Experian (EXPGY) AI Stock Analysis

• Market Cap: $37.51B
• Dividend Yield: 1.34%
• Average Volume (3M): 9.04K
• Price to Earnings (P/E): 31.6
• Beta (1Y): 1.47
• Revenue Growth: 7.93%
• EPS Growth: 14.86%
• Country: US
• Employees: 22,500
• Sector: Industrials
• Sector Strength: 61
• Industry: Consulting Services
• EPS (TTM): 1.29
• Shares Outstanding: 918,184,140
• 10 Day Avg. Volume: 23,191
• 30 Day Avg. Volume: 9,041
• PEG Ratio: 2.13
• Price to Book (P/B): N/A
• Price to Sales (P/S): 4.05
• Price to Cash Flow (P/CF): 30.60
• P/FCF Ratio: 40.00
• Enterprise Value/Market Cap: N/A
• Enterprise Value/Revenue: N/A
• Enterprise Value/Gross Profit: N/A
• Enterprise Value/Ebitda: N/A
• 1Y Price Target: N/A
• Price Target Upside: N/A
• Rating Consensus: N/A
• Number of Analyst Covering: 0

Experian's strong financial performance, marked by revenue growth and profitability, is a key strength. However, the stock's technical indicators suggest potential downward pressure, and the high P/E ratio raises valuation concerns. While Experian is well-positioned for future growth, the current technical and valuation factors temper the overall stock score.

Experian Business Overview & Revenue Model

Company Description

Experian plc is a global leader in providing information services, specializing in credit reporting and marketing services. The company operates across several sectors, including financial services, telecommunications, healthcare, and automotive. Experian offers a range of core products and services such as credit reports, credit scores, identity protection services, and decision analytics, helping businesses and consumers manage their financial health and make informed decisions.

How the Company Makes Money

Experian makes money through a diversified revenue model centered around its core business segments: Credit Services, Decision Analytics, Marketing Services, and Consumer Services. The Credit Services segment generates revenue by providing credit reports and scores to businesses and consumers, which are used for credit risk assessment and lending decisions. Decision Analytics offers advanced analytics and decision-making tools to businesses, helping them improve customer acquisition and retention strategies. Marketing Services generates income by providing data-driven marketing solutions that enable businesses to effectively target and engage their customers. Consumer Services focuses on direct-to-consumer products, including credit monitoring and identity theft protection services, which are sold through subscription models. Additionally, Experian benefits from strategic partnerships with financial institutions, technology companies, and other organizations, enhancing its market reach and product offerings.

Experian Financial Statement Overview

Summary

Experian is performing well across key financial metrics, with strong revenue growth and profitability. The balance sheet is moderately leveraged but effectively managed, and cash flow remains solid with efficient conversion. The company is positioned well for future growth, though enhancing operational efficiencies and strengthening the equity base could further bolster financial stability.

Income Statement

Experian has demonstrated strong revenue growth with a 7.2% increase from 2023 to 2024. The company maintains a robust gross profit margin of 40.8% and a solid net profit margin of 16.9%. The EBITDA margin is also healthy at 34.1%, indicating efficient cost management. However, the EBIT margin slightly decreased from 19.1% in 2023 to 23.9% in 2024, suggesting room for improvement in operational efficiency.

Balance Sheet

The debt-to-equity ratio of 0.92 indicates a moderate leverage level, which is typical for the industry but suggests some reliance on debt financing. Return on equity is impressive at 25.9%, reflecting effective use of equity capital. The equity ratio stands at 39.6%, demonstrating a balanced asset structure, though there's potential to strengthen equity further to ensure more stability.

Cash Flow

Experian shows stable cash flow generation, with a free cash flow growth rate of 1.6% from 2023 to 2024. The operating cash flow to net income ratio is 1.46, indicating strong cash conversion efficiency. The free cash flow to net income ratio is also robust at 0.92, highlighting good cash flow management. However, there is room for improvement in increasing free cash flow growth.

Breakdown
TTM	Mar 2024	Mar 2023	Mar 2022	Mar 2021	Mar 2020
Income Statement		Total Revenue
9.15B	7.10B	6.62B	6.29B	5.37B	5.18B
	Gross Profit
2.93B	3.42B	3.17B	2.98B	2.52B	2.55B
	EBIT
2.24B	1.69B	1.26B	1.42B	1.18B	1.19B
	EBITDA
3.12B	2.40B	1.98B	2.25B	1.77B	1.60B
	Net Income Common Stockholders
1.50B	1.20B	770.00M	1.17B	803.00M	675.00M
Balance Sheet		Cash, Cash Equivalents and Short-Term Investments
321.00M	321.00M	209.00M	186.00M	200.00M	294.00M
	Total Assets
11.71B	11.71B	10.86B	10.89B	10.07B	8.90B
	Total Debt
4.27B	4.27B	4.10B	4.10B	4.34B	4.41B
	Net Debt
3.95B	3.95B	3.90B	3.92B	4.16B	4.14B
	Total Liabilities
7.04B	7.04B	6.90B	6.89B	6.95B	6.62B
	Stockholders Equity
4.63B	4.63B	3.93B	3.97B	3.08B	2.27B
Cash Flow		Free Cash Flow
2.31B	1.11B	1.09B	1.29B	1.07B	769.00M
	Operating Cash Flow
2.36B	1.75B	1.72B	1.80B	1.49B	1.26B
	Investing Cash Flow
-1.98B	-1.10B	-948.00M	-1.12B	-827.00M	-1.18B
	Financing Cash Flow
-258.50M	-551.00M	-722.00M	-687.00M	-747.00M	61.00M

Experian Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 40.88
• 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 EXPGY, the sentiment is Negative. The current price of 40.88 is below the 20-day moving average (MA) of 45.20, below the 50-day MA of 47.07, and below the 200-day MA of 47.19, indicating a bearish trend. The MACD of -0.27 indicates Negative momentum. The RSI at 45.39 is Neutral, neither overbought nor oversold. The STOCH value of 62.00 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for EXPGY.

Experian Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
TRU	69 Neutral	$15.80B	56.01	6.91%	0.62%	9.20%	―
EXPGY	64 Neutral	$37.51B	31.57	26.60%	1.34%	7.93%	14.86%
VRSK	64 Neutral	$40.49B	43.13	463.98%	0.58%	7.47%	59.46%
EFX	63 Neutral	$26.04B	43.15	12.95%	0.76%	7.90%	10.00%
Sector *	62 Neutral	$7.67B	13.25	3.04%	3.47%	3.63%	-13.99%