Skip to Content
Morningstar
Get 14 Days Free

Equifax Inc EFX

Morningstar Rating
Rating as of

Morningstar’s Analysis

Valuation
Currency in USD
Is it the right time to buy or sell?
Find out with Morningstar Premium
Is it the right time to buy or sell?
Find out with Morningstar Premium

1-Star Price

PREMIUM

5-Star Price

PREMIUM

Economic Moat

PREMIUM

Capital Allocation

PREMIUM

Another Beat-and-Raise Quarter for Equifax Driven by Workforce Solutions

Rajiv Bhatia, CFA Equity Analyst

Analyst Note

| Rajiv Bhatia, CFA |

Equifax reported strong second-quarter results, with revenue and earnings topping consensus expectations. Revenue was $1.23 billion, above the FactSet consensus of $1.16 billion and the firm’s guidance of $1.14 billion-$1.16 billion. Adjusted EPS of $1.98 beat the consensus of $1.71 and guidance of $1.60-$1.70. Equifax raised its full-year revenue outlook by 3% at the midpoint to $4.76 billion-$4.80 billion, which implies a stronger back half of 2021 than the previous guidance. We will maintain our wide moat rating and expect to increase our fair value estimate by a mid- to high-single-digit percentage.

Read Full Analysis

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 Jun 30, 2021
Fiscal Year End Dec 31, 2021
Stock Type Slow Growth
Employees 11,400

Related

The Short Answer
6 Ways to Protect Yourself From a Data Breach
Here are some things you can do to safeguard your accounts.
Karen Wallace
Our Picks
10 Cheap Wide-Moat Stocks
We review the changes to the Morningstar Wide Moat Focus Index during the latest reconstitution and reveal the least-expensive names.
Susan Dziubinski
Stock Strategist Industry Reports
Credit Bureaus' Wide Moats Can't Be Breached
Experian, Equifax, and TransUnion can profitably expand in multiple directions.
Brett Horn
US Videos
Credit Bureaus Secure With Wide Moats
Experian, Equifax, and TransUnion have weathered the aftermath of Equifax's security breach, and we see a secular opportunity for the industry.
Brett Horn
Stock Strategist Industry Reports
How Blockchain Affects Our Coverage
We believe companies with moats from switching costs and intangible assets are less vulnerable.
Jim Sinegal
Stock Analyst Update
What CEO Departure Means for Equifax
Richard Smith's retirement isn't surprising, but his experience could've been useful as the company resolves its data-breach issues.
Brett Horn
Investing Specialists
Morningstar Runs the Numbers
We take a numerical look through this week's Morningstar research. Plus, our most popular articles and videos for the week ended Sept. 22.
Morningstar.com
Investing Specialists
Morningstar Runs the Numbers
We take a numerical look through this week's Morningstar research. Plus, our most popular articles and videos for the week ended Sept. 15.
Morningstar.com
Stock Strategist
Equifax's Wide Moat Intact After Data Breach
We are reducing our fair value estimate, however.
Brett Horn
Investing Specialists
Ultimate Stock-Pickers: Top 10 Buys and Sells
Ahead of the sell-off, top managers were cautious in adding to positions and continued to sell fully valued, flawed, or more liquid securities to meet redemption requests.
The Morningstar Ultimate Stock-Pickers Team
Investing Specialists
Ultimate Stock-Pickers: Top Managers' High-Conviction Picks
Before the market turmoil of 2016, buying activity remained low, but these top managers did put some money to work in firms with defensible economic moats.
The Morningstar Ultimate Stock-Pickers Team
Fund Spy
The Nine Best New Funds of 2010
Some promising ideas for your 2011 watchlist.
Russel Kinnel
Stock Strategist
A Birthday Gift Buffett Would Truly Appreciate
The smaller, nimbler investment portfolio of an individual investor would be a great gift for the Oracle.
Jeremy Glaser
Premium Article
Been Waiting for a Pullback? Consider These Names
After the downturn on Thursday and Friday, these stocks are looking more attractively priced.
Jeremy Glaser
Investing Specialists
Seven High-Conviction Stocks from the Ultimate Stock-Pickers
Looking for buy ideas among the high-conviction holdings of our top managers.
The Morningstar Ultimate Stock-Pickers Team
Quarter-End Insights
Our Outlook for Financial Services Stocks
The good, the bad, and the ugly.
Jim Ryan
Our Picks
Stocks the Rally Left Behind
Despite strong profits and cash flows, these stocks look undervalued.
T.K. MacKay
Stock Strategist
Contrarian Thinking and the Greater Fool Theory
StockInvestor editor Mark Sellers answers some reader questions.
Mark Sellers
Our Picks
Going with the Cash Flow
These companies consistently generate excess cash.
Amy C. Arnott
Stock Strategist
Seven Free Cash Flow Kings
These companies have wide moats and rising free cash-flow yields.
Mark Sellers

Transparency is how we protect the integrity of our work and keep empowering investors to achieve their goals and dreams. And we have unwavering standards for how we keep that integrity intact, from our research and data to our policies on content and your personal data.

We’d like to share more about how we work and what drives our day-to-day business.

We sell different types of products and services to both investment professionals and individual investors. These products and services are usually sold through license agreements or subscriptions. Our investment management business generates asset-based fees, which are calculated as a percentage of assets under management. We also sell both admissions and sponsorship packages for our investment conferences and advertising on our websites and newsletters.

How we use your information depends on the product and service that you use and your relationship with us. We may use it to:

  • Verify your identity, personalize the content you receive, or create and administer your account.
  • Provide specific products and services to you, such as portfolio management or data aggregation.
  • Develop and improve features of our offerings.
  • Gear advertisements and other marketing efforts towards your interests.

To learn more about how we handle and protect your data, visit our privacy center.

Maintaining independence and editorial freedom is essential to our mission of empowering investor success. We provide a platform for our authors to report on investments fairly, accurately, and from the investor’s point of view. We also respect individual opinions––they represent the unvarnished thinking of our people and exacting analysis of our research processes. Our authors can publish views that we may or may not agree with, but they show their work, distinguish facts from opinions, and make sure their analysis is clear and in no way misleading or deceptive.

To further protect the integrity of our editorial content, we keep a strict separation between our sales teams and authors to remove any pressure or influence on our analyses and research.

Read our editorial policy to learn more about our process.