
Measured over the past 5 years, EFX shows a small growth in Earnings Per Share. The EPS has been growing by 5.38% on average per year.
The Revenue has been growing slightly by 6.35% in the past year.
EFX shows quite a strong growth in Revenue. Measured over the last years, the Revenue has been growing by 10.12% yearly.
EPS 1Y (TTM)10.17%
EPS 3Y-1.55%
EPS 5Y5.38%
EPS Q2Q%10.27%
Revenue 1Y (TTM)6.35%
Revenue growth 3Y4.88%
Revenue growth 5Y10.12%
Sales Q2Q%7.15%
3.2 Future
EFX is expected to show quite a strong growth in Earnings Per Share. In the coming years, the EPS will grow by 17.10% yearly.
Based on estimates for the next years, EFX will show a quite strong growth in Revenue. The Revenue will grow by 8.89% on average per year.
EPS Next Y4.49%
EPS Next 2Y11.77%
EPS Next 3Y15.34%
EPS Next 5Y17.1%
Revenue Next Year5.51%
Revenue Next 2Y7.32%
Revenue Next 3Y8.45%
Revenue Next 5Y8.89%
3.3 Evolution
When comparing the EPS growth rate of the last years to the growth rate of the upcoming years, we see that the growth is accelerating.
The Revenue growth rate is stable: in the next years the growth will be about the same than in the last years.
4. Valuation
4.1 Price/Earnings Ratio
A Price/Earnings ratio of 26.99 indicates a quite expensive valuation of EFX.
EFX's Price/Earnings is on the same level as the industry average.
EFX's Price/Earnings ratio indicates a similar valuation than the S&P500 average which is at 25.83.
Based on the Price/Forward Earnings ratio of 22.79, the valuation of EFX can be described as rather expensive.
The rest of the industry has a similar Price/Forward Earnings ratio as EFX.
When comparing the Price/Forward Earnings ratio of EFX to the average of the S&P500 Index (32.68), we can say EFX is valued slightly cheaper.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 26.99 | ||
| Fwd PE | 22.79 |
4.2 Price Multiples
EFX's Enterprise Value to EBITDA is on the same level as the industry average.
EFX's Price/Free Cash Flow ratio is in line with the industry average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 25.72 | ||
| EV/EBITDA | 15.6 |
4.3 Compensation for Growth
The high PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates EFX does not grow enough to justify the current Price/Earnings ratio.
The decent profitability rating of EFX may justify a higher PE ratio.
A more expensive valuation may be justified as EFX's earnings are expected to grow with 15.34% in the coming years.
PEG (NY)6.01
PEG (5Y)5.02
EPS Next 2Y11.77%
EPS Next 3Y15.34%
5. Dividend
5.1 Amount
With a yearly dividend of 0.98%, EFX is not a good candidate for dividend investing.
Compared to an average industry Dividend Yield of 4.58, EFX pays a bit more dividend than its industry peers.
Compared to an average S&P500 Dividend Yield of 2.39, EFX's dividend is way lower than the S&P500 average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.98% |
5.2 History
The dividend of EFX has a limited annual growth rate of 0.02%.
EFX has been paying a dividend for at least 10 years, so it has a reliable track record.
EFX has decreased its dividend recently.
Dividend Growth(5Y)0.02%
Div Incr Years0
Div Non Decr Years1
5.3 Sustainability
33.46% of the earnings are spent on dividend by EFX. This is a low number and sustainable payout ratio.
The dividend of EFX is growing, but earnings are growing more, so the dividend growth is sustainable.
DP33.46%
EPS Next 2Y11.77%
EPS Next 3Y15.34%
207.59
+3.4 (+1.67%)
Chartmill FA Rating
GICS SectorIndustrials
GICS IndustryGroupCommercial & Professional Services
GICS IndustryProfessional Services
Earnings (Last)
Earnings (Next)
Inst Owners97.26%
Inst Owner Change-0.4%
Ins Owners0.48%
Ins Owner Change-1.56%
Market Cap25.70B
Revenue(TTM)5.94B
Net Income(TTM)658.60M
