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Equifax Inc
EFX : NYSE : Financial
$120.32 | %
Today's Range: 0.00 - 0.00
Avg. Daily Volume: 744,500
04/28/16 - 4:04 PM ET

Financial Analysis


EQUIFAX INC's gross profit margin for the first quarter of its fiscal year 2016 is essentially unchanged when compared to the same period a year ago. Sales and net income have grown, and although the growth in revenues has outpaced the average competitor within the industry, the net income growth has not. EQUIFAX INC has very weak liquidity. Currently, the Quick Ratio is 0.30 which clearly shows a lack of ability to cover short-term cash needs. The liquidity decreased from the same period a year ago, despite already having weak liquidity to begin with. This would indicate deteriorating cash flow.

During the same period, stockholders' equity ("net worth") has increased by 15.83% from the same quarter last year. The key liquidity measurements indicate that the company is in a position in which financial difficulties could develop in the near future.

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Income Statement Q1 FY16 Q1 FY15
Net Sales ($mil)728.3651.8
EBITDA ($mil)247.7224.5
EBIT ($mil)192.0174.9
Net Income ($mil)102.188.3


Balance Sheet Q1 FY16 Q1 FY15
Cash & Equiv. ($mil)96.8142.1
Total Assets ($mil)6732.94595.0
Total Debt ($mil)3069.21523.3
Equity ($mil)2487.32147.3


Profitability Q1 FY16 Q1 FY15
Gross Profit Margin65.2267.0
EBITDA Margin34.0134.44
Operating Margin26.3626.83
Sales Turnover0.410.54
Return on Assets6.578.09
Return on Equity17.817.31
Debt Q1 FY16 Q1 FY15
Current Ratio0.360.74
Debt/Capital0.550.42
Interest Expense19.416.1
Interest Coverage9.910.86


Share Data Q1 FY16 Q1 FY15
Shares outstanding (mil)119.0119.0
Div / share0.330.29
EPS0.850.73
Book value / share20.918.04
Institutional Own % n/a n/a
Avg Daily Volume755338.0716706.0

Valuation


BUY. The current P/E ratio indicates a discount compared to an average of 38.38 for the Professional Services industry and a premium compared to the S&P 500 average of 24.22. For additional comparison, its price-to-book ratio of 5.67 indicates a significant premium versus the S&P 500 average of 2.76 and a discount versus the industry average of 6.39. The price-to-sales ratio is well above both the S&P 500 average and the industry average, indicating a premium. Upon assessment of these and other key valuation criteria, EQUIFAX INC proves to trade at a discount to investment alternatives within the industry.


Price/Earnings
1 2 3 4 5
premium   discount
  Price/Cash Flow
1 2 3 4 5
premium   discount
EFX 32.23 Peers 38.38   EFX 19.30 Peers 22.49

Discount. A lower P/E ratio than its peers can signify a less expensive stock or lower growth expectations.

EFX is trading at a discount to its peers.

 

Discount. The P/CF ratio, a stock’s price divided by the company's cash flow from operations, is useful for comparing companies with different capital requirements or financing structures.

EFX is trading at a discount to its peers.

 
Price/Projected
Earnings
1 2 3 4 5
premium   discount
  Price to
Earnings/Growth
1 2 3 4 5
premium   discount
EFX 20.99 Peers 19.43   EFX 0.77 Peers 1.10

Premium. A higher price-to-projected earnings ratio than its peers can signify a more expensive stock or higher future growth expectations.

EFX is trading at a premium to its peers.

 

Discount. The PEG ratio is the stock’s P/E divided by the consensus estimate of long-term earnings growth. Faster growth can justify higher price multiples.

EFX trades at a significant discount to its peers.

 
Price/Book
1 2 3 4 5
premium   discount
  Earnings Growth
1 2 3 4 5
lower   higher
EFX 5.67 Peers 6.39   EFX 21.45 Peers 15.62

Discount. A lower price-to-book ratio makes a stock more attractive to investors seeking stocks with lower market values per dollar of equity on the balance sheet.

EFX is trading at a discount to its peers.

 

Higher. Elevated earnings growth rates can lead to capital appreciation and justify higher price-to-earnings ratios.

EFX is expected to have an earnings growth rate that significantly exceeds its peers.

 
Price/Sales
1 2 3 4 5
premium   discount
  Sales Growth
1 2 3 4 5
premium   discount
EFX 5.15 Peers 3.25   EFX 9.44 Peers 10.96

Premium. In the absence of P/E and P/B multiples, the price-to-sales ratio can display the value investors are placing on each dollar of sales.

EFX is trading at a significant premium to its industry.

 

Lower. A sales growth rate that trails the industry implies that a company is losing market share.

EFX trails its peers on the basis of sales growth

 

 

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