Equifax has moved -2.0% Friday, and is now selling at a price of $225.99 per share. In contrast, the S&P 500 index moved -1.1%. Read below for a basic value analysis of Equifax.
Equifax shares moved -3.5% over the last 52 weeks, with a high of $243.79 and a low of $145.98. During this time, the stock outperformed the S&P 500 index by 4.3%. As of January 2022, the company's 50-day average price is $205.0. Equifax Inc. provides information solutions and human resources business process automation outsourcing services for businesses, governments, and consumers. The large-cap credit reporting company has 12,700 full time employees and is based in Atlanta, GA. Equifax has returned a 0.7% dividend yield over the last 12 months.
The Company Is Highly Leveraged:
| 2019-12-31 | 2020-12-31 | 2021-12-31 | |
|---|---|---|---|
| Revenue (MM) | $3,508 | $4,128 | $4,924 |
| Revenue Growth | n/a | 17.67% | 19.29% |
| Gross Margins | 56.6% | 57.9% | 59.8% |
| Gross Margins Growth | n/a | 2.3% | 3.28% |
| Operating Margins | -9.6% | 16.4% | 23.1% |
| Operating Margins Growth | n/a | 270.83% | 40.85% |
| Earnings Per Share | -$3.3 | $4.24 | $6.02 |
| EPS Growth | n/a | 228.48% | 41.98% |
| Free Cash Flow (MM) | -$86 | $525 | $866 |
| FCF Growth | n/a | 711.77% | 64.95% |
| Capital Expenditures (MM) | -$400 | -$421 | -$469 |
| Net Debt / EBITDA | 186.33 | 2.2 | 3.2 |
Equifax Is Overpriced:
Compared to the Industrials sector's average of 21.46, Equifax has a trailing twelve month P/E ratio of 39.3 and, according to its EPS guidance of 7.56, an expected P/E ratio of 29.9. Equifax's PEG ratio is 0.4 based on its 98.67% annual average growth rate of historical and projected earnings per share. However, we believe that it is more prudent to calculate the PEG ratio using the broader market's 5-year expected EPS growth rate of 13.05%, because the growth rate implied by Equifax's past and expected EPS is probably not sustainable. This more prudent approach shows a PEG ratio of 3.01, which suggests that the company's shares are actually overvalued.
Equifax's P/B ratio is 7.4 compared to its sector average of 3.7. The company is likely overvalued in terms of its net asset value. The company's shares are currently trading 464.4% above their fair value as expressed by Benjamin Graham's formula:
√(22.5 * 3-year average EPS * book value per share) = √(22.5 * 2.32 * 30.711) = $40.04
Equifax Is the Subject of Mixed Market Indicators:
18 analysts are following Equifax and have set target prices ranging from $150 to $235 per share. On average, they have given the company a rating of buy. At the current price of $225.99, EFX is trading 8.65% away from its average analyst target price of $208 per share, implying an analyst consensus of little upside potential for the stock.
The company has an average amount of shares sold short since 4.3% of the company's shares are tied to short positions. Institutions own 96.1% of Equifax's shares, while the insider ownership rate stands at 0.4%. The biggest shareholder is the Vanguard Group, Inc. with a 11% stake in the company worth approximately $3,013,573,785.
