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Equifax (EFX)
:EFX
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Equifax
(NYSE:EFX)
Rating:68Neutral
Price Target:
$268.00
▲(9.19% Upside)
Positive Factors
Capital Return
The stepped-up capital return is appreciated, with EFX conducting $127M in share repurchases during the quarter.
Financial Performance
EFX’s 2Q results beat Street expectations on the top and bottom line, driven by better-than-expected mortgage performance and new product growth.
Market Position
EFX is well-positioned to hit or exceed the company's medium-term targets as the company continues to execute well despite an uncertain macro environment.
Negative Factors
Earnings Expectations
There is a reduction in earnings expectations due to a negative outlook in mortgage volume.
Government and Talent Segments
Management lowered its EWS growth forecast given Government and Talent near-term struggles.
Growth Outlook
The third-quarter outlook was below consensus, which is attributed to some modest timing delays in the government business and ongoing labor market headwinds.
Equifax (EFX) vs. SPDR S&P 500 ETF (SPY)
Market Cap
$30.94B
Dividend Yield0.67%
Average Volume (3M)1.12M
Price to Earnings (P/E)48.9
Beta (1Y)1.44
Revenue Growth6.86%
EPS Growth9.10%
CountryUS
Employees15,000
SectorIndustrials
Sector Strength78
IndustryConsulting Services
Share Statistics
EPS (TTM)2.00
Shares Outstanding123,797,380
10 Day Avg. Volume1,092,263
30 Day Avg. Volume1,118,135
Financial Highlights & Ratios
PEG RatioN/A
Price to Book (P/B)N/A
Price to Sales (P/S)N/A
P/FCF RatioN/A
Enterprise Value/Market Cap1.20
Enterprise Value/Revenue6.38
Enterprise Value/Gross Profit11.43
Enterprise Value/Ebitda20.85
Forecast
1Y Price Target
$284.40Price Target Upside15.87% Upside
Rating ConsensusStrong Buy
Number of Analyst Covering16
Equifax Business Overview & Revenue Model
Company DescriptionEquifax 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 MoneyEquifax 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 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:
Main Street Data
Main Street DataEquifax Earnings Call Summary
Earnings Call Date:Jul 22, 2025
(Q2-2025)
| % Change Since: -5.47%|
Next Earnings Date:Oct 15, 2025
Earnings Call Sentiment Neutral
Equifax Inc. reported strong revenue growth and expansion in key segments such as Workforce Solutions and USIS, along with increased shareholder returns. However, challenges in the government segment, a weak hiring market, and higher litigation costs present ongoing headwinds. Despite these issues, the company's strong first-half performance and strategic initiatives provide a balanced outlook.Q2-2025 Updates
Positive Updates
Record-Breaking Quarterly Revenue
Equifax Inc. reported its highest ever quarterly revenue of $1.54 billion, up 8% in constant currency and 7% reported, exceeding April guidance by $27 million.
Strong Performance in Workforce Solutions
Workforce Solutions revenue increased by 8%, with government revenue growing 14% and consumer lending up 19%.
USIS Revenue Growth
USIS reported a 9% increase in revenue, with mortgage revenue up 20% and non-mortgage revenue up over 4%.
International Expansion and Growth
International revenue grew by 6% in constant currency, with Latin America leading at 11% growth, driven by strong performance in Argentina and Brazil.
Increased Shareholder Returns
Equifax Inc. returned $190 million to shareholders, repurchasing $127 million in shares and paying $62 million in dividends.
Negative Updates
Challenges in the Government Segment
Ongoing volatility and funding challenges at the state level impacted government revenue growth, despite opportunities from new federal programs.
Weaker Hiring Market
Continued weakness in the hiring market affected revenue, particularly in the Talent Solutions segment, which faced softer demand.
Litigation Costs Impacting Margins
Higher litigation costs, including increased small claims, pressured corporate expenses and affected EBITDA margins.
Economic Uncertainty and Mortgage Market Decline
The mortgage market remains volatile with hard credit inquiries down over 50% from historical averages, affecting future revenue projections.
Company Guidance
During the Equifax Inc. earnings call, guidance provided for the third quarter and full year 2025 included several key metrics. For the second quarter, Equifax reported revenue of $1.54 billion, up 8% in constant currency and 7% reported, which exceeded their April guidance by $27 million. Adjusted EPS stood at $2 per share, $0.10 above the midpoint of prior guidance, with the adjusted EBITDA margin at 32.5%. For the full year 2025, Equifax maintained their constant currency revenue guidance, adjusting only for FX, which increased the revenue midpoint by $35 million to approximately $6 billion and adjusted EPS by $0.03 to $7.48 per share. Workforce Solutions revenue growth was adjusted down to 5% from 7%, and USIS revenue growth was increased to 7%, driven by mortgage and non-mortgage segments. International revenue growth is expected to remain stable at around 7% constant currency. Adjusted EBITDA margins are projected to be flat versus 2024 due to FX impacts and increased corporate expenses, primarily from litigation costs. The guidance reflects uncertainty around economic conditions, interest rates, and mortgage market volatility.Equifax Financial Statement Overview
Summary
Equifax demonstrates strong financial performance with robust revenue growth and solid profit margins. The company maintains a reasonable debt level, though there is a slight increase in liabilities. Cash flow generation is strong, supporting its financial stability.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.85
Very Positive
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.70
Positive
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.78
Positive
| 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 | 1.67B | 1.58B | 1.22B |
| 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 | 628.90M | 810.80M |
Equifax Technical Analysis
Negative
245.45
Price Trends
253.25
Negative
252.75
Negative
253.63
Negative
Market Momentum
-1.46
Negative
47.11
Neutral
70.59
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 245.45 is above the 20-day moving average (MA) of 244.07, below the 50-day MA of 253.25, and below the 200-day MA of 253.63, indicating a neutral trend. The MACD of -1.46 indicates Negative momentum. The RSI at 47.11 is Neutral, neither overbought nor oversold. The STOCH value of 70.59 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
Overall Rating
UnderperformOutperform
Sector (63)
Financial Indicators
Performance Comparison
EFX
Equifax
245.45
-54.81
-18.25%
VRSK
Verisk Analytics
271.91
5.31
1.99%
TRU
TransUnion
86.64
-10.28
-10.61%
Equifax Corporate Events
Executive/Board Changes
Equifax Announces Executive Departure and Leadership Change
Neutral
May 30, 2025
On May 30, 2025, Equifax announced the departure of Todd Horvath, Executive Vice President and President of U.S. Information Solutions, effective June 1, 2025. CEO Mark Begor will temporarily lead the USIS business unit while a search for Horvath’s successor is underway. Horvath’s departure includes a separation agreement with a $2.9 million severance and a prorated incentive award for 2025, while his unvested equity awards were forfeited. He will also receive $3.2 million in cash for the unvested portion of his new hire equity award.
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.