EFX - Embedded Expectations Analysis - 2021 08 12
Equifax Inc. (EFX:USA) currently trades above recent averages relative to UAFRS-based (Uniform) earnings, with a 36.2x Uniform P/E, implying bullish expectations for the firm. However, management may have concerns about revenue growth, Workforce Solutions performance, and New Product Innovation (NPI) capabilities.Specifically, management may lack confidence in their ability to sustain revenue growth, particularly in Workforce Solutions and U.S. Information Solutions (USIS), bring new analytics products and solutions to market faster, and meet their EPS guidance. In addition, they may be concerned about the impact of technology transformation costs on margins, a decline in unemployment claims revenue, and the availability of loans for their customers. Moreover, management may be overstating the potential of their income and employment-related assets within the Equifax data hub, the strength of their New Product Innovation (NPI) capabilities, and the ability of their new Payment Insights products to drive future revenue growth. Furthermore, they may lack confidence in their ability to maintain margin performance in Workforce Solutions, sustain growth in system-to-system integration, and expand Workforce Solutions to the talent solutions space.
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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