Now trading at a price of $248.46, Equifax has moved 0.3% so far today.
Equifax returned losses of -18.5% last year, with its stock price reaching a high of $309.63 and a low of $199.98. Over the same period, the stock underperformed the S&P 500 index by -34.1%. AThe company's 50-day average price was $252.23. Equifax Inc. operates as a data, analytics, and technology company. Based in Atlanta, GA, the Large-Cap Finance company has 15,000 full time employees. Equifax has offered a 0.7% dividend yield over the last 12 months.
Growing Revenues but Not Enough Current Assets to Cover Current Liabilities:
| 2019 | 2020 | 2021 | 2022 | 2023 | 2024 | |
|---|---|---|---|---|---|---|
| Revenue (M) | $3,508 | $4,128 | $4,924 | $5,122 | $5,265 | $5,681 |
| Interest Income (M) | $112 | $142 | $146 | $183 | $241 | $215 |
| Operating Margins | -10% | 16% | 23% | 21% | 18% | 18% |
| Net Margins | -11% | 13% | 15% | 14% | 10% | 11% |
| Net Income (M) | -$384 | $520 | $744 | $696 | $545 | $604 |
| Depreciation & Amort. (M) | $331 | $391 | $480 | $560 | $611 | $670 |
| Diluted Shares (M) | 122 | 123 | 124 | 123 | 124 | 125 |
| Earnings Per Share | -$3.15 | $4.24 | $6.02 | $5.65 | $4.4 | $4.84 |
| EPS Growth | n/a | 234.6% | 41.98% | -6.15% | -22.12% | 10.0% |
| Avg. Price | $123.86 | $152.91 | $231.95 | $214.59 | $247.29 | $247.6 |
| P/E Ratio | -38.95 | 35.73 | 37.96 | 37.71 | 55.7 | 50.74 |
| Free Cash Flow (M) | -$86 | $525 | $866 | $133 | $516 | $813 |
| CAPEX (M) | $400 | $421 | $469 | $624 | $601 | $512 |
| EV / EBITDA | -4175.53 | 20.94 | 21.12 | 20.23 | 23.81 | 21.17 |
| Total Debt (M) | $3,406 | $5,503 | $6,150 | $6,784 | $6,705 | $5,725 |
| Net Debt / EBITDA | -698.81 | 3.58 | 3.66 | 4.02 | 4.2 | 3.25 |
| Current Ratio | 0.89 | 1.0 | 0.49 | 0.68 | 0.67 | 0.75 |
Equifax has growing revenues and increasing reinvestment in the business and generally positive cash flows. Additionally, the company's financial statements display decent operating margins with a positive growth rate and a strong EPS growth trend. However, the firm has not enough current assets to cover current liabilities because its current ratio is 0.75. Finally, we note that Equifax has significant leverage levels.
Equifax's Valuation Is in Line With Its Sector Averages:
Equifax has a trailing twelve month P/E ratio of 49.2, compared to an average of 15.92 for the Finance sector. Based on its EPS guidance of $9.41, the company has a forward P/E ratio of 26.8. Equifax's PEG ratio is 3.44 on the basis of the 14.3% weighted average of the company and the broader market's EPS compound average growth rates. This suggests that the company's shares are overvalued. Furthermore, Equifax is likely overvalued compared to the book value of its equity, since its P/B ratio of 6.03 is higher than the sector average of 1.78. The company's shares are currently trading 284.2% below their Graham number. Ultimately, Equifax's strong cash flows, decent earnings multiple, and healthy debt levels factor towards it being fairly valued, its elevated P/B ratio notwithstanding.
There's an Analyst Consensus of Some Upside Potential for Equifax:
The 20 analysts following Equifax have set target prices ranging from $240.0 to $300.0 per share, for an average of $280.5 with a buy rating. The company is trading -11.4% away from its average target price, indicating that there is an analyst consensus of some upside potential.
Equifax has an average amount of shares sold short because 3.0% of the company's shares are sold short. Institutions own 98.0% of the company's shares, and the insider ownership rate stands at 0.51%, suggesting a small amount of insider investors. The largest shareholder is Vanguard Group Inc, whose 12% stake in the company is worth $3,718,676,819.
