EQUIFAX INC (EFX) Stock Fundamental Analysis
USA - New York Stock Exchange - NYSE:EFX - US2944291051 - Common Stock
218.03 USD
+4.53 (+2.12%)
219.5 USD
+1.47 (+0.67%)
Overall EFX gets a fundamental rating of 5 out of 10. We evaluated EFX against 86 industry peers in the Professional Services industry. EFX has a medium profitability rating, but doesn't score so well on its financial health evaluation. EFX is quite expensive at the moment. It does show a decent growth rate.
1. Profitability
1.1 Basic Checks
In the past year EFX was profitable.
In the past year EFX had a positive cash flow from operations.
In the past 5 years EFX has always been profitable.
In the past 5 years EFX always reported a positive cash flow from operatings.
1.2 Ratios
EFX has a Return On Assets of 5.57%. This is in the better half of the industry: EFX outperforms 61.63% of its industry peers.
Looking at the Return On Equity, with a value of 13.34%, EFX is in the better half of the industry, outperforming 63.95% of the companies in the same industry.
EFX has a Return On Invested Capital of 9.15%. This is in the better half of the industry: EFX outperforms 65.12% of its industry peers.
Measured over the past 3 years, the Average Return On Invested Capital for EFX is below the industry average of 11.86%.
The last Return On Invested Capital (9.15%) for EFX is above the 3 year average (8.03%), which is a sign of increasing profitability.
| 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
Looking at the Profit Margin, with a value of 11.08%, EFX is in the better half of the industry, outperforming 79.07% of the companies in the same industry.
In the last couple of years the Profit Margin of EFX has declined.
EFX has a Operating Margin of 20.14%. This is amongst the best in the industry. EFX outperforms 86.05% of its industry peers.
EFX's Operating Margin has declined in the last couple of years.
EFX's Gross Margin of 56.26% is fine compared to the rest of the industry. EFX outperforms 73.26% of its industry peers.
EFX's Gross Margin has been stable in the last couple of years.
| 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
The Return on Invested Capital (ROIC) is just above the Cost of Capital (WACC), so EFX is still creating some value.
EFX has more shares outstanding than it did 1 year ago.
EFX has more shares outstanding than it did 5 years ago.
The debt/assets ratio for EFX has been reduced compared to a year ago.
2.2 Solvency
An Altman-Z score of 3.86 indicates that EFX is not in any danger for bankruptcy at the moment.
With a decent Altman-Z score value of 3.86, EFX is doing good in the industry, outperforming 70.93% 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 has a Debt to FCF ratio (4.82) which is in line with its industry peers.
A Debt/Equity ratio of 0.84 indicates that EFX is somewhat dependend on debt financing.
With a Debt to Equity ratio value of 0.84, EFX is not doing good in the industry: 62.79% of the companies in the same industry are doing better.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.84 | ||
| Debt/FCF | 4.82 | ||
| Altman-Z | 3.86 |
ROIC/WACC1.16
WACC7.86%
2.3 Liquidity
EFX has a Current 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 Current ratio of 0.74. This is amonst the worse of the industry: EFX underperforms 84.88% of its industry peers.
A Quick Ratio of 0.74 indicates that EFX may have some problems paying its short term obligations.
With a Quick ratio value of 0.74, EFX is not doing good in the industry: 84.88% of the companies in the same industry are doing better.
| 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.
EFX shows a small growth in Earnings Per Share. Measured over the last years, the EPS has been growing by 5.38% yearly.
EFX shows a small growth in Revenue. In the last year, the Revenue has grown by 6.35%.
The Revenue has been growing by 10.12% on average over the past years. This is quite good.
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 16.93% yearly.
EFX is expected to show quite a strong growth in Revenue. In the coming years, the Revenue will grow by 8.68% yearly.
EPS Next Y5.45%
EPS Next 2Y10.48%
EPS Next 3Y13.98%
EPS Next 5Y16.93%
Revenue Next Year6.15%
Revenue Next 2Y7.17%
Revenue Next 3Y8.15%
Revenue Next 5Y8.68%
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.
When comparing the Revenue growth rate of the last years to the growth rate of the upcoming years, we see that the growth is stable.
4. Valuation
4.1 Price/Earnings Ratio
Based on the Price/Earnings ratio of 28.35, the valuation of EFX can be described as expensive.
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 27.00.
The Price/Forward Earnings ratio is 24.50, which indicates a rather expensive current valuation of EFX.
