EQUIFAX INC (EFX)
US2944291051 - Common Stock
Taking everything into account, EFX scores 4 out of 10 in our fundamental rating. EFX was compared to 80 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 valued quite expensively, but it does show have an excellent growth rating.
1. Profitability
1.1 Basic Checks
In the past year EFX was profitable.
EFX had a positive operating cash flow in the past year.
EFX had positive earnings in 4 of the past 5 years.
EFX had a positive operating cash flow in each of the past 5 years.
1.2 Ratios
EFX has a Return On Assets of 4.56%. This is comparable to the rest of the industry: EFX outperforms 53.25% of its industry peers.
EFX has a Return On Equity of 11.46%. This is comparable to the rest of the industry: EFX outperforms 57.14% of its industry peers.
EFX's Return On Invested Capital of 7.39% is in line compared to the rest of the industry. EFX outperforms 53.25% of its industry peers.
EFX had an Average Return On Invested Capital over the past 3 years of 8.60%. This is significantly below the industry average of 18.16%.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 4.56% | ||
| ROE | 11.46% | ||
| ROIC | 7.39% |
ROA(3y)5.74%
ROA(5y)3.52%
ROE(3y)16.8%
ROE(5y)10.27%
ROIC(3y)8.6%
ROIC(5y)N/A
1.3 Margins
With an excellent Profit Margin value of 10.07%, EFX belongs to the best of the industry, outperforming 81.82% of the companies in the same industry.
In the last couple of years the Profit Margin of EFX has grown nicely.
EFX has a better Operating Margin (18.20%) than 84.42% of its industry peers.
EFX's Operating Margin has improved in the last couple of years.
The Gross Margin of EFX (55.52%) is better than 62.34% of its industry peers.
EFX's Gross Margin has been stable in the last couple of years.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 18.2% | ||
| PM (TTM) | 10.07% | ||
| GM | 55.52% |
OM growth 3Y2.43%
OM growth 5Y7.04%
PM growth 3Y-6.33%
PM growth 5Y3.34%
GM growth 3Y-1.32%
GM growth 5Y-0.75%
2. Health
2.1 Basic Checks
The Return on Invested Capital (ROIC) is below the Cost of Capital (WACC), so EFX is destroying value.
Compared to 1 year ago, EFX has more shares outstanding
Compared to 5 years ago, EFX has more shares outstanding
Compared to 1 year ago, EFX has an improved debt to assets ratio.
2.2 Solvency
An Altman-Z score of 3.96 indicates that EFX is not in any danger for bankruptcy at the moment.
With a decent Altman-Z score value of 3.96, EFX is doing good in the industry, outperforming 70.13% of the companies in the same industry.
The Debt to FCF ratio of EFX is 6.98, which is on the high side as it means it would take EFX, 6.98 years of fcf income to pay off all of its debts.
EFX has a Debt to FCF ratio (6.98) which is comparable to the rest of the industry.
EFX has a Debt/Equity ratio of 0.96. This is a neutral value indicating EFX is somewhat dependend on debt financing.
EFX has a worse Debt to Equity ratio (0.96) than 71.43% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.96 | ||
| Debt/FCF | 6.98 | ||
| Altman-Z | 3.96 |
ROIC/WACC0.83
WACC8.94%
2.3 Liquidity
EFX has a Current Ratio of 0.88. This is a bad value and indicates that EFX is not financially healthy enough and could expect problems in meeting its short term obligations.
Looking at the Current ratio, with a value of 0.88, EFX is doing worse than 80.52% of the companies in the same industry.
A Quick Ratio of 0.88 indicates that EFX may have some problems paying its short term obligations.
With a Quick ratio value of 0.88, EFX is not doing good in the industry: 80.52% of the companies in the same industry are doing better.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 0.88 | ||
| Quick Ratio | 0.88 |
3. Growth
3.1 Past
The Earnings Per Share has grown by an nice 8.72% over the past year.
EFX shows a small growth in Earnings Per Share. Measured over the last years, the EPS has been growing by 3.03% yearly.
EFX shows quite a strong growth in Revenue. In the last year, the Revenue has grown by 8.79%.
EFX shows quite a strong growth in Revenue. Measured over the last years, the Revenue has been growing by 9.06% yearly.
