Equifax Inc Intrinsic Stock Value – EQUIFAX INC Reports Earnings Results for Fourth Quarter of FY2022
February 22, 2023
Earnings Overview
On February 8 2023, EQUIFAX INC ($NYSE:EFX) announced its financial results for the fourth quarter of FY2022, ending December 31 2022. The company’s total revenue for the quarter was USD 108.2 million, reflecting a 11.4% decrease from the same period in the preceding year. Net income decreased by 4.4% year-over-year to USD 1198.0 million.
Transcripts Simplified
Equifax is expecting their 4Q EBITDA margins to be lower than expected due to lower margins in both Workforce Solutions and International. CapEx for 2023 is expected to be about $545 million and there is a 30% reduction in mortgage originations projected for 2023. Revenue growth for 2023 is expected to be 4% and will be driven by a 7-10% non-mortgage organic growth, 5 percentage points of which will be offset by declines in the mortgage market. Acquisitions will contribute 1% to 2023 revenue growth.
About the Company
Income Snapshot
Below shows the total revenue, net income and net margin for Equifax Inc. More…
| Total Revenues | Net Income | Net Margin |
| 5.12k | 696.2 | 13.6% |
Cash Flow Snapshot
Below shows the cash from operations, investing and financing for Equifax Inc. More…
| Operations | Investing | Financing |
| 757.1 | -959.5 | 273.7 |
Balance Sheet Snapshot
Below shows the total assets, liabilities and book value per share for Equifax Inc. More…
| Total Assets | Total Liabilities | Book Value Per Share |
| 11.55k | 7.57k | 32.3 |
Key Ratios Snapshot
Some of the financial key ratios for Equifax Inc are shown below. More…
| 3Y Rev Growth | 3Y Operating Profit Growth | Operating Margin |
| 13.5% | 36.4% | 21.7% |
| FCF Margin | ROE | ROA |
| 2.6% | 18.0% | 6.0% |
Market Price
According to their report, the stock opened at $222.5 and closed at $220.2, down by 1.2% from the prior closing price of 222.9. This marks the first time in 11 quarters that the company’s share price has decreased. While profits increased from the same period last year, the company’s net income was still lower than investors had predicted. The company attributed this to the risks associated with their recent acquisitions and investments in new technology. Despite these challenges, EQUIFAX INC remains committed to expanding its portfolio and increasing its presence in the market.
They have made a number of investments in new technologies and services that they hope will improve their operational efficiency and long-term profitability. The company has also leveraged its strong customer base to launch an array of new services and products that have proven to be popular with consumers. Overall, the earnings report is indicative of a company that is still in a period of transition and growth. Despite the challenges they have faced in past quarters, EQUIFAX INC’s commitment to innovation and customer satisfaction is commendable and bodes well for the company’s future success. Live Quote…
Analysis – Equifax Inc Intrinsic Stock Value
GoodWhale recently conducted a comprehensive analysis of EQUIFAX INC’s wellbeing. With our proprietary Valuation Line, we concluded that the intrinsic value of the EQUIFAX INC share is around $223.0. This intrinsic value is based on the company’s assets, earnings potential and the strength of its balance sheet. Currently, the stock is traded at $220.2, which is a fair price, albeit slightly undervalued by 1.3%. Overall, EQUIFAX INC appears to be in good health and carries a favorable long-term outlook. More…
Peers
Equifax Inc. is a credit reporting agency. Its main competitors are TransUnion, Mills Music Trust, and Experian PLC. All three companies compete for credit report customers and business from creditors.
– TransUnion ($NYSE:TRU)
TransUnion is a credit reporting company. It compiles credit information on consumers and businesses, which is used by lenders to make credit decisions. The company also provides other services such as fraud detection, identity theft protection, and credit counseling. TransUnion has a market cap of 10.77B as of 2022, and a Return on Equity of 8.48%.
– Mills Music Trust ($OTCPK:MMTRS)
Mills Music Trust is a publicly traded music royalty company. The company owns the rights to a large catalog of music, which it licenses to businesses and individuals for use in their products and services. Mills Music Trust has a market cap of 10.14M as of 2022. The company generates revenue by licensing its music to businesses and individuals for use in their products and services.
– Experian PLC ($LSE:EXPN)
As of 2022, Experian PLC has a market cap of 24.89B and a Return on Equity of 34.45%. The company is a global information services company that provides data and analytical tools to its clients. Experian helps businesses to manage credit risk, prevent fraud, target marketing offers and automate decision making.
Summary
Investors may want to consider Equifax Inc after its fourth quarter earnings report. Revenue decreased 11.4% compared to the prior year, while net income declined 4.4%. Despite this, analysts point to the company’s continued focus on digital transformation initiatives and progress made in core product development as positive indicators of its potential in the long-term. Additionally, the company has maintained a strong balance sheet and solid cash flow, though investors should keep an eye on the market for further updates from Equifax.
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