Equifax (EFX)
NYSE:EFX
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Equifax
(NYSE:EFX)
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Rating:67Neutral
Price Target:
$184.00
â–²(0.88% Upside)
Action:DowngradedDate:02/05/26
The score is supported by improving financial performance (stronger cash flow and higher profitability) and upbeat FY2026 guidance with strong cash conversion expectations. These positives are tempered by weak technical momentum (price well below key moving averages with negative MACD) and a premium valuation (P/E ~32.9) alongside meaningful leverage.
Positive Factors
Diversified recurring revenue streams
Equifax’s revenue mix spans transaction and subscription flows across Workforce, bureau, international and consumer channels. That diversification and long-standing furnisher/customer relationships create durable network effects and recurring cash flow, reducing single-market cyclicality.
Negative Factors
Meaningful leverage on balance sheet
A relatively debt-heavy capital structure for a services/analytics company limits financial optionality. Higher leverage increases interest and refinancing sensitivity, constrains aggressive M&A or buyback pace if cash generation weakens, and raises downside risk in slower revenue cycles.
Read all positive and negative factors
Positive Factors
Negative Factors
Diversified recurring revenue streams
Equifax’s revenue mix spans transaction and subscription flows across Workforce, bureau, international and consumer channels. That diversification and long-standing furnisher/customer relationships create durable network effects and recurring cash flow, reducing single-market cyclicality.
Read all positive factors
Equifax (EFX) vs. SPDR S&P 500 ETF (SPY)
Market Cap
$21.94B
Dividend Yield0.86%
Average Volume (3M)1.62M
Price to Earnings (P/E)40.5
Beta (1Y)1.22
Revenue Growth6.35%
EPS Growth16.91%
CountryUS
Employees15,000
SectorIndustrials
Sector Strength72
IndustryConsulting Services
Share Statistics
EPS (TTM)2.09
Shares Outstanding120,270,000
10 Day Avg. Volume2,172,401
30 Day Avg. Volume1,621,410
Financial Highlights & Ratios
PEG Ratio4.12
Price to Book (P/B)5.81
Price to Sales (P/S)4.40
P/FCF Ratio23.57
Enterprise Value/Market Cap1.23
Enterprise Value/Revenue4.43
Enterprise Value/Gross Profit9.93
Enterprise Value/Ebitda14.73
Forecast
1Y Price Target
$228.85Price Target Upside25.47% Upside
Rating ConsensusModerate Buy
Number of Analyst Covering16
EPS Forecast (FY)8.66
Revenue Forecast (FY)$6.75B
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 Solutio...
How the Company Makes Money
Equifax makes money by selling data-driven products and subscription/transaction services that support credit risk assessment, employment/income verification, identity proofing, and fraud prevention.
Key revenue streams include:
1) Workforce Solu...
Equifax Key Performance Indicators (KPIs)
Any
Workforce Solutions Revenue Breakdown
Analyzes revenue from workforce solutions, highlighting growth in employment verification and HR services, which can indicate strong demand from employers and a robust labor market.
Analyzes revenue from workforce solutions, highlighting growth in employment verification and HR services, which can indicate strong demand from employers and a robust labor market.
Data provided by:
The Fly
The FlyEquifax Earnings Call Summary
Earnings Call Date:Feb 04, 2026
(Q4-2025)
| % Change Since: |
Next Earnings Date:Apr 22, 2026
Earnings Call Sentiment Positive
The call emphasized strong execution, product innovation (notably AI and Twin data), robust free cash flow and capital returns, and clear 2026 guidance while transparently addressing distortions from FICO mortgage pass-throughs and pockets of market weakness (U.S. mortgage, hiring, and certain international markets). Management positioned results ex-FICO to clarify underlying operating performance and outlined multiple growth levers (EWS government opportunities, Twin Indicator adoption, efx.ai-enabled products). The positives (record cash conversion, high vitality, AI-driven lift, solid unit-level growth and margins, shareholder returns) materially outweigh the headwinds (mortgage market weakness, FICO pass-through margin distortion, international softness, one-time settlement).Positive Updates
Strong Full-Year Financial Results
Full-year 2025 revenue of $6.075 billion, adjusted EPS of $7.65, and strong free cash flow (~$1.1B–$1.13B reported across slides) with record cash conversion of ~120% (well above the 95% long-term framework).
Negative Updates
Continued Weak U.S. Mortgage and Hiring Markets
2025 U.S. mortgage market down ~7% and U.S. hiring market down ~2%, with mortgage market exerting roughly a 100-basis-point negative impact on Equifax 2025 revenue growth; management expects U.S. mortgage to be down low single digits in 2026 absent a refinance-driven recovery.
