This is our first report on the multinational consumer credit reporting player, Equifax. The company finished 2022 on a positive note and delivered an all-around beat, continuing to execute its EFX 2025 strategic targets. Against an unprecedented decline in the mortgage market, the fourth quarter reported revenue of $1.2 billion was down approximately 4.5% and 4% on a constant organic currency basis. Their global non-mortgage businesses performed exceptionally well, with constant currency revenue growth of 12% and constant organic currency revenue growth of 10%. This robust expansion was once more fueled by Workforce Solutions’ remarkable performance, which saw a total increase in non-mortgage revenue of 17% and a growth in non-mortgage revenue in Verifier of 23%. The new Equifax Cloud delivered around 70% of revenue in North America. Innovation in new products is also performing at a very high level. Their new product Vitality Index for the quarter was 14%. Besides that, Workforce Solutions delivered a strong quarter. Equifax further announced the acquisition of the Food Industry Credit Bureau. With this acquisition, the company can provide more commercial products in Canada. We initiate coverage on the stock of Equifax, Inc. with a ‘Hold’ rating.
Our Report Structure:
⦁ Company Overview
⦁ Investment Thesis
⦁ Key Drivers
⦁ Historical Quarterly Statement Analysis – Income Statement & Cash Flows
⦁ Historical Quarterly Balance Sheet Analysis
⦁ Historical Annual Financial Statement Analysis
⦁ Analysis Of Key Financial Ratios
⦁ Financial Forecasts For 3 Years
⦁ Forecasting The Capital Structure & Net Debt
⦁ Discounted Cash Flow Valuation
⦁ Trading Multiples
⦁ Key Risks
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