Equifax (EFX) AI Stock Analysis

• Market Cap: $26.87B
• Dividend Yield: 0.7%
• Average Volume (3M): 1.24M
• Price to Earnings (P/E): 44.5
• Beta (1Y): 1.46
• Revenue Growth: 7.90%
• EPS Growth: 10.00%
• Country: US
• Employees: 14,700
• Sector: Industrials
• Sector Strength: 66
• Industry: Consulting Services
• EPS (TTM): 4.83
• Shares Outstanding: 124,798,690
• 10 Day Avg. Volume: 1,383,737
• 30 Day Avg. Volume: 1,239,026
• PEG Ratio: 4.45
• Price to Book (P/B): N/A
• Price to Sales (P/S): 5.33
• Price to Cash Flow (P/CF): 23.30
• P/FCF Ratio: 36.70
• Enterprise Value/Market Cap: N/A
• Enterprise Value/Revenue: N/A
• Enterprise Value/Gross Profit: N/A
• Enterprise Value/Ebitda: N/A
• 1Y Price Target: $281.14
• Price Target Upside: 14.71% Upside
• Rating Consensus: Strong Buy
• Number of Analyst Covering: 16

Equifax shows strong financial performance and growth potential, driven by cloud transformation and strategic partnerships. However, high leverage and valuation concerns could affect future performance. The mixed technical indicators and challenges in key markets also introduce uncertainty. Overall, Equifax is positioned positively but faces notable risks.

Positive Factors

Financial Performance

Equifax’s first-quarter results came in nicely above expectations across all key metrics.

Shareholder Returns

Equifax increased its quarterly dividend by 28%, to $0.50 per share, and authorized a new $3 billion, four-year share repurchase program.

Negative Factors

Geographical Challenges

There is a bit of erosion in Canada and the U.K., which seems to be driven by macroeconomic factors.

Macroeconomic Uncertainty

Elevated macroeconomic uncertainty prevented management from raising full-year guidance despite first-quarter outperformance.

Equifax Business Overview & Revenue Model

Company Description

Equifax Inc. (EFX) is a global data, analytics, and technology company that specializes in providing information solutions to businesses, governments, and consumers. Operating primarily in the financial services, automotive, telecommunications, utilities, and retail sectors, Equifax offers a wide range of services including credit reporting, identity verification, fraud detection, and credit risk scoring. The company's core products and services are designed to help clients make informed decisions by leveraging data insights and analytics.

How the Company Makes Money

Equifax makes money through a diversified revenue model that includes several key streams. The company's primary source of revenue comes from providing credit information and analytics services to businesses, which includes selling credit reports, credit scores, and other financial data products. Equifax also generates revenue through subscription-based services for identity verification and fraud prevention solutions. Additionally, the company earns income from its workforce solutions division, which offers employment and income verification services. Significant partnerships with financial institutions, government agencies, and other enterprises amplify their data offerings and expand their market reach. The company further benefits from its global presence, allowing it to capture revenue from various international markets.

Equifax Financial Statement Overview

Summary

Equifax exhibits strong financial health with robust revenue growth and improving profitability. While the company has managed to leverage its assets effectively, high debt levels remain a concern. Cash flow management is solid, though past volatility suggests a need for ongoing monitoring. Overall, Equifax's financial trajectory is positive, with significant improvements in key areas.

Income Statement

Equifax has demonstrated strong revenue growth with a consistent increase from $3.51 billion in 2019 to $5.68 billion in 2024. The gross profit margin has improved, reaching 100% in 2024, indicating an efficient cost structure. Net income has grown significantly, leading to an improved net profit margin. EBIT and EBITDA margins have remained strong, highlighting profitability. However, the low gross profit in earlier years suggests past inefficiencies that have been addressed.

Balance Sheet

Equifax's debt-to-equity ratio has improved, but remains relatively high, reflecting significant leverage that could pose risks if not managed carefully. The return on equity has increased due to rising net income, indicating efficient use of equity. The equity ratio has stabilized, suggesting a balanced asset financing approach. However, the high debt levels warrant caution.

Cash Flow

Free cash flow has shown substantial growth, enhancing the company's ability to reinvest and pay down debt. Operating cash flow consistently exceeds net income, indicating strong cash generation capabilities. The free cash flow to net income ratio has improved, reflecting effective cash management. Despite improvements, cash flow fluctuations in prior years highlight the need for sustained stability.

Breakdown
Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement		Total Revenue
5.68B	5.27B	5.12B	4.92B	4.13B
	Gross Profit
3.16B	2.93B	2.94B	2.94B	2.39B
	EBIT
1.04B	933.60M	1.06B	1.14B	676.60M
	EBITDA
1.72B	1.58B	1.67B	1.58B	1.22B
	Net Income Common Stockholders
604.10M	545.30M	696.20M	744.20M	520.10M
Balance Sheet		Cash, Cash Equivalents and Short-Term Investments
169.90M	216.80M	285.20M	224.70M	1.68B
	Total Assets
11.76B	12.28B	11.55B	11.04B	9.61B
	Total Debt
5.01B	5.71B	5.79B	5.29B	4.38B
	Net Debt
4.84B	5.49B	5.50B	5.07B	2.69B
	Total Liabilities
6.84B	7.59B	7.57B	7.44B	6.40B
	Stockholders Equity
4.80B	4.53B	3.96B	3.58B	3.17B
Cash Flow		Free Cash Flow
813.00M	515.50M	132.60M	865.80M	524.90M
	Operating Cash Flow
1.32B	1.12B	757.10M	1.33B	946.20M
	Investing Cash Flow
-511.50M	-878.20M	-959.50M	-3.40B	-492.70M
	Financing Cash Flow
-846.40M	-306.20M	273.70M	628.90M	810.80M

Equifax Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 245.08
• 50DMA: Positive
• 100DMA: Negative
• 200DMA: Negative
• MACD: Negative
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For EFX, the sentiment is Positive. The current price of 245.08 is above the 20-day moving average (MA) of 228.67, above the 50-day MA of 238.04, and below the 200-day MA of 263.99, indicating a neutral trend. The MACD of -4.28 indicates Negative momentum. The RSI at 58.18 is Neutral, neither overbought nor oversold. The STOCH value of 74.33 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for EFX.

Equifax Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
EFX	75 Outperform	$26.87B	44.51	12.95%	0.70%	7.90%	10.00%
TRU	66 Neutral	$13.80B	48.90	6.91%	0.59%	9.20%	―
Sector *	62 Neutral	$4.13B	11.17	5.46%	215.76%	4.12%	-8.54%
VRSK	61 Neutral	$40.85B	43.51	463.98%	0.55%	7.47%	59.46%

Equifax Corporate Events

Equifax CEO Mark Begor Continues Leadership Beyond 2025

Equifax Inc. announced that CEO Mark W. Begor will continue his leadership beyond 2025, highlighting his successful transformation of the company’s technology and expansion of its data assets. Under Begor’s leadership, Equifax has seen a 50% revenue growth and a significant rise in market capitalization. With a focus on leveraging cloud technology and innovation, Equifax aims to drive growth and enhance shareholder returns.