EQUIFAX INC (EFX) Stock Fundamental Analysis
USA - New York Stock Exchange - NYSE:EFX - US2944291051 - Common Stock
211.28 USD
+1.53 (+0.73%)
211.28 USD
0 (0%)
We assign a fundamental rating of 5 out of 10 to EFX. EFX was compared to 87 industry peers in the Professional Services industry. EFX has an excellent profitability rating, but there are concerns on its financial health. 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.
In the past year EFX had a positive cash flow from operations.
Each year in the past 5 years EFX has been profitable.
Each year in the past 5 years EFX had a positive operating cash flow.
1.2 Ratios
Looking at the Return On Assets, with a value of 5.57%, EFX is in the better half of the industry, outperforming 62.07% of the companies in the same industry.
With a decent Return On Equity value of 13.34%, EFX is doing good in the industry, outperforming 64.37% of the companies in the same industry.
EFX has a better Return On Invested Capital (9.15%) than 64.37% of its industry peers.
The Average Return On Invested Capital over the past 3 years for EFX is below the industry average of 12.17%.
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
Looking at the Profit Margin, with a value of 11.08%, EFX belongs to the top of the industry, outperforming 80.46% of the companies in the same industry.
EFX's Profit Margin has declined in the last couple of years.
The Operating Margin of EFX (20.14%) is better than 86.21% of its industry peers.
EFX's Operating Margin has declined in the last couple of years.
EFX has a Gross Margin of 56.26%. This is in the better half of the industry: EFX outperforms 71.26% 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.
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.
The debt/assets ratio for EFX has been reduced compared to a year ago.
2.2 Solvency
EFX has an Altman-Z score of 3.77. This indicates that EFX is financially healthy and has little risk of bankruptcy at the moment.
EFX has a better Altman-Z score (3.77) than 68.97% of its industry peers.
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.
With a Debt to FCF ratio value of 4.82, EFX perfoms like the industry average, outperforming 52.87% of the companies in the same industry.
EFX has a Debt/Equity ratio of 0.84. This is a neutral value indicating EFX is somewhat dependend on debt financing.
The Debt to Equity ratio of EFX (0.84) is worse than 64.37% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.84 | ||
| Debt/FCF | 4.82 | ||
| Altman-Z | 3.77 |
ROIC/WACC1.18
WACC7.73%
2.3 Liquidity
A Current Ratio of 0.74 indicates that EFX may have some problems paying its short term obligations.
EFX has a Current ratio of 0.74. This is amonst the worse of the industry: EFX underperforms 85.06% of its industry peers.
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.
The Quick ratio of EFX (0.74) is worse than 85.06% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 0.74 | ||
| Quick Ratio | 0.74 |
3. Growth
3.1 Past
EFX shows a strong growth in Earnings Per Share. In the last year, the EPS has been growing by 10.17%, which is quite good.
EFX shows a small growth in Earnings Per Share. Measured over the last years, the EPS has been growing by 5.38% yearly.
The Revenue has been growing slightly by 6.35% in the past year.
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
Based on estimates for the next years, EFX will show a quite strong growth in Earnings Per Share. The EPS will grow by 16.93% on average per year.
The Revenue is expected to grow by 8.68% on average over the next years. This is quite good.
EPS Next Y5.46%
EPS Next 2Y10.52%
EPS Next 3Y13.66%
EPS Next 5Y16.93%
Revenue Next Year6.11%
Revenue Next 2Y7.07%
Revenue Next 3Y7.97%
Revenue Next 5Y8.68%
3.3 Evolution
The EPS growth rate is accelerating: in the next years the growth will be better than in the last years.
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
EFX is valuated quite expensively with a Price/Earnings ratio of 27.47.
EFX's Price/Earnings ratio is in line with the industry average.
EFX is valuated at similar levels of the S&P average when we compare the Price/Earnings ratio to 26.41, which is the current average of the S&P500 Index.
Based on the Price/Forward Earnings ratio of 23.73, the valuation of EFX can be described as rather expensive.
Compared to the rest of the industry, the Price/Forward Earnings ratio of EFX is on the same level as its industry peers.
EFX is valuated rather cheaply when we compare the Price/Forward Earnings ratio to 35.40, which is the current average of the S&P500 Index.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 27.47 | ||
| Fwd PE | 23.73 |
4.2 Price Multiples
The rest of the industry has a similar Enterprise Value to EBITDA ratio as EFX.
EFX's Price/Free Cash Flow ratio is in line with the industry average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 25.87 | ||
| EV/EBITDA | 15.81 |
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 13.66% in the coming years.
PEG (NY)5.03
PEG (5Y)5.11
EPS Next 2Y10.52%
EPS Next 3Y13.66%
5. Dividend
5.1 Amount
EFX has a yearly dividend return of 0.94%, which is pretty low.
Compared to an average industry Dividend Yield of 4.07, EFX pays a bit more dividend than its industry peers.
Compared to an average S&P500 Dividend Yield of 2.32, EFX's dividend is way lower than the S&P500 average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.94% |
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.
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.
EFX's earnings are growing more than its dividend. This makes the dividend growth sustainable.
DP33.46%
EPS Next 2Y10.52%
EPS Next 3Y13.66%
211.28
+1.53 (+0.73%)
Chartmill FA Rating
GICS SectorIndustrials
GICS IndustryGroupCommercial & Professional Services
GICS IndustryProfessional Services
Earnings (Last)
Earnings (Next)
Inst Owners97.26%
Inst Owner Change7.04%
Ins Owners0.48%
Ins Owner Change-1.99%
Market Cap25.86B
Revenue(TTM)5.94B
Net Income(TTM)658.60M
Analysts78
Price Target272.59 (29.02%)
Short Float %3.07%
Short Ratio2.82
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.94% |
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)-0.73%
PT rev (3m)-5.15%
EPS NQ rev (1m)-1.05%
EPS NQ rev (3m)-1.71%
EPS NY rev (1m)0.93%
EPS NY rev (3m)0.84%
Revenue NQ rev (1m)0.13%
Revenue NQ rev (3m)0.78%
Revenue NY rev (1m)0.58%
Revenue NY rev (3m)0.59%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 27.47 | ||
| Fwd PE | 23.73 | ||
| P/S | 4.35 | ||
| P/FCF | 25.87 | ||
| P/OCF | 17.59 | ||
| P/B | 5.24 | ||
| P/tB | N/A | ||
| EV/EBITDA | 15.81 |
EPS(TTM)7.69
EY3.64%
EPS(NY)8.91
Fwd EY4.21%
FCF(TTM)8.17
FCFY3.86%
OCF(TTM)12.01
OCFY5.68%
SpS48.56
BVpS40.35
TBVpS-26.06
PEG (NY)5.03
PEG (5Y)5.11
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 | 3.77 |
F-Score8
WACC7.73%
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 Y5.46%
EPS Next 2Y10.52%
EPS Next 3Y13.66%
EPS Next 5Y16.93%
Revenue 1Y (TTM)6.35%
Revenue growth 3Y4.88%
Revenue growth 5Y10.12%
Sales Q2Q%7.15%
Revenue Next Year6.11%
Revenue Next 2Y7.07%
Revenue Next 3Y7.97%
Revenue Next 5Y8.68%
EBIT growth 1Y17.7%
EBIT growth 3Y-1.67%
EBIT growth 5YN/A
EBIT Next Year50.23%
EBIT Next 3Y25.28%
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.
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%.