EQUIFAX INC (EFX) Stock Fundamental Analysis
NYSE:EFX - New York Stock Exchange, Inc. - US2944291051 - Common Stock - Currency: USD
Overall EFX gets a fundamental rating of 5 out of 10. We evaluated EFX against 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 valied quite expensively at the moment, while 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
EFX's Return On Assets of 5.37% is fine compared to the rest of the industry. EFX outperforms 63.41% of its industry peers.
EFX has a Return On Equity (12.53%) which is in line with its industry peers.
EFX has a better Return On Invested Capital (8.50%) than 60.98% of its industry peers.
EFX had an Average Return On Invested Capital over the past 3 years of 8.03%. This is below the industry average of 12.32%.
The last Return On Invested Capital (8.50%) for EFX is above the 3 year average (8.03%), which is a sign of increasing profitability.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 5.37% | ||
| ROE | 12.53% | ||
| ROIC | 8.5% |
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's Profit Margin of 10.95% is amongst the best of the industry. EFX outperforms 85.37% of its industry peers.
In the last couple of years the Profit Margin of EFX has declined.
EFX's Operating Margin of 19.45% is amongst the best of the industry. EFX outperforms 87.80% 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 55.80%, EFX is in the better half of the industry, outperforming 68.29% 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 | 19.45% | ||
| PM (TTM) | 10.95% | ||
| GM | 55.8% |
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.
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
An Altman-Z score of 4.11 indicates that EFX is not in any danger for bankruptcy at the moment.
Looking at the Altman-Z score, with a value of 4.11, EFX is in the better half of the industry, outperforming 70.73% of the companies in the same industry.
EFX has a debt to FCF ratio of 5.34. This is a neutral value as EFX would need 5.34 years to pay back of all of its debts.
The Debt to FCF ratio of EFX (5.34) is comparable to the rest of the industry.
A Debt/Equity ratio of 0.83 indicates that EFX is somewhat dependend on debt financing.
With a Debt to Equity ratio value of 0.83, EFX is not doing good in the industry: 65.85% of the companies in the same industry are doing better.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.83 | ||
| Debt/FCF | 5.34 | ||
| Altman-Z | 4.11 |
ROIC/WACC1.07
WACC7.98%
2.3 Liquidity
A Current Ratio of 0.77 indicates that EFX may have some problems paying its short term obligations.
With a Current ratio value of 0.77, EFX is not doing good in the industry: 85.37% of the companies in the same industry are doing better.
EFX has a Quick Ratio of 0.77. 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 Quick ratio of 0.77. This is amonst the worse of the industry: EFX underperforms 85.37% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 0.77 | ||
| Quick Ratio | 0.77 |
3. Growth
3.1 Past
The Earnings Per Share has grown by an nice 8.85% over the past year.
The Earnings Per Share has been growing slightly by 5.38% on average over the past years.
EFX shows a small growth in Revenue. In the last year, the Revenue has grown by 6.86%.
Measured over the past years, EFX shows a quite strong growth in Revenue. The Revenue has been growing by 10.12% on average per year.
EPS 1Y (TTM)8.85%
EPS 3Y-1.55%
EPS 5Y5.38%
EPS Q2Q%9.89%
Revenue 1Y (TTM)6.86%
Revenue growth 3Y4.88%
Revenue growth 5Y10.12%
Sales Q2Q%7.44%
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 Y5.51%
EPS Next 2Y13.43%
EPS Next 3Y18.06%
EPS Next 5Y18.1%
Revenue Next Year5.49%
Revenue Next 2Y7.82%
Revenue Next 3Y9.07%
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 32.00.
Based on the Price/Earnings ratio, EFX is valued a bit more expensive than the industry average as 60.98% of the companies are valued more cheaply.
Compared to an average S&P500 Price/Earnings ratio of 26.82, EFX is valued at the same level.
Based on the Price/Forward Earnings ratio of 25.58, the valuation of EFX can be described as expensive.
EFX's Price/Forward Earnings ratio is in line with the industry average.
Compared to an average S&P500 Price/Forward Earnings ratio of 36.21, EFX is valued a bit cheaper.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 32 | ||
| Fwd PE | 25.58 |
4.2 Price Multiples
EFX's Enterprise Value to EBITDA ratio is in line with the industry average.
The rest of the industry has a similar Price/Free Cash Flow ratio as EFX.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 32.4 | ||
| EV/EBITDA | 18.63 |
4.3 Compensation for Growth
The high PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates an expensive valuation of the company.
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 18.06% in the coming years.
PEG (NY)5.81
PEG (5Y)5.95
EPS Next 2Y13.43%
EPS Next 3Y18.06%
5. Dividend
5.1 Amount
EFX has a yearly dividend return of 0.83%, which is pretty low.
Compared to an average industry Dividend Yield of 2.17, EFX pays a bit more dividend than its industry peers.
