EFX Stock Analysis — Equifax
Sector: Financial Data
AI Verdict
Equifax trades at 18.6x next year’s earnings with a moat built on sticky data relationships, so if the 75.7% EPS growth materializes, this is cheap for the growth you’re getting.
Competitive Moat
Equifax operates a global credit bureau with deep integrations into banks and lenders, making it difficult for new entrants to replicate its data relationships and regulatory approvals. Its proprietary credit scoring algorithms and historical consumer data create switching costs for institutional customers.
Summary
A 75.7% jump in expected earnings is driving a sharp drop in forward P/E to 18.6x, making Equifax's valuation look much more reasonable than its trailing numbers suggest.
Where It Stands
Despite a -26.74% 1-year return and an RSI of 62.8 (neutral but nearing elevated), Equifax trades at 18.6x next year's earnings—below the software sector median—after a year of 10.3% revenue growth.
Key Metrics
- RSI: 62.8 — Near Overbought
- Trailing P/E: 32.6x
- Forward P/E: 18.6x
- PEG Ratio: 0.44
- Earnings Growth: +0.8%
- Revenue Growth: +0.1%
- Market Cap: $21.8B
- Dividend Yield: 0.01%
- 1-Year Return: -26.74%
- 52-Week High: $271.84
- 52-Week Low: $150.75
Analyst Consensus
20 Buy · 10 Hold · 0 Sell (30 analysts)
Bull Case
With forward EPS growth forecast at 75.7% and a forward P/E of 18.6x, you're paying a below-average price for a big earnings rebound if execution matches expectations.
Bear Case
If the market loses faith and the P/E reverts to the sector median of 35x trailing (vs. 32.6x now), there’s little multiple expansion left and an RSI of 62.8 signals limited near-term upside.
Catalyst to Watch
Watch for quarterly earnings surprises—either a miss or a guide-down on that 75.7% EPS growth expectation could quickly unwind the discount.