EPS 1Y (TTM)8.72%
EPS 3Y-0.78%
EPS 5Y3.03%
EPS Q2Q%5.11%
Revenue 1Y (TTM)8.79%
Revenue growth 3Y8.45%
Revenue growth 5Y9.06%
Sales Q2Q%9.3%
3.2 Future
The Earnings Per Share is expected to grow by 22.13% on average over the next years. This is a very strong growth
Based on estimates for the next years, EFX will show a quite strong growth in Revenue. The Revenue will grow by 11.67% on average per year.
EPS Next Y9.56%
EPS Next 2Y17.42%
EPS Next 3Y19.91%
EPS Next 5Y22.13%
Revenue Next Year8.63%
Revenue Next 2Y9.96%
Revenue Next 3Y10.79%
Revenue Next 5Y11.67%
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 accelerating: in the next years the growth will be better than in the last years.
4. Valuation
4.1 Price/Earnings Ratio
A Price/Earnings ratio of 37.02 indicates a quite expensive valuation of EFX.
EFX's Price/Earnings ratio is a bit more expensive when compared to the industry. EFX is more expensive than 68.83% of the companies in the same industry.
Compared to an average S&P500 Price/Earnings ratio of 27.73, EFX is valued a bit more expensive.
EFX is valuated quite expensively with a Price/Forward Earnings ratio of 27.93.
Based on the Price/Forward Earnings ratio, EFX is valued a bit more expensive than the industry average as 63.64% of the companies are valued more cheaply.
EFX is valuated rather expensively when we compare the Price/Forward Earnings ratio to 22.83, which is the current average of the S&P500 Index.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 37.02 | ||
| Fwd PE | 27.93 |
4.2 Price Multiples
62.34% of the companies in the same industry are cheaper than EFX, based on the Enterprise Value to EBITDA ratio.
The rest of the industry has a similar Price/Free Cash Flow ratio as EFX.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 40.88 | ||
| EV/EBITDA | 22.01 |
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 19.91% in the coming years. This may justify a more expensive valuation.
PEG (NY)3.87
PEG (5Y)12.22
EPS Next 2Y17.42%
EPS Next 3Y19.91%
5. Dividend
5.1 Amount
EFX has a yearly dividend return of 0.61%, which is pretty low.
Compared to an average industry Dividend Yield of 1.84, EFX pays a bit more dividend than its industry peers.
Compared to an average S&P500 Dividend Yield of 2.34, EFX's dividend is way lower than the S&P500 average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.61% |
5.2 History
The dividend of EFX decreases each year by -0.01%.
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)-0.01%
Div Incr Years0
Div Non Decr Years1
5.3 Sustainability
34.29% of the earnings are spent on dividend by EFX. This is a low number and sustainable payout ratio.
DP34.29%
EPS Next 2Y17.42%
EPS Next 3Y19.91%
EQUIFAX INC
NYSE:EFX (12/20/2024, 8:06:42 PM)
After market: 258.43 0 (0%)258.43
+4.77 (+1.88%)
Chartmill FA Rating
GICS SectorIndustrials
GICS IndustryGroupCommercial & Professional Services
GICS IndustryProfessional Services
Earnings (Last)
Earnings (Next)
Inst Owners99.04%
Inst Owner Change-2.88%
Ins Owners0.45%
Ins Owner Change-0.58%
Market Cap32.03B
Analysts83.08
