Equifax (EFX) AI Stock Analysis

• Market Cap: $25.89B
• Dividend Yield: 0.9%
• Average Volume (3M): 1.45M
• Price to Earnings (P/E): 40.1
• Beta (1Y): 1.21
• 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: 1,494,521
• 30 Day Avg. Volume: 1,451,403
• 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: 1.41
• Enterprise Value/Revenue: 6.16
• Enterprise Value/Gross Profit: 10.94
• Enterprise Value/Ebitda: 20.17
• 1Y Price Target: $265.00
• Price Target Upside: 26.02% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 15
• EPS Forecast (FY): 7.6
• Revenue Forecast (FY): $6.05B

• Rating: 71 Outperform
• Price Target: $236.00 ▲(12.23% Upside)

Equifax's overall stock score reflects strong financial performance and positive earnings call outcomes, which are slightly offset by mixed technical indicators and a high valuation. The company's robust revenue growth and increased guidance are significant positives, while the high P/E ratio and technical analysis suggest caution.

Positive Factors

Revenue Growth

Consistent revenue growth indicates strong market demand and effective business strategies, supporting long-term financial stability.

Acquisition of Vault Verify

Acquiring Vault Verify strengthens Equifax's position in employment verification, expanding its service offerings and market reach.

Product Innovation

High Vitality Index reflects successful new product rollouts, enhancing competitive edge and driving future growth.

Negative Factors

Restructuring Charges

Restructuring costs, while potentially beneficial long-term, indicate current operational inefficiencies and financial strain.

Weak Talent Solutions Revenue

Underperformance in Talent Solutions suggests challenges in adapting to market demands, potentially affecting future growth.

Potential Government Shutdown Impact

A government shutdown could delay verification activities, impacting revenue from government-related services.

Equifax Business Overview & Revenue Model

Company Description

Equifax Inc. is a global data, analytics, and technology company providing credit reporting and related services to businesses, consumers, and government agencies. Founded in 1899 and headquartered in Atlanta, Georgia, Equifax operates in sectors such as credit risk assessment, fraud detection, and identity verification. The company offers a wide range of products, including credit reports, credit scores, identity theft protection, and employment verification services, catering to various industries including financial services, insurance, and telecommunications.

How the Company Makes Money

Equifax generates revenue primarily through its services related to credit reporting and analytics. The company's revenue model comprises several key streams: credit reporting services for businesses, which provide essential data for risk assessments in lending; consumer services like credit monitoring and identity theft protection; and workforce solutions that offer background checks and employment verification services. Additionally, Equifax has developed partnerships with financial institutions and other businesses, enhancing its data offerings and analytical capabilities. The company also benefits from its extensive consumer database, which allows it to offer insights and analytics that help organizations make informed decisions.

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: 210.29
• 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 210.29 is above the 20-day moving average (MA) of 209.26, below the 50-day MA of 220.09, and below the 200-day MA of 242.40, indicating a neutral trend. The MACD of -2.21 indicates Negative momentum. The RSI at 45.37 is Neutral, neither overbought nor oversold. The STOCH value of 41.10 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	73 Outperform	$16.40B	39.62	9.68%	0.56%	8.30%	86.97%
EFX	71 Outperform	$25.89B	40.09	13.38%	0.90%	6.35%	16.91%
VRSK	71 Outperform	$30.83B	33.77	270.50%	0.79%	7.30%	2.03%
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.