EQUIFAX INC (EFX) Stock Fundamental Analysis
USA - New York Stock Exchange - NYSE:EFX - US2944291051 - Common Stock
213.5 USD
+1.25 (+0.59%)
213.5 USD
0 (0%)
Taking everything into account, EFX scores 5 out of 10 in our fundamental rating. EFX was compared to 86 industry peers in the Professional Services industry. While EFX is still in line with the averages on profitability rating, there are concerns on its financial health. While showing a medium growth rate, EFX is valued expensive at the moment.
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.
In the past 5 years EFX has always been profitable.
EFX had a positive operating cash flow in each of the past 5 years.
1.2 Ratios
With a decent Return On Assets value of 5.57%, EFX is doing good in the industry, outperforming 61.63% of the companies in the same industry.
The Return On Equity of EFX (13.34%) is better than 63.95% of its industry peers.
EFX has a better Return On Invested Capital (9.15%) than 65.12% 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 11.86%.
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 is in the better half of the industry, outperforming 79.07% of the companies in the same industry.
EFX's Profit Margin has declined in the last couple of years.
With an excellent Operating Margin value of 20.14%, EFX belongs to the best of the industry, outperforming 86.05% of the companies in the same industry.
In the last couple of years the Operating Margin of EFX has declined.
EFX has a better Gross Margin (56.26%) than 73.26% 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
With a Return on Invested Capital (ROIC) just above the Cost of Capital (WACC), EFX is creating some value.
Compared to 1 year ago, EFX has more shares outstanding
EFX has more shares outstanding than it did 5 years ago.
EFX has a better debt/assets ratio than last year.
2.2 Solvency
EFX has an Altman-Z score of 3.79. This indicates that EFX is financially healthy and has little risk of bankruptcy at the moment.
With a decent Altman-Z score value of 3.79, EFX is doing good in the industry, outperforming 70.93% of the companies in the same industry.
The Debt to FCF ratio of EFX is 4.82, which is a neutral value as it means it would take EFX, 4.82 years of fcf income to pay off all of its debts.
EFX has a Debt to FCF ratio of 4.82. This is comparable to the rest of the industry: EFX outperforms 56.98% of its industry peers.
A Debt/Equity ratio of 0.84 indicates that EFX is somewhat dependend on debt financing.
EFX has a Debt to Equity ratio of 0.84. This is in the lower half of the industry: EFX underperforms 62.79% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.84 | ||
| Debt/FCF | 4.82 | ||
| Altman-Z | 3.79 |
ROIC/WACC1.17
WACC7.84%
2.3 Liquidity
EFX has a Current 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.
With a Current ratio value of 0.74, EFX is not doing good in the industry: 84.88% of the companies in the same industry are doing better.
A Quick Ratio of 0.74 indicates that EFX may have some problems paying its short term obligations.
The Quick ratio of EFX (0.74) is worse than 84.88% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 0.74 | ||
| Quick Ratio | 0.74 |
3. Growth
3.1 Past
The Earnings Per Share has grown by an nice 10.17% over the past year.
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.
Looking at the last year, EFX shows a small growth in Revenue. The Revenue has grown by 6.35% in the last 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
The Earnings Per Share is expected to grow by 16.93% on average over the next years. This is quite good.
Based on estimates for the next years, EFX will show a quite strong growth in Revenue. The Revenue will grow by 8.68% on average per year.
EPS Next Y5.45%
EPS Next 2Y10.48%
EPS Next 3Y13.98%
EPS Next 5Y16.93%
Revenue Next Year6.15%
Revenue Next 2Y7.17%
Revenue Next 3Y8.15%
Revenue Next 5Y8.68%
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.
When comparing the Revenue growth rate of the last years to the growth rate of the upcoming years, we see that the growth is stable.
4. Valuation
4.1 Price/Earnings Ratio
With a Price/Earnings ratio of 27.76, EFX can be considered very expensive at the moment.
EFX's Price/Earnings is on the same level as the industry average.
The average S&P500 Price/Earnings ratio is at 26.92. EFX is around the same levels.
A Price/Forward Earnings ratio of 23.99 indicates a rather expensive valuation of EFX.
EFX's Price/Forward Earnings is on the same level as the industry average.
