Equifax Inc

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EFX : NYSE : Financial
$139.43 | %
Today's Range: 0.0 - 0.0
Avg. Daily Volume: 567000.0
06/26/17 - 4:02 PM ET

Financial Analysis


EQUIFAX 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 ($mil)832.2728.3
EBITDA ($mil)299.8247.7
EBIT ($mil)228.5192.0
Net Income ($mil)153.3102.1


Balance Sheet Q1 FY17 Q1 FY16
Cash & Equiv. ($mil)123.2126.1
Total Assets ($mil)6789.06732.9
Total Debt ($mil)2669.23069.2
Equity ($mil)2888.12487.3


Profitability Q1 FY17 Q1 FY16
Gross Profit Margin63.8565.22
EBITDA Margin36.0234.01
Operating Margin27.4626.36
Sales Turnover0.480.41
Return on Assets7.956.57
Return on Equity18.6917.8
Debt Q1 FY17 Q1 FY16
Current Ratio0.590.36
Debt/Capital0.480.55
Interest Expense24.219.4
Interest Coverage9.449.9


Share Data Q1 FY17 Q1 FY16
Shares outstanding (mil)120.2119.0
Div / share0.390.33
EPS1.260.85
Book value / share24.0320.9
Institutional Own % n/a n/a
Avg Daily Volume563239.0797521.0

Valuation


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
1 2 3 4 5
premium   discount
  Price/Cash Flow
1 2 3 4 5
premium   discount
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.

 
Price/Projected
Earnings
1 2 3 4 5
premium   discount
  Price to
Earnings/Growth
1 2 3 4 5
premium   discount
EFX 20.60 Peers 20.71   EFX 0.63 Peers 0.95

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 5.78 Peers 8.17   EFX 20.65 Peers 25.52

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 5.14 Peers 4.11   EFX 18.56 Peers 9.38

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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