What is Equifax's current business focus?

Equifax is transforming into a diversified analytics and verification company, leveraging its data ecosystem beyond traditional credit reporting.

Why has Equifax's stock underperformed recently?

The stock's recent decline is primarily due to cyclical weakness in mortgage originations impacting its Workforce Solutions segment.

What is the long-term outlook for Equifax (EFX)?

Equifax is projected to achieve 7-9% annualized revenue growth through 2027, driven by its expanding data infrastructure and recurring revenue models.

Home / Business and Economy / Equifax: Data Powerhouse Poised for Growth

Equifax: Data Powerhouse Poised for Growth

29 Nov

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Summary

Equifax is transforming into an analytics and verification leader.
Recurring revenue now exceeds half of Equifax's total sales.
Stock lags despite strong data ecosystem and growth projections.

Equifax: Data Powerhouse Poised for Growth

Equifax Inc. is undergoing a significant transformation, moving from a conventional credit bureau to a robust analytics and verification firm. Its recurring revenue streams now constitute over half of its total sales, bolstered by an expanding data ecosystem in employment, income, and identity verification.

Despite this structural progress, the stock has lagged, largely due to a slowdown in mortgage originations affecting its Workforce Solutions segment. However, management projects low-double-digit EPS growth through fiscal year 2025, anticipating operating leverage and a normalization of credit cycles.

With a projected 7-9% annualized revenue growth through 2027 and an intrinsic value estimate suggesting considerable upside, Equifax's long-term potential in data infrastructure appears undervalued as cyclical headwinds subside.

Disclaimer: This story has been auto-aggregated and auto-summarised by a computer program. This story has not been edited or created by the Feedzop team.