Equifax Stock Analysis, Valuation (NYSE:EFX)

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$117.46 $0.29 (0.25%) EFX stock closing price Feb 16, 2018 (Closing)
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Equifax
Updated on : Feb 16, 2018
previous close
EFX 117.5 (0%)
S&P 500 2732.2 (0%)
Closing Price On: Feb 16, 2018
stock rating
RATING: ★★★★★★★★★★ (0/5)
Industry :
Financial Transaction Services
Sector :
Business Services
5 Quarter Revenue
Revenue Growth
2017-Q3
$million
%
YOY GROWTH
Compared to the industry
Operating Profit
Operating Margin:
25.2%
Sector Average:
8.4%
5 Quarter Net Profit
Net Margins
2017-Q3
%
LTM Margin
Compared to the industry
Cash Flow
Operating cash flow:
$279.6M
Net Income:
$96.3M
Dividend Yield
EFX dividend yield:
1.28%
PROS      CONS
Operating Margins
Net Margins
Cash Flow
ROIC
ROE
FCF Margin
PS Valuation
Rating: ★★★★★★★★★★ (0/5)
Relative Valuation
EFX PS :
4.2
Industry PS :
1.7
Sector:   Business Services.   *PE adjusted for one time items.
Other Metrics
Return on Invested Capital:
10.6%
Return on Equity:
18.3%
Free Cash Flow Margin:
26.6%
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Equifax Stock Analysis

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Take a look at Amigobulls Equifax stock analysis video. Our analyst opinion covering the buy and sell arguments for EFX stock is shown in the video.

Note: Amigobulls stock rating is our opinion based on the historical performance of the company's fundamentals. It is not indicative of the future performance of the stock.

Equifax Inc. Stock Rating 3.4/5

Amigobulls EFX stock analysis takes into account various financial ratios like relative valuation, Equifax revenue, growth and return on equity based on latest quarter 2017 Q3 financial statements. We also check Equifax dividend performance. We also use relative valuation metrics like PE ratio and price to sales ratio for Equifax valuation analysis. Equifax stock rating is our opinion about the business fundamentals of the company.

Should you buy EFX stock?

  • The TTM operating margin was good at 25.2% for Equifax.
  • LTM Net margins were good at 16.2% for Equifax.
  • The company has an operating cash flow which is 2.9 times the net income.
  • EFX stock is trading at an earnings multiple of 19.6 which is better than the industry average of 21.8.
  • Equifax has an attractive ROIC (Return on Invested Capital) of 10.6%
  • Return On Equity (ROE) which is a measure of the company's profitability, looks great for Equifax at 18.3%.
  • The company has a good Free Cash Flow (FCF) margin of 26.6%.

Should you sell EFX stock?

  • The company is trading at a price to sales multiple of 4.2, which is higher in comparison to the Financial Transaction Services industry average of 1.7, making EFX stock expensive.

Comments on this video and Equifax stock

Amigobulls Equifax stock analysis helps investors in understanding how the company's fundamentals have performed in the last few quarters. Fundamental analysis of a company is the most often used approach to find the intrinsic value of a stock.

While doing a study of the company financials, Equifax revenue growth and profit or net income are two main metrics which help in identifying whether EFX stock is overvalued or undervalued. Technical analysis comes in handy to check whether the market sentiment is in line with the fundamental picture of the company.