EQUIFAX INC (EFX)
US2944291051 - Common Stock
We assign a fundamental rating of 4 out of 10 to EFX. EFX was compared to 81 industry peers in the Professional Services industry. EFX has a medium profitability rating, but doesn't score so well on its financial health evaluation. 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.
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
The Return On Assets of EFX (4.56%) is comparable to the rest of the industry.
The Return On Equity of EFX (11.46%) is comparable to the rest of the industry.
Looking at the Return On Invested Capital, with a value of 7.39%, EFX is in line with its industry, outperforming 54.55% of the companies in the same industry.
EFX had an Average Return On Invested Capital over the past 3 years of 8.60%. This is below the industry average of 12.35%.
| 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
Looking at the Profit Margin, with a value of 10.07%, EFX belongs to the top of the industry, outperforming 84.42% 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 85.71% of its industry peers.
EFX's Operating Margin has improved in the last couple of years.
EFX's Gross Margin of 55.52% is fine compared to the rest of the industry. EFX outperforms 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
With a Return on Invested Capital (ROIC) just above the Cost of Capital (WACC), EFX is creating some value.
EFX has more shares outstanding than it did 1 year ago.
EFX has more shares outstanding than it did 5 years ago.
EFX has a better debt/assets ratio than last year.
2.2 Solvency
An Altman-Z score of 3.84 indicates that EFX is not in any danger for bankruptcy at the moment.
The Altman-Z score of EFX (3.84) is better than 70.13% of its industry peers.
EFX has a debt to FCF ratio of 6.98. This is a slightly negative value and a sign of low solvency as EFX would need 6.98 years to pay back of all of its debts.
EFX's Debt to FCF ratio of 6.98 is in line compared to the rest of the industry. EFX outperforms 41.56% of its industry peers.
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 Debt to Equity ratio of 0.96. This is in the lower half of the industry: EFX underperforms 71.43% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.96 | ||
| Debt/FCF | 6.98 | ||
| Altman-Z | 3.84 |
ROIC/WACC0.9
WACC8.2%
2.3 Liquidity
A Current Ratio of 0.88 indicates that EFX may have some problems paying its short term obligations.
The Current ratio of EFX (0.88) is worse than 79.22% of its industry peers.
EFX has a Quick 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.
The Quick ratio of EFX (0.88) is worse than 79.22% of its industry peers.
| 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.
The Earnings Per Share has been growing slightly by 3.03% on average over the past years.
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 19.14% on average over the next years. This is quite good.
The Revenue is expected to grow by 10.27% on average over the next years. This is quite good.
EPS Next Y9.81%
EPS Next 2Y19.17%
EPS Next 3Y20.93%
EPS Next 5Y19.14%
Revenue Next Year8.71%
Revenue Next 2Y10.17%
Revenue Next 3Y10.71%
Revenue Next 5Y10.27%
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
A Price/Earnings ratio of 35.41 indicates a quite expensive valuation of EFX.
Based on the Price/Earnings ratio, EFX is valued a bit more expensive than 68.83% of the companies in the same industry.
The average S&P500 Price/Earnings ratio is at 28.65. EFX is valued slightly more expensive when compared to this.
A Price/Forward Earnings ratio of 25.94 indicates a quite expensive valuation of EFX.
The rest of the industry has a similar Price/Forward Earnings ratio as EFX.
The average S&P500 Price/Forward Earnings ratio is at 23.56. EFX is around the same levels.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 35.41 | ||
| Fwd PE | 25.94 |
4.2 Price Multiples
Based on the Enterprise Value to EBITDA ratio, EFX is valued a bit more expensive than the industry average as 62.34% of the companies are valued more cheaply.
EFX's Price/Free Cash Flow is on the same level as the industry average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 39.1 | ||
| EV/EBITDA | 21.17 |
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.
EFX has a very decent profitability rating, which may justify a higher PE ratio.
EFX's earnings are expected to grow with 20.93% in the coming years. This may justify a more expensive valuation.
PEG (NY)3.61
PEG (5Y)11.69
EPS Next 2Y19.17%
EPS Next 3Y20.93%
5. Dividend
5.1 Amount
With a yearly dividend of 0.59%, EFX is not a good candidate for dividend investing.
