Equifax’s third-quarter revenue grew 9% organically, in line with the second quarter. Adjusted EBITDA margin rose to 33.1% from 32.7% last year. Amid a September surge in mortgage rates, Equifax lowered its full-year revenue outlook but narrowed its adjusted EPS guidance. Shares rose 10% intraday.
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.
Mortgage volume drives Equifax's core credit bureau business and its Workforce Solutions segment, but it is difficult to predict, given its sensitivity to mortgage rates and homebuying activity. In addition, higher rates will weigh on the purchasing and refinancing mortgage market.
|
Metric
|
EFX
|
FICO
|
TRU
|
|---|---|---|---|
Price/Earnings (Normalized) | 26.66 | 20.51 | 17.79 |
Price/Book Value | 4.78 | — | 3.22 |
Price/Sales | 3.32 | 8.05 | 3.25 |
Price/Cash Flow | 13.11 | 18.87 | 12.30 |
|
Metric
|
EFX
|
FICO
|
TRU
|
|---|---|---|---|
Quick Ratio | 0.89 | 1.13 | 1.65 |
Current Ratio | 1.09 | 1.18 | 1.90 |
Interest Coverage | 5.41 | 6.72 | 4.54 |
|
Metric
|
EFX
|
FICO
|
TRU
|
|---|---|---|---|
Return on Assets (Normalized) | 6.83% | 48.40% | 7.75% |
Return on Equity (Normalized) | 17.71% | — | 19.38% |
Return on Invested Capital (Normalized) | 9.93% | 74.96% | 10.62% |
|
1-Day Chart
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Name
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Price
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Morningstar Rating for Stocks
|
Capital Allocation
|
Economic Moat
|
Market Cap
|
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United States