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. 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
In the past year EFX was profitable.
In the past year EFX had a positive cash flow from operations.
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
Looking at the Return On Assets, with a value of 5.16%, EFX is in line with its industry, outperforming 58.54% of the companies in the same industry.
The Return On Equity of EFX (12.29%) is comparable to the rest of the industry.
EFX has a Return On Invested Capital (8.25%) which is in line with 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 12.98%.
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
EFX has a Profit Margin of 10.68%. This is amongst the best in the industry. EFX outperforms 81.71% of its industry peers.
EFX's Profit Margin has declined in the last couple of years.
EFX has a Operating Margin of 19.21%. This is amongst the best in the industry. EFX outperforms 85.37% of its industry peers.
EFX's Operating Margin has declined in the last couple of years.
EFX's Gross Margin of 55.56% is fine compared to the rest of the industry. EFX outperforms 67.07% of its industry peers.
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 | 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
EFX has a Return on Invested Capital (ROIC), which is below the Cost of Capital (WACC), which means it is destroying 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.
Compared to 1 year ago, EFX has an improved debt to assets ratio.
2.2 Solvency
EFX has an Altman-Z score of 4.49. This indicates that EFX is financially healthy and has little risk of bankruptcy at the moment.
Looking at the Altman-Z score, with a value of 4.49, EFX is in the better half of the industry, outperforming 78.05% of the companies in the same industry.
The Debt to FCF ratio of EFX is 6.14, which is on the high side as it means it would take EFX, 6.14 years of fcf income to pay off all of its debts.
EFX has a Debt to FCF ratio of 6.14. This is comparable to the rest of the industry: EFX outperforms 48.78% of its industry peers.
EFX has a Debt/Equity ratio of 0.87. This is a neutral value indicating EFX is somewhat dependend on debt financing.
Looking at the Debt to Equity ratio, with a value of 0.87, EFX is doing worse than 65.85% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.87 | ||
| Debt/FCF | 6.14 | ||
| Altman-Z | 4.49 |
ROIC/WACC0.97
WACC8.5%
2.3 Liquidity
A Current Ratio of 0.85 indicates that EFX may have some problems paying its short term obligations.
Looking at the Current ratio, with a value of 0.85, EFX is doing worse than 82.93% of the companies in the same industry.
A Quick Ratio of 0.85 indicates that EFX may have some problems paying its short term obligations.
The Quick ratio of EFX (0.85) is worse than 81.71% of its industry peers.
| 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%.
The Earnings Per Share has been growing slightly by 5.38% on average over the past years.
The Revenue has been growing slightly by 7.12% in the past year.
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)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 Y5.31%
EPS Next 2Y13.54%
EPS Next 3Y18.87%
EPS Next 5Y18.1%
Revenue Next Year5.19%
Revenue Next 2Y7.86%
Revenue Next 3Y9.62%
Revenue Next 5Y9.32%
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
Based on the Price/Earnings ratio of 35.98, the valuation of EFX can be described as expensive.
Compared to the rest of the industry, the Price/Earnings ratio of EFX indicates a slightly more expensive valuation: EFX is more expensive than 65.85% of the companies listed in the same industry.
When comparing the Price/Earnings ratio of EFX to the average of the S&P500 Index (26.60), we can say EFX is valued slightly more expensively.
With a Price/Forward Earnings ratio of 28.02, EFX can be considered very expensive at the moment.
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 expensively when we compare the Price/Forward Earnings ratio to 22.43, which is the current average of the S&P500 Index.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 35.98 | ||
| Fwd PE | 28.02 |
4.2 Price Multiples
EFX's Enterprise Value to EBITDA ratio is in line with the industry average.
Compared to the rest of the industry, the Price/Free Cash Flow ratio of EFX is on the same level as its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 40.44 | ||
| EV/EBITDA | 21.87 |
4.3 Compensation for Growth
The high PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates an expensive valuation of the company.
The decent profitability rating of EFX may justify a higher PE ratio.
EFX's earnings are expected to grow with 18.87% in the coming years. This may justify a more expensive valuation.
PEG (NY)6.78
PEG (5Y)6.69
EPS Next 2Y13.54%
EPS Next 3Y18.87%
5. Dividend
5.1 Amount
EFX has a yearly dividend return of 0.73%, which is pretty low.
Compared to an average industry Dividend Yield of 1.98, EFX pays a bit more dividend than its industry peers.
Compared to an average S&P500 Dividend Yield of 2.36, EFX's dividend is way lower than the S&P500 average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.73% |
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
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 2Y13.54%
EPS Next 3Y18.87%
NYSE:EFX (5/21/2025, 1:06:59 PM)
263.36
-13.66 (-4.93%)
Chartmill FA Rating
GICS SectorIndustrials
GICS IndustryGroupCommercial & Professional Services
GICS IndustryProfessional Services
Earnings (Last)
Earnings (Next)
Inst Owners102.46%
Inst Owner Change2.76%
Ins Owners0.5%
Ins Owner Change4.6%
Market Cap32.71B
Analysts81.54
Price Target290.37 (10.26%)
Short Float %2.58%
Short Ratio2.82
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.73% |
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)-1.94%
PT rev (3m)-6.95%
EPS NQ rev (1m)0.55%
EPS NQ rev (3m)-0.15%
EPS NY rev (1m)0.95%
EPS NY rev (3m)-2.02%
Revenue NQ rev (1m)0.99%
Revenue NQ rev (3m)0.93%
Revenue NY rev (1m)0.4%
Revenue NY rev (3m)-4.37%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 35.98 | ||
| Fwd PE | 28.02 | ||
| P/S | 5.7 | ||
| P/FCF | 40.44 | ||
| P/OCF | 25.24 | ||
| P/B | 6.57 | ||
| P/tB | N/A | ||
| EV/EBITDA | 21.87 |
EPS(TTM)7.32
EY2.78%
EPS(NY)9.4
Fwd EY3.57%
FCF(TTM)6.51
FCFY2.47%
OCF(TTM)10.43
OCFY3.96%
SpS46.17
BVpS40.11
TBVpS-25.59
PEG (NY)6.78
PEG (5Y)6.69
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 | 4.49 |
F-Score8
WACC8.5%
ROIC/WACC0.97
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 Y5.31%
EPS Next 2Y13.54%
EPS Next 3Y18.87%
EPS Next 5Y18.1%
Revenue 1Y (TTM)7.12%
Revenue growth 3Y4.88%
Revenue growth 5Y10.12%
Sales Q2Q%3.79%
Revenue Next Year5.19%
Revenue Next 2Y7.86%
Revenue Next 3Y9.62%
Revenue Next 5Y9.32%
EBIT growth 1Y11.15%
EBIT growth 3Y-1.67%
EBIT growth 5YN/A
EBIT Next Year51.76%
EBIT Next 3Y27.86%
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%