Analysts78
Price Target274.59 (32.28%)
Short Float %3.48%
Short Ratio3.84
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.98% |
Yearly Dividend1.56
Dividend Growth(5Y)0.02%
DP33.46%
Div Incr Years0
Div Non Decr Years1
Ex-Date
Surprises & Revisions
EPS beat(2)2
Avg EPS beat(2)3.84%
Min EPS beat(2)3.21%
Max EPS beat(2)4.48%
EPS beat(4)4
Avg EPS beat(4)3.91%
Min EPS beat(4)0.03%
Max EPS beat(4)7.93%
EPS beat(8)7
Avg EPS beat(8)3.24%
EPS beat(12)10
Avg EPS beat(12)2.53%
EPS beat(16)14
Avg EPS beat(16)2.65%
Revenue beat(2)2
Avg Revenue beat(2)0.62%
Min Revenue beat(2)0.58%
Max Revenue beat(2)0.65%
Revenue beat(4)3
Avg Revenue beat(4)-0.09%
Min Revenue beat(4)-2.38%
Max Revenue beat(4)0.77%
Revenue beat(8)4
Avg Revenue beat(8)-0.46%
Revenue beat(12)6
Avg Revenue beat(12)-0.51%
Revenue beat(16)8
Avg Revenue beat(16)-0.31%
PT rev (1m)-4.45%
PT rev (3m)-7.66%
EPS NQ rev (1m)-0.7%
EPS NQ rev (3m)-0.39%
EPS NY rev (1m)-0.09%
EPS NY rev (3m)-0.97%
Revenue NQ rev (1m)0.65%
Revenue NQ rev (3m)0.65%
Revenue NY rev (1m)0.02%
Revenue NY rev (3m)0.02%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 26.99 | ||
| Fwd PE | 22.79 | ||
| P/S | 4.32 | ||
| P/FCF | 25.72 | ||
| P/OCF | 17.49 | ||
| P/B | 5.2 | ||
| P/tB | N/A | ||
| EV/EBITDA | 15.6 |
EPS(TTM)7.69
EY3.7%
EPS(NY)9.11
Fwd EY4.39%
FCF(TTM)8.07
FCFY3.89%
OCF(TTM)11.87
OCFY5.72%
SpS48.01
BVpS39.89
TBVpS-25.76
PEG (NY)6.01
PEG (5Y)5.02
Graham Number83.08
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 5.57% | ||
| ROE | 13.34% | ||
| ROCE | 12.15% | ||
| ROIC | 9.15% | ||
| ROICexc | 9.32% | ||
| ROICexgc | 56.32% | ||
| OM | 20.14% | ||
| PM (TTM) | 11.08% | ||
| GM | 56.26% | ||
| FCFM | 16.82% |
ROA(3y)5.2%
ROA(5y)5.55%
ROE(3y)14.07%
ROE(5y)15.88%
ROIC(3y)8.03%
ROIC(5y)8.32%
ROICexc(3y)8.22%
ROICexc(5y)8.95%
ROICexgc(3y)65.32%
ROICexgc(5y)N/A
ROCE(3y)10.58%
ROCE(5y)10.96%
ROICexgc growth 3Y-45.57%
ROICexgc growth 5YN/A
ROICexc growth 3Y-6.06%
ROICexc growth 5YN/A
OM growth 3Y-6.25%
OM growth 5YN/A
PM growth 3Y-11.06%
PM growth 5YN/A
GM growth 3Y-2.34%
GM growth 5Y-0.34%
F-Score8
Asset Turnover0.5
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.84 | ||
| Debt/FCF | 4.82 | ||
| Debt/EBITDA | 2.16 | ||
| Cap/Depr | 65.82% | ||
| Cap/Sales | 7.91% | ||
| Interest Coverage | 250 | ||
| Cash Conversion | 76.89% | ||
| Profit Quality | 151.75% | ||
| Current Ratio | 0.74 | ||
| Quick Ratio | 0.74 | ||
| Altman-Z | 3.73 |
F-Score8
WACC7.77%
ROIC/WACC1.18
Cap/Depr(3y)94%
Cap/Depr(5y)96.66%
Cap/Sales(3y)10.87%
Cap/Sales(5y)10.47%
Profit Quality(3y)82.72%
Profit Quality(5y)93.08%
High Growth Momentum
Growth
EPS 1Y (TTM)10.17%
EPS 3Y-1.55%
EPS 5Y5.38%
EPS Q2Q%10.27%
EPS Next Y4.49%
EPS Next 2Y11.77%
EPS Next 3Y15.34%
EPS Next 5Y17.1%
Revenue 1Y (TTM)6.35%
Revenue growth 3Y4.88%
Revenue growth 5Y10.12%
Sales Q2Q%7.15%
Revenue Next Year5.51%
Revenue Next 2Y7.32%
Revenue Next 3Y8.45%
Revenue Next 5Y8.89%
EBIT growth 1Y17.7%
EBIT growth 3Y-1.67%
EBIT growth 5YN/A
EBIT Next Year50.23%
EBIT Next 3Y25.28%
EBIT Next 5Y20.54%
FCF growth 1Y96.58%
FCF growth 3Y-2.08%
FCF growth 5YN/A
OCF growth 1Y31.21%
OCF growth 3Y-0.26%
OCF growth 5Y33.38%
EQUIFAX INC / EFX FAQ
What is the fundamental rating for EFX stock?
ChartMill assigns a fundamental rating of 5 / 10 to EFX.
Can you provide the valuation status for EQUIFAX INC?
ChartMill assigns a valuation rating of 3 / 10 to EQUIFAX INC (EFX). This can be considered as Overvalued.
How profitable is EQUIFAX INC (EFX) stock?
EQUIFAX INC (EFX) has a profitability rating of 7 / 10.
Can you provide the financial health for EFX stock?
The financial health rating of EQUIFAX INC (EFX) is 3 / 10.
Is the dividend of EQUIFAX INC sustainable?
The dividend rating of EQUIFAX INC (EFX) is 5 / 10 and the dividend payout ratio is 33.46%.