Equifax Inc

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EFX : NYSE : Financial
$135.78 | %
Today's Range: 134.64 - 136.00
Avg. Daily Volume: 694,000
07/22/16 - 4:02 PM ET

Financial Analysis


EQUIFAX INC's gross profit margin for the first 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 0.32 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 15.83% 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 FY16 Q1 FY15
Net Sales ($mil)728.3651.8
EBITDA ($mil)247.7224.5
EBIT ($mil)192.0174.9
Net Income ($mil)102.188.3


Balance Sheet Q1 FY16 Q1 FY15
Cash & Equiv. ($mil)126.1142.1
Total Assets ($mil)6732.94595.0
Total Debt ($mil)3069.21523.3
Equity ($mil)2487.32147.3


Profitability Q1 FY16 Q1 FY15
Gross Profit Margin65.2267.0
EBITDA Margin34.0134.44
Operating Margin26.3626.83
Sales Turnover0.410.54
Return on Assets6.578.09
Return on Equity17.817.31
Debt Q1 FY16 Q1 FY15
Current Ratio0.360.74
Debt/Capital0.550.42
Interest Expense19.416.1
Interest Coverage9.910.86


Share Data Q1 FY16 Q1 FY15
Shares outstanding (mil)119.0119.0
Div / share0.330.29
EPS0.850.73
Book value / share20.918.04
Institutional Own % n/a n/a
Avg Daily Volume684408.0803894.0

Valuation


BUY. EQUIFAX INC's P/E ratio indicates a discount compared to an average of 39.64 for the Professional Services industry and a significant premium compared to the S&P 500 average of 25.03. Conducting a second comparison, its price-to-book ratio of 6.39 indicates a significant premium versus the S&P 500 average of 2.80 and a premium versus the industry average of 5.81. The price-to-sales ratio is well above both the S&P 500 average and the industry average, indicating a premium.


Price/Earnings
1 2 3 4 5
premium   discount
  Price/Cash Flow
1 2 3 4 5
premium   discount
EFX 36.31 Peers 39.64   EFX 21.74 Peers 22.18

Average. An average P/E ratio can signify an industry neutral price for a stock and an average growth expectation.

EFX is trading at a valuation on par with 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 22.94 Peers 19.51   EFX 0.77 Peers 2.00

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 significant 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 6.39 Peers 5.81   EFX 21.45 Peers 17.99

Average. 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 valuation on par with its peers.

 

Higher. Elevated earnings growth rates can lead to capital appreciation and justify higher price-to-earnings ratios.

EFX is expected to have an earnings growth rate that exceeds its peers.

 
Price/Sales
1 2 3 4 5
premium   discount
  Sales Growth
1 2 3 4 5
premium   discount
EFX 5.80 Peers 3.18   EFX 9.44 Peers 13.31

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

 

 

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