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Equifax Inc EFX

Morningstar Rating
$240.02 +2.86 (1.21%)
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Company Report

Equifax Earnings: Lowering Our Fair Value Estimate by 5% Following Messy Quarter

Wide-moat-rated Equifax reported a messy a start to 2024. It maintained its 2024 outlook despite mortgage inquiries coming in stronger than its conservative expectations, a fact that disappointed investors. On the positive side, US credit bureau mortgage revenue impressed (amid pricing increases from Fair Isaac) and nonmortgage workforce solutions verification revenue was solid. On the negative side, nonmortgage credit bureau, workforce solutions mortgage, employer services, and Australia revenue saw softness.

Price vs Fair Value

EFX is trading within a range we consider fairly valued.
Price
$240.02
Fair Value
$526.00
Uncertainty
High
1-Star Price
$675.37
5-Star Price
$775.00
Economic Moat
Gslv
Capital Allocation
Gyrldnkzz

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 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.

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News

Trading Information

Previous Close Price
$237.16
Day Range
$234.24240.96
52-Week Range
$159.95275.10
Bid/Ask
$189.22 / $260.00
Market Cap
$29.67 Bil
Volume/Avg
612,873 / 856,623

Key Statistics

Price/Earnings (Normalized)
34.99
Price/Sales
5.50
Dividend Yield (Trailing)
0.65%
Dividend Yield (Forward)
0.65%
Total Yield
0.65%

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
MCO
TRU
Price/Earnings (Normalized)
34.9939.9021.46
Price/Book Value
6.4220.973.57
Price/Sales
5.5012.113.71
Price/Cash Flow
24.8631.0519.67
Price/Earnings
EFX
MCO
TRU

Financial Strength

Metric
EFX
MCO
TRU
Quick Ratio
0.561.311.41
Current Ratio
0.671.421.65
Interest Coverage
3.977.240.44
Quick Ratio
EFX
MCO
TRU

Profitability

Metric
EFX
MCO
TRU
Return on Assets (Normalized)
7.02%12.90%5.75%
Return on Equity (Normalized)
19.43%58.63%15.83%
Return on Invested Capital (Normalized)
10.10%19.20%8.80%
Return on Assets
EFX
MCO
TRU
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Consulting Services Industry Comparables

Ticker
Name
Morningstar Rating for Stocks
Capital Allocation
Economic Moat
Market Cap
EXPGY
Experian PLC ADRCqfbrvsklMrypn$42.6 Bil
VRSK
Verisk Analytics IncJhwxgswjpZntd$35.9 Bil
BAH
Booz Allen Hamilton Holding Corp Class ACwvc$19.8 Bil
SGSOF
SGS AGPxzm$17.9 Bil
SGSOY
SGS AG ADRJvff$17.8 Bil
TRU
TransUnionZvkytxbcbrKgty$15.1 Bil
BVRDF
Bureau Veritas SALfffjx$13.6 Bil
BVVBY
Bureau Veritas SA ADRZzqtcds$13.5 Bil
FCN
FTI Consulting IncRsmmsxyrPrzvblh$7.8 Bil

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