Price Target317.82 (22.98%)
Short Float %1.68%
Short Ratio2.02
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.61% |
Dividend Growth(5Y)-0.01%
DP34.29%
Div Incr Years0
Div Non Decr Years1
Ex-Date
Surprises & Revisions
EPS beat(2)1
Avg EPS beat(2)2.12%
Min EPS beat(2)-0.16%
Max EPS beat(2)4.4%
EPS beat(4)3
Avg EPS beat(4)2.57%
Min EPS beat(4)-0.16%
Max EPS beat(4)4.4%
EPS beat(8)6
Avg EPS beat(8)1.83%
EPS beat(12)10
Avg EPS beat(12)2.22%
EPS beat(16)14
Avg EPS beat(16)5.12%
Revenue beat(2)0
Avg Revenue beat(2)-0.78%
Min Revenue beat(2)-1.11%
Max Revenue beat(2)-0.45%
Revenue beat(4)1
Avg Revenue beat(4)-0.82%
Min Revenue beat(4)-1.74%
Max Revenue beat(4)0.04%
Revenue beat(8)3
Avg Revenue beat(8)-0.73%
Revenue beat(12)5
Avg Revenue beat(12)-0.38%
Revenue beat(16)9
Avg Revenue beat(16)0.78%
PT rev (1m)-3.28%
PT rev (3m)4.89%
EPS NQ rev (1m)-0.06%
EPS NQ rev (3m)-0.58%
EPS NY rev (1m)-0.23%
EPS NY rev (3m)-0.59%
Revenue NQ rev (1m)-0.07%
Revenue NQ rev (3m)-1.15%
Revenue NY rev (1m)-0.07%
Revenue NY rev (3m)-0.33%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 37.02 | ||
| Fwd PE | 27.93 | ||
| P/S | 5.73 | ||
| P/FCF | 40.88 | ||
| P/OCF | 24.23 | ||
| P/B | 6.53 | ||
| P/tB | N/A | ||
| EV/EBITDA | 22.01 |
EPS(TTM)6.98
EY2.7%
EPS(NY)9.25
Fwd EY3.58%
FCF(TTM)6.32
FCFY2.45%
OCF(TTM)10.66
OCFY4.13%
SpS45.08
BVpS39.6
TBVpS-28.62
PEG (NY)3.87
PEG (5Y)12.22
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 4.56% | ||
| ROE | 11.46% | ||
| ROCE | 9.71% | ||
| ROIC | 7.39% | ||
| ROICexc | 7.74% | ||
| ROICexgc | 50.08% | ||
| OM | 18.2% | ||
| PM (TTM) | 10.07% | ||
| GM | 55.52% | ||
| FCFM | 14.02% |
ROA(3y)5.74%
ROA(5y)3.52%
ROE(3y)16.8%
ROE(5y)10.27%
ROIC(3y)8.6%
ROIC(5y)N/A
ROICexc(3y)8.83%
ROICexc(5y)N/A
ROICexgc(3y)154.52%
ROICexgc(5y)N/A
ROCE(3y)11.3%
ROCE(5y)N/A
ROICexcg growth 3YN/A
ROICexcg growth 5Y6.02%
ROICexc growth 3Y-9.43%
ROICexc growth 5Y5.66%
OM growth 3Y2.43%
OM growth 5Y7.04%
PM growth 3Y-6.33%
PM growth 5Y3.34%
GM growth 3Y-1.32%
GM growth 5Y-0.75%
F-Score7
Asset Turnover0.45
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.96 | ||
| Debt/FCF | 6.98 | ||
| Debt/EBITDA | 2.81 | ||
| Cap/Depr | 80.86% | ||
| Cap/Sales | 9.63% | ||
| Interest Coverage | 250 | ||
| Cash Conversion | 78.56% | ||
| Profit Quality | 139.29% | ||
| Current Ratio | 0.88 | ||
| Quick Ratio | 0.88 | ||
| Altman-Z | 3.96 |
F-Score7
WACC8.94%
ROIC/WACC0.83
Cap/Depr(3y)100.88%
Cap/Depr(5y)105.32%
Cap/Sales(3y)11.05%
Cap/Sales(5y)10.95%
Profit Quality(3y)76.64%
Profit Quality(5y)N/A
High Growth Momentum
Growth
EPS 1Y (TTM)8.72%
EPS 3Y-0.78%
EPS 5Y3.03%
EPS Q2Q%5.11%
EPS Next Y9.56%
EPS Next 2Y17.42%
EPS Next 3Y19.91%
EPS Next 5Y22.13%
Revenue 1Y (TTM)8.79%
Revenue growth 3Y8.45%
Revenue growth 5Y9.06%
Sales Q2Q%9.3%
Revenue Next Year8.63%
Revenue Next 2Y9.96%
Revenue Next 3Y10.79%
Revenue Next 5Y11.67%
EBIT growth 1Y14.97%
EBIT growth 3Y11.09%
EBIT growth 5Y16.74%
EBIT Next Year61.76%
EBIT Next 3Y31.8%
EBIT Next 5Y25.19%
FCF growth 1Y268.71%
FCF growth 3Y-0.6%
FCF growth 5Y8.03%
OCF growth 1Y61.79%
OCF growth 3Y5.68%
OCF growth 5Y10.69%