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Equifax Inc EFX

Morningstar Rating
$216.60 +3.57 (1.68%)
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Company Report

Equifax's Workforce Solutions Segment Is Its Largest Profit Driver

Along with TransUnion and Experian, Equifax is one of the big three 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. Kount builds on Equifax’s existing antifraud products and we think acquiring unique data and software assets makes sense.

Price vs Fair Value

EFX is trading at a 21% discount.
Price
$213.03
Fair Value
$226.00
Uncertainty
High
1-Star Price
$436.20
5-Star Price
$438.00
Economic Moat
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Capital Allocation
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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
$213.03
Day Range
$215.21218.09
52-Week Range
$159.95240.35
Bid/Ask
$212.51 / $221.39
Market Cap
$26.69 Bil
Volume/Avg
923,290 / 772,505

Key Statistics

Price/Earnings (Normalized)
33.18
Price/Sales
5.12
Dividend Yield
0.73%
Dividend Yield (Forward)
0.73%
Total Yield
0.73%

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, 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.
Sector
Industrials
Industry
Consulting Services
Stock Style Box
Mid Core
Total Number of Employees
14,000

Competitors

Valuation

Metric
EFX
MCO
TRU
Price/Earnings (Normalized)
33.1838.7517.52
Price/Book Value
6.1020.712.89
Price/Sales
5.1211.613.00
Price/Cash Flow
22.9433.0514.89
Price/Earnings
EFX
MCO
TRU

Financial Strength

Metric
EFX
MCO
TRU
Quick Ratio
0.871.611.23
Current Ratio
1.011.781.54
Interest Coverage
3.876.650.42
Quick Ratio
EFX
MCO
TRU

Profitability

Metric
EFX
MCO
TRU
Return on Assets (Normalized)
5.00%11.93%5.64%
Return on Equity (Normalized)
14.38%61.25%15.68%
Return on Invested Capital (Normalized)
7.72%17.97%8.65%
Return on Assets
EFX
MCO
TRU

Consulting Services Industry Comparables

Ticker
Name
Morningstar Rating for Stocks
Economic Moat
Market Cap
VRSK
Verisk Analytics IncJhdg$34.8 Bil
EXPGF
Experian PLCKwvsg$33.7 Bil
EXPGY
Experian PLC ADRLhfp$33.7 Bil
BAH
Booz Allen Hamilton Holding Corp Class AZfvbsf$16.4 Bil
SGSOF
SGS AGBjkzxw$15.6 Bil
SGSOY
SGS AG ADRQchsbzx$15.6 Bil
TRU
TransUnionRmh$11.4 Bil
BVRDF
Bureau Veritas SABhdmf$11.2 Bil
BVVBY
Bureau Veritas SA ADRZwkzbsk$11.2 Bil