New Lifetime High Reached By Equifax (EFX)

Editor's Note: Any reference to TheStreet Ratings and its underlying recommendation does not reflect the opinion of TheStreet, Inc. or any of its contributors including Jim Cramer or Stephanie Link.

Trade-Ideas LLC identified Equifax ( EFX) as a new lifetime high candidate. In addition to specific proprietary factors, Trade-Ideas identified Equifax as such a stock due to the following factors:

  • EFX has an average dollar-volume (as measured by average daily share volume multiplied by share price) of $43.1 million.
  • EFX has traded 168,058 shares today.
  • EFX is trading at a new lifetime high.

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More details on EFX:

Equifax Inc. collects, organizes, and manages various financial, demographic, employment, and marketing information solutions for businesses and consumers. The company's U.S. The stock currently has a dividend yield of 1.3%. EFX has a PE ratio of 27.2. Currently there are 5 analysts that rate Equifax a buy, no analysts rate it a sell, and 3 rate it a hold.

The average volume for Equifax has been 639,000 shares per day over the past 30 days. Equifax has a market cap of $8.2 billion and is part of the financial sector and financial services industry. The stock has a beta of 0.85 and a short float of 2% with 3.78 days to cover. Shares are up 26.2% year-to-date as of the close of trading on Monday.

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TheStreetRatings.com Analysis:

TheStreet Quant Ratings rates Equifax as a buy. The company's strengths can be seen in multiple areas, such as its revenue growth, largely solid financial position with reasonable debt levels by most measures, expanding profit margins, good cash flow from operations and increase in stock price during the past year. We feel these strengths outweigh the fact that the company has had somewhat disappointing return on equity.

Highlights from the ratings report include:
  • The stock has risen over the past year as investors have generally rewarded the company for its earnings growth and other positive factors like the ones we have cited in this report. Turning our attention to the future direction of the stock, it goes without saying that even the best stocks can fall in an overall down market. However, in any other environment, this stock still has good upside potential despite the fact that it has already risen in the past year.
  • EQUIFAX INC has improved earnings per share by 6.3% in the most recent quarter compared to the same quarter a year ago. The company has demonstrated a pattern of positive earnings per share growth over the past two years. We feel that this trend should continue. During the past fiscal year, EQUIFAX INC increased its bottom line by earning $2.19 versus $1.88 in the prior year. This year, the market expects an improvement in earnings ($3.61 versus $2.19).
  • Despite its growing revenue, the company underperformed as compared with the industry average of 19.3%. Since the same quarter one year prior, revenues slightly increased by 10.0%. This growth in revenue appears to have trickled down to the company's bottom line, improving the earnings per share.
  • The debt-to-equity ratio is somewhat low, currently at 0.66, and is less than that of the industry average, implying that there has been a relatively successful effort in the management of debt levels. Along with the favorable debt-to-equity ratio, the company maintains an adequate quick ratio of 1.32, which illustrates the ability to avoid short-term cash problems.
  • The gross profit margin for EQUIFAX INC is rather high; currently it is at 65.59%. It has increased from the same quarter the previous year. Along with this, the net profit margin of 14.59% is above that of the industry average.

STOCKS TO BUY: TheStreet Quant Ratings has identified a handful of stocks that can potentially TRIPLE in the next 12 months. Learn more.
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