Equifax IncFind Ratings Reports
EQUIFAX INC's gross profit margin for the third quarter of its fiscal year 2016 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 0.44 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 23.25% 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||Q3 FY16||Q3 FY15|
|Net Sales ($mil)||804.2||667.4|
|Net Income ($mil)||132.8||117.9|
|Balance Sheet||Q3 FY16||Q3 FY15|
|Cash & Equiv. ($mil)||135.3||142.4|
|Total Assets ($mil)||6806.6||4541.4|
|Total Debt ($mil)||2843.0||1332.7|
|Profitability||Q3 FY16||Q3 FY15|
|Gross Profit Margin||64.19||66.06|
|Return on Assets||7.01||9.14|
|Return on Equity||17.39||18.63|
|Debt||Q3 FY16||Q3 FY15|
|Share Data||Q3 FY16||Q3 FY15|
|Shares outstanding (mil)||119.6||118.3|
|Div / share||0.33||0.29|
|Book value / share||22.96||18.83|
|Institutional Own %||n/a||n/a|
|Avg Daily Volume||894275.0||570051.0|
BUY. The current P/E ratio indicates a discount compared to an average of 36.22 for the Professional Services industry and a premium compared to the S&P 500 average of 25.49. To use another comparison, its price-to-book ratio of 5.26 indicates a significant premium versus the S&P 500 average of 2.84 and a significant discount versus the industry average of 7.45. 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.
|EFX 30.60||Peers 36.22||EFX 19.81||Peers 17.42|
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.
Premium. 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 premium to its peers.
|EFX 20.01||Peers 20.37||EFX 0.56||Peers 6.07|
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.
|EFX 5.26||Peers 7.45||EFX 15.16||Peers 62.78|
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.
|EFX 4.80||Peers 3.70||EFX 14.80||Peers 33.26|
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 significantly trails its peers on the basis of sales growth