Equifax Inc

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EFX : NYSE : Financial
$138.74 -0.73 | -0.52%
Today's Range: 138.46 - 139.89
Avg. Daily Volume: 737700.0
04/26/17 - 3:59 PM ET

Financial Analysis


EQUIFAX INC's gross profit margin for the fourth 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 0.47 which clearly shows a lack of ability to cover short-term cash needs. The company's liquidity has decreased from the same period last year.

During the same period, stockholders' equity ("net worth") has increased by 15.22% 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 Q4 FY16 Q4 FY15
Net Sales ($mil)801.1666.3
EBITDA ($mil)285.1229.5
EBIT ($mil)214.4180.6
Net Income ($mil)123.0111.9


Balance Sheet Q4 FY16 Q4 FY15
Cash & Equiv. ($mil)157.3123.5
Total Assets ($mil)6664.04509.0
Total Debt ($mil)2672.21195.2
Equity ($mil)2662.72310.9


Profitability Q4 FY16 Q4 FY15
Gross Profit Margin64.2666.23
EBITDA Margin35.5834.44
Operating Margin26.7627.1
Sales Turnover0.470.59
Return on Assets7.339.51
Return on Equity18.3518.56
Debt Q4 FY16 Q4 FY15
Current Ratio0.530.93
Debt/Capital0.50.34
Interest Expense24.115.7
Interest Coverage8.911.5


Share Data Q4 FY16 Q4 FY15
Shares outstanding (mil)119.9118.7
Div / share0.330.29
EPS1.010.93
Book value / share22.2119.47
Institutional Own % n/a n/a
Avg Daily Volume752659.0940113.0

Valuation


BUY. The current P/E ratio indicates a discount compared to an average of 38.64 for the Professional Services industry and a premium compared to the S&P 500 average of 24.92. To use another comparison, its price-to-book ratio of 6.18 indicates a significant premium versus the S&P 500 average of 2.99 and a significant discount versus the industry average of 7.97. 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 34.07 Peers 38.64   EFX 20.69 Peers 18.60

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.

 
Price/Projected
Earnings
1 2 3 4 5
premium   discount
  Price to
Earnings/Growth
1 2 3 4 5
premium   discount
EFX 20.51 Peers 19.88   EFX 0.68 Peers 1.69

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 6.18 Peers 7.97   EFX 13.20 Peers 34.06

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 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 5.23 Peers 3.91   EFX 18.06 Peers 13.79

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.

 

 

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