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Equifax (EFX) Rides on Product Innovation Amid Debt Woes
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Equifax Inc. (EFX - Free Report) is currently benefiting from acquisitions and product innovation. The company’s shares have gained 9.1% over the past year against 6.1% decline of the industry it belongs to.
The company recently reported better-than-expected fourth-quarter 2020 results. Adjusted earnings of $2 per share beat the Zacks Consensus Estimate by 9.3% and improved 30.7% on a year-over-year basis. Revenues of $1.12 billion outpaced the consensus estimate by 3% and improved 23.5% year over year.
Strong Product Portfolio Drives Revenue Growth
Equifax’s offerings are of great importance to its customers as they use the credit information and related analytical services and data to process applications for new credit cards, automobile loans, home and equity loans, and other consumer loans. The company uses advanced statistical techniques and proprietary tools to analyze all available data, creating customized insights, decision-making solutions and processing services. This helps customers understand, manage and protect their clients’ information and take more informed financial decisions. We believe that a solid product portfolio and a clear understanding of the sector will keep Equifax ahead of its peers.
Revenues have shown decent growth rates in the last few years. Total revenues have grown at a CAGR of 5.6% in the last five years (2016-2020). We believe synergies from acquisitions, in addition to continued general consumer credit activity, product innovation, initiatives to foster enterprise growth, and efficient business executions, will continue to drive its revenues over the long run.
Debt Woes Stay
Equifax’s total debt at the end of fourth-quarter 2020 was $3.28 billion, flat sequentially. The company’s cash and cash equivalent of $1.68 billion at the end of the quarter was well below this debt level, underscoring that the company doesn’t have enough cash to meet its debt burden. The cash level, however, can meet the short-term debt of $1.1 billion.
The long-term expected earnings per share (three to five years) growth rate for Gartner, NV5 Global and TeleTech is pegged at 13.5%, 18% and 19.3% respectively.
Zacks Names “Single Best Pick to Double”
From thousands of stocks, 5 Zacks experts each have chosen their favorite to skyrocket +100% or more in months to come. From those 5, Director of Research Sheraz Mian hand-picks one to have the most explosive upside of all.
You know this company from its past glory days, but few would expect that it’s poised for a monster turnaround. Fresh from a successful repositioning and flush with A-list celeb endorsements, it could rival or surpass other recent Zacks’ Stocks Set to Double like Boston Beer Company which shot up +143.0% in a little more than 9 months and Nvidia which boomed +175.9% in one year.
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Equifax (EFX) Rides on Product Innovation Amid Debt Woes
Equifax Inc. (EFX - Free Report) is currently benefiting from acquisitions and product innovation. The company’s shares have gained 9.1% over the past year against 6.1% decline of the industry it belongs to.
The company recently reported better-than-expected fourth-quarter 2020 results. Adjusted earnings of $2 per share beat the Zacks Consensus Estimate by 9.3% and improved 30.7% on a year-over-year basis. Revenues of $1.12 billion outpaced the consensus estimate by 3% and improved 23.5% year over year.
Strong Product Portfolio Drives Revenue Growth
Equifax’s offerings are of great importance to its customers as they use the credit information and related analytical services and data to process applications for new credit cards, automobile loans, home and equity loans, and other consumer loans. The company uses advanced statistical techniques and proprietary tools to analyze all available data, creating customized insights, decision-making solutions and processing services. This helps customers understand, manage and protect their clients’ information and take more informed financial decisions. We believe that a solid product portfolio and a clear understanding of the sector will keep Equifax ahead of its peers.
Revenues have shown decent growth rates in the last few years. Total revenues have grown at a CAGR of 5.6% in the last five years (2016-2020). We believe synergies from acquisitions, in addition to continued general consumer credit activity, product innovation, initiatives to foster enterprise growth, and efficient business executions, will continue to drive its revenues over the long run.
Debt Woes Stay
Equifax’s total debt at the end of fourth-quarter 2020 was $3.28 billion, flat sequentially. The company’s cash and cash equivalent of $1.68 billion at the end of the quarter was well below this debt level, underscoring that the company doesn’t have enough cash to meet its debt burden. The cash level, however, can meet the short-term debt of $1.1 billion.
Zacks Rank and Key Picks
Currently, Equifax has a Zacks Rank #3 (Hold).
Some better-ranked stocks in the broader Zacks Business Services sector are Gartner (IT - Free Report) ,NV5 Global (NVEE - Free Report) and TeleTech Holdings (TTEC - Free Report) , each carrying a Zacks Rank #2 (Buy). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
The long-term expected earnings per share (three to five years) growth rate for Gartner, NV5 Global and TeleTech is pegged at 13.5%, 18% and 19.3% respectively.
Zacks Names “Single Best Pick to Double”
From thousands of stocks, 5 Zacks experts each have chosen their favorite to skyrocket +100% or more in months to come. From those 5, Director of Research Sheraz Mian hand-picks one to have the most explosive upside of all.
You know this company from its past glory days, but few would expect that it’s poised for a monster turnaround. Fresh from a successful repositioning and flush with A-list celeb endorsements, it could rival or surpass other recent Zacks’ Stocks Set to Double like Boston Beer Company which shot up +143.0% in a little more than 9 months and Nvidia which boomed +175.9% in one year.
Free: See Our Top Stock and 4 Runners Up >>