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Equifax Inc EFX

Morningstar Rating
$266.21 +3.89 (1.48%)
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Company Report

Equifax's Workforce Solutions Segment Is Equifax's Largest Profit Driver

Along with TransUnion and Experian, Equifax is one of the big three US credit bureaus. Given the fixed costs inherent in a data-intensive business, Equifax has been able to enjoy strong operating leverage from incremental revenue. As the U.S. credit bureau market is relatively mature, the company has been adding new capabilities and expanding its geographic footprint, both organically and through acquisitions. As an example of its bolt-on acquisition strategy, Equifax announced in January 2021 that it will acquire e-commerce fraud prevention platform Kount for $640 million. Outside the US, Equifax has international operations in both developed and developing countries. Equifax's acquisition of Boa Vista in 2023 gave it entry into Brazil.

Price vs Fair Value

EFX is trading at a 3% discount.
Price
$261.06
Fair Value
$998.00
Uncertainty
High
1-Star Price
$275.30
5-Star Price
$193.00
Economic Moat
Szf
Capital Allocation
Hwzqtnytq

Bulls Say, Bears Say

Bulls

The workforce solutions segment is a fast-growing business built on unique data and can contribute meaningfully to earnings growth. Equifax can increase use cases in nonmortgage applications for income verification.

Bears

Mortgage volumes drive Equifax's core credit bureau business and its workforce solutions segment, but they are difficult to predict, given their sensitivity to mortgage rates and homebuying activity. In addition, higher rates will weigh on the purchasing and refinancing mortgage market.

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News

Trading Information

Previous Close Price
$262.32
Day Range
$263.92–266.24
52-Week Range
$159.98–275.00
Bid/Ask
$265.94 / $266.57
Market Cap
$33.06 Bil
Volume/Avg
130,643 / 800,901

Key Statistics

Price/Earnings (Normalized)
39.11
Price/Sales
6.17
Dividend Yield (Trailing)
0.59%
Dividend Yield (Forward)
0.59%
Total Yield
0.59%

Company Profile

Along with Experian and TransUnion, Equifax is one of the leading credit bureaus in the United States. Equifax’s credit reports provide credit histories on millions of consumers, and the firm's services are critical to lenders’ credit decisions. In addition, over 40% of the firm’s revenue comes from workforce solutions, which provides income verification and employer human resources services. Equifax generates just over 20% of its revenue from outside the United States.
Sector
Industrials
Industry
Consulting Services
Stock Style Box
Mid Growth
Total Number of Employees
14,900

Competitors

Valuation

Metric
EFX
TRU
MCO
Price/Earnings (Normalized)
39.1123.3341.87
Price/Book Value
7.133.8021.41
Price/Sales
6.173.9712.14
Price/Cash Flow
28.0421.1332.80
Price/Earnings
EFX
TRU
MCO

Financial Strength

Metric
EFX
TRU
MCO
Quick Ratio
0.561.201.61
Current Ratio
0.671.471.78
Interest Coverage
3.970.426.65
Quick Ratio
EFX
TRU
MCO

Profitability

Metric
EFX
TRU
MCO
Return on Assets (Normalized)
7.01%5.75%11.93%
Return on Equity (Normalized)
19.73%15.83%61.25%
Return on Invested Capital (Normalized)
10.09%8.80%17.97%
Return on Assets
EFX
TRU
MCO
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Consulting Services Industry Comparables

Ticker
Name
Morningstar Rating for Stocks
Capital Allocation
Economic Moat
Market Cap
EXPGF
Experian PLC—Swpj$40.3 Bil
EXPGY
Experian PLC ADRKmjxwvkyNpjjr$40.3 Bil
VRSK
Verisk Analytics IncHvybrvgdCxdyl$33.5 Bil
BAH
Booz Allen Hamilton Holding Corp Class A—Qmvqjk$19.2 Bil
SGSOF
SGS AG—Hwgpg$17.8 Bil
SGSOY
SGS AG ADR—Rchfn$17.8 Bil
TRU
TransUnionLkkmgfcxpXgfdg$15.3 Bil
BVRDF
Bureau Veritas SA—Vmthcs$13.9 Bil
BVVBY
Bureau Veritas SA ADR—Hkqmgjk$13.9 Bil

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