With a Dividend Yield of 0.83, EFX pays less dividend than the S&P500 average, which is at 2.39.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.83% |
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
32.41% 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.
DP32.41%
EPS Next 2Y13.43%
EPS Next 3Y18.06%
239.99
-0.24 (-0.1%)
Chartmill FA Rating
GICS SectorIndustrials
GICS IndustryGroupCommercial & Professional Services
GICS IndustryProfessional Services
Earnings (Last)
Earnings (Next)
Inst Owners99.87%
Inst Owner Change-0.46%
Ins Owners0.49%
Ins Owner Change3.06%
Market Cap29.71B
Analysts80
Price Target297.38 (23.91%)
Short Float %1.96%
Short Ratio2.45
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.83% |
Yearly Dividend1.56
Dividend Growth(5Y)0.02%
DP32.41%
Div Incr Years0
Div Non Decr Years1
Ex-Date
Surprises & Revisions
EPS beat(2)2
Avg EPS beat(2)5.57%
Min EPS beat(2)3.21%
Max EPS beat(2)7.93%
EPS beat(4)3
Avg EPS beat(4)2.75%
Min EPS beat(4)-0.16%
Max EPS beat(4)7.93%
EPS beat(8)6
Avg EPS beat(8)2.46%
EPS beat(12)10
Avg EPS beat(12)2.6%
EPS beat(16)14
Avg EPS beat(16)2.77%
Revenue beat(2)2
Avg Revenue beat(2)0.71%
Min Revenue beat(2)0.65%
Max Revenue beat(2)0.77%
Revenue beat(4)2
Avg Revenue beat(4)-0.52%
Min Revenue beat(4)-2.38%
Max Revenue beat(4)0.77%
Revenue beat(8)3
Avg Revenue beat(8)-0.73%
Revenue beat(12)6
Avg Revenue beat(12)-0.45%
Revenue beat(16)8
Avg Revenue beat(16)-0.19%
PT rev (1m)0.53%
PT rev (3m)3.98%
EPS NQ rev (1m)-3.21%
EPS NQ rev (3m)-4.77%
EPS NY rev (1m)0.08%
EPS NY rev (3m)1.15%
Revenue NQ rev (1m)-0.13%
Revenue NQ rev (3m)-0.77%
Revenue NY rev (1m)0.2%
Revenue NY rev (3m)0.46%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 32 | ||
| Fwd PE | 25.58 | ||
| P/S | 5.09 | ||
| P/FCF | 32.4 | ||
| P/OCF | 21.39 | ||
| P/B | 5.82 | ||
| P/tB | N/A | ||
| EV/EBITDA | 18.63 |
EPS(TTM)7.5
EY3.13%
EPS(NY)9.38
Fwd EY3.91%
FCF(TTM)7.41
FCFY3.09%
OCF(TTM)11.22
OCFY4.68%
SpS47.17
BVpS41.22
TBVpS-24.81
PEG (NY)5.81
PEG (5Y)5.95
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 5.37% | ||
| ROE | 12.53% | ||
| ROCE | 11.39% | ||
| ROIC | 8.5% | ||
| ROICexc | 8.66% | ||
| ROICexgc | 48.5% | ||
| OM | 19.45% | ||
| PM (TTM) | 10.95% | ||
| GM | 55.8% | ||
| FCFM | 15.7% |
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 Turnover0.49
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.83 | ||
| Debt/FCF | 5.34 | ||
| Debt/EBITDA | 2.3 | ||
| Cap/Depr | 67.2% | ||
| Cap/Sales | 8.09% | ||
| Interest Coverage | 250 | ||
| Cash Conversion | 75.56% | ||
| Profit Quality | 143.35% | ||
| Current Ratio | 0.77 | ||
| Quick Ratio | 0.77 | ||
| Altman-Z | 4.11 |
F-Score8
WACC7.98%
ROIC/WACC1.07
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)8.85%
EPS 3Y-1.55%
EPS 5Y5.38%
EPS Q2Q%9.89%
EPS Next Y5.51%
EPS Next 2Y13.43%
EPS Next 3Y18.06%
EPS Next 5Y18.1%
Revenue 1Y (TTM)6.86%
Revenue growth 3Y4.88%
Revenue growth 5Y10.12%
Sales Q2Q%7.44%
Revenue Next Year5.49%
Revenue Next 2Y7.82%
Revenue Next 3Y9.07%
Revenue Next 5Y9.32%
EBIT growth 1Y11.52%
EBIT growth 3Y-1.67%
EBIT growth 5YN/A
EBIT Next Year51.38%
EBIT Next 3Y27.37%
EBIT Next 5Y20.64%
FCF growth 1Y98.1%
FCF growth 3Y-2.08%
FCF growth 5YN/A
OCF growth 1Y27.07%
OCF growth 3Y-0.26%
OCF growth 5Y33.38%