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Equifax Inc EFX

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Morningstar’s Analysis

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Equifax Beats and Raises as Workforce Solutions Momentum Continues

Rajiv Bhatia, CFA Equity Analyst

Analyst Note

| Rajiv Bhatia, CFA |

Workforce Solutions continues to drive strong revenue and earnings growth at wide-moat-rated Equifax. Revenue of $1.21 billion was 8% above the FactSet consensus of $1.12 billion and likewise adjusted EBITDA of $431 million and adjusted EPS of $1.97 easily topped the consensus estimates of $357 million and $1.51, respectively. The firm also raised its full-year 2021 revenue outlook by 5% and adjusted earnings outlook by 9% at the midpoint. Equifax’s growth is driven by much more than just mortgage volume growth and we expect to meaningfully raise our fair value estimate from our current estimate of $190 per share.

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Company Profile

Business Description

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, about a third of the firm’s revenue comes from workforce solutions, which provides income verification and employer human resources services. Equifax generates over 20% of its revenue from outside the United States.

Contact
1550 Peachtree Street N.W.
Atlanta, GA, 30309
T +1 404 885-8000
Sector Industrials
Industry Consulting Services
Most Recent Earnings Mar 31, 2021
Fiscal Year End Dec 31, 2021
Stock Type Slow Growth
Employees 11,400

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