Equifax Inc

EFX

Services-Consumer Credit Reporting, Collection Agencies

Mkt Cap

$29.25B

PE

52.43

Debt

$6.534B

Cash

$201M

EV

$35.58B

FCF

$643.7M

Market Cap

$29.25B

P/E Ratio

52.43

Debt

$6.534B

Cash

$201M

EV

$35.58B

FCF

$643.7M

Charts data: {"Earnings":[{"time":"2014-12-30","value":367400000},{"time":"2015-12-30","value":429100000},{"time":"2016-12-30","value":488800000},{"time":"2017-12-30","value":587300000},{"time":"2018-12-30","value":299800000},{"time":"2019-12-30","value":-398800000},{"time":"2020-12-30","value":520100000},{"time":"2021-12-30","value":744200000},{"time":"2022-12-30","value":696200000},{"time":"2023-12-30","value":545300000}],"Sales":[{"time":"2014-12-30","value":2436400000},{"time":"2015-12-30","value":2663600000},{"time":"2016-12-30","value":3144900000},{"time":"2017-12-30","value":3362200000},{"time":"2018-12-30","value":3412100000},{"time":"2019-12-30","value":3507600000},{"time":"2020-12-30","value":4127500000},{"time":"2021-12-30","value":4923900000},{"time":"2022-12-30","value":5122200000},{"time":"2023-12-30","value":5265200000}],"Net Margins":[{"time":"2014-12-30","value":0.15079625677228697},{"time":"2015-12-30","value":0.1610977624267908},{"time":"2016-12-30","value":0.1554262456675888},{"time":"2017-12-30","value":0.17467729462851705},{"time":"2018-12-30","value":0.08786377890448697},{"time":"2019-12-30","value":-0.11369597445546813},{"time":"2020-12-30","value":0.12600847970926712},{"time":"2021-12-30","value":0.1511403562216942},{"time":"2022-12-30","value":0.13591816016555386},{"time":"2023-12-30","value":0.10356681607536276}],"Assets":[{"time":"2014-12-30","value":4674200000},{"time":"2015-12-30","value":4509000000},{"time":"2016-12-30","value":6664000000},{"time":"2017-12-30","value":7233400000},{"time":"2018-12-30","value":7153200000},{"time":"2019-12-30","value":7909000000},{"time":"2020-12-30","value":9611800000},{"time":"2021-12-30","value":11040900000},{"time":"2022-12-30","value":11547900000},{"time":"2023-12-30","value":12280000000}],"Stockholders Equity":[{"time":"2014-12-30","value":2234600000},{"time":"2015-12-30","value":2350400000},{"time":"2016-12-30","value":2721300000},{"time":"2017-12-30","value":3239000000},{"time":"2018-12-30","value":3155700000},{"time":"2019-12-30","value":2622900000},{"time":"2020-12-30","value":3210300000},{"time":"2021-12-30","value":3601200000},{"time":"2022-12-30","value":3973300000},{"time":"2023-12-30","value":4552400000}],"ROE":[{"time":"2014-12-30","value":0.16441421283451177},{"time":"2015-12-30","value":0.1825646698434309},{"time":"2016-12-30","value":0.17962003454231434},{"time":"2017-12-30","value":0.18132139549243595},{"time":"2018-12-30","value":0.09500269353867605},{"time":"2019-12-30","value":-0.15204544588051394},{"time":"2020-12-30","value":0.1620097810173504},{"time":"2021-12-30","value":0.2066533377762968},{"time":"2022-12-30","value":0.17521959076837892},{"time":"2023-12-30","value":0.1197829716193656}],"ROA":[{"time":"2014-12-30","value":0.13752085918445936},{"time":"2015-12-30","value":0.1553337768906631},{"time":"2016-12-30","value":0.12309423769507803},{"time":"2017-12-30","value":0.11604501341001465},{"time":"2018-12-30","value":0.06427892411787732},{"time":"2019-12-30","value":-0.04062460488051587},{"time":"2020-12-30","value":0.0860192679831041},{"time":"2021-12-30","value":0.10307130759267813},{"time":"2022-12-30","value":0.09144519782817655},{"time":"2023-12-30","value":0.07602605863192183}]}

Equifax Inc. operates as a data, analytics, and technology company. The company operates through three segments: Workforce Solutions, U.S. Information Solutions (USIS), and International. The Workforce Solutions segment offers services that enables customers to verify income, employment, educational history, criminal justice data, healthcare professional licensure, and sanctions of people in the United States; and employer customers with services that assist them in complying with and automating payroll-related and human resource management processes throughout the entire cycle of the employment relationship. The USIS segment provides consumer and commercial information services, such as credit information and credit scoring, credit modeling and portfolio analytics, locate, fraud detection and prevention, identity verification, and other consulting services; mortgage services; financial marketing services; identity management services; and credit monitoring products. The International segment offers information service products, which include consumer and commercial services, such as credit and financial information, and credit scoring and modeling; and credit and other marketing products and services, as well as offers information, technology, and other services to support debt collections and recovery management. The company serves customers in financial services, mortgage, retail, telecommunications, utilities, automotive, brokerage, healthcare, and insurance industries, as well as government agencies. It operates in the United States, Canada, Australia, New Zealand, India, the United Kingdom, Spain, Portugal, Argentina, Chile, Costa Rica, Dominican Republic, Ecuador, El Salvador, Honduras, Mexico, Paraguay, Peru, Uruguay, and the Republic of Ireland. The company was founded in 1899 and is headquartered in Atlanta, Georgia.

