EQUIFAX INC (EFX)
US2944291051 - Common Stock
EFX gets a fundamental rating of 4 out of 10. The analysis compared the fundamentals against 81 industry peers in the Professional Services industry. EFX has an excellent profitability rating, but there are concerns on its financial health. EFX is valied quite expensively at the moment, while 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.
Of the past 5 years EFX 4 years were 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 4.44%. This is in the better half of the industry: EFX outperforms 60.49% of its industry peers.
EFX has a better Return On Equity (12.03%) than 67.90% of its industry peers.
EFX's Return On Invested Capital of 7.20% is in line compared to the rest of the industry. EFX outperforms 54.32% of its industry peers.
EFX had an Average Return On Invested Capital over the past 3 years of 8.60%. This is below the industry average of 12.09%.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 4.44% | ||
| ROE | 12.03% | ||
| ROIC | 7.2% |
ROA(3y)5.74%
ROA(5y)3.52%
ROE(3y)16.8%
ROE(5y)10.27%
ROIC(3y)8.6%
ROIC(5y)N/A
1.3 Margins
EFX's Profit Margin of 10.36% is amongst the best of the industry. EFX outperforms 85.19% of its industry peers.
EFX's Profit Margin has improved in the last couple of years.
EFX's Operating Margin of 18.45% is amongst the best of the industry. EFX outperforms 87.65% of its industry peers.
In the last couple of years the Operating Margin of EFX has grown nicely.
With a decent Gross Margin value of 55.65%, EFX is doing good in the industry, outperforming 67.90% of the companies in the same industry.
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 | 18.45% | ||
| PM (TTM) | 10.36% | ||
| GM | 55.65% |
OM growth 3Y2.43%
OM growth 5Y7.04%
PM growth 3Y-6.33%
PM growth 5Y3.34%
GM growth 3Y-1.32%
GM growth 5Y-0.75%
2. Health
2.1 Basic Checks
EFX has a Return on Invested Capital (ROIC), which is below the Cost of Capital (WACC), which means it is destroying value.
The number of shares outstanding for EFX has been increased compared to 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 3.36 indicates that EFX is not in any danger for bankruptcy at the moment.
EFX has a Altman-Z score of 3.36. This is in the better half of the industry: EFX outperforms 60.49% of its industry peers.
The Debt to FCF ratio of EFX is 11.08, which is on the high side as it means it would take EFX, 11.08 years of fcf income to pay off all of its debts.
With a Debt to FCF ratio value of 11.08, EFX is not doing good in the industry: 64.20% of the companies in the same industry are doing better.
A Debt/Equity ratio of 1.05 is on the high side and indicates that EFX has dependencies on debt financing.
EFX has a Debt to Equity ratio of 1.05. This is in the lower half of the industry: EFX underperforms 76.54% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.05 | ||
| Debt/FCF | 11.08 | ||
| Altman-Z | 3.36 |
ROIC/WACC0.82
WACC8.8%
2.3 Liquidity
EFX has a Current Ratio of 0.67. 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's Current ratio of 0.67 is on the low side compared to the rest of the industry. EFX is outperformed by 90.12% of its industry peers.
EFX has a Quick Ratio of 0.67. 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's Quick ratio of 0.67 is on the low side compared to the rest of the industry. EFX is outperformed by 90.12% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 0.67 | ||
| Quick Ratio | 0.67 |
3. Growth
3.1 Past
The earnings per share for EFX have decreased strongly by -11.24% in the last year.
Measured over the past 5 years, EFX shows a small growth in Earnings Per Share. The EPS has been growing by 3.03% on average per year.
EFX shows a small growth in Revenue. In the last year, the Revenue has grown by 2.79%.
EFX shows quite a strong growth in Revenue. Measured over the last years, the Revenue has been growing by 9.06% yearly.
EPS 1Y (TTM)-11.24%
EPS 3Y-0.78%
EPS 5Y3.03%
EPS growth Q2Q19.08%
Revenue 1Y (TTM)2.79%
Revenue growth 3Y8.45%
Revenue growth 5Y9.06%
Revenue growth Q2Q10.74%
3.2 Future
EFX is expected to show a strong growth in Earnings Per Share. In the coming years, the EPS will grow by 24.77% yearly.
EFX is expected to show quite a strong growth in Revenue. In the coming years, the Revenue will grow by 9.17% yearly.
EPS Next Y15.02%
EPS Next 2Y21.02%
EPS Next 3Y22.09%
EPS Next 5Y24.77%
Revenue Next Year10.08%
Revenue Next 2Y10.76%
Revenue Next 3Y10.82%
Revenue Next 5Y9.17%
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
The Price/Earnings ratio is 31.88, which means the current valuation is very expensive for EFX.
Compared to the rest of the industry, the Price/Earnings ratio of EFX indicates a slightly more expensive valuation: EFX is more expensive than 69.14% of the companies listed in the same industry.
The average S&P500 Price/Earnings ratio is at 24.80. EFX is valued slightly more expensive when compared to this.
A Price/Forward Earnings ratio of 27.72 indicates a quite expensive valuation of EFX.
Based on the Price/Forward Earnings ratio, EFX is valued a bit more expensive than 62.96% of the companies in the same industry.
The average S&P500 Price/Forward Earnings ratio is at 21.27. EFX is valued slightly more expensive when compared to this.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 31.88 | ||
| Fwd PE | 27.72 |
4.2 Price Multiples
EFX's Enterprise Value to EBITDA ratio is a bit more expensive when compared to the industry. EFX is more expensive than 65.43% of the companies in the same industry.
