Equifax Inc
Find Ratings Reports
-0.82 |
-0.62%
EQUIFAX INC's gross profit margin for the second quarter of its fiscal year 2016 is essentially unchanged when compared to the same period a year ago. Sales and net income have grown, and although the growth in revenues has outpaced the average competitor within the industry, the net income growth has not. EQUIFAX INC has weak liquidity. Currently, the Quick Ratio is 0.56 which 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 17.24% from the same quarter last year. Overall, the key liquidity measurements indicate that the company is in a position in which financial difficulties could develop in the future.
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| Income Statement | Q2 FY16 | Q2 FY15 |
|---|---|---|
| Net Sales ($mil) | 811.3 | 678.1 |
| EBITDA ($mil) | 297.2 | 238.6 |
| EBIT ($mil) | 229.1 | 188.5 |
| Net Income ($mil) | 130.9 | 111.0 |
| Balance Sheet | Q2 FY16 | Q2 FY15 |
|---|---|---|
| Cash & Equiv. ($mil) | 117.3 | 124.6 |
| Total Assets ($mil) | 6640.8 | 4585.5 |
| Total Debt ($mil) | 2946.2 | 1480.9 |
| Equity ($mil) | 2541.5 | 2167.6 |
| Profitability | Q2 FY16 | Q2 FY15 |
|---|---|---|
| Gross Profit Margin | 64.77 | 67.44 |
| EBITDA Margin | 36.63 | 35.18 |
| Operating Margin | 28.24 | 27.8 |
| Sales Turnover | 0.43 | 0.56 |
| Return on Assets | 6.96 | 8.5 |
| Return on Equity | 18.2 | 17.99 |
| Debt | Q2 FY16 | Q2 FY15 |
|---|---|---|
| Current Ratio | 0.65 | 0.75 |
| Debt/Capital | 0.54 | 0.41 |
| Interest Expense | 23.6 | 16.2 |
| Interest Coverage | 9.71 | 11.64 |
| Share Data | Q2 FY16 | Q2 FY15 |
|---|---|---|
| Shares outstanding (mil) | 119.3 | 118.2 |
| Div / share | 0.33 | 0.29 |
| EPS | 1.08 | 0.92 |
| Book value / share | 21.3 | 18.34 |
| Institutional Own % | n/a | n/a |
| Avg Daily Volume | 606039.0 | 642912.0 |
BUY. The current P/E ratio indicates a discount compared to an average of 35.35 for the Professional Services industry and a premium compared to the S&P 500 average of 25.19. To use another comparison, its price-to-book ratio of 6.27 indicates a significant premium versus the S&P 500 average of 2.82 and a significant discount versus the industry average of 7.94. 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 |
|
Price/Cash Flow |
| |||||||||||||||||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| EFX 34.81 | Peers 35.35 | EFX 21.75 | Peers 17.10 | |||||||||||||||||||||
|
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. |
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 significant premium to its peers. |
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| Price/Projected Earnings |
|
Price to Earnings/Growth |
|
|||||||||||||||||||||
| EFX 22.28 | Peers 20.61 | EFX 0.68 | Peers 1.21 | |||||||||||||||||||||
|
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. |
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| Price/Book |
|
Earnings Growth |
|
|||||||||||||||||||||
| EFX 6.27 | Peers 7.94 | EFX 20.00 | Peers 101.70 | |||||||||||||||||||||
|
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. |
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| Price/Sales |
|
Sales Growth |
|
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| EFX 5.55 | Peers 3.70 | EFX 11.89 | Peers 41.32 | |||||||||||||||||||||
|
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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