Sector

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10-K
12/31/17

DCF

Discounted Cash Flow Valuation of Equifax Inc

Calculate

Growth Years

Growth

Start

End

Discount

Start

End

Multiple

g\r	+10%	+11%	+12%	+13%	+14%
0%	10	9	8	8	7
+1%	11	10	9	8	8
+2%	13	11	10	9	8
+3%	14	13	11	10	9
+4%	17	14	12	11	10

Years	0	1	2	3	4	5	6	7	8	9	10	TV
FCF	$643.7M	$619.1M	$595.5M	$572.8M	$550.9M	$529.9M	$509.6M	$490.2M	$471.5M	$453.5M	$436.2M	$4.362B
DCF		$538.4M	$450.3M	$376.6M	$315M	$263.4M	$220.3M	$184.3M	$154.1M	$128.9M	$107.8M	$1.078B
Value	$3.817B

Chart P/E ratio

In the chart Earnings are multiplied by this value.

Earnings Growth 4.4%

Earnings Stability 12%

Competitiveness and MOAT

High margins render the company resilient under dire circumstances, hence able to drive competitors out or acquire them. ROE and ROA measure the average flow generated by each invested dollar. Their marginal value is a forecast of future growth, and it is considered by Buffett and Munger the most important single indicator.

The Net Margin is high enough to offer a good protection on the profits in case of higher costs or higher interests. Furthermore higher margins reduce earnings’ volatility.

Over time the ROA has been increasing indicating a higher marginal ROA with respect to the calculated one, giving a good sign for continued growth.

Years	12-2015	12-2016	12-2017	12-2018	12-2019	12-2020	12-2021	12-2022	12-2023	TTM
Net Margin	16%	16%	17%	8.8%	-11%	13%	15%	14%	10%	10%
ROA	16%	12%	12%	6.4%	-4.1%	8.6%	10%	9.1%	7.6%	7.8%
ROE	18%	18%	18%	9.5%	-15%	16%	21%	18%	12%	12%

What is the average Net Margin?

The average Net Margin over the past 5 years is +8.18%.

What is the trend of Net Margin?

The trend of Net Margin over the past 5 years is +2.44%.

What is the average Return on Assets (ROA)?

The average ROA over the past 5 years is +6.34%.

What is the trend of Return on Assets (ROA)?

The trend of ROA over the past 5 years is +1.35%.

What is the average Return on Equity (ROE)?

The average ROE over the past 5 years is +10.11%.

What is the trend of Return on Equity (ROE)?

The trend of ROE over the past 5 years is +3.29%.

Safety & Stabiliy

Being debt the number one cause of investment losses and company death, the ratio Debt/FCF is of utmost importance to guarantee safety. On the other hand the Graham’s stability measures the drawdown of earnings, hence indicating the reliability of the flow generated by the company.

The company has high debt with respect to the cashflow it generates.

The Graham’s stability indicate a relevant drawdown, consider checking when it has occured and why.

Years	12-2015	12-2016	12-2017	12-2018	12-2019	12-2020	12-2021	12-2022	12-2023	TTM
Debt FCF	2.09	5.26	6.16	7.59	-39.70	10.48	7.10	51.16	13.01	10.15
Debt Equity	0.53	1.20	1.14	0.84	1.30	1.71	1.71	1.71	1.47	1.43
MIN
Graham Stability	-	-	100%	60%	-87%	100%	100%	100%	83%	-87%

What is the Debt/FCF?

The Debt/FCF trailing twelve month is 10.15.

What is the trend of Debt/FCF?

The trend of Debt/FCF over the past 5 years is 8.47.

What is the Graham’s Stability?

Graham’s Stability measure stands at -0.87.

Growth

Growth can be dangerous when forecasting, simply projecting the current growth is in general wrong. A company passes through multiple phases, from being young and unprofitable, to the first periods of profitability and high growth, until it arrives at a period of regime with limited growth. Identifying in which phase the company is in may help forecasting.

Earnings growth has not been increasing in the past years.

Years	12-2016	12-2018	12-2020	12-2022	Trend
Revenue	7.6%	9.1%	8.5%	2.8%	-0.46%
Net Income	1.6%	13%	1.6%	-22%	-2%
Stockholders Equity	7.6%	7.6%	12%	15%	0.54%
FCF	-2.7%	8%	-0.6%	290%	18%

What is the 5 year Revenue CAGR?

The Revenue CAGR over the past 5 years is +9.06%.

What is the trend of Revenue growth?

The trend of Revenue growth rate over the past 5 years is -0.46%.

What is the 5 year Earnings CAGR?

The Earnings CAGR over the past 5 years is +12.71%.

What is the trend of Earnings growth?

The trend of Earnings growth rate over the past 5 years is -2%.

What is the 5 year Equity CAGR?

The Equity CAGR over the past 5 years is +7.6%.

What is the trend of Equity growth?

The trend of Equity growth rate over the past 5 years is +0.54%.

What is the 5 year FCF CAGR?

The FCF CAGR over the past 5 years is +8.03%.

What is the trend of FCF growth?

The trend of FCF growth rate over the past 5 years is +17.86%.