Equifax (EFX) AI Stock Analysis

• Market Cap: $33.22B
• Dividend Yield: 0.75%
• Average Volume (3M): 787.93K
• Price to Earnings (P/E): 54.6
• Beta (1Y): 1.49
• Revenue Growth: 7.12%
• EPS Growth: 9.05%
• Country: US
• Employees: 15,000
• Sector: Industrials
• Sector Strength: 85
• Industry: Consulting Services
• EPS (TTM): 1.53
• Shares Outstanding: 124,199,040
• 10 Day Avg. Volume: 671,625
• 30 Day Avg. Volume: 787,933
• PEG Ratio: -4.97
• Price to Book (P/B): 6.01
• Price to Sales (P/S): 0.00
• P/FCF Ratio: 179.41
• Enterprise Value/Market Cap: 0.88
• Enterprise Value/Revenue: 1.30
• Enterprise Value/Gross Profit: 9.19
• Enterprise Value/Ebitda: 4.32
• 1Y Price Target: $293.00
• Price Target Upside: 14.45% Upside
• Rating Consensus: Strong Buy
• Number of Analyst Covering: 14

• Rating: 69 Neutral
• Price Target: ―

Equifax demonstrates strong financial performance with robust revenue growth and profitability, driving a high overall score. The earnings call further supports this with positive guidance and strategic initiatives. However, technical analysis indicates caution due to mixed signals, and valuation concerns arise from a high P/E ratio. Despite these challenges, the company's strong fundamentals and strategic outlook help maintain a solid overall score.

Positive Factors

Cloud Transformation

The completion of EFX's cloud transformation should support future margin expansion efforts.

Government Business Growth

Government has now become EFX's largest and fastest growing business.

Market Opportunity

EFX's Brazilian Credit Bureau presents a significant market opportunity.

Negative Factors

Financial Performance

EFX has consistently missed its goal of +50bps of annual margin expansion.

Guidance Expectations

Full-year guidance fell short of expectations across all key metrics, largely due to a worse-than-expected mortgage outlook, deterioration in hiring trends, and softer verifier government growth expectations.

Mortgage Market Impact

The recent uptick in mortgage rates continues to pressure activity, implying a decline in inquiry volumes in 2025.

Equifax Business Overview & Revenue Model

Company Description

Equifax Inc. (EFX) is a global data, analytics, and technology company headquartered in Atlanta, Georgia. It operates in the financial services sector and is one of the largest credit reporting agencies in the world. Equifax provides businesses and consumers with credit reports, risk assessments, fraud detection, and identity verification services. The company's core products and services are designed to help businesses make informed decisions about lending, hiring, and other financial transactions while enabling consumers to better understand and improve their financial health.

How the Company Makes Money

Equifax makes money primarily through the sale of its credit reporting and related data analytics services. The company's revenue model is largely based on providing credit information and related products to financial institutions, businesses, government agencies, and consumers. Key revenue streams include its U.S. Information Solutions segment, which offers consumer and commercial credit data services, and its International segment, which provides similar services in regions outside the United States. Additionally, Equifax generates revenue from its Workforce Solutions segment, which delivers employment, income verification, and human resource compliance services. Significant partnerships with financial institutions and government entities help expand its reach and effectiveness in data collection and analysis. Factors such as regulatory changes, economic conditions, and advancements in data analytics technology also play crucial roles in its earnings.

Equifax Financial Statement Overview

Summary

Equifax's financial performance is robust, with strong revenue growth and profitability. The income statement reveals impressive margins and operational efficiency, while the balance sheet shows manageable leverage. Cash flow generation is healthy, supporting the company's operations and growth, although there's a slight decline in free cash flow growth rate.

Income Statement

Equifax has demonstrated consistent revenue growth over the years, with a TTM revenue increase of 9.68% from the previous year. The gross profit margin for TTM stands at an impressive 66.99%, indicating strong cost management and pricing power. The net profit margin is 12.49%, showing solid profitability, though slightly below industry leaders. The EBIT margin of 18.37% and EBITDA margin of 28.50% highlight robust operational efficiency. Overall, the income statement reflects strong growth and profitability, albeit with room for improvement in net margins.

