EFX - Embedded Expectations Analysis - 2019 05 29
Equifax Inc. (EFX:USA) currently trades above corporate averages relative toUAFRS-based (Uniform) Earnings, with a 25.4x Uniform P/E, implying bullish expectations for the firm. However, management has concerns about revenue declines in their Employer Services and Global Consumer Solutions segments, weakness in Australian and Argentinian markets, and their technology's security.
Specifically, management may lack confidence in their ability to sustain Services growth, reverse declines in Employer Services and Global Consumer Solutions revenue, overcome weakness in Australian and Argentinian credit markets, and improve sales in Canada and Latin America. In addition, they may be concerned about increases in their capital spending, the profitability of their Mortgage Solutions
3-Bureau business, and the settlement of data-breach cases. Furthermore, they may be exaggerating their technology's security and functionality, their consumer system's ability to provide digital support, and their commitment to becoming a leader in data, analytics, and cloud-based technology.
Equifax Inc. is a provider of information solutions and human resources business process outsourcing services for businesses, governments and consumers. The company's services are based on databases of consumer and business information. The company uses statistical techniques, machine learning and proprietary software tools to analyze all available data, creating insights, decision-making solutions and processing services for its clients. The company also provides information, technology and services to support debt collections and recovery management. Additionally, the company provides payroll-related and human resource management business process outsourcing services in the United States of America.
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