Equifax Inc.
Find Ratings Reports
-3.87 |
-3.23%
EQUIFAX INC's gross profit margin for the first quarter of its fiscal year 2018 has decreased when compared to the same period a year ago. Even though sales increased, the net income has decreased. EQUIFAX INC has very weak liquidity. Currently, the Quick Ratio is 0.48 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 13.38% 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 FY18 | Q1 FY17 |
|---|---|---|
| Net Sales ($mil) | 865.7 | 832.2 |
| EBITDA ($mil) | 222.4 | 301.6 |
| EBIT ($mil) | 144.2 | 230.3 |
| Net Income ($mil) | 90.9 | 153.3 |
| Balance Sheet | Q1 FY18 | Q1 FY17 |
|---|---|---|
| Cash & Equiv. ($mil) | 249.3 | 123.2 |
| Total Assets ($mil) | 7196.1 | 6789.0 |
| Total Debt ($mil) | 2628.1 | 2669.2 |
| Equity ($mil) | 3274.7 | 2888.1 |
| Profitability | Q1 FY18 | Q1 FY17 |
|---|---|---|
| Gross Profit Margin | 60.4 | 63.85 |
| EBITDA Margin | 25.69 | 36.24 |
| Operating Margin | 16.66 | 27.67 |
| Sales Turnover | 0.47 | 0.48 |
| Return on Assets | 7.29 | 7.95 |
| Return on Equity | 16.02 | 18.69 |
| Debt | Q1 FY18 | Q1 FY17 |
|---|---|---|
| Current Ratio | 0.6 | 0.59 |
| Debt/Capital | 0.45 | 0.48 |
| Interest Expense | 23.9 | 24.2 |
| Interest Coverage | 6.03 | 9.52 |
| Share Data | Q1 FY18 | Q1 FY17 |
|---|---|---|
| Shares outstanding (mil) | 120.3 | 120.2 |
| Div / share | 0.39 | 0.39 |
| EPS | 0.75 | 1.26 |
| Book value / share | 27.22 | 24.03 |
| Institutional Own % | n/a | n/a |
| Avg Daily Volume | 1117971.0 | 1209997.0 |
BUY. The current P/E ratio indicates a discount compared to an average of 33.34 for the Professional Services industry and a premium compared to the S&P 500 average of 24.02. Conducting a second comparison, its price-to-book ratio of 4.40 indicates a premium versus the S&P 500 average of 3.12 and a significant discount versus the industry average of 7.73. The price-to-sales ratio is well above the S&P 500 average, but well below the industry average. 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 |
|
Price/Cash Flow |
| |||||||||||||||||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| EFX 27.74 | Peers 33.34 | EFX 17.30 | Peers 21.52 | |||||||||||||||||||||
|
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. |
Discount. 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 discount to its peers. |
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| Price/Projected Earnings |
|
Price to Earnings/Growth |
|
|||||||||||||||||||||
| EFX 18.61 | Peers 22.34 | EFX 1.22 | Peers 2.35 | |||||||||||||||||||||
|
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. |
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| Price/Book |
|
Earnings Growth |
|
|||||||||||||||||||||
| EFX 4.40 | Peers 7.73 | EFX -2.71 | Peers 54.09 | |||||||||||||||||||||
|
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. |
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| Price/Sales |
|
Sales Growth |
|
|||||||||||||||||||||
| EFX 4.25 | Peers 4.76 | EFX 4.52 | Peers 11.74 | |||||||||||||||||||||
|
Discount. 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 discount to its industry on this measurement. |
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 |
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