EQUIFAX INC (EFX) Stock Fundamental Analysis
NYSE:EFX - New York Stock Exchange, Inc. - US2944291051 - Common Stock - Currency: USD
Taking everything into account, EFX scores 5 out of 10 in our fundamental rating. EFX was compared to 82 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
EFX had positive earnings in the past year.
EFX had a positive operating cash flow in the past year.
EFX had positive earnings in each of the past 5 years.
Each year in the past 5 years EFX had a positive operating cash flow.
1.2 Ratios
EFX has a Return On Assets of 5.16%. This is comparable to the rest of the industry: EFX outperforms 59.26% of its industry peers.
With a Return On Equity value of 12.29%, EFX perfoms like the industry average, outperforming 58.02% of the companies in the same industry.
The Return On Invested Capital of EFX (8.25%) is comparable to the rest of the industry.
EFX had an Average Return On Invested Capital over the past 3 years of 8.03%. This is below the industry average of 12.61%.
The 3 year average ROIC (8.03%) for EFX is below the current ROIC(8.25%), indicating increased profibility in the last year.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 5.16% | ||
| ROE | 12.29% | ||
| ROIC | 8.25% |
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 Profit Margin of 10.68%. This is amongst the best in the industry. EFX outperforms 82.72% of its industry peers.
In the last couple of years the Profit Margin of EFX has declined.
EFX's Operating Margin of 19.21% is amongst the best of the industry. EFX outperforms 86.42% of its industry peers.
EFX's Operating Margin has declined in the last couple of years.
Looking at the Gross Margin, with a value of 55.56%, EFX is in the better half of the industry, outperforming 67.90% of the companies in the same industry.
EFX's Gross Margin has been stable in the last couple of years.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 19.21% | ||
| PM (TTM) | 10.68% | ||
| GM | 55.56% |
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.
The number of shares outstanding for EFX has been increased compared to 1 year ago.
Compared to 5 years ago, EFX has more shares outstanding
The debt/assets ratio for EFX has been reduced compared to a year ago.
2.2 Solvency
An Altman-Z score of 4.26 indicates that EFX is not in any danger for bankruptcy at the moment.
EFX has a better Altman-Z score (4.26) than 74.07% of its industry peers.
The Debt to FCF ratio of EFX is 6.14, which is on the high side as it means it would take EFX, 6.14 years of fcf income to pay off all of its debts.
The Debt to FCF ratio of EFX (6.14) is comparable to the rest of the industry.
A Debt/Equity ratio of 0.87 indicates that EFX is somewhat dependend on debt financing.
The Debt to Equity ratio of EFX (0.87) is worse than 65.43% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.87 | ||
| Debt/FCF | 6.14 | ||
| Altman-Z | 4.26 |
ROIC/WACC1
WACC8.22%
2.3 Liquidity
A Current Ratio of 0.85 indicates that EFX may have some problems paying its short term obligations.
EFX has a Current ratio of 0.85. This is amonst the worse of the industry: EFX underperforms 82.72% of its industry peers.
EFX has a Quick Ratio of 0.85. This is a bad value and indicates that EFX is not financially healthy enough and could expect problems in meeting its short term obligations.
With a Quick ratio value of 0.85, EFX is not doing good in the industry: 82.72% of the companies in the same industry are doing better.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 0.85 | ||
| Quick Ratio | 0.85 |
3. Growth
3.1 Past
The Earnings Per Share has been growing slightly by 7.96% over the past year.
The Earnings Per Share has been growing slightly by 5.38% on average over the past years.
The Revenue has been growing slightly by 7.12% 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)7.96%
EPS 3Y-1.55%
EPS 5Y5.38%
EPS Q2Q%2%
Revenue 1Y (TTM)7.12%
Revenue growth 3Y4.88%
Revenue growth 5Y10.12%
Sales Q2Q%3.79%
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 18.10% yearly.
Based on estimates for the next years, EFX will show a quite strong growth in Revenue. The Revenue will grow by 9.32% on average per year.
EPS Next Y5.43%
EPS Next 2Y13.66%
EPS Next 3Y18.82%
EPS Next 5Y18.1%
Revenue Next Year5.28%
Revenue Next 2Y7.91%
Revenue Next 3Y9.6%
Revenue Next 5Y9.32%
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 34.93 indicates a quite expensive valuation of EFX.
61.73% of the companies in the same industry are cheaper than EFX, based on the Price/Earnings ratio.
EFX is valuated rather expensively when we compare the Price/Earnings ratio to 26.34, which is the current average of the S&P500 Index.
A Price/Forward Earnings ratio of 27.15 indicates a quite expensive valuation of EFX.
Compared to the rest of the industry, the Price/Forward Earnings ratio of EFX is on the same level as its industry peers.
EFX's Price/Forward Earnings ratio indicates a valuation a bit more expensive than the S&P500 average which is at 21.03.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 34.93 | ||
| Fwd PE | 27.15 |
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 | 39.26 | ||
| EV/EBITDA | 20.39 |
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 18.82% in the coming years.
PEG (NY)6.44
PEG (5Y)6.49
EPS Next 2Y13.66%
EPS Next 3Y18.82%
5. Dividend
5.1 Amount
With a yearly dividend of 0.79%, EFX is not a good candidate for dividend investing.
