Stock on Watch: Equifax Inc. (EFX)

Company Profile:

Equifax Inc. is a provider of information solutions and human resources business process outsourcing services for businesses, governments and consumers. The Company operates through four segments: U.S. Information Solutions (USIS), International, Workforce Solutions and Personal Solutions. USIS provides consumer and commercial information solutions to businesses in the United States, including online information, decisioning technology solutions, fraud and identity management services, portfolio management services, mortgage reporting and financial marketing services. International includes Canada, Europe and Latin America business units. Workforce Solutions provides services enabling clients to verify income and employment, as well as to outsource and automate the performance of certain payroll-related and human resources management business processes. Personal Solutions provides products to consumers in the United States, Canada and the United Kingdom. Equifax Inc. was founded in 1899 and is headquartered in Atlanta, Georgia.

Recent News:

On Jan.27,2017, the company announced that Fiserv has built an interface between The Work Number, provided by Equifax Workforce Solutions and Fiserv’s Automotive Loan Origination System. Together, the solutions provide faster and more robust income and employment verifications to customers.

The company will release its financial results for the fourth quarter ending December 31, 2016, in a press release to be issued after the New York Stock Exchange closes on Wednesday, February 8, 2017.

The company reported revenue of $804.1 million in the third quarter of 2016, a 20 percent increase from the third quarter of 2015 on a reported basis and up 23 percent on a local currency basis.Third quarter diluted EPS attributable to Equifax was $1.09, up 12 percent from the third quarter of 2015.

Fundamental Analysis:

Ninestocks analyzes several different financial aspects: Growth, Profitability, solvency and efficiency.

Growth – Measures the growth of both the company’s income statement and cash flow.

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Profitability – Measures the historical price movement of the stock.

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Solvency – Measures the solvency of the company based on several ratios.

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Efficiency – Measures the strength and historic growth of a company’s return on invested capital.

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Conclusion:

EFX’s strengths can be seen in its better growth, strong profitability, strong solvency and better efficiency compared with its peers. Its revenue and income have increased over several years. Technical indicators signal the bullish signs, as there is a bullish cross in MACD and RSI stands at 50.40 with positive bias. We rate Equifax Inc. (EFX) a STRONG BUY.