📊 EFX Key Takeaways
Is Equifax Inc. (EFX) a Good Investment?
Equifax demonstrates operational competence with 17.4% operating margins and positive free cash flow generation, but fundamental deterioration is evident with net income declining YoY despite 6.9% revenue growth. Critical concerns include severely poor capital efficiency (ROE 3.8%, ROA 1.4%), a current ratio of 0.61x indicating liquidity stress, and high leverage (4.1B long-term debt) that limits financial flexibility and shareholder returns.
Equifax shows solid fundamental quality, with mid-single-digit revenue growth, strong 18.0% operating margins, and robust free cash flow generation at an 18.7% FCF margin. Financial health is supported by high interest coverage and healthy returns on equity and assets, though flat net income growth and a weak current ratio suggest some balance-sheet constraints. Overall, the business appears fundamentally strong, but leverage and liquidity keep it from the highest conviction tier.
Why Buy Equifax Inc. Stock? EFX Key Strengths
- Positive operating cash flow of 241.9M demonstrates ability to generate liquidity despite balance sheet concerns
- Operating margin of 17.4% reflects pricing power and operational efficiency in credit reporting services
- Revenue growth of 6.9% YoY shows continued demand and market presence in the consumer credit space
- Strong cash generation with $1.13B of free cash flow and an 18.7% FCF margin
- Healthy profitability profile with 18.0% operating margin, 10.9% net margin, and 14.3% ROE
- Manageable debt servicing burden with 18.3x interest coverage despite elevated debt levels
EFX Stock Risks: Equifax Inc. Investment Risks
- Abysmal return on equity (3.8%) and return on assets (1.4%) indicate severely inefficient deployment of shareholder capital
- Current ratio of 0.61x signals liquidity stress and potential working capital management challenges
- Net income declined 0.6% YoY despite revenue growth, revealing margin compression and operational headwinds
- Net income growth was essentially flat year over year, indicating some earnings pressure beneath revenue growth
- Liquidity is tight with a 0.60x current ratio and only $180.8M in cash
- Leverage remains meaningful with $5.11B in long-term debt and 1.11x debt-to-equity
Key Metrics to Watch
- Return on Equity trend - critical indicator of whether capital efficiency improves or deteriorates further
- Current ratio movement - liquidity position must return to above 1.0x for financial health
- Net income growth acceleration - must exceed revenue growth rate to validate operational turnaround
- Net income and operating margin trend relative to revenue growth
- Free cash flow conversion and debt reduction progress
Equifax Inc. (EFX) Financial Metrics & Key Ratios
💡 AI Analyst Insight
The current ratio below 1.0x warrants monitoring of short-term liquidity.
EFX Profit Margin, ROE & Profitability Analysis
EFX vs Finance Sector: How Equifax Inc. Compares
How Equifax Inc. compares to Finance sector averages
Sector benchmarks are approximate industry averages. Actual sector performance may vary.
Is Equifax Inc. Stock Overvalued? EFX Valuation Analysis 2026
Based on fundamental analysis, Equifax Inc. has mixed fundamental signals relative to the Finance sector in 2026.
Note: This is a fundamental analysis based on SEC filings. For P/E ratio, price targets, and market-based valuation, consult financial data providers. This is not investment advice.
Equifax Inc. Balance Sheet: EFX Debt, Cash & Liquidity
EFX Revenue & Earnings Growth: 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 Revenue Growth, EPS Growth & YoY Performance
EFX Quarterly Earnings & Performance
| Quarter | Revenue | Net Income | EPS |
|---|---|---|---|
| Q1 2026 | $1.4B | $133.1M | $1.06 |
| 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 |
Data sourced from SEC EDGAR 10-Q quarterly filings. Figures may represent quarterly or cumulative values.
Equifax Inc. Dividends, Buybacks & Capital Allocation
EFX SEC Filings: Latest 10-K & 10-Q Analysis
Access official SEC EDGAR filings for Equifax Inc. (CIK: 0000033185)
📋 Recent SEC Filings
❓ Frequently Asked Questions about EFX
What is the AI rating for EFX?
Equifax Inc. (EFX) has a Combined AI Rating of HOLD from Claude (SELL) and ChatGPT (BUY) with 72% combined confidence, based on fundamental analysis of SEC EDGAR filings.
What are EFX's key strengths?
Claude: Positive operating cash flow of 241.9M demonstrates ability to generate liquidity despite balance sheet concerns. Operating margin of 17.4% reflects pricing power and operational efficiency in credit reporting services. ChatGPT: Strong cash generation with $1.13B of free cash flow and an 18.7% FCF margin. Healthy profitability profile with 18.0% operating margin, 10.9% net margin, and 14.3% ROE.
What are the risks of investing in EFX?
Claude: Abysmal return on equity (3.8%) and return on assets (1.4%) indicate severely inefficient deployment of shareholder capital. Current ratio of 0.61x signals liquidity stress and potential working capital management challenges. ChatGPT: Net income growth was essentially flat year over year, indicating some earnings pressure beneath revenue growth. Liquidity is tight with a 0.60x current ratio and only $180.8M in cash.
What is EFX's revenue and growth?
Equifax Inc. reported revenue of $1.6B.
Does EFX pay dividends?
Equifax Inc. pays dividends, with $67.1M distributed to shareholders in the trailing twelve months.
Where can I find EFX SEC filings?
Official SEC filings for Equifax Inc. (CIK: 0000033185) including 10-K, 10-Q, and 8-K reports are available on SEC EDGAR.
What is EFX's EPS?
Equifax Inc. has a diluted EPS of $1.42.
How is the AI analysis conducted?
Two independent AI systems — Claude (Anthropic) and ChatGPT (OpenAI) — analyze SEC EDGAR filings including 10-K annual reports and 10-Q quarterly reports. Each AI evaluates financial health, profitability ratios, balance sheet strength, and growth metrics. The combined rating reflects both perspectives for balanced insights.
Is EFX a good stock to buy right now?
Based on our AI fundamental analysis in May 2026, Equifax Inc. has a HOLD rating with 72% confidence. Review the strengths and risks sections above before making a decision. This is not investment advice.
Is EFX stock overvalued or undervalued?
Valuation metrics for EFX: ROE of 3.8% (sector avg: 12%), net margin of 10.4% (sector avg: 25%). Compare these metrics with sector averages to assess valuation.
Should I buy EFX stock in 2026?
Our dual AI analysis gives Equifax Inc. a combined HOLD rating for 2026. Revenue is data pending, with profitability at or below sector average. Always conduct your own research.
What is EFX's free cash flow?
Equifax Inc.'s operating cash flow is $241.9M, with capital expenditures of $120.4M. FCF margin is 7.4%.
How does EFX compare to other Finance stocks?
Vs Finance sector averages: Net margin 10.4% (avg: 25%), ROE 3.8% (avg: 12%), current ratio 0.61 (avg: 1.2).