EQUIFAX INC (EFX) Stock Fundamental Analysis
USA - NYSE:EFX - US2944291051 - Common Stock
236.67 USD
+4.32 (+1.86%)
236 USD
-0.67 (-0.28%)
Taking everything into account, EFX scores 5 out of 10 in our fundamental rating. EFX was compared to 82 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.
In the past year EFX had a positive cash flow from operations.
EFX had positive earnings in each of the past 5 years.
Each year in the past 5 years EFX had a positive operating cash flow.
1.2 Ratios
EFX has a Return On Assets of 5.37%. This is in the better half of the industry: EFX outperforms 60.98% of its industry peers.
The Return On Equity of EFX (12.53%) is comparable to the rest of the industry.
Looking at the Return On Invested Capital, with a value of 8.50%, EFX is in line with its industry, outperforming 57.32% of the companies in the same industry.
Measured over the past 3 years, the Average Return On Invested Capital for EFX is below the industry average of 12.76%.
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 81.71% of its industry peers.
EFX's Profit Margin has declined in the last couple of years.
Looking at the Operating Margin, with a value of 19.45%, EFX belongs to the top of the industry, outperforming 86.59% of the companies in the same industry.
In the last couple of years the Operating Margin of EFX has declined.
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.
EFX has more shares outstanding than it did 1 year ago.
Compared to 5 years ago, EFX has more shares outstanding
EFX has a better debt/assets ratio than last year.
2.2 Solvency
An Altman-Z score of 4.07 indicates that EFX is not in any danger for bankruptcy at the moment.
EFX has a better Altman-Z score (4.07) than 71.95% of its industry peers.
The Debt to FCF ratio of EFX is 5.34, which is a neutral value as it means it would take EFX, 5.34 years of fcf income to pay off all of its debts.
EFX has a Debt to FCF ratio of 5.34. This is comparable to the rest of the industry: EFX outperforms 52.44% of its industry peers.
A Debt/Equity ratio of 0.83 indicates that EFX is somewhat dependend on debt financing.
The Debt to Equity ratio of EFX (0.83) is worse than 64.63% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.83 | ||
| Debt/FCF | 5.34 | ||
| Altman-Z | 4.07 |
ROIC/WACC1.08
WACC7.88%
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: 86.59% 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.
The Quick ratio of EFX (0.77) is worse than 86.59% 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.
EFX shows a small growth in Earnings Per Share. Measured over the last years, the EPS has been growing by 5.38% yearly.
The Revenue has been growing slightly by 6.86% in the past year.
EFX shows quite a strong growth in Revenue. Measured over the last years, the Revenue has been growing by 10.12% yearly.
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 17.10% yearly.
Based on estimates for the next years, EFX will show a quite strong growth in Revenue. The Revenue will grow by 8.89% on average per year.
EPS Next Y4.58%
EPS Next 2Y12.18%
EPS Next 3Y15.83%
EPS Next 5Y17.1%
Revenue Next Year5.49%
Revenue Next 2Y7.61%
Revenue Next 3Y8.77%
Revenue Next 5Y8.89%
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
With a Price/Earnings ratio of 31.56, EFX can be considered very expensive at the moment.
Compared to the rest of the industry, the Price/Earnings ratio of EFX indicates a slightly more expensive valuation: EFX is more expensive than 60.98% of the companies listed in the same industry.
EFX's Price/Earnings ratio indicates a similar valuation than the S&P500 average which is at 27.86.
The Price/Forward Earnings ratio is 25.80, which means the current valuation is very expensive for EFX.
EFX's Price/Forward Earnings ratio is in line with the industry average.
EFX is valuated at similar levels of the S&P average when we compare the Price/Forward Earnings ratio to 23.32, which is the current average of the S&P500 Index.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 31.56 | ||
| Fwd PE | 25.8 |
4.2 Price Multiples
EFX's Enterprise Value to EBITDA is on the same level as the industry average.
EFX's Price/Free Cash Flow ratio is in line with the industry average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 31.95 | ||
| EV/EBITDA | 18.41 |
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 15.83% in the coming years. This may justify a more expensive valuation.
PEG (NY)6.89
PEG (5Y)5.87
EPS Next 2Y12.18%
EPS Next 3Y15.83%
5. Dividend
5.1 Amount
EFX has a yearly dividend return of 0.86%, which is pretty low.
Compared to an average industry Dividend Yield of 3.62, EFX pays a bit more dividend than its industry peers.
Compared to an average S&P500 Dividend Yield of 2.41, EFX's dividend is way lower than the S&P500 average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.86% |
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 32.41% of its income as dividend. This is a sustainable payout ratio.
EFX's earnings are growing more than its dividend. This makes the dividend growth sustainable.
DP32.41%
EPS Next 2Y12.18%
EPS Next 3Y15.83%
236.67
+4.32 (+1.86%)
Chartmill FA Rating
GICS SectorIndustrials
GICS IndustryGroupCommercial & Professional Services
GICS IndustryProfessional Services
Earnings (Last)
Earnings (Next)
Inst Owners97.26%
Inst Owner Change-7.97%
Ins Owners0.48%
Ins Owner Change-1.61%
Market Cap29.30B
Analysts79.29
Price Target287.93 (21.66%)
Short Float %2.75%
Short Ratio3.16
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.86% |
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)0.19%
PT rev (3m)-2.67%
EPS NQ rev (1m)0.05%
EPS NQ rev (3m)-3.13%
EPS NY rev (1m)0%
EPS NY rev (3m)-0.8%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)-0.13%
Revenue NY rev (1m)0%
Revenue NY rev (3m)0.2%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 31.56 | ||
| Fwd PE | 25.8 | ||
| P/S | 5.02 | ||
| P/FCF | 31.95 | ||
| P/OCF | 21.09 | ||
| P/B | 5.74 | ||
| P/tB | N/A | ||
| EV/EBITDA | 18.41 |
EPS(TTM)7.5
EY3.17%
EPS(NY)9.17
Fwd EY3.88%
FCF(TTM)7.41
FCFY3.13%
OCF(TTM)11.22
OCFY4.74%
SpS47.17
BVpS41.22
TBVpS-24.81
PEG (NY)6.89
PEG (5Y)5.87
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 | 4.07 |
F-Score8
WACC7.88%
ROIC/WACC1.08
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 Y4.58%
EPS Next 2Y12.18%
EPS Next 3Y15.83%
EPS Next 5Y17.1%
Revenue 1Y (TTM)6.86%
Revenue growth 3Y4.88%
Revenue growth 5Y10.12%
Sales Q2Q%7.44%
Revenue Next Year5.49%
Revenue Next 2Y7.61%
Revenue Next 3Y8.77%
Revenue Next 5Y8.89%
EBIT growth 1Y11.52%
EBIT growth 3Y-1.67%
EBIT growth 5YN/A
EBIT Next Year50.23%
EBIT Next 3Y25.28%
EBIT Next 5Y20.54%
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%