Equifax Inc.EFXNYSE
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Executive Summary
Latest Data: Dec 2025Industrials•Consulting Services
$23.6BLarge Cap
A mid-sized company, with solid profitability priced at a premium.
Key Investment Themes
Mature business (7% growth)
Solid 11% profitability
Premium valuation (35.4x P/E)
Business Narrative
Equifax Inc. provides information solutions and human resources business process automation outsourcing services for businesses, governments, and consumers. The company operates through three segments: Workforce Solutions, U.
IndustrialsConsulting Services
Mature & Stable
high confidence
Revenue Mix
Single segment business
Bull Case
- +Solid profitability with room for margin expansion
- +Strong cash generation funds reinvestment and shareholder returns
Company at a Glance
Business Performance
Key Highlights
Positive Signals
- Free cash flow growing strongly, indicating quality earnings
- Trading 23% below 5-year average valuation
Watch Areas
- Current liabilities exceed current assets
Financial Health
Liquidity
Concern
Current Ratio0.60
<1.0 = Weak
Cash & Equivalents$181M
Leverage
Watch
Debt / Equity1.11
1.0-2.0 = Moderate
Interest Coverage5.16x
≥5x = Comfortable
Efficiency
Concern
Return on Equity14.3%
8-15% = Fair
Return on Capital7.7%
<8% = Weak
Valuation Assessment
Market Cap
$23.6B
Large Cap
P/E (TTM)
35.4x
Elevated
vs 5Y avg: 46.1x (-23%)
P/S (TTM)
3.9x
In-line
vs 5Y avg: 5.5x (-30%)
EV/EBITDA
15.6x
In-line
vs 5Y avg: 20.9x
(-25%)
(-25%)
P/E Historical Range (5Y)
Min: 34.2xAvg: 46.1xNow: 35.4xMax: 55.7x
P/S Historical Range (5Y)
Min: 4.4xAvg: 5.5xNow: 3.9xMax: 7.2x
EV/EBITDA Historical Range (5Y)
Min: 17.3xAvg: 20.9xNow: 15.6xMax: 25.7x
Valuation Corridor
EXPENSIVE
PEG Ratio
3.60
P/E 35.4x / Growth 9.8% = Expensive
FCF Yield
4.8%
vs Cost of Capital ~8.0% = Moderate
P/E Corridor (5Y)35.4x
34.2xFair: 37.3x-54.9x55.7x
P/S Corridor (5Y)3.9x
4.4xFair: 4.4x-6.6x7.2x
EV/EBITDA Corridor (5Y)15.6x
17.3xFair: 17.3x-24.5x25.7x
Detailed Financials
Comprehensive financial statement data for deep analysis
| Metric | Dec 21 | Dec 22 | Dec 23 | Dec 24 | Dec 25 |
|---|---|---|---|---|---|
| Return on Equity | - | - | - | - | - |
| Return on Invested Capital | - | - | - | - | - |
| Gross Margin | 59.8% | 57.5%↓3.8% | 55.7%↓3.2% | 55.7%↑0.0% | 44.6%↓19.9% |
| Operating Margin | 23.1% | 20.6%↓10.8% | 17.7%↓14.0% | 18.3%↑3.5% | 18.0%↓1.7% |
| Net Margin | 15.1% | 13.6%↓10.1% | 10.4%↓23.8% | 10.6%↑2.7% | 10.9%↑2.2% |
| Earnings Yield | - | - | - | - | - |
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