Equifax Inc

Find Ratings Reports
EFX : NYSE : Financial
$139.89 | %
Today's Range: 139.73 - 141.002
Avg. Daily Volume: 519700.0
08/18/17 - 4:02 PM ET

Financial Analysis


EQUIFAX INC's gross profit margin for the second quarter of its fiscal year 2017 is essentially unchanged when compared to the same period a year ago. The company has grown its sales and net income during the past quarter when compared with the same quarter a year ago, and although its growth in net income has outpaced the industry average, its revenue growth has not. EQUIFAX INC has weak liquidity. Currently, the Quick Ratio is 0.64 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 18.86% 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.

STOCKS TO BUY: TheStreet Quant Ratings has identified a handful of stocks that can potentially TRIPLE in the next 12-months. To learn more visit www.TheStreetRatings.com.



Income Statement Q2 FY17 Q2 FY16
Net Sales ($mil)856.8811.3
EBITDA ($mil)334.6297.2
EBIT ($mil)264.1229.1
Net Income ($mil)165.4130.9


Balance Sheet Q2 FY17 Q2 FY16
Cash & Equiv. ($mil)403.9117.3
Total Assets ($mil)7058.36640.8
Total Debt ($mil)2832.32946.2
Equity ($mil)3021.02541.5


Profitability Q2 FY17 Q2 FY16
Gross Profit Margin65.7164.77
EBITDA Margin39.0536.63
Operating Margin30.8228.24
Sales Turnover0.470.43
Return on Assets8.136.96
Return on Equity19.0118.2
Debt Q2 FY17 Q2 FY16
Current Ratio0.740.65
Debt/Capital0.480.54
Interest Expense24.623.6
Interest Coverage10.749.71


Share Data Q2 FY17 Q2 FY16
Shares outstanding (mil)120.4119.3
Div / share0.390.33
EPS1.361.08
Book value / share25.0921.3
Institutional Own % n/a n/a
Avg Daily Volume524018.0665318.0

Valuation


BUY. The current P/E ratio indicates a discount compared to an average of 36.51 for the Professional Services industry and a premium compared to the S&P 500 average of 24.31. To use another comparison, its price-to-book ratio of 5.66 indicates a significant premium versus the S&P 500 average of 3.03 and a significant discount versus the industry average of 8.13. 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 30.10 Peers 36.51   EFX 20.21 Peers 19.55

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 21.05 Peers 20.68   EFX 0.60 Peers 0.70

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 discount to its peers.

 
Price/Book
1 2 3 4 5
premium   discount
  Earnings Growth
1 2 3 4 5
lower   higher
EFX 5.66 Peers 8.13   EFX 22.91 Peers 26.95

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.

 
Price/Sales
1 2 3 4 5
premium   discount
  Sales Growth
1 2 3 4 5
premium   discount
EFX 5.19 Peers 3.97   EFX 14.65 Peers 11.23

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.

 

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.

 

 

Latest Stock Upgrades/Downgrades