Equifax IncFind Ratings Reports
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 0.45 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 ($mil)||801.1||666.3|
|Net Income ($mil)||123.0||111.9|
|Balance Sheet||Q4 FY16||Q4 FY15|
|Cash & Equiv. ($mil)||129.3||123.5|
|Total Assets ($mil)||6664.0||4509.0|
|Total Debt ($mil)||2672.2||1195.2|
|Profitability||Q4 FY16||Q4 FY15|
|Gross Profit Margin||64.26||66.23|
|Return on Assets||7.33||9.51|
|Return on Equity||18.35||18.56|
|Debt||Q4 FY16||Q4 FY15|
|Share Data||Q4 FY16||Q4 FY15|
|Shares outstanding (mil)||119.9||118.7|
|Div / share||0.33||0.29|
|Book value / share||22.21||19.47|
|Institutional Own %||n/a||n/a|
|Avg Daily Volume||854914.0||717594.0|
BUY. The current P/E ratio indicates a discount compared to an average of 37.72 for the Professional Services industry and a premium compared to the S&P 500 average of 26.35. To use another comparison, its price-to-book ratio of 5.85 indicates a significant premium versus the S&P 500 average of 2.94 and a significant discount versus the industry average of 8.34. 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.
|EFX 32.24||Peers 37.72||EFX 19.86||Peers 19.06|
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.
|EFX 19.39||Peers 20.49||EFX 0.65||Peers 4.16|
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.
|EFX 5.85||Peers 8.34||EFX 13.20||Peers 28.91|
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.
|EFX 4.95||Peers 3.77||EFX 18.06||Peers 32.09|
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