EFX is valuated at similar levels of the S&P average when we compare the Price/Forward Earnings ratio to 23.57, which is the current average of the S&P500 Index.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 27.76 | ||
| Fwd PE | 23.99 |
4.2 Price Multiples
EFX's Enterprise Value to EBITDA is on the same level as the industry average.
Based on the Price/Free Cash Flow ratio, EFX is valued a bit cheaper than the industry average as 61.63% of the companies are valued more expensively.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 26.15 | ||
| EV/EBITDA | 15.97 |
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.
EFX's earnings are expected to grow with 13.98% in the coming years. This may justify a more expensive valuation.
PEG (NY)5.1
PEG (5Y)5.16
EPS Next 2Y10.48%
EPS Next 3Y13.98%
5. Dividend
5.1 Amount
With a yearly dividend of 0.92%, EFX is not a good candidate for dividend investing.
Compared to an average industry Dividend Yield of 1.54, EFX pays a bit more dividend than its industry peers.
Compared to an average S&P500 Dividend Yield of 1.94, EFX's dividend is way lower than the S&P500 average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.92% |
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.
The dividend of EFX is growing, but earnings are growing more, so the dividend growth is sustainable.
DP33.46%
EPS Next 2Y10.48%
EPS Next 3Y13.98%
213.5
+1.25 (+0.59%)
Chartmill FA Rating
GICS SectorIndustrials
GICS IndustryGroupCommercial & Professional Services
GICS IndustryProfessional Services
Earnings (Last)
Earnings (Next)
Inst Owners100.55%
Inst Owner Change0%
Ins Owners0.48%
Ins Owner Change-1.99%
Market Cap26.13B
Revenue(TTM)5.94B
Net Income(TTM)658.60M
Analysts77.33
Price Target271.18 (27.02%)
Short Float %3.25%
Short Ratio2.76
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.92% |
Yearly Dividend1.56
Dividend Growth(5Y)0.02%
DP33.46%
Div Incr Years0
Div Non Decr Years1
Ex-DateN/A
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)-0.52%
PT rev (3m)-5.81%
EPS NQ rev (1m)-0.13%
EPS NQ rev (3m)-1.84%
EPS NY rev (1m)-0.02%
EPS NY rev (3m)0.83%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)0.78%
Revenue NY rev (1m)0%
Revenue NY rev (3m)0.63%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 27.76 | ||
| Fwd PE | 23.99 | ||
| P/S | 4.4 | ||
| P/FCF | 26.15 | ||
| P/OCF | 17.78 | ||
| P/B | 5.29 | ||
| P/tB | N/A | ||
| EV/EBITDA | 15.97 |
EPS(TTM)7.69
EY3.6%
EPS(NY)8.9
Fwd EY4.17%
FCF(TTM)8.17
FCFY3.82%
OCF(TTM)12.01
OCFY5.62%
SpS48.56
BVpS40.35
TBVpS-26.06
PEG (NY)5.1
PEG (5Y)5.16
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 | 3.79 |
F-Score8
WACC7.84%
ROIC/WACC1.17
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 Y5.45%
EPS Next 2Y10.48%
EPS Next 3Y13.98%
EPS Next 5Y16.93%
Revenue 1Y (TTM)6.35%
Revenue growth 3Y4.88%
Revenue growth 5Y10.12%
Sales Q2Q%7.15%
Revenue Next Year6.15%
Revenue Next 2Y7.17%
Revenue Next 3Y8.15%
Revenue Next 5Y8.68%
EBIT growth 1Y17.7%
EBIT growth 3Y-1.67%
EBIT growth 5YN/A
EBIT Next Year48.85%
EBIT Next 3Y23.99%
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.
What is the valuation status of EQUIFAX INC (EFX) stock?
ChartMill assigns a valuation rating of 3 / 10 to EQUIFAX INC (EFX). This can be considered as Overvalued.
What is the profitability of EFX stock?
EQUIFAX INC (EFX) has a profitability rating of 6 / 10.
What is the valuation of EQUIFAX INC based on its PE and PB ratios?
The Price/Earnings (PE) ratio for EQUIFAX INC (EFX) is 27.76 and the Price/Book (PB) ratio is 5.29.
Can you provide the expected EPS growth for EFX stock?
The Earnings per Share (EPS) of EQUIFAX INC (EFX) is expected to grow by 5.45% in the next year.