Balance Sheet

Equifax's balance sheet exhibits a Debt-to-Equity ratio of 0.99, indicating moderate leverage, which is manageable but should be monitored to avoid excessive risk. The Return on Equity for TTM is 14.39%, demonstrating effective use of equity to generate profits. The Equity Ratio stands at 42.03%, showing a stable capital structure with a reasonable level of shareholder equity in the asset base. While there is stability, the balance sheet could benefit from further deleveraging to enhance financial resilience.

Cash Flow

The cash flow statement reveals a strong Free Cash Flow to Net Income ratio of 1.13, indicating that the company effectively converts net income into cash. The Operating Cash Flow to Net Income ratio is 1.81, underscoring healthy cash generation relative to profits. However, the Free Cash Flow Growth Rate shows a slight decline of 0.50% from the previous year, suggesting a need for vigilance in maintaining cash flow growth. Overall, the cash flow performance is robust, with steady cash generation supporting operations and growth.

Breakdown
TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement		Total Revenue
5.73B	5.68B	5.27B	5.12B	4.92B	4.13B
	Gross Profit
3.19B	3.16B	2.93B	2.94B	2.94B	2.39B
	EBIT
1.05B	1.04B	933.60M	1.06B	1.14B	676.60M
	EBITDA
1.74B	1.72B	1.58B	1.67B	1.58B	1.22B
	Net Income Common Stockholders
612.30M	604.10M	545.30M	696.20M	744.20M	520.10M
Balance Sheet		Cash, Cash Equivalents and Short-Term Investments
195.20M	169.90M	216.80M	285.20M	224.70M	1.68B
	Total Assets
11.85B	11.76B	12.28B	11.55B	11.04B	9.61B
	Total Debt
4.96B	5.01B	5.71B	5.79B	5.29B	4.38B
	Net Debt
4.77B	4.84B	5.49B	5.50B	5.07B	2.69B
	Total Liabilities
6.74B	6.84B	7.59B	7.57B	7.44B	6.40B
	Stockholders Equity
4.98B	4.80B	4.53B	3.96B	3.58B	3.17B
Cash Flow		Free Cash Flow
808.90M	813.00M	515.50M	132.60M	865.80M	524.90M
	Operating Cash Flow
1.30B	1.32B	1.12B	757.10M	1.33B	946.20M
	Investing Cash Flow
-486.80M	-511.50M	-878.20M	-959.50M	-3.40B	-492.70M
	Financing Cash Flow
-810.30M	-846.40M	-306.20M	273.70M	628.90M	810.80M

Equifax Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 256.00
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Negative
• MACD: Positive
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For EFX, the sentiment is Negative. The current price of 256 is below the 20-day moving average (MA) of 265.12, above the 50-day MA of 255.32, and below the 200-day MA of 261.72, indicating a neutral trend. The MACD of 1.34 indicates Positive momentum. The RSI at 41.74 is Neutral, neither overbought nor oversold. The STOCH value of 36.02 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for EFX.

Equifax Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
VRSK	74 Outperform	$43.29B	45.32	475.86%	0.58%	7.20%	27.36%
TRU	72 Outperform	$16.76B	46.01	8.68%	0.54%	8.85%	―
EFX	69 Neutral	$33.22B	54.62	12.83%	0.75%	7.12%	9.05%
Sector *	66 Neutral	$4.49B	12.22	5.40%	3.71%	4.17%	-11.97%

Equifax Corporate Events

Equifax Announces Executive Departure and Leadership Change

On May 30, 2025, Equifax announced the departure of Todd Horvath, Executive Vice President and President of U.S. Information Solutions, effective June 1, 2025. CEO Mark Begor will temporarily lead the USIS business unit while a search for Horvath’s successor is underway. Horvath’s departure includes a separation agreement with a $2.9 million severance and a prorated incentive award for 2025, while his unvested equity awards were forfeited. He will also receive $3.2 million in cash for the unvested portion of his new hire equity award.

The most recent analyst rating on (EFX) stock is a Buy with a $300.00 price target. To see the full list of analyst forecasts on Equifax stock, see the EFX Stock Forecast page.

Equifax Shareholders Approve Key Decisions at Annual Meeting

On May 8, 2025, Equifax held its Annual Meeting of Shareholders, where several key decisions were made. Shareholders elected ten directors, approved executive compensation, ratified Ernst & Young LLP as the independent accounting firm, and eliminated supermajority voting requirements in the company’s Articles of Incorporation.