Investment Thesis
Equifax demonstrates solid fundamental strength with consistent revenue growth of 6.9% YoY and robust profitability metrics including 10.9% net margin and 18.0% operating margin. The company generates strong cash flows with $1.1B in free cash flow and 18.7% FCF margin, indicating high-quality earnings. However, elevated leverage with a 1.11x debt-to-equity ratio and concerning liquidity position (0.60x current ratio) present material balance sheet risks that warrant close monitoring.
EFX Strengths
- Strong free cash flow generation ($1.1B) with healthy 18.7% FCF margin demonstrates cash conversion quality
- Solid profitability with 10.9% net margin and 18.0% operating margin indicating operational efficiency
- Consistent revenue growth at 6.9% YoY in a stable consumer credit reporting industry
- Excellent interest coverage of 18.3x providing comfortable debt service capacity
- Positive EPS growth of 9.9% YoY despite flat net income suggests share buybacks and disciplined capital allocation
EFX Risks
- Weak liquidity position with current ratio of 0.60x raising questions about short-term financial flexibility
- High financial leverage with 1.11x debt-to-equity ratio and $5.1B long-term debt relative to $4.6B equity
- Operating cash flow of $1.6B covers capex and debt service but leaves limited buffer for strategic investments or downturns
- Regulatory and cybersecurity risks inherent to credit reporting industry (data breaches could impact operations and reputation)
- Limited disclosure of gross profit and margins obscures true operational transparency
Key Metrics to Watch
- Operating cash flow trends and working capital management to assess liquidity improvement
- Debt reduction progress and leverage ratio trajectory toward more conservative capital structure
- Revenue growth sustainability and margin expansion in competitive credit reporting markets
- Free cash flow conversion and capital allocation priorities between debt reduction and reinvestment
- Operating margin stability amid potential cost inflation and technology investment needs
EFX Financial Metrics
EFX Profitability Ratios
EFX Balance Sheet & Liquidity
EFX 5-Year Financial Trend
5-Year Trend Summary: EQUIFAX INC's revenue has grown significantly by 23% over the 5-year period, indicating strong business expansion. The most recent EPS of $4.40 reflects profitable operations.
EFX Growth Metrics (YoY)
EFX Quarterly Performance
| Quarter | Revenue | Net Income | EPS |
|---|---|---|---|
| Q3 2025 | $1.4B | $141.3M | $1.13 |
| Q2 2025 | $1.4B | $163.9M | $1.31 |
| Q1 2025 | $1.4B | $124.9M | $1.00 |
| Q3 2024 | $1.3B | $141.3M | $1.13 |
| Q2 2024 | $1.3B | $138.3M | $1.12 |
| Q1 2024 | $1.3B | $112.4M | $0.91 |
| Q3 2023 | $1.2B | $162.2M | $1.31 |
| Q2 2023 | $1.3B | $138.3M | $1.12 |
Data sourced from SEC EDGAR 10-Q quarterly filings. Figures may represent quarterly or cumulative values.
EFX Capital Allocation
EFX SEC Filings
Access official SEC EDGAR filings for EQUIFAX INC (CIK: 0000033185)