Read all updates
Q4-2025 Updates
Positive
Negative
Strong Full-Year Financial Results
Full-year 2025 revenue of $6.075 billion, adjusted EPS of $7.65, and strong free cash flow (~$1.1B–$1.13B reported across slides) with record cash conversion of ~120% (well above the 95% long-term framework).
Read all positive updates
Company Guidance
Equifax guided FY2026 (midpoint) to total revenue up ~10.6% (10.0% constant currency, roughly $6.7B), EPS of $8.50 (≈+11%), EBITDA of about $2.122B (≈+10% YoY) and free cash flow >$1.0B with cash conversion of at least 100%; mortgage is expected to represent >20% of revenue at the midpoint. Management emphasized the material impact of FICO mortgage royalties (≈3% of revenue in 2025, ~6% in 2026 and >2x the 2025 level in the guide): reported EBITDA margins would be ~30 bps lower at the midpoint due to zero‑margin FICO pass‑throughs, while ex‑FICO EBITDA margins are expected to expand ~75 bps and ex‑FICO revenue growth at the midpoint is ~7%. Business‑unit guidance includes EWS revenue up high‑single digits with EBITDA margins of 51.2–51.7%, USIS revenue up mid‑teens with EBITDA margins of 32.4–32.9% (ex‑FICO USIS revenue mid‑single digits and margins 39.6–40.1%), and international constant‑currency revenue up mid‑single digits with EBITDA margins of 28.6–29.1%. Q1 2026 guidance is revenue $1.597–1.627B (midpoint +11.8% reported, +10.6% constant), EPS $1.63–1.73, EBITDA $444–459M (midpoint ≈+7%) and EBITDA margin ≈28% (ex‑FICO Q1 revenue +7–9% and margins 29.9–30.3%).Equifax Financial Statement Overview
Summary
Income Statement
78
Positive
Balance Sheet
64
Positive
Cash Flow
82
Very Positive
| Breakdown | Dec 2025 | Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 |
|---|---|---|---|---|---|
Income Statement | |||||
| Total Revenue | 6.07B | 5.68B | 5.27B | 5.12B | 4.92B |
| Gross Profit | 2.71B | 3.16B | 2.93B | 2.94B | 2.94B |
| EBITDA | 1.83B | 1.72B | 1.58B | 1.68B | 1.58B |
| Net Income | 660.30M | 604.10M | 545.30M | 696.20M | 744.20M |
Balance Sheet | |||||
| Total Assets | 11.86B | 11.76B | 12.28B | 11.55B | 11.04B |
| Cash, Cash Equivalents and Short-Term Investments | 180.80M | 169.90M | 216.80M | 285.20M | 224.70M |
| Total Debt | 5.09B | 5.01B | 5.71B | 5.79B | 5.29B |
| Total Liabilities | 7.13B | 6.84B | 7.59B | 7.57B | 7.44B |
| Stockholders Equity | 4.60B | 4.80B | 4.53B | 3.96B | 3.58B |
Cash Flow | |||||
| Free Cash Flow | 1.13B | 813.00M | 515.50M | 132.60M | 865.80M |
| Operating Cash Flow | 1.62B | 1.32B | 1.12B | 757.10M | 1.33B |
| Investing Cash Flow | -554.30M | -511.50M | -878.20M | -959.50M | -3.40B |
| Financing Cash Flow | -1.06B | -846.40M | -306.20M | 273.70M | 617.70M |
Equifax Technical Analysis
Negative
182.39
Price Trends
192.74
Negative
203.25
Negative
223.44
Negative
Market Momentum
-5.23
Negative
46.46
Neutral
76.55
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 182.39 is below the 20-day moving average (MA) of 183.48, below the 50-day MA of 192.74, and below the 200-day MA of 223.44, indicating a bearish trend. The MACD of -5.23 indicates Negative momentum. The RSI at 46.46 is Neutral, neither overbought nor oversold. The STOCH value of 76.55 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for EFX.
Equifax Risk Analysis
Equifax disclosed 29 risk factors in its most recent earnings report. Equifax reported the most risks in the "Tech & Innovation" category.
Finance & Corporate - Financial and accounting risks. Risks related to the execution of corporate activity and strategy
Latest Risks Added 0 New Risks
Equifax Peers Comparison
UnderperformOutperform
Sector (63)
EFX
Equifax
182.39
-24.44
-11.81%
VRSK
Verisk Analytics
185.08
-90.86
-32.93%
TRU
TransUnion
69.32
-0.91
-1.29%
Glossary
BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
Disclaimer
This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.