EFX's Price/Forward Earnings is on the same level as the industry average.
EFX's Price/Forward Earnings ratio indicates a similar valuation than the S&P500 average which is at 23.70.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 28.35 | ||
| Fwd PE | 24.5 |
4.2 Price Multiples
The rest of the industry has a similar Enterprise Value to EBITDA ratio as EFX.
Compared to the rest of the industry, the Price/Free Cash Flow ratio of EFX indicates a somewhat cheap valuation: EFX is cheaper than 61.63% of the companies listed in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 26.7 | ||
| EV/EBITDA | 16.34 |
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.
EFX has a very decent profitability rating, which may justify a higher PE ratio.
A more expensive valuation may be justified as EFX's earnings are expected to grow with 13.98% in the coming years.
PEG (NY)5.21
PEG (5Y)5.27
EPS Next 2Y10.48%
EPS Next 3Y13.98%
5. Dividend
5.1 Amount
With a yearly dividend of 0.92%, EFX is not a good candidate for dividend investing.
Compared to an average industry Dividend Yield of 1.54, EFX pays a bit more dividend than its industry peers.
With a Dividend Yield of 0.92, EFX pays less dividend than the S&P500 average, which is at 1.94.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.92% |
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 2Y10.48%
EPS Next 3Y13.98%
218.03
+4.53 (+2.12%)
Chartmill FA Rating
GICS SectorIndustrials
GICS IndustryGroupCommercial & Professional Services
GICS IndustryProfessional Services
Earnings (Last)
Earnings (Next)
Inst Owners100.55%
Inst Owner Change0%
Ins Owners0.48%
Ins Owner Change-1.99%
Market Cap26.68B
Revenue(TTM)5.94B
Net Income(TTM)658.60M
Analysts77.33
Price Target271.18 (24.38%)
Short Float %3.25%
Short Ratio2.76
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.92% |
Yearly Dividend1.56
Dividend Growth(5Y)0.02%
DP33.46%
Div Incr Years0
Div Non Decr Years1
Ex-DateN/A
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)-0.52%
PT rev (3m)-5.81%
EPS NQ rev (1m)-0.13%
EPS NQ rev (3m)-1.84%
EPS NY rev (1m)-0.02%
EPS NY rev (3m)0.83%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)0.78%
Revenue NY rev (1m)0%
Revenue NY rev (3m)0.63%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 28.35 | ||
| Fwd PE | 24.5 | ||
| P/S | 4.49 | ||
| P/FCF | 26.7 | ||
| P/OCF | 18.16 | ||
| P/B | 5.4 | ||
| P/tB | N/A | ||
| EV/EBITDA | 16.34 |
EPS(TTM)7.69
EY3.53%
EPS(NY)8.9
Fwd EY4.08%
FCF(TTM)8.17
FCFY3.75%
OCF(TTM)12.01
OCFY5.51%
SpS48.56
BVpS40.35
TBVpS-26.06
PEG (NY)5.21
PEG (5Y)5.27
Graham Number83.56
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 | 3.86 |
F-Score8
WACC7.86%
ROIC/WACC1.16
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 Y5.45%
EPS Next 2Y10.48%
EPS Next 3Y13.98%
EPS Next 5Y16.93%
Revenue 1Y (TTM)6.35%
Revenue growth 3Y4.88%
Revenue growth 5Y10.12%
Sales Q2Q%7.15%
Revenue Next Year6.15%
Revenue Next 2Y7.17%
Revenue Next 3Y8.15%
Revenue Next 5Y8.68%
EBIT growth 1Y17.7%
EBIT growth 3Y-1.67%
EBIT growth 5YN/A
EBIT Next Year48.85%
EBIT Next 3Y23.99%
EBIT Next 5Y19.71%
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.
What is the valuation status of EQUIFAX INC (EFX) stock?
ChartMill assigns a valuation rating of 3 / 10 to EQUIFAX INC (EFX). This can be considered as Overvalued.
What is the profitability of EFX stock?
EQUIFAX INC (EFX) has a profitability rating of 6 / 10.
What is the valuation of EQUIFAX INC based on its PE and PB ratios?
The Price/Earnings (PE) ratio for EQUIFAX INC (EFX) is 28.35 and the Price/Book (PB) ratio is 5.4.
Can you provide the expected EPS growth for EFX stock?
The Earnings per Share (EPS) of EQUIFAX INC (EFX) is expected to grow by 5.45% in the next year.