EQUIFAX INC (EFX) Stock Fundamental Analysis
NYSE:EFX - New York Stock Exchange, Inc. - US2944291051 - Common Stock - Currency: USD
We assign a fundamental rating of 5 out of 10 to EFX. EFX was compared to 81 industry peers in the Professional Services industry. There are concerns on the financial health of EFX while its profitability can be described as average. 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.
EFX had a positive operating cash flow in the past year.
EFX had positive earnings in each of the past 5 years.
In the past 5 years EFX always reported a positive cash flow from operatings.
1.2 Ratios
EFX has a Return On Assets (5.16%) which is comparable to the rest of the industry.
EFX has a Return On Equity (12.29%) which is in line with its industry peers.
EFX's Return On Invested Capital of 8.25% is in line compared to the rest of the industry. EFX outperforms 59.26% of its industry peers.
The Average Return On Invested Capital over the past 3 years for EFX is below the industry average of 12.53%.
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
Looking at the Profit Margin, with a value of 10.68%, EFX belongs to the top of the industry, outperforming 82.72% of the companies in the same industry.
EFX's Profit Margin has declined in the last couple of years.
EFX has a better Operating Margin (19.21%) than 86.42% of its industry peers.
EFX's Operating Margin has declined in the last couple of years.
The Gross Margin of EFX (55.56%) is better than 69.14% of its industry peers.
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
With a Return on Invested Capital (ROIC) just above the Cost of Capital (WACC), EFX is creating some value.
EFX has more shares outstanding than it did 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
EFX has an Altman-Z score of 4.35. This indicates that EFX is financially healthy and has little risk of bankruptcy at the moment.
EFX has a better Altman-Z score (4.35) than 72.84% of its industry peers.
EFX has a debt to FCF ratio of 6.14. This is a slightly negative value and a sign of low solvency as EFX would need 6.14 years to pay back of all of its debts.
With a Debt to FCF ratio value of 6.14, EFX perfoms like the industry average, outperforming 45.68% of the companies in the same industry.
EFX has a Debt/Equity ratio of 0.87. This is a neutral value indicating EFX is somewhat dependend on debt financing.
With a Debt to Equity ratio value of 0.87, EFX is not doing good in the industry: 64.20% of the companies in the same industry are doing better.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.87 | ||
| Debt/FCF | 6.14 | ||
| Altman-Z | 4.35 |
ROIC/WACC1.01
WACC8.16%
2.3 Liquidity
EFX has a Current 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.
Looking at the Current ratio, with a value of 0.85, EFX is doing worse than 83.95% of the companies in the same industry.
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.
Looking at the Quick ratio, with a value of 0.85, EFX is doing worse than 83.95% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 0.85 | ||
| Quick Ratio | 0.85 |
3. Growth
3.1 Past
EFX shows a small growth in Earnings Per Share. In the last year, the EPS has grown by 7.96%.
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.
EFX shows a small growth in Revenue. In the last year, the Revenue has grown by 7.12%.
The Revenue has been growing by 10.12% on average over the past years. This is quite good.
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
The Earnings Per Share is expected to grow by 18.10% on average over the next years. This is quite good.
EFX is expected to show quite a strong growth in Revenue. In the coming years, the Revenue will grow by 9.32% yearly.
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
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 36.06.
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 27.21, which is the current average of the S&P500 Index.
A Price/Forward Earnings ratio of 28.02 indicates a quite expensive valuation of EFX.
EFX's Price/Forward Earnings is on the same level as the industry average.
Compared to an average S&P500 Price/Forward Earnings ratio of 21.70, EFX is valued a bit more expensive.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 36.06 | ||
| Fwd PE | 28.02 |
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 is on the same level as the industry average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 40.53 | ||
| EV/EBITDA | 20.96 |
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 18.82% in the coming years. This may justify a more expensive valuation.
PEG (NY)6.65
PEG (5Y)6.7
EPS Next 2Y13.66%
EPS Next 3Y18.82%
5. Dividend
5.1 Amount
With a yearly dividend of 0.78%, EFX is not a good candidate for dividend investing.
Compared to an average industry Dividend Yield of 2.12, EFX pays a bit more dividend than its industry peers.
Compared to an average S&P500 Dividend Yield of 2.42, EFX's dividend is way lower than the S&P500 average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.78% |
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.
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.
The dividend of EFX is growing, but earnings are growing more, so the dividend growth is sustainable.
DP31.6%
EPS Next 2Y13.66%
EPS Next 3Y18.82%
263.94
+4.57 (+1.76%)
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 Cap32.78B
Analysts81.48
Price Target295.82 (12.08%)
Short Float %2.35%
Short Ratio3.07
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.78% |
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)-0.7%
EPS NQ rev (1m)0%
EPS NQ rev (3m)0%
EPS NY rev (1m)0.11%
EPS NY rev (3m)0.51%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)0.99%
Revenue NY rev (1m)0.08%
Revenue NY rev (3m)0.3%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 36.06 | ||
| Fwd PE | 28.02 | ||
| P/S | 5.72 | ||
| P/FCF | 40.53 | ||
| P/OCF | 25.3 | ||
| P/B | 6.58 | ||
| P/tB | N/A | ||
| EV/EBITDA | 20.96 |
EPS(TTM)7.32
EY2.77%
EPS(NY)9.42
Fwd EY3.57%
FCF(TTM)6.51
FCFY2.47%
OCF(TTM)10.43
OCFY3.95%
SpS46.17
BVpS40.11
TBVpS-25.59
PEG (NY)6.65
PEG (5Y)6.7
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 | 4.35 |
F-Score8
WACC8.16%
ROIC/WACC1.01
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%