LSE:EXPN

Stock Analysis Report

NOT FOR DISTRIBUTION
Header cover image

Market Cap

UK£25.2b

Last Updated

2021/06/21 05:43 UTC

Data Sources

Company Financials +

Executive Summary

Experian plc, together with its subsidiaries, operates as a technology company. More Details


Snowflake Analysis

Proven track record average dividend payer.


Similar Companies

Share Price & News

How has Experian's share price performed over time and what events caused price changes?


Latest Share Price and Events

Stable Share Price: EXPN is less volatile than 75% of UK stocks over the past 3 months, typically moving +/- 3% a week.

Volatility Over Time: EXPN's weekly volatility (3%) has been stable over the past year.


Market Performance


7 Day Return

1.9%

EXPN

0.9%

GB Professional Services

-1.7%

GB Market


1 Year Return

-2.1%

EXPN

3.3%

GB Professional Services

16.0%

GB Market

Return vs Industry: EXPN underperformed the UK Professional Services industry which returned 3.3% over the past year.

Return vs Market: EXPN underperformed the UK Market which returned 16% over the past year.


Shareholder returns

EXPNIndustryMarket
7 Day1.9%0.9%-1.7%
30 Day1.5%0.8%-0.04%
90 Day12.1%9.1%5.4%
1 Year-0.8%-2.1%5.3%3.3%21.6%16.0%
3 Year56.0%50.8%27.3%19.6%11.6%-1.3%
5 Year127.7%111.6%82.8%64.1%51.8%23.3%

Long-Term Price Volatility Vs. Market

How volatile is Experian's share price compared to the market and industry in the last 5 years?


Simply Wall St News

Valuation

Is Experian undervalued compared to its fair value and its price relative to the market?

43.11x

Price to Earnings (PE) ratio


Share Price vs. Fair Value

Below Fair Value: EXPN (£27.57) is trading above our estimate of fair value (£23.09)

Significantly Below Fair Value: EXPN is trading above our estimate of fair value.


Price To Earnings Ratio

PE vs Industry: EXPN is poor value based on its PE Ratio (43.1x) compared to the UK Professional Services industry average (36.1x).

PE vs Market: EXPN is poor value based on its PE Ratio (43.1x) compared to the UK market (25.1x).


Price to Earnings Growth Ratio

PEG Ratio: EXPN is poor value based on its PEG Ratio (2.9x)


Price to Book Ratio

PB vs Industry: EXPN is overvalued based on its PB Ratio (11.3x) compared to the GB Professional Services industry average (3.1x).


Future Growth

How is Experian forecast to perform in the next 1 to 3 years based on estimates from 12 analysts?

14.6%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: EXPN's forecast earnings growth (14.6% per year) is above the savings rate (0.9%).

Earnings vs Market: EXPN's earnings (14.6% per year) are forecast to grow slower than the UK market (17.7% per year).

High Growth Earnings: EXPN's earnings are forecast to grow, but not significantly.

Revenue vs Market: EXPN's revenue (8.2% per year) is forecast to grow faster than the UK market (5.3% per year).

High Growth Revenue: EXPN's revenue (8.2% per year) is forecast to grow slower than 20% per year.


Earnings per Share Growth Forecasts


Future Return on Equity

Future ROE: EXPN's Return on Equity is forecast to be high in 3 years time (28.3%)


Past Performance

How has Experian performed over the past 5 years?

-2.4%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: EXPN has high quality earnings.

Growing Profit Margin: EXPN's current net profit margins (14.9%) are higher than last year (13.1%).


Past Earnings Growth Analysis

Earnings Trend: EXPN's earnings have declined by 2.4% per year over the past 5 years.

Accelerating Growth: EXPN's earnings growth over the past year (18.6%) exceeds its 5-year average (-2.4% per year).

Earnings vs Industry: EXPN earnings growth over the past year (18.6%) exceeded the Professional Services industry -10.4%.


Return on Equity

High ROE: Whilst EXPN's Return on Equity (25.71%) is high, this metric is skewed due to their high level of debt.