EFX's Dividend Yield is a higher than the industry average which is at 2.14.
With a Dividend Yield of 0.79, EFX pays less dividend than the S&P500 average, which is at 2.44.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.79% |
5.2 History
The dividend of EFX has a limited annual growth rate of 0.02%.
EFX has paid a dividend for at least 10 years, which is a reliable track record.
The dividend of EFX decreased recently.
Dividend Growth(5Y)0.02%
Div Incr Years0
Div Non Decr Years1
5.3 Sustainability
EFX pays out 31.60% of its income as dividend. This is a sustainable payout ratio.
EFX's earnings are growing more than its dividend. This makes the dividend growth sustainable.
DP31.6%
EPS Next 2Y13.66%
EPS Next 3Y18.82%
255.7
+2.31 (+0.91%)
Chartmill FA Rating
GICS SectorIndustrials
GICS IndustryGroupCommercial & Professional Services
GICS IndustryProfessional Services
Earnings (Last)
Earnings (Next)
Inst Owners99.87%
Inst Owner Change3.14%
Ins Owners0.49%
Ins Owner Change4.57%
Market Cap31.76B
Analysts81.48
Price Target295.82 (15.69%)
Short Float %2.61%
Short Ratio3.16
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.79% |
Yearly Dividend1.56
Dividend Growth(5Y)0.02%
DP31.6%
Div Incr Years0
Div Non Decr Years1
Ex-Date
Surprises & Revisions
EPS beat(2)2
Avg EPS beat(2)3.98%
Min EPS beat(2)0.03%
Max EPS beat(2)7.93%
EPS beat(4)3
Avg EPS beat(4)3.05%
Min EPS beat(4)-0.16%
Max EPS beat(4)7.93%
EPS beat(8)6
Avg EPS beat(8)2.23%
EPS beat(12)10
Avg EPS beat(12)2.62%
EPS beat(16)14
Avg EPS beat(16)3.48%
Revenue beat(2)1
Avg Revenue beat(2)-0.81%
Min Revenue beat(2)-2.38%
Max Revenue beat(2)0.77%
Revenue beat(4)1
Avg Revenue beat(4)-0.79%
Min Revenue beat(4)-2.38%
Max Revenue beat(4)0.77%
Revenue beat(8)2
Avg Revenue beat(8)-1%
Revenue beat(12)5
Avg Revenue beat(12)-0.59%
Revenue beat(16)8
Avg Revenue beat(16)0.1%
PT rev (1m)1.88%
PT rev (3m)-0.9%
EPS NQ rev (1m)0%
EPS NQ rev (3m)-0.1%
EPS NY rev (1m)0.11%
EPS NY rev (3m)0.26%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)0.93%
Revenue NY rev (1m)0.08%
Revenue NY rev (3m)0.3%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 34.93 | ||
| Fwd PE | 27.15 | ||
| P/S | 5.54 | ||
| P/FCF | 39.26 | ||
| P/OCF | 24.51 | ||
| P/B | 6.38 | ||
| P/tB | N/A | ||
| EV/EBITDA | 20.39 |
EPS(TTM)7.32
EY2.86%
EPS(NY)9.42
Fwd EY3.68%
FCF(TTM)6.51
FCFY2.55%
OCF(TTM)10.43
OCFY4.08%
SpS46.17
BVpS40.11
TBVpS-25.59
PEG (NY)6.44
PEG (5Y)6.49
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 5.16% | ||
| ROE | 12.29% | ||
| ROCE | 10.88% | ||
| ROIC | 8.25% | ||
| ROICexc | 8.42% | ||
| ROICexgc | 47.23% | ||
| OM | 19.21% | ||
| PM (TTM) | 10.68% | ||
| GM | 55.56% | ||
| FCFM | 14.11% |
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%
ROICexcg growth 3Y-45.57%
ROICexcg 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 Turnover0.48
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.87 | ||
| Debt/FCF | 6.14 | ||
| Debt/EBITDA | 2.41 | ||
| Cap/Depr | 70.51% | ||
| Cap/Sales | 8.49% | ||
| Interest Coverage | 250 | ||
| Cash Conversion | 72.32% | ||
| Profit Quality | 132.11% | ||
| Current Ratio | 0.85 | ||
| Quick Ratio | 0.85 | ||
| Altman-Z | 4.26 |
F-Score8
WACC8.22%
ROIC/WACC1
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)7.96%
EPS 3Y-1.55%
EPS 5Y5.38%
EPS Q2Q%2%
EPS Next Y5.43%
EPS Next 2Y13.66%
EPS Next 3Y18.82%
EPS Next 5Y18.1%
Revenue 1Y (TTM)7.12%
Revenue growth 3Y4.88%
Revenue growth 5Y10.12%
Sales Q2Q%3.79%
Revenue Next Year5.28%
Revenue Next 2Y7.91%
Revenue Next 3Y9.6%
Revenue Next 5Y9.32%
EBIT growth 1Y11.15%
EBIT growth 3Y-1.67%
EBIT growth 5YN/A
EBIT Next Year51.38%
EBIT Next 3Y27.37%
EBIT Next 5Y20.64%
FCF growth 1Y68.45%
FCF growth 3Y-2.08%
FCF growth 5YN/A
OCF growth 1Y17.1%
OCF growth 3Y-0.26%
OCF growth 5Y33.38%