Based on the Price/Free Cash Flow ratio, EFX is valued a bit more expensive than 64.20% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 51.55 | ||
| EV/EBITDA | 20.43 |
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.
EFX's earnings are expected to grow with 22.09% in the coming years. This may justify a more expensive valuation.
PEG (NY)2.12
PEG (5Y)10.53
EPS Next 2Y21.02%
EPS Next 3Y22.09%
5. Dividend
5.1 Amount
With a yearly dividend of 0.66%, EFX is not a good candidate for dividend investing.
Compared to an average industry Dividend Yield of 2.03, EFX pays a bit more dividend than its industry peers.
Compared to an average S&P500 Dividend Yield of 2.40, EFX's dividend is way lower than the S&P500 average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.66% |
5.2 History
The dividend of EFX decreases each year by -0.01%.
EFX has paid a dividend for at least 10 years, which is a reliable track record.
Dividend Growth(5Y)-0.01%
Div Incr Years0
Div Non Decr Years0
5.3 Sustainability
EFX pays out 35.17% of its income as dividend. This is a sustainable payout ratio.
DP35.17%
EPS Next 2Y21.02%
EPS Next 3Y22.09%
EQUIFAX INC
NYSE:EFX (4/19/2024, 9:14:10 AM)
213.925
-3.58 (-1.65%)
Chartmill FA Rating
GICS SectorIndustrials
GICS IndustryGroupCommercial & Professional Services
GICS IndustryProfessional Services
Earnings (Last)
Earnings (Next)
Inst Owners
Inst Owner Change
Ins Owners
Ins Owner Change
Market Cap26.58B
Analysts
Price Target
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.66% |
Dividend Growth(5Y)
DP
Div Incr Years
Div Non Decr Years
Ex-Date
Surprises & Revisions
EPS beat(2)
Avg EPS beat(2)
Min EPS beat(2)
Max EPS beat(2)
EPS beat(4)
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Min EPS beat(4)
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EPS beat(8)
Avg EPS beat(8)
EPS beat(12)
Avg EPS beat(12)
EPS beat(16)
Avg EPS beat(16)
Revenue beat(2)
Avg Revenue beat(2)
Min Revenue beat(2)
Max Revenue beat(2)
Revenue beat(4)
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Min Revenue beat(4)
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Revenue beat(8)
Avg Revenue beat(8)
Revenue beat(12)
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Revenue beat(16)
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PT rev (1m)
PT rev (3m)
EPS NQ rev (1m)
EPS NQ rev (3m)
EPS NY rev (1m)
EPS NY rev (3m)
Revenue NQ rev (1m)
Revenue NQ rev (3m)
Revenue NY rev (1m)
Revenue NY rev (3m)
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 31.88 | ||
| Fwd PE | 27.72 | ||
| P/S | |||
| P/FCF | |||
| P/OCF | |||
| P/B | |||
| P/tB | |||
| EV/EBITDA |
EPS(TTM)
EY
EPS(NY)
Fwd EY
FCF(TTM)
FCFY
OCF(TTM)
OCFY
SpS
BVpS
TBVpS
PEG (NY)2.12
PEG (5Y)10.53
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 4.44% | ||
| ROE | 12.03% | ||
| ROCE | |||
| ROIC | |||
| ROICexc | |||
| ROICexgc | |||
| OM | 18.45% | ||
| PM (TTM) | 10.36% | ||
| GM | 55.65% | ||
| FCFM |
ROA(3y)
ROA(5y)
ROE(3y)
ROE(5y)
ROIC(3y)
ROIC(5y)
ROICexc(3y)
ROICexc(5y)
ROICexgc(3y)
ROICexgc(5y)
ROCE(3y)
ROCE(5y)
ROICexcg growth 3Y
ROICexcg growth 5Y
ROICexc growth 3Y
ROICexc growth 5Y
OM growth 3Y
OM growth 5Y
PM growth 3Y
PM growth 5Y
GM growth 3Y
GM growth 5Y
F-Score
Asset Turnover0.43
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.05 | ||
| Debt/FCF | |||
| Debt/EBITDA | |||
| Cap/Depr | |||
| Cap/Sales | |||
| Interest Coverage | |||
| Cash Conversion | |||
| Profit Quality | |||
| Current Ratio | 0.67 | ||
| Quick Ratio | 0.67 | ||
| Altman-Z |
F-Score
WACC
ROIC/WACC
Cap/Depr(3y)
Cap/Depr(5y)
Cap/Sales(3y)
Cap/Sales(5y)
Profit Quality(3y)
Profit Quality(5y)
Growth
EPS 1Y (TTM)-11.24%
EPS 3Y-0.78%
EPS 5Y
EPS growth Q2Q
EPS Next Y15.02%
EPS Next 2Y
EPS Next 3Y
EPS Next 5Y
Revenue 1Y (TTM)2.79%
Revenue growth 3Y8.45%
Revenue growth 5Y
Revenue growth Q2Q
Revenue Next Year
Revenue Next 2Y
Revenue Next 3Y
Revenue Next 5Y
EBIT growth 1Y
EBIT growth 3Y
EBIT growth 5Y
EBIT Next Year
EBIT Next 3Y
EBIT Next 5Y
FCF growth 1Y
FCF growth 3Y
FCF growth 5Y
OCF growth 1Y
OCF growth 3Y
OCF growth 5Y