Stock of the Day

November 19, 2020

Equifax (EFX)

$254.94
+$9.49 (+3.9%)
Market Cap: $30.39B

About Equifax

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 Argentina, Australia, Brazil, Canada, Chile, Costa Rica, Dominican Republic, Ecuador, El Salvador, Honduras, India, Ireland, Mexico, New Zealand, Paraguay, Peru, Portugal, Spain, the United Kingdom, Uruguay, and the United States. The company was founded in 1899 and is headquartered in Atlanta, Georgia.

Equifax Bull Case

Here are some ways that investors could benefit from investing in Equifax Inc.:

  • The company reported strong earnings of $2.00 per share, exceeding analyst expectations, which indicates robust financial performance and potential for future growth.
  • Equifax Inc. has shown a year-over-year revenue increase of 7.4%, suggesting a positive trend in business operations and market demand for its services.
  • The current stock price is around $241, which may present a buying opportunity for investors looking to enter at a favorable valuation.
  • Equifax Inc. has a solid return on equity of 18.89%, reflecting effective management and the ability to generate profits from shareholders' investments.
  • The company has declared a quarterly dividend of $0.50 per share, providing a steady income stream for investors, with an annualized yield of 0.8%.

Equifax Bear Case

Investors should be bearish about investing in Equifax Inc. for these reasons:

  • Recent insider selling by the CEO, who sold over 48,000 shares, may raise concerns about the company's future prospects and management confidence.
  • Several analysts have downgraded their price targets for Equifax Inc., indicating a potential lack of confidence in the stock's short-term performance.
  • The dividend payout ratio is currently at 39.14%, which, while sustainable, may limit the company's ability to reinvest in growth opportunities.
  • Equifax Inc. operates in a highly competitive industry, which could impact its market share and profitability in the long run.
  • Market analysts have mixed ratings on the stock, with a significant number assigning a Hold rating, suggesting uncertainty about its future performance.
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