Equifax Inc
Find Ratings ReportsEQUIFAX INC's gross profit margin for the first quarter of its fiscal year 2017 is essentially unchanged when compared to the same period a year ago. The company managed to grow both sales and net income at a faster pace than the average competitor in its industry this quarter as compared to the same quarter a year ago. EQUIFAX INC has very weak liquidity. Currently, the Quick Ratio is 0.49 which clearly shows a lack of ability to cover short-term cash needs. The company's liquidity has increased from the same period last year, indicating improving cash flow.
During the same period, stockholders' equity ("net worth") has increased by 16.11% 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 FY17 | Q1 FY16 |
|---|---|---|
| Net Sales ($mil) | 832.2 | 728.3 |
| EBITDA ($mil) | 299.8 | 247.7 |
| EBIT ($mil) | 228.5 | 192.0 |
| Net Income ($mil) | 153.3 | 102.1 |
| Balance Sheet | Q1 FY17 | Q1 FY16 |
|---|---|---|
| Cash & Equiv. ($mil) | 123.2 | 126.1 |
| Total Assets ($mil) | 6789.0 | 6732.9 |
| Total Debt ($mil) | 2669.2 | 3069.2 |
| Equity ($mil) | 2888.1 | 2487.3 |
| Profitability | Q1 FY17 | Q1 FY16 |
|---|---|---|
| Gross Profit Margin | 63.85 | 65.22 |
| EBITDA Margin | 36.02 | 34.01 |
| Operating Margin | 27.46 | 26.36 |
| Sales Turnover | 0.48 | 0.41 |
| Return on Assets | 7.95 | 6.57 |
| Return on Equity | 18.69 | 17.8 |
| Debt | Q1 FY17 | Q1 FY16 |
|---|---|---|
| Current Ratio | 0.59 | 0.36 |
| Debt/Capital | 0.48 | 0.55 |
| Interest Expense | 24.2 | 19.4 |
| Interest Coverage | 9.44 | 9.9 |
| Share Data | Q1 FY17 | Q1 FY16 |
|---|---|---|
| Shares outstanding (mil) | 120.2 | 119.0 |
| Div / share | 0.39 | 0.33 |
| EPS | 1.26 | 0.85 |
| Book value / share | 24.03 | 20.9 |
| Institutional Own % | n/a | n/a |
| Avg Daily Volume | 563239.0 | 797521.0 |
BUY. The current P/E ratio indicates a discount compared to an average of 39.77 for the Professional Services industry and a premium compared to the S&P 500 average of 25.75. To use another comparison, its price-to-book ratio of 5.78 indicates a significant premium versus the S&P 500 average of 3.09 and a significant discount versus the industry average of 8.17. 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 |
|
Price/Cash Flow |
| |||||||||||||||||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| EFX 31.29 | Peers 39.77 | EFX 20.61 | Peers 19.44 | |||||||||||||||||||||
|
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. |
Average. 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 valuation on par to its peers. |
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| Price/Projected Earnings |
|
Price to Earnings/Growth |
|
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| EFX 20.60 | Peers 20.71 | EFX 0.63 | Peers 0.95 | |||||||||||||||||||||
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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. |
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| Price/Book |
|
Earnings Growth |
|
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| EFX 5.78 | Peers 8.17 | EFX 20.65 | Peers 25.52 | |||||||||||||||||||||
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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 significant discount to its peers. |
Lower. Elevated earnings growth rates can lead to capital appreciation and justify higher price-to-earnings ratios. However, EFX is expected to trail its peers on the basis of its earnings growth rate. |
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| Price/Sales |
|
Sales Growth |
|
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| EFX 5.14 | Peers 4.11 | EFX 18.56 | Peers 9.38 | |||||||||||||||||||||
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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 premium to its industry on this measurement. |
Higher. A sales growth rate that exceeds the industry implies that a company is gaining market share. EFX has a sales growth rate that significantly exceeds its peers. |
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