EFX's Dividend Yield is a higher than the industry average which is at 1.81.
With a Dividend Yield of 0.59, EFX pays less dividend than the S&P500 average, which is at 2.23.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.59% |
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.
Dividend Growth(5Y)-0.01%
Div Incr Years0
Div Non Decr Years0
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 2Y19.17%
EPS Next 3Y20.93%
EQUIFAX INC
NYSE:EFX (11/21/2024, 9:32:21 AM)
247.17
+0.09 (+0.04%)
Chartmill FA Rating
GICS SectorIndustrials
GICS IndustryGroupCommercial & Professional Services
GICS IndustryProfessional Services
Earnings (Last)
Earnings (Next)
Inst Owners
Inst Owner Change
Ins Owners
Ins Owner Change
Market Cap30.64B
Analysts
Price Target
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.59% |
Dividend Growth(5Y)
DP
Div Incr Years
Div Non Decr Years
Ex-Date
Surprises & Revisions
EPS beat(2)
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EPS beat(16)
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Revenue beat(2)
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PT rev (1m)
PT rev (3m)
EPS NQ rev (1m)
EPS NQ rev (3m)
EPS NY rev (1m)
EPS NY rev (3m)
Revenue NQ rev (1m)
Revenue NQ rev (3m)
Revenue NY rev (1m)
Revenue NY rev (3m)
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 35.41 | ||
| Fwd PE | 25.94 | ||
| P/S | |||
| P/FCF | |||
| P/OCF | |||
| P/B | |||
| P/tB | |||
| EV/EBITDA |
EPS(TTM)
EY
EPS(NY)
Fwd EY
FCF(TTM)
FCFY
OCF(TTM)
OCFY
SpS
BVpS
TBVpS
PEG (NY)3.61
PEG (5Y)11.69
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 4.56% | ||
| ROE | 11.46% | ||
| ROCE | |||
| ROIC | |||
| ROICexc | |||
| ROICexgc | |||
| OM | 18.2% | ||
| PM (TTM) | 10.07% | ||
| GM | 55.52% | ||
| FCFM |
ROA(3y)
ROA(5y)
ROE(3y)
ROE(5y)
ROIC(3y)
ROIC(5y)
ROICexc(3y)
ROICexc(5y)
ROICexgc(3y)
ROICexgc(5y)
ROCE(3y)
ROCE(5y)
ROICexcg growth 3Y
ROICexcg growth 5Y
ROICexc growth 3Y
ROICexc growth 5Y
OM growth 3Y
OM growth 5Y
PM growth 3Y
PM growth 5Y
GM growth 3Y
GM growth 5Y
F-Score
Asset Turnover0.45
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.96 | ||
| Debt/FCF | |||
| Debt/EBITDA | |||
| Cap/Depr | |||
| Cap/Sales | |||
| Interest Coverage | |||
| Cash Conversion | |||
| Profit Quality | |||
| Current Ratio | 0.88 | ||
| Quick Ratio | 0.88 | ||
| Altman-Z |
F-Score
WACC
ROIC/WACC
Cap/Depr(3y)
Cap/Depr(5y)
Cap/Sales(3y)
Cap/Sales(5y)
Profit Quality(3y)
Profit Quality(5y)
High Growth Momentum
Growth
EPS 1Y (TTM)8.72%
EPS 3Y-0.78%
EPS 5Y
EPS Q2Q%
EPS Next Y9.81%
EPS Next 2Y
EPS Next 3Y
EPS Next 5Y
Revenue 1Y (TTM)8.79%
Revenue growth 3Y8.45%
Revenue growth 5Y
Sales Q2Q%
Revenue Next Year
Revenue Next 2Y
Revenue Next 3Y
Revenue Next 5Y
EBIT growth 1Y
EBIT growth 3Y
EBIT growth 5Y
EBIT Next Year
EBIT Next 3Y
EBIT Next 5Y
FCF growth 1Y
FCF growth 3Y
FCF growth 5Y
OCF growth 1Y
OCF growth 3Y
OCF growth 5Y