Equifax (EFX) AI Stock Analysis

• Market Cap: $25.35B
• Dividend Yield: 0.86%
• Average Volume (3M): 1.33M
• Price to Earnings (P/E): 39.3
• Beta (1Y): 1.32
• Revenue Growth: 6.35%
• EPS Growth: 16.91%
• Country: US
• Employees: 15,000
• Sector: Industrials
• Sector Strength: 72
• Industry: Consulting Services
• EPS (TTM): 2.04
• Shares Outstanding: 122,394,035
• 10 Day Avg. Volume: 1,502,211
• 30 Day Avg. Volume: 1,330,486
• PEG Ratio: 5.27
• Price to Book (P/B): 6.58
• Price to Sales (P/S): 5.55
• P/FCF Ratio: 38.81
• Enterprise Value/Market Cap: 1.44
• Enterprise Value/Revenue: 6.16
• Enterprise Value/Gross Profit: 10.94
• Enterprise Value/Ebitda: 20.17
• 1Y Price Target: $269.69
• Price Target Upside: 31.86% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 15
• EPS Forecast (FY): 7.6
• Revenue Forecast (FY): $6.05B

• Rating: 68 Neutral
• Price Target: $229.00 ▲(11.97% Upside)

Equifax's strong financial performance and positive earnings call are offset by technical analysis indicating bearish momentum and a high valuation. The company's strategic initiatives and revenue growth provide a balanced outlook, but economic uncertainties and market volatility pose risks.

Positive Factors

Revenue Growth

Record-breaking revenue growth indicates strong market demand and effective business strategies, supporting long-term expansion and profitability.

Operational Efficiency

High margins reflect efficient operations and cost management, enhancing the company's ability to invest in growth and withstand economic pressures.

Cash Flow Management

Strong cash flow generation supports future investments and provides financial flexibility, ensuring resilience against market fluctuations.

Negative Factors

Litigation Costs

Rising litigation expenses can erode profit margins and divert resources from strategic initiatives, impacting long-term financial health.

Economic Uncertainty

Volatility in the mortgage market and economic uncertainty can lead to unpredictable revenue streams, challenging long-term planning and stability.

Government Segment Challenges

State-level funding issues hinder growth in the government segment, potentially limiting opportunities and affecting overall revenue diversification.

Equifax Business Overview & Revenue Model

Company Description

Equifax Inc. is a global data, analytics, and technology company that provides credit reporting and identity verification services. Established in 1899, Equifax operates in various sectors including financial services, insurance, retail, and telecommunications. The company primarily focuses on providing consumer credit information, risk management solutions, and employment verification, facilitating better decision-making for businesses while helping consumers manage their credit health through various products and services.

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 is in a strong financial position, with consistent revenue and profit growth, efficient operations, and solid cash flow management. The income statement reflects a stable and profitable trajectory, while the balance sheet shows improvements in leverage. Cash flow is strong, supporting future growth and investment.

Income Statement

Equifax has demonstrated consistent revenue growth, with a TTM revenue growth rate of 1.77% and a strong gross profit margin of 56.26%. The net profit margin is healthy at 11.08%, indicating efficient cost management. EBIT and EBITDA margins are robust at 18.53% and 30.53%, respectively, showcasing operational efficiency. Overall, the income statement reflects a stable and profitable trajectory.

Balance Sheet

The company's debt-to-equity ratio has improved to 0.97, indicating a balanced approach to leveraging. Return on equity stands at 13.29%, reflecting decent profitability relative to shareholder equity. The equity ratio is stable, suggesting a solid asset base. However, the company should continue to monitor its debt levels to maintain financial stability.

Cash Flow

Equifax's cash flow statement shows a positive trend with a free cash flow growth rate of 8.99% TTM. The operating cash flow to net income ratio is 0.74, indicating strong cash generation relative to net income. The free cash flow to net income ratio is 0.68, reflecting effective cash management. Overall, the cash flow position is strong, supporting future growth and investment.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	5.94B	5.68B	5.27B	5.12B	4.92B	4.13B
Gross Profit	3.34B	3.16B	2.93B	2.94B	2.94B	2.39B
EBITDA	1.81B	1.72B	1.58B	1.68B	1.58B	1.23B
Net Income	658.60M	604.10M	545.30M	696.20M	744.20M	520.10M
Balance Sheet
Total Assets	11.83B	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	4.81B	5.01B	5.71B	5.79B	5.29B	4.38B
Total Liabilities	6.76B	6.84B	7.59B	7.57B	7.44B	6.40B
Stockholders Equity	4.94B	4.80B	4.53B	3.96B	3.58B	3.17B
Cash Flow
Free Cash Flow	999.40M	813.00M	515.50M	132.60M	865.80M	524.90M
Operating Cash Flow	1.47B	1.32B	1.12B	757.10M	1.33B	946.20M
Investing Cash Flow	-469.50M	-511.50M	-878.20M	-959.50M	-3.40B	-492.70M
Financing Cash Flow	-1.27B	-846.40M	-306.20M	273.70M	617.70M	810.80M

Equifax Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 204.52
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Negative
• 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 Negative. The current price of 204.52 is below the 20-day moving average (MA) of 213.84, below the 50-day MA of 232.54, and below the 200-day MA of 245.48, indicating a bearish trend. The MACD of -7.49 indicates Negative momentum. The RSI at 30.52 is Neutral, neither overbought nor oversold. The STOCH value of 31.65 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	72 Outperform	$15.75B	38.04	9.68%	0.56%	8.30%	86.97%
VRSK	70 Outperform	$30.08B	32.95	270.50%	0.84%	7.30%	2.03%
EFX	68 Neutral	$25.35B	39.26	13.38%	0.86%	6.35%	16.91%
Sector *	63 Neutral	$10.79B	15.43	7.44%	2.01%	2.89%	-14.66%

Equifax Corporate Events

Equifax Reports Strong Q3 Results, Raises Guidance

Equifax is a global data, analytics, and technology company that plays a crucial role in the global economy by providing insights to financial institutions, companies, employers, and government agencies. Headquartered in Atlanta, Equifax operates in 24 countries and employs approximately 15,000 people worldwide.