Equifax Inc Intrinsic Value Calculation – Equifax Reports Q4 GAAP EPS of $0.88, Missing Expectations by $0.20 in 2023.

Trending News 🌧️

Equifax Inc Intrinsic Value Calculation – Equifax Inc ($NYSE:EFX). reported its Q4 GAAP earnings per share (EPS) of $0.88, missing market expectations by $0.20. Equifax is one of the three major U.S. credit reporting agencies and is a global provider of consumer and commercial data and analytics. The company provides information solutions to their customers, including credit, mortgage, and consumer risk management services. Equifax’s revenue for the quarter was down 2% year-over-year at $1.2 billion, which was in line with expectations.

The company attributed the lower-than-expected earnings to higher costs associated with the company’s ongoing compliance activities, as well as higher investments in technology and product innovation. Despite the weaker-than-expected results in Q4, Equifax’s long-term outlook remains positive. With its strong balance sheet and solid cash flow, Equifax is well positioned to capitalize on the opportunities ahead.

Share Price

At the time of writing, news sentiment surrounding the company was mostly negative due to the results. On Wednesday, EQUIFAX INC stock opened at $222.5 and closed at $220.2, down by 1.2% from the previous closing price of 222.9. The company’s CEO, Mark Begor, stated that Equifax was focused on executing its strategic initiatives and delivering value to customers and shareholders. He also noted that the company was well-positioned to take advantage of the digital transformation of its core markets, driven by increasing demand for data-driven insights and analytics solutions. The company also announced a new strategy to focus on growth and innovation in its core credit reporting business and expand its presence in new markets, such as fraud prevention, identity protection, and digital marketing.

The company is planning to invest in digital capabilities and data assets to drive efficiency and increase customer engagement. As one of the largest credit reporting agencies in the world, it provides businesses and consumers with access to credit information that helps them make informed financial decisions. Despite missing expectations in the fourth quarter, Equifax remains a strong player in the industry and is well-positioned to benefit from the digital transformation of its core markets. Live Quote…

About the Company

Income Snapshot

Below shows the total revenue, net income and net margin for Equifax Inc. More…

Cash Flow Snapshot

Below shows the cash from operations, investing and financing for Equifax Inc. More…

Balance Sheet Snapshot

Below shows the total assets, liabilities and book value per share for Equifax Inc. More…

Key Ratios Snapshot

Some of the financial key ratios for Equifax Inc are shown below. More…

Analysis – Equifax Inc Intrinsic Value Calculation

GoodWhale has conducted an analysis on EQUIFAX INC‘s financials and concluded that the fair value of a share is $223.4. This figure was established through GoodWhale’s proprietary Valuation Line. Currently, EQUIFAX INC stock is traded at $220.2, meaning the share is fairly priced but slightly undervalued by 1.4%. GoodWhale’s Valuation Line is a data-driven system that combines fundamental and technical analysis to determine the intrinsic stock value of a company. It uses a range of financial performance and market indicators including earnings per share, dividend yield, price-earnings ratio, and market sentiment. EQUIFAX INC’s current stock price is an attractive entry point for investors as the share is undervalued by 1.4%. However, it is important to note that this analysis is based on the current market conditions and may not be reflective of future performance. Investors should consider their own financial situation and research other factors before making any decisions. 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

EQUIFAX Inc. is a consumer credit reporting agency, and its fourth quarter of 2023 has seen a decline from expectations. Its reported GAAP earnings per share (EPS) of $0.88 missed the expected value by $0.20. As a result, the current sentiment among investors is largely negative.

However, it is important to look at the company’s long-term performance, as well as its financials and future prospects, before making any decisions on investing in the company. Investors should pay particular attention to the company’s cash flow, debt levels, and forward-looking guidance in order to make an informed decision.

Additionally, it is important to understand the impact of the current economic environment on consumer spending and credit scores as these are key drivers of EQUIFAX Inc.’s business. Ultimately, investors should analyze all pertinent information before deciding whether or not to invest in EQUIFAX Inc.