Equifax Inc.

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EFX : NYSE : Commercial Services
$113.83 -1.72 | -1.49%
Today's Range: 113.79 - 116.755
Avg. Daily Volume: 1128600.0
02/21/18 - 4:00 PM ET

Financial Analysis


EQUIFAX INC's gross profit margin for the third quarter of its fiscal year 2017 is essentially unchanged when compared to the same period a year ago. Even though sales increased, the net income has decreased. EQUIFAX INC has weak liquidity. Currently, the Quick Ratio is 0.58 which 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 12.90% from the same quarter last year. Overall, the key liquidity measurements indicate that the company is in a position in which financial difficulties could develop in the future.

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Income Statement Q3 FY17 Q3 FY16
Net Sales ($mil)834.8804.2
EBITDA ($mil)225.3289.1
EBIT ($mil)152.9218.4
Net Income ($mil)96.3132.8


Balance Sheet Q3 FY17 Q3 FY16
Cash & Equiv. ($mil)315.4135.3
Total Assets ($mil)7115.76806.6
Total Debt ($mil)2706.52843.0
Equity ($mil)3100.42746.1


Profitability Q3 FY17 Q3 FY16
Gross Profit Margin64.3964.19
EBITDA Margin26.9835.94
Operating Margin18.3227.16
Sales Turnover0.470.44
Return on Assets7.567.01
Return on Equity17.3517.39
Debt Q3 FY17 Q3 FY16
Current Ratio0.670.51
Debt/Capital0.470.51
Interest Expense21.324.3
Interest Coverage7.188.99


Share Data Q3 FY17 Q3 FY16
Shares outstanding (mil)120.0119.6
Div / share0.390.33
EPS0.791.09
Book value / share25.8422.96
Institutional Own % n/a n/a
Avg Daily Volume1166208.04039424.0

Valuation


BUY. EQUIFAX INC's P/E ratio indicates a discount compared to an average of 30.62 for the Professional Services industry and a value on par with the S&P 500 average of 25.51. Conducting a second comparison, its price-to-book ratio of 4.54 indicates a premium versus the S&P 500 average of 3.26 and a significant discount versus the industry average of 8.12. The current price-to-sales ratio is well above the S&P 500 average and above 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 26.51 Peers 30.62   EFX 16.00 Peers 17.48

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.

 
Price/Projected
Earnings
1 2 3 4 5
premium   discount
  Price to
Earnings/Growth
1 2 3 4 5
premium   discount
EFX 19.59 Peers 19.72   EFX 0.57 Peers 0.98

Average. An average price-to-projected earnings ratio can signify an industry neutral stock price and average future growth expectations.

EFX is trading at a valuation on par with 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 4.54 Peers 8.12   EFX 11.89 Peers 48.17

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 significantly trail its peers on the basis of its earnings growth rate.

 
Price/Sales
1 2 3 4 5
premium   discount
  Sales Growth
1 2 3 4 5
premium   discount
EFX 4.23 Peers 3.90   EFX 10.45 Peers 11.27

Average. 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 valuation on par with its industry on this measurement.

 

Average. Comparing a company's sales growth to its industry helps to determine if the company is adding or losing market share.

EFX is keeping pace with its peers on the basis of sales growth.

 

 

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