NYSE:EFX

Stock Analysis Report

Executive Summary

Equifax Inc. provides information solutions and human resources business process outsourcing services for businesses, governments, and consumers.


Snowflake Analysis

Reasonable growth potential second-rate dividend payer.


Similar Companies

Share Price & News

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


Latest Share Price and Events

Stable Share Price: EFX's share price has been volatile over the past 3 months.


Market Performance


7 Day Return

-6.7%

EFX

-2.5%

US Professional Services

-1.1%

US Market


1 Year Return

-7.8%

EFX

-11.4%

US Professional Services

-13.6%

US Market

Return vs Industry: EFX exceeded the US Professional Services industry which returned -11.4% over the past year.

Return vs Market: EFX exceeded the US Market which returned -13.6% over the past year.


Shareholder returns

EFXIndustryMarket
7 Day-6.7%-2.5%-1.1%
30 Day-25.0%-20.2%-17.8%
90 Day-20.6%-21.5%-22.5%
1 Year-6.8%-7.8%-10.7%-11.4%-11.9%-13.6%
3 Year-13.4%-16.6%17.2%13.5%12.1%4.9%
5 Year29.6%22.1%32.1%25.0%30.5%16.3%

Price Volatility Vs. Market

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


Simply Wall St News

Valuation

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

35.4%

Undervalued compared to fair value


Share Price vs. Fair Value

Below Fair Value: EFX ($113.47) is trading below our estimate of fair value ($175.73)

Significantly Below Fair Value: EFX is trading below fair value by more than 20%.


Price To Earnings Ratio

PE vs Industry: EFX is unprofitable, so we can't compare its PE Ratio to the Professional Services industry average.

PE vs Market: EFX is unprofitable, so we can't compare its PE Ratio to the US market.


Price to Earnings Growth Ratio

PEG Ratio: Insufficient data to calculate EFX's PEG Ratio to determine if it is good value.


Price to Book Ratio

PB vs Industry: EFX is overvalued based on its PB Ratio (5.3x) compared to the US Professional Services industry average (1.7x).


Next Steps

Future Growth

How is Equifax forecast to perform in the next 1 to 3 years based on estimates from 19 analysts?

77.1%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: EFX is forecast to become profitable over the next 3 years, which is considered faster growth than the savings rate (1.7%).

Earnings vs Market: EFX is forecast to become profitable over the next 3 years, which is considered above average market growth.

High Growth Earnings: EFX's is expected to become profitable in the next 3 years.

Revenue vs Market: EFX's revenue (5.7% per year) is forecast to grow slower than the US market (7.2% per year).

High Growth Revenue: EFX's revenue (5.7% per year) is forecast to grow slower than 20% per year.


Earnings per Share Growth Forecasts


Future Return on Equity

Future ROE: EFX's Return on Equity is forecast to be high in 3 years time (21.1%)


Next Steps

Past Performance

How has Equifax performed over the past 5 years?

-30.8%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: EFX is currently unprofitable.

Growing Profit Margin: EFX is currently unprofitable.


Past Earnings Growth Analysis

Earnings Trend: EFX is unprofitable, and losses have increased over the past 5 years at a rate of -30.8% per year.

Accelerating Growth: Unable to compare EFX's earnings growth over the past year to its 5-year average as it is currently unprofitable

Earnings vs Industry: EFX is unprofitable, making it difficult to compare its past year earnings growth to the Professional Services industry (13.9%).


Return on Equity

High ROE: EFX has a negative Return on Equity (-14.98%), as it is currently unprofitable.


Next Steps

Financial Health

How is Equifax's financial position?


Financial Position Analysis

Short Term Liabilities: EFX's short term assets ($1.2B) do not cover its short term liabilities ($1.4B).

Long Term Liabilities: EFX's short term assets ($1.2B) do not cover its long term liabilities ($3.9B).


Debt to Equity History and Analysis

Debt Level: EFX's debt to equity ratio (129%) is considered high.

Reducing Debt: EFX's debt to equity ratio has increased from 68.3% to 129% over the past 5 years.


Balance Sheet

Inventory Level: EFX has a low level of unsold assets or inventory.

Debt Coverage by Assets: EFX's debt is not covered by short term assets (assets are 0.4x debt).


Cash Runway Analysis

For companies that have on average been loss making in the past we assess whether they have at least 1 year of cash runway.

Stable Cash Runway: EFX has been profitable on average in the past, therefore cash runway is not a concern.

Forecast Cash Runway: EFX has been profitable on average in the past, therefore cash runway is not a concern.


Next Steps

Dividend

What is Equifax's current dividend yield, its reliability and sustainability?

1.37%

Current Dividend Yield


Dividend Yield vs Market

Notable Dividend: EFX's dividend (1.37%) isn’t notable compared to the bottom 25% of dividend payers in the US market (2%).

High Dividend: EFX's dividend (1.37%) is low compared to the top 25% of dividend payers in the US market (5.56%).


Stability and Growth of Payments

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

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


Current Payout to Shareholders

Dividend Coverage: EFX is paying a dividend but the company is unprofitable.


Future Payout to Shareholders

Future Dividend Coverage: EFX's dividends in 3 years are forecast to be well covered by earnings (24.2% payout ratio).


Next Steps

Management

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

2.2yrs

Average management tenure


CEO

Mark Begor (61yo)

2s

Tenure

US$20,013,712

Compensation

Mr. Mark W. Begor serves as the Chief Executive Officer and Director of Equifax Inc. since April 16, 2018. Mr. Begor has been Independent Director at NCR Corporation since February 2020. He brings a strong ...


