Equifax (EFX) AI Stock Analysis

• Market Cap: $29.74B
• Dividend Yield: 0.7%
• Average Volume (3M): 1.04M
• Price to Earnings (P/E): 47.0
• Beta (1Y): 1.45
• Revenue Growth: 6.86%
• EPS Growth: 9.10%
• Country: US
• Employees: 15,000
• Sector: Industrials
• Sector Strength: 86
• Industry: Consulting Services
• EPS (TTM): 2.00
• Shares Outstanding: 123,797,380
• 10 Day Avg. Volume: 1,269,653
• 30 Day Avg. Volume: 1,044,983
• PEG Ratio: 40.72
• Price to Book (P/B): 6.17
• Price to Sales (P/S): 0.00
• P/FCF Ratio: 37.88
• Enterprise Value/Market Cap: 1.18
• Enterprise Value/Revenue: 3.23
• Enterprise Value/Gross Profit: 20.15
• Enterprise Value/Ebitda: 9.45
• 1Y Price Target: $285.57
• Price Target Upside: 18.87% Upside
• Rating Consensus: Strong Buy
• Number of Analyst Covering: 15

• Rating: 70 Outperform
• Price Target: $271.00 ▲(12.81%Upside)

Equifax's overall stock score reflects strong financial performance and positive earnings call highlights, despite technical weaknesses and high valuation concerns. The robust earnings and strategic growth initiatives contribute positively, while technical indicators suggest caution.

Positive Factors

Capital Management

The stepped-up capital return is appreciated, with EFX conducting $127M in share repurchases during the quarter.

Earnings Performance

EFX’s 2Q results beat Street expectations on the top and bottom line, driven by better-than-expected mortgage performance and new product growth.

Stock Valuation

The business services sector's valuation has improved with an increase in the average EV/EBIT multiple.

Negative Factors

Earnings Outlook

There is a reduction in earnings expectations due to a negative outlook in mortgage volume.

Government Segment Challenges

The third-quarter outlook was below consensus, which is attributed to some modest timing delays in the government business and ongoing labor market headwinds.

Revenue Forecast

Management has reduced its guidance for Workforce Solutions organic revenue growth due to slower than expected revenue in Government.

Equifax Business Overview & Revenue Model

Company Description

Equifax Inc. provides information solutions and human resources business process automation outsourcing services for businesses, governments, and consumers. The company operates through three segments: Workforce Solutions, U.S. Information Solutions (USIS), and International. The Workforce Solutions segment offers employment, income, criminal history, and social security number verification services, as well as payroll-based transaction, employment tax management, and identity theft protection products. The USIS segment provides consumer and commercial information services, such as credit information and credit scoring, credit modeling and portfolio analytics, locate, fraud detection and prevention, identity verification, and other consulting; mortgage services; financial marketing services; identity management services; credit monitoring products; and online information, decisioning technology solutions, as well as portfolio management, mortgage reporting, and consumer credit information services. The International segment offers information service products, which include consumer and commercial services, such as credit and financial information, and credit scoring and modeling; and credit and other marketing products and services, as well as offers information, technology, and other services to support debt collections and recovery management. The company serves customers in financial services, mortgage, employers, consumer, commercial, telecommunication, retail, automotive, utility, brokerage, healthcare, and insurance industries, as well as state, federal, and local governments. It operates in the United States, Canada, Australia, New Zealand, India, the United Kingdom, Spain, Portugal, Argentina, Chile, Costa Rica, Ecuador, El Salvador, Honduras, Mexico, Paraguay, Peru, Uruguay, Brazil, the Republic of Ireland, Russia, Cambodia, Malaysia, Singapore, and the United Arab Emirates. The company was founded in 1899 and is headquartered in Atlanta, Georgia.

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 shows strong revenue growth, efficient operations, and robust cash flow management with a TTM revenue increase of 9.68% and a strong gross profit margin. Although the balance sheet is stable, there's room for improvement in net margins and leverage reduction.

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	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	5.68B	5.27B	5.12B	4.92B	4.13B
Gross Profit	3.16B	2.93B	2.94B	2.94B	2.39B
EBITDA	1.72B	1.58B	1.67B	1.58B	1.22B
Net Income	604.10M	545.30M	696.20M	744.20M	520.10M
Balance Sheet
Total Assets	11.76B	12.28B	11.55B	11.04B	9.61B
Cash, Cash Equivalents and Short-Term Investments	169.90M	216.80M	285.20M	224.70M	1.68B
Total Debt	5.01B	5.71B	5.79B	5.29B	4.38B
Total Liabilities	6.84B	7.59B	7.57B	7.44B	6.40B
Stockholders Equity	4.80B	4.53B	3.96B	3.58B	3.17B
Cash Flow
Free Cash Flow	813.00M	515.50M	132.60M	865.80M	524.90M
Operating Cash Flow	1.32B	1.12B	757.10M	1.33B	946.20M
Investing Cash Flow	-511.50M	-878.20M	-959.50M	-3.40B	-492.70M
Financing Cash Flow	-846.40M	-306.20M	273.70M	628.90M	810.80M

Equifax Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 240.23
• 50DMA: Negative
• 100DMA: Negative
• 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 240.23 is below the 20-day moving average (MA) of 254.40, below the 50-day MA of 259.44, and below the 200-day MA of 255.97, indicating a bearish trend. The MACD of -5.19 indicates Positive momentum. The RSI at 37.13 is Neutral, neither overbought nor oversold. The STOCH value of 24.04 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
TRU	80 Outperform	$19.27B	49.77	9.06%	0.46%	9.34%	―
Sector *	71 Outperform	¥269.60B	14.19	8.47%	2.85%	6.33%	12.37%
EFX	70 Outperform	$29.74B	46.98	13.06%	0.70%	6.86%	9.10%
VRSK	64 Neutral	$41.13B	45.35	245.09%	0.60%	7.60%	5.28%

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.