Equifax (EFX) AI Stock Analysis

• Market Cap: $32.56B
• Dividend Yield: 0.59%
• Average Volume (3M): 1.04M
• Price to Earnings (P/E): 53.5
• Beta (1Y): 1.50
• Revenue Growth: 7.12%
• EPS Growth: 9.05%
• Country: US
• Employees: 15,000
• Sector: Industrials
• Sector Strength: 92
• Industry: Consulting Services
• EPS (TTM): 1.53
• Shares Outstanding: 124,199,040
• 10 Day Avg. Volume: 992,918
• 30 Day Avg. Volume: 1,043,773
• PEG Ratio: 44.40
• Price to Book (P/B): 6.72
• Price to Sales (P/S): 0.00
• P/FCF Ratio: 41.44
• Enterprise Value/Market Cap: 1.18
• Enterprise Value/Revenue: 1.70
• Enterprise Value/Gross Profit: 12.02
• Enterprise Value/Ebitda: 5.65
• 1Y Price Target: $288.17
• Price Target Upside: 9.91% Upside
• Rating Consensus: Strong Buy
• Number of Analyst Covering: 14

• Rating: 73 Outperform
• 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

Earnings Performance

Equifax's first quarter results were above consensus expectations, aided by a better-than-expected mortgage market and strong non-mortgage performance.

Innovation and Growth

The completion of their cloud migration program will drive better growth as technology, data, and AI lead to better customer outcomes.

Share Buyback

The company has announced a $3 billion share repurchase, which is expected to be completed over four years.

Negative Factors

Government Growth Slowdown

A slowdown in government growth to start the year is disappointing, although there is little evidence to indicate the structural growth opportunity has changed.

Guidance Shortfall

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 Rates 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. 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 through a diversified revenue model that includes several key streams. The company's primary source of revenue comes from providing credit information and analytics services to businesses, which includes selling credit reports, credit scores, and other financial data products. Equifax also generates revenue through subscription-based services for identity verification and fraud prevention solutions. Additionally, the company earns income from its workforce solutions division, which offers employment and income verification services. Significant partnerships with financial institutions, government agencies, and other enterprises amplify their data offerings and expand their market reach. The company further benefits from its global presence, allowing it to capture revenue from various international markets.

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
201.00M	169.90M	216.80M	285.20M	224.70M	1.68B
	Total Assets
12.25B	11.76B	12.28B	11.55B	11.04B	9.61B
	Total Debt
5.63B	5.01B	5.71B	5.79B	5.29B	4.38B
	Net Debt
5.42B	4.84B	5.49B	5.50B	5.07B	2.69B
	Total Liabilities
7.54B	6.84B	7.59B	7.57B	7.44B	6.40B
	Stockholders Equity
4.56B	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: Neutral
• Last Price: 262.19
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Negative
• MACD: Positive
• RSI: Neutral
• STOCH: Positive

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For EFX, the sentiment is Neutral. The current price of 262.19 is below the 20-day moving average (MA) of 266.94, above the 50-day MA of 246.97, and below the 200-day MA of 263.82, indicating a neutral trend. The MACD of 6.17 indicates Positive momentum. The RSI at 51.38 is Neutral, neither overbought nor oversold. The STOCH value of 18.10 is Positive, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Neutral sentiment for EFX.

Equifax Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
VRSK	74 Outperform	$43.89B	45.95	475.86%	0.52%	7.20%	27.36%
EFX	73 Outperform	$32.56B	53.54	12.83%	0.59%	7.12%	9.05%
TRU	72 Outperform	$16.23B	44.55	8.68%	0.51%	8.85%	―
Sector *	64 Neutral	$4.39B	11.81	5.20%	249.38%	3.96%	-12.36%

Equifax Corporate Events

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.