EQUIFAX INC (EFX) Stock Fundamental Analysis
USA - NYSE:EFX - US2944291051 - Common Stock
211.1 USD
-0.4 (-0.19%)
210.94 USD
-0.16 (-0.08%)
EFX gets a fundamental rating of 5 out of 10. The analysis compared the fundamentals against 86 industry peers in the Professional Services industry. While EFX has a great profitability rating, there are quite some 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
In the past year EFX was profitable.
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
Looking at the Return On Assets, with a value of 5.57%, EFX is in the better half of the industry, outperforming 63.95% of the companies in the same industry.
EFX has a Return On Equity of 13.34%. This is in the better half of the industry: EFX outperforms 63.95% of its industry peers.
The Return On Invested Capital of EFX (9.15%) is better than 65.12% of its industry peers.
The Average Return On Invested Capital over the past 3 years for EFX is significantly below the industry average of 13.22%.
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
With an excellent Profit Margin value of 11.08%, EFX belongs to the best of the industry, outperforming 83.72% 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 87.21% of its industry peers.
In the last couple of years the Operating Margin of EFX has declined.
Looking at the Gross Margin, with a value of 56.26%, EFX is in the better half of the industry, outperforming 69.77% of the companies in the same industry.
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 | 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
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
EFX has an Altman-Z score of 3.81. 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 3.81, EFX is in the better half of the industry, outperforming 70.93% of the companies in the same industry.
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.
The Debt to FCF ratio of EFX (4.82) is comparable to the rest of the industry.
EFX has a Debt/Equity ratio of 0.84. This is a neutral value indicating EFX is somewhat dependend on debt financing.
Looking at the Debt to Equity ratio, with a value of 0.84, EFX is doing worse than 63.95% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.84 | ||
| Debt/FCF | 4.82 | ||
| Altman-Z | 3.81 |
ROIC/WACC1.18
WACC7.78%
2.3 Liquidity
A Current Ratio of 0.74 indicates that EFX may have some problems paying its short term obligations.
EFX's Current ratio of 0.74 is on the low side compared to the rest of the industry. EFX is outperformed by 84.88% 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.
EFX has a worse Quick ratio (0.74) 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.
The Earnings Per Share has been growing slightly by 5.38% on average over the past years.
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
The Earnings Per Share is expected to grow by 17.10% on average over the next years. This is quite good.
The Revenue is expected to grow by 8.89% on average over the next years. This is quite good.
EPS Next Y4.49%
EPS Next 2Y11.77%
EPS Next 3Y15.34%
EPS Next 5Y17.1%
Revenue Next Year5.51%
Revenue Next 2Y7.32%
Revenue Next 3Y8.45%
Revenue Next 5Y8.89%
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 27.45, EFX can be considered very expensive at the moment.
EFX's Price/Earnings is on the same level as the industry average.
Compared to an average S&P500 Price/Earnings ratio of 26.19, EFX is valued at the same level.
With a Price/Forward Earnings ratio of 23.18, EFX is valued on the expensive side.
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 22.50, EFX is valued at the same level.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 27.45 | ||
| Fwd PE | 23.18 |
4.2 Price Multiples
The rest of the industry has a similar Enterprise Value to EBITDA ratio as EFX.
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 | 26.15 | ||
| EV/EBITDA | 16.08 |
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 15.34% in the coming years.
PEG (NY)6.12
PEG (5Y)5.1
EPS Next 2Y11.77%
EPS Next 3Y15.34%
5. Dividend
5.1 Amount
EFX has a yearly dividend return of 0.89%, which is pretty low.
EFX's Dividend Yield is a higher than the industry average which is at 3.94.
With a Dividend Yield of 0.89, EFX pays less dividend than the S&P500 average, which is at 2.33.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.89% |
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
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 2Y11.77%
EPS Next 3Y15.34%
211.1
-0.4 (-0.19%)
Chartmill FA Rating
GICS SectorIndustrials
GICS IndustryGroupCommercial & Professional Services
GICS IndustryProfessional Services
Earnings (Last)
Earnings (Next)
Inst Owners97.26%
Inst Owner Change-0.04%
Ins Owners0.48%
Ins Owner Change-1.61%
Market Cap26.13B
Revenue(TTM)5.94B
Net Income(TTM)658.60M
Analysts79.29
Price Target274.59 (30.08%)
Short Float %3.48%
Short Ratio3.84
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.89% |
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)0.19%
PT rev (3m)-3.18%
EPS NQ rev (1m)-0.18%
EPS NQ rev (3m)-1.82%
EPS NY rev (1m)-0.09%
EPS NY rev (3m)-0.97%
Revenue NQ rev (1m)-0.13%
Revenue NQ rev (3m)-0.26%
Revenue NY rev (1m)0.02%
Revenue NY rev (3m)0.15%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 27.45 | ||
| Fwd PE | 23.18 | ||
| P/S | 4.4 | ||
| P/FCF | 26.15 | ||
| P/OCF | 17.78 | ||
| P/B | 5.29 | ||
| P/tB | N/A | ||
| EV/EBITDA | 16.08 |
EPS(TTM)7.69
EY3.64%
EPS(NY)9.11
Fwd EY4.31%
FCF(TTM)8.07
FCFY3.82%
OCF(TTM)11.87
OCFY5.62%
SpS48.01
BVpS39.89
TBVpS-25.76
PEG (NY)6.12
PEG (5Y)5.1
Graham Number83.08
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 | 3.81 |
F-Score8
WACC7.78%
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 Y4.49%
EPS Next 2Y11.77%
EPS Next 3Y15.34%
EPS Next 5Y17.1%
Revenue 1Y (TTM)6.35%
Revenue growth 3Y4.88%
Revenue growth 5Y10.12%
Sales Q2Q%7.15%
Revenue Next Year5.51%
Revenue Next 2Y7.32%
Revenue Next 3Y8.45%
Revenue Next 5Y8.89%
EBIT growth 1Y17.7%
EBIT growth 3Y-1.67%
EBIT growth 5YN/A
EBIT Next Year50.23%
EBIT Next 3Y25.28%
EBIT Next 5Y20.54%
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%.