Equifax Inc.
Equifax Inc. Fundamental Analysis
Equifax Inc. (EFX) shows moderate financial fundamentals with a PE ratio of 36.05, profit margin of 10.87%, and ROE of 13.46%. The company generates $6.1B in annual revenue with moderate year-over-year growth of 7.90%.
Key Strengths
Areas of Concern
The stock receives a Fundamental Health Score of 55.5/100 based on profitability, valuation, growth, and balance sheet metrics. The C grade reflects average fundamentals, with notable risks in certain areas.
Fundamental Health Score
We analyze EFX's fundamental strength across five key dimensions:
Efficiency Score
WeakEFX struggles to generate sufficient returns from assets.
Valuation Score
WeakEFX trades at a premium to fair value.
Growth Score
ModerateEFX shows steady but slowing expansion.
Financial Health Score
WeakEFX carries high financial risk with limited liquidity.
Profitability Score
WeakEFX struggles to sustain strong margins.
Key Financial Metrics
Is EFX Expensive or Cheap?
P/E Ratio
EFX trades at 36.05 times earnings. This suggests a premium valuation.
PEG Ratio
When adjusting for growth, EFX's PEG of 38.28 indicates potential overvaluation.
Price to Book
The market values Equifax Inc. at 5.17 times its book value. This suggests the stock is fully valued or overvalued on an asset basis.
EV/EBITDA
Enterprise value stands at 10.45 times EBITDA. This signals the market has high growth expectations.
How Well Does EFX Make Money?
Net Profit Margin
For every $100 in sales, Equifax Inc. keeps $10.87 as profit after all expenses.
Operating Margin
Core operations generate 18.03 in profit for every $100 in revenue, before interest and taxes.
ROE
Management delivers $13.46 in profit for every $100 of shareholder equity.
ROA
Equifax Inc. generates $5.57 in profit for every $100 in assets, demonstrating efficient asset deployment.
Following the Money - Real Cash Generation
Operating Cash Flow
Equifax Inc. generates strong operating cash flow of $1.63B, reflecting robust business health.
Free Cash Flow
Equifax Inc. generates strong free cash flow of $1.14B, providing ample flexibility for dividends, buybacks, or growth.
FCF Per Share
Each share generates $9.34 in free cash annually.
FCF Yield
EFX converts 4.71% of its market value into free cash.
Financial Ratios Analysis
Valuation Ratios
P/E Ratio
Price to earnings ratio
36.05
vs 25 benchmark
PEG Ratio
Price/earnings to growth ratio
38.28
vs 25 benchmark
P/B Ratio
Price to book value ratio
5.17
vs 25 benchmark
P/S Ratio
Price to sales ratio
3.95
vs 25 benchmark
Financial Health
Debt/Equity
Total debt to shareholders' equity
1.11
vs 25 benchmark
Current Ratio
Current assets to current liabilities
0.60
vs 25 benchmark
Efficiency Ratios
ROE
Return on equity percentage
0.13
vs 25 benchmark
ROA
Return on assets percentage
0.06
vs 25 benchmark
ROCE
Return on capital employed
0.11
vs 25 benchmark
How EFX Stacks Against Its Sector Peers
| Metric | EFX Value | Sector Average | Performance |
|---|---|---|---|
| P/E Ratio | 36.05 | 26.71 | Worse (Expensive) |
| ROE | 13.46% | 1311.00% | Weak |
| Net Margin | 10.87% | -29317.00% (disorted) | Strong |
| Debt/Equity | 1.11 | 0.75 | Weak (High Leverage) |
| Current Ratio | 0.60 | 10.53 | Weak Liquidity |
| ROA | 5.57% | -1537638.00% (disorted) | Weak |
EFX outperforms its industry in 1 out of 6 key metrics, particularly excelling in Net Margin, but lagging in P/E Ratio.
Historical Growth Performance
5-Year Growth Trajectory
This section reviews Equifax Inc.'s 5-year compound annual growth rate (CAGR) and compares its performance against the typical investment style of its industry.
Revenue CAGR
58.17%
Industry Style: Cyclical, Value, Infrastructure
High GrowthEPS CAGR
253.59%
Industry Style: Cyclical, Value, Infrastructure
High GrowthFCF CAGR
312.20%
Industry Style: Cyclical, Value, Infrastructure
High Growth