Financial Health

How is Experian's financial position?


Financial Position Analysis

Short Term Liabilities: EXPN's short term assets ($1.4B) do not cover its short term liabilities ($2.4B).

Long Term Liabilities: EXPN's short term assets ($1.4B) do not cover its long term liabilities ($4.5B).


Debt to Equity History and Analysis

Debt Level: EXPN's debt to equity ratio (134.7%) is considered high.

Reducing Debt: EXPN's debt to equity ratio has increased from 132.8% to 134.7% over the past 5 years.

Debt Coverage: EXPN's debt is well covered by operating cash flow (35.4%).

Interest Coverage: EXPN's interest payments on its debt are well covered by EBIT (10x coverage).


Balance Sheet


Dividend

What is Experian current dividend yield, its reliability and sustainability?

1.23%

Current Dividend Yield


Upcoming Dividend Payment

TodayJun 21 2021Ex Dividend DateJun 24 2021Dividend Pay DateJul 23 202129 days from Ex DividendBuy in the next 2 days to receive the upcoming dividend

Dividend Yield vs Market

Notable Dividend: EXPN's dividend (1.24%) isn’t notable compared to the bottom 25% of dividend payers in the UK market (1.29%).

High Dividend: EXPN's dividend (1.24%) is low compared to the top 25% of dividend payers in the UK market (4.07%).


Stability and Growth of Payments

Stable Dividend: EXPN's dividends per share have been stable in the past 10 years.

Growing Dividend: EXPN's dividend payments have increased over the past 10 years.


Current Payout to Shareholders

Dividend Coverage: With its reasonable payout ratio (53.3%), EXPN's dividend payments are covered by earnings.


Future Payout to Shareholders

Future Dividend Coverage: EXPN's dividends in 3 years are forecast to be well covered by earnings (43% payout ratio).


Next Steps

Management

How experienced are the management team and are they aligned to shareholders interests?

6.7yrs

Average management tenure


CEO

Brian Cassin (52 yo)

6.92yrs

Tenure

US$10,414,945

Compensation

Mr. Brian J. Cassin serves as Chief Executive Officer of Experian plc since July 16, 2014 and also serves as its Executive Director since April 30, 2012. He served as Chief Financial Officer of Experian pl...


CEO Compensation Analysis

Compensation vs Market: Brian's total compensation ($USD10.41M) is above average for companies of similar size in the UK market ($USD3.55M).

Compensation vs Earnings: Brian's compensation has been consistent with company performance over the past year.


Leadership Team

Experienced Management: EXPN's management team is seasoned and experienced (6.7 years average tenure).


Board Members

Experienced Board: EXPN's board of directors are considered experienced (5.8 years average tenure).


Ownership

Who are the major shareholders and have insiders been buying or selling?


Insider Trading Volume

Insider Buying: Insufficient data to determine if insiders have bought more shares than they have sold in the past 3 months.


Recent Insider Transactions

Ownership Breakdown

Dilution of Shares: Shareholders have not been meaningfully diluted in the past year.


Top Shareholders

Company Information

Experian plc's company bio, employee growth, exchange listings and data sources


Key Information

  • Name: Experian plc
  • Ticker: EXPN
  • Exchange: LSE
  • Founded: 1897
  • Industry: Research and Consulting Services
  • Sector: Commercial Services
  • Market Cap: UK£25.171b
  • Shares outstanding: 912.97m
  • Website: https://www.experianplc.com

Number of Employees


Location

  • Experian plc
  • Newenham House
  • Northern Cross
  • Dublin
  • Co. Dublin
  • 17
  • Ireland

Listings


Biography

Experian plc, together with its subsidiaries, operates as a technology company. The company operates through two segments, Business-to-Business and Consumer Services. It provides data services to identify ...


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2021/06/21 05:43
End of Day Share Price2021/06/18 00:00
Earnings2021/03/31
Annual Earnings2021/03/31


Unless specified all financial data is based on a yearly period but updated quarterly. This is known as Trailing Twelve Month (TTM) or Last Twelve Month (LTM) Data. Learn more here.