Equifax (EFX) AI Stock Analysis

• Market Cap: $32.22B
• Dividend Yield: 0.69%
• Average Volume (3M): 979.85K
• Price to Earnings (P/E): 48.0
• Beta (1Y): 1.42
• Revenue Growth: 6.86%
• EPS Growth: 9.10%
• Country: US
• Employees: 15,000
• Sector: Industrials
• Sector Strength: 72
• Industry: Consulting Services
• EPS (TTM): 2.00
• Shares Outstanding: 123,797,380
• 10 Day Avg. Volume: 932,992
• 30 Day Avg. Volume: 979,849
• PEG Ratio: N/A
• Price to Book (P/B): N/A
• Price to Sales (P/S): N/A
• P/FCF Ratio: N/A
• Enterprise Value/Market Cap: 1.16
• Enterprise Value/Revenue: 6.38
• Enterprise Value/Gross Profit: 11.43
• Enterprise Value/Ebitda: 20.85
• 1Y Price Target: $284.85
• Price Target Upside: 11.16% Upside
• Rating Consensus: Strong Buy
• Number of Analyst Covering: 15

• Rating: 75 Outperform
• Price Target: $292.00 ▲(13.95% Upside)

Equifax's strong financial performance and positive earnings call sentiment are the primary drivers of its stock score. Technical indicators support a bullish outlook, although valuation concerns due to a high P/E ratio and modest dividend yield slightly temper the overall score.

Positive Factors

Revenue Growth

Strong revenue growth reflects effective business strategies and market demand, indicating robust market position and potential for future expansion.

Cash Flow Generation

Strong cash flow generation ensures financial flexibility, enabling strategic investments and shareholder returns, supporting long-term growth.

International Expansion

International expansion, particularly in Latin America, enhances diversification and reduces reliance on domestic markets, supporting sustained growth.

Negative Factors

Litigation Costs

Rising litigation costs can erode profit margins and divert resources from growth initiatives, posing a risk to financial health and operational efficiency.

Government Segment Challenges

Challenges in the government segment may limit revenue growth opportunities, affecting overall performance and necessitating strategic adjustments.

Weaker Hiring Market

A weaker hiring market impacts demand for talent solutions, potentially reducing revenue and requiring adaptation to changing market conditions.

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 generates revenue through several key streams, primarily from its credit reporting services, which include providing data and analytics to businesses for credit risk assessment and fraud prevention. The company charges fees for credit reports and scores, as well as for identity verification services. A significant portion of its revenue also comes from its workforce solutions segment, which offers employment and income verification services to employers and background screening firms. Additionally, Equifax partners with financial institutions and businesses to offer tailored analytics and technology solutions, further enhancing its revenue. The company's strategic investments in technology and data security also play a crucial role in maintaining and growing its client base, ensuring a steady flow of income.

Equifax Financial Statement Overview

Summary

Equifax demonstrates strong financial performance with significant revenue and cash flow growth, robust profit margins, and effective cost management. However, the slight decline in the equity ratio suggests increased liabilities, warranting cautious monitoring.

Income Statement

Equifax shows strong revenue growth with a 13.0% increase in revenue from 2023 to TTM (Trailing-Twelve-Months) and consistent gross profit margins around 55%. The net profit margin has improved to 10.95% in TTM. EBIT and EBITDA margins remain robust at 18.52% and 30.60% respectively, indicating effective cost management and operational efficiency.

Balance Sheet

Equifax maintains a reasonable debt-to-equity ratio of 0.96 in TTM, reflecting moderate leverage. The return on equity stands at a healthy 12.53%, demonstrating efficient use of equity. However, the equity ratio shows a slight decline to 42.83%, indicating increased liabilities relative to assets.

Cash Flow

The company exhibits strong cash flow generation with operating cash flow to net income ratio of 2.17 in TTM. Free cash flow has grown by 12.8% from 2023 to TTM, and the free cash flow to net income ratio is a solid 1.43, highlighting effective cash conversion.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	5.84B	5.68B	5.27B	5.12B	4.92B	4.13B
Gross Profit	3.26B	3.16B	2.93B	2.94B	2.94B	2.39B
EBITDA	1.79B	1.72B	1.58B	1.68B	1.58B	1.23B
Net Income	639.70M	604.10M	545.30M	696.20M	744.20M	520.10M
Balance Sheet
Total Assets	11.92B	11.76B	12.28B	11.55B	11.04B	9.61B
Cash, Cash Equivalents and Short-Term Investments	189.00M	169.90M	216.80M	285.20M	224.70M	1.68B
Total Debt	4.90B	5.01B	5.71B	5.79B	5.29B	4.38B
Total Liabilities	6.68B	6.84B	7.59B	7.57B	7.44B	6.40B
Stockholders Equity	5.10B	4.80B	4.53B	3.96B	3.58B	3.17B
Cash Flow
Free Cash Flow	917.00M	813.00M	515.50M	132.60M	865.80M	524.90M
Operating Cash Flow	1.39B	1.32B	1.12B	757.10M	1.33B	946.20M
Investing Cash Flow	-471.50M	-511.50M	-878.20M	-959.50M	-3.40B	-492.70M
Financing Cash Flow	-912.50M	-846.40M	-306.20M	273.70M	617.70M	810.80M

Equifax Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 256.25
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Negative
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For EFX, the sentiment is Positive. The current price of 256.25 is above the 20-day moving average (MA) of 247.49, above the 50-day MA of 249.00, and above the 200-day MA of 252.29, indicating a bullish trend. The MACD of 1.49 indicates Negative momentum. The RSI at 56.48 is Neutral, neither overbought nor oversold. The STOCH value of 75.83 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for EFX.

Equifax Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
EFX	75 Outperform	$32.22B	48.02	13.06%	0.69%	6.86%	9.10%
TRU	74 Outperform	$18.11B	46.78	9.06%	0.49%	9.34%	―
VRSK	69 Neutral	$37.20B	40.53	245.09%	0.64%	7.60%	5.28%
Sector *	63 Neutral	$10.84B	15.52	7.44%	2.00%	2.86%	-14.57%