Equifax Inc (EFX) stock analysis

P/E below its 5-year median

Equifax's P/E of 30.4 is below its own 5-year median of 43.0.

P/E above the industry

Equifax's P/E of 30.4 is above the Business Services median of 26.9.

EV/EBITDA below its 5-year median

Equifax's EV/EBITDA of 13.6 is below its 5-year median of 19.8.

P/B above the industry

Equifax's price-to-book of 4.93 is above the Business Services median of 2.98.

Trading below fair value

The share price of $188.41 is below our fair value estimate of $232.50.

Margin of safety under 20%

The price is 19.0% below fair value, less than the 20% cushion we look for.

Revenue growing under 10% a year

Revenue grew 5.8% a year over the last three fiscal years, short of the 10% we look for.

EPS growing under 10% a year

Diluted EPS grew -2.0% a year over the last three fiscal years.

Earnings growth accelerating

Net income grew 12.8% over the last twelve months, against a 5-year average of 4.9% a year.

Growing faster than the industry

Revenue grew 10.9% over the last twelve months; the Business Services median is 9.1%.

Guidance lowered

Equifax lowered its Q3 2026 Organic Local Currency Growth (1) outlook on Jul 21, 2026.

Gross margin slipping

Gross margin was 55.2% over the last twelve months, against 56.3% a year earlier.

Return on equity over 15%

Return on equity was 15.8% over the last twelve months and averaged 16.1% over five years.

Return on capital under 10%

Return on invested capital was 9.5%, below the 10% that usually covers the cost of capital.

Return on equity above the industry

Equifax's return on equity of 15.8% is above the Business Services median of 1.4%.

Earnings grew over 5 years

Net income grew 4.9% a year on average over the last five fiscal years.

Net margin below its 5-year average

Net margin was 11.3% over the last twelve months, against a 5-year average of 12.1%.

Net margin above the industry

Equifax's net margin of 11.3% is above the Business Services median of -1.7%.

High debt

Debt is 116% of shareholders' equity, above the 40% we consider low.

Debt falling against equity

Debt to equity fell from 138% five years ago to 116%.

Debt covered by cash flow

Operating cash flow over the last twelve months equals 31.0% of total debt.

Interest well covered

Operating income covers interest expense 5.4 times.

Short-term assets cover short-term debts

Current assets are 1.09 times current liabilities.

Low bankruptcy risk

The Altman Z-score is 3.51; above 3 is the safe zone and below 1.8 the distress zone.

Pays a dividend

Equifax paid dividends worth 1.2% of the share price over the last twelve months.

Yield below Treasuries

The 1.2% yield is below the 4.4% on a 1-year Treasury.

Yield below the top quarter

The top quarter of US dividend payers yield 3.8% or more; Equifax yields 1.2%.

Dividend not cut

The dividend per share has not fallen by more than 10% in any of the last 10 fiscal years.

Covered by earnings

Dividends take 35.0% of net income.

Covered by free cash flow

Dividends take 23.6% of free cash flow.