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

Fundamentals

Second-rate dividend payer with concerning outlook.


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


Market Performance


7 Day Return

6.5%

EFX

2.9%

US Professional Services

3.4%

US Market


1 Year Return

16.5%

EFX

16.0%

US Professional Services

5.4%

US Market

Return vs Industry: EFX matched the US Professional Services industry which returned 16% over the past year.

Return vs Market: EFX exceeded the US Market which returned 5.4% over the past year.


Shareholder returns

EFXIndustryMarket
7 Day6.5%2.9%3.4%
30 Day2.6%0.04%-1.0%
90 Day5.1%0.9%-0.4%
1 Year18.0%16.5%17.1%16.0%7.7%5.4%
3 Year15.5%11.3%51.0%45.7%46.2%36.8%
5 Year106.1%94.0%87.2%77.2%65.6%47.5%

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?

6.89x

Price to Book (PB) ratio


Share Price vs. Fair Value

Undervalued: EFX ($144.96) is trading above our estimate of fair value ($140.29)

Significantly Undervalued: EFX is trading above our estimate of fair value.


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

Low 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 (6.9x) compared to the US Professional Services industry average (2.5x).


Next Steps

Future Growth

How is Equifax forecast to perform in the next 1 to 3 years based on estimates from 17 analysts?

107.0%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: EFX is forecast to remain unprofitable over the next 3 years.

Earnings vs Market: EFX is forecast to remain unprofitable over the next 3 years.

High Growth Earnings: EFX is forecast to remain unprofitable over the next 3 years.

Revenue vs Market: EFX's revenue (5.5% per year) is forecast to grow slower than the US market (7.3% per year).

High Growth Revenue: EFX's revenue (5.5% per year) is forecast to grow slower than 20% per year.


Earnings per Share Growth Forecasts


Future Return on Equity

High Future ROE: EFX's Return on Equity is forecast to be high in 3 years time (22.8%)


Next Steps

Past Performance

How has Equifax performed over the past 5 years?

-13.4%

Historical annual earnings growth


Earnings and Revenue History


Past Earnings Growth Analysis

Earnings Trend: EFX is unprofitable, and losses have increased over the past 5 years at a rate of -13.4% 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 (36.8%).


Return on Equity

High ROE: EFX has a negative Return on Equity (-16.22%), as it is currently unprofitable.


Return on Assets

ROA vs Industry: EFX is currently unprofitable, so its Return on Assets is negative.


Return on Capital Employed

ROCE Improving: EFX is currently unprofitable, so its Return on Capital Employed is negative.


Next Steps

Financial Health

How is Equifax's financial position?


Financial Position Analysis

Short Term Liabilities: EFX's short term assets ($813.8M) do not cover its short term liabilities ($1.5B)

Long Term Liabilities: EFX's short term assets (813.8M) do not cover its long term liabilities (3.4B)


Debt to Equity History and Analysis

Debt Level: EFX's debt to equity ratio (110.7%) is considered high

Reducing Debt: EFX's debt to equity ratio has increased from 63.7% to 110.7% over the past 5 years.

Debt Coverage: EFX's debt is not well covered by operating cash flow (19.7%).

Interest Coverage: EFX is unprofitable, therefore interest payments are not well covered by earnings.


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 0.3x debt).


Next Steps

Dividend

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

1.08%

Current Dividend Yield


Dividend Yield vs Market

company1.1%marketbottom25%1.5%markettop25%3.8%industryaverage1.5%forecastin3Years1.1%

Current dividend yield vs market & industry


Stability and Growth of Payments

Notable Dividend: EFX's dividend (1.08%) isn’t notable compared to the bottom 25% of dividend payers in the US market (1.46%).

High Dividend: EFX's dividend (1.08%) is low compared to the top 25% of dividend payers in the US market (3.77%).

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 (23.3% payout ratio).


Next Steps

Management

What is the CEO of Equifax's salary, the management and board of directors tenure and is there insider trading?

1.7yrs

Average management tenure


CEO

Mark Begor (61yo)

1.5yrs

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. He served as Managing Director of Industrial and Business Services Group at Warburg Pincus LLC sin ...


CEO Compensation Analysis

Compensation vs. Market: Mark has recently become CEO, making it difficult to compare their total compensation against companies of similar size in the US market.

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


Management Age and Tenure

1.7yrs

Average Tenure

57yo

Average Age

Experienced Management: EFX's management team is not considered experienced ( 1.7 years average tenure), which suggests a new team.


Board Age and Tenure

2.4yrs

Average Tenure

61.5yo

Average Age

Experienced Board: EFX's board of directors are not considered experienced ( 2.4 years average tenure), which suggests a new board.


Insider Trading

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


Ownership Breakdown


Management Team

  • Mark Begor (61yo)

    CEO & Director

    • Tenure: 1.5yrs
    • Compensation: US$20.01m
  • John Kelley (58yo)

    Corporate VP

    • Tenure: 6.8yrs
    • Compensation: US$3.24m
  • John Gamble (56yo)

    Corporate VP & CFO

    • Tenure: 5.4yrs
    • Compensation: US$3.88m
  • Paulino do Rego Barros (63yo)

    Executive

    • Tenure: 0.7yrs
    • Compensation: US$4.27m
  • Bryson Koehler (43yo)

    Chief Technology Officer

    • Tenure: 1.3yrs
    • Compensation: US$6.38m
  • Mark Rohrwasser

    Chief Information Officer for Equifax international business unit

    • Tenure: 2.1yrs
  • Jamil Farshchi (41yo)

    Chief Information Security Officer

    • Tenure: 1.7yrs
    • Compensation: US$3.89m
  • Trevor Burns

    Senior Vice President of Investor relations

    • Tenure: 1.8yrs
  • James Griggs

    Chief Accounting Officer & Corporate Controller

    • Tenure: 1.1yrs
  • Kent Lindner

    Senior Vice President of Enterprise Risk & Compliance

    • Tenure: 0yrs

Board Members

  • Bob Selander (69yo)

    Independent Director

    • Tenure: 1.6yrs
    • Compensation: US$422.62k
  • Mark Feidler (62yo)

    Independent Chairman of the Board

    • Tenure: 2.1yrs
    • Compensation: US$330.41k
  • Siri Marshall (70yo)

    Independent Director

    • Tenure: 13.2yrs
    • Compensation: US$287.77k
  • Mark Begor (61yo)

    CEO & Director

    • Tenure: 1.5yrs
    • Compensation: US$20.01m
  • John McKinley (61yo)

    Independent Director

    • Tenure: 11yrs
    • Compensation: US$290.40k
  • Rob Marcus (53yo)

    Independent Director

    • Tenure: 5.9yrs
    • Compensation: US$290.40k
  • Scott McGregor (63yo)

    Independent Director

    • Tenure: 2yrs
    • Compensation: US$277.49k
  • Tom Hough (64yo)

    Independent Director

    • Tenure: 3yrs
    • Compensation: US$296.41k
  • Elane Stock (54yo)

    Independent Director

    • Tenure: 2.8yrs
    • Compensation: US$293.57k
  • Heather Wilson (47yo)

    Independent Director

    • Tenure: 0.7yrs

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$17.523b
  • Shares outstanding: 120.88m
  • Website: https://www.equifax.com

Number of Employees


Location

  • Equifax Inc.
  • 1550 Peachtree Street, N.W.
  • 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

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. Informatio ...


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2019/10/15 23:35
End of Day Share Price2019/10/15 00:00
Earnings2019/06/30
Annual Earnings2018/12/31


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.