CEO Compensation Analysis

Compensation vs Market: Mark's total compensation ($USD20.01M) is above average for companies of similar size in the US market ($USD11.86M).

Compensation vs Earnings: Insufficient data to compare Mark's compensation with company performance.


Leadership Team

NamePositionTenureCompensationOwnership
Mark Begor
CEO & Director2yrsUS$20.01m0.0071% $986.8k
John Gamble
Corporate VP & CFO5.92yrsUS$3.88m0.039% $5.4m
Bryson Koehler
Chief Technology Officer1.83yrsUS$6.38m0.0070% $970.2k
John Kelley
Corporate VP7.25yrsUS$3.24m0.013% $1.8m
Jamil Farshchi
Chief Information Security Officer2.17yrsUS$3.89m0.0094% $1.3m
James Griggs
Chief Accounting Officer & Corporate Controller1.58yrsno data0.0039% $534.2k
Mark Rohrwasser
Chief Information Officer for Equifax international business unit2.58yrsno datano data
Trevor Burns
Senior Vice President of Investor relations2.25yrsno datano data
Kent Lindner
Senior Vice President of Enterprise Risk & Complianceno datano datano data
Amanda Rosseter
Chief Communications Officer0.83yrno datano data

2.2yrs

Average Tenure

56yo

Average Age

Experienced Management: EFX's management team is considered experienced (2.2 years average tenure).


Board Members

NamePositionTenureCompensationOwnership
Mark Begor
CEO & Director2yrsUS$20.01m0.0071% $986.8k
Robert Selander
Independent Director2.08yrsUS$422.62k0.0013% $174.4k
Mark Feidler
Independent Chairman of the Board2.58yrsUS$330.41k0.015% $2.1m
Siri Marshall
Independent Director13.67yrsUS$287.77k0.000030% $4.2k
John McKinley
Independent Director11.5yrsUS$290.40k0.0079% $1.1m
Robert Marcus
Independent Director6.42yrsUS$290.40k0.0083% $1.2m
Scott McGregor
Independent Director2.5yrsUS$277.49k0.0013% $174.4k
G. Hough
Independent Director3.5yrsUS$296.41k0.0044% $606.2k
Elane Stock
Independent Director3.25yrsUS$293.57k0.0035% $484.4k
Heather Wilson
Independent Director1.17yrsno datano data

2.9yrs

Average Tenure

61.5yo

Average Age

Experienced Board: EFX's board of directors are not considered experienced ( 2.9 years average tenure), which suggests a new board.


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.


Ownership Breakdown

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


Top Shareholders

Company Information

Equifax Inc.'s company bio, employee growth, exchange listings and data sources


Key Information

  • Name: Equifax Inc.
  • Ticker: EFX
  • Exchange: NYSE
  • Founded: 1899
  • Industry: Research and Consulting Services
  • Sector: Commercial Services
  • Market Cap: US$13.840b
  • Shares outstanding: 121.97m
  • Website: https://www.equifax.com

Number of Employees


Location

  • Equifax Inc.
  • 1550 Peachtree Street, NW
  • Atlanta
  • Georgia
  • 30309
  • United States

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
EFXNYSE (New York Stock Exchange)YesCommon StockUSUSDJan 1969
EFXDB (Deutsche Boerse AG)YesCommon StockDEEURJan 1969
0II3LSE (London Stock Exchange)YesCommon StockGBUSDJan 1969
EFXBRSE (Berne Stock Exchange)YesCommon StockCHCHFJan 1969
E1FX34BOVESPA (Bolsa de Valores de Sao Paulo)BDR EACH 4 REPR 1 COMBRBRLJan 2020

Biography

Equifax Inc. provides information solutions and human resources business process outsourcing services for businesses, governments, and consumers. The company operates through four segments: U.S. Information Solutions (USIS), Workforce Solutions, International, and Global Consumer Solutions. The USIS segment offers consumer and commercial information services, such as credit information and credit scoring, credit modeling and portfolio analytics, locate, fraud detection and prevention, identity verification, and other consulting; mortgage services; financial marketing; and identity management services. The Workforce Solutions segment provides employment, income, and social security number verification services, as well as payroll-based transaction and employment tax management services. The International segment provides information service products, which include consumer and commercial services, such as credit and financial information, and credit scoring and modeling; and credit and other marketing products and services, as well as offers information, technology, and other services to support debt collections and recovery management. The Global Consumer Solutions segment offers credit information, credit monitoring, and identity theft protection products directly to consumers through Internet. The company serves customers in financial service, mortgage, employers, consumer, commercial, telecommunication, retail, automotive, utility, brokerage, healthcare, and insurance industries, as well as state and federal governments. It operates in the United States, Canada, Australia, New Zealand, India, the United Kingdom, Spain, Portugal, Argentina, Chile, Costa Rica, Ecuador, El Salvador, Honduras, Mexico, Paraguay, Peru, Uruguay, Brazil, the Republic of Ireland, Russia, Cambodia, Malaysia, Singapore, and the United Arab Emirates. Equifax Inc. was founded in 1899 and is headquartered in Atlanta, Georgia. 


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2020/04/02 01:08
End of Day Share Price2020/04/01 00:00
Earnings2019/12/31
Annual Earnings2019/12/31


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.