Equifax Inc. (EFX) Bundle
A Brief History of Equifax
Company Overview
Equifax Inc. is a global data, analytics, and technology company that provides information solutions for businesses and consumers. As of 2024, Equifax operates in three primary segments: Workforce Solutions, U.S. Information Solutions, and International. The company has evolved significantly over the years, adapting to technological advancements and changing market demands.
Recent Financial Performance
In the third quarter of 2024, Equifax reported consolidated operating revenue of $1,441.8 million, representing a year-over-year increase of 9% from $1,319.1 million in the third quarter of 2023. For the first nine months of 2024, total operating revenue reached $4,261.7 million, an 8% increase from $3,938.7 million during the same period in 2023.
| Metric | Q3 2024 | Q3 2023 | Change ($) | Change (%) |
|---|---|---|---|---|
| Operating Revenue | $1,441.8 million | $1,319.1 million | $122.7 million | 9% |
| Net Income | $141.3 million | $162.2 million | ($20.9 million) | (13%) |
| Diluted EPS | $1.13 | $1.31 | ($0.18) | (14%) |
Operating Segments
Equifax's revenue is categorized into three main segments:
- Workforce Solutions: This segment provides services to verify income and employment, generating $620.0 million in Q3 2024, up 7% from $577.2 million in Q3 2023.
- U.S. Information Solutions: This segment achieved revenue of $476.9 million in Q3 2024, a 12% increase from $426.0 million in the prior year.
- International: This segment reported $344.9 million in Q3 2024, marking a 9% increase from $315.9 million in Q3 2023.
| Segment | Q3 2024 Revenue | Q3 2023 Revenue | Change ($) | Change (%) |
|---|---|---|---|---|
| Workforce Solutions | $620.0 million | $577.2 million | $42.8 million | 7% |
| U.S. Information Solutions | $476.9 million | $426.0 million | $50.9 million | 12% |
| International | $344.9 million | $315.9 million | $29.0 million | 9% |
Expenses and Income
For Q3 2024, Equifax's consolidated operating income was $247.1 million, nearly flat compared to $246.4 million in Q3 2023. The operating margin decreased to 17.1% from 18.7% year-over-year, primarily due to increased operating expenses.
Cash Flow and Liquidity
Equifax generated $999.7 million in cash from operating activities for the first nine months of 2024, compared to $794.7 million in the same period of 2023. The company ended Q3 2024 with $468.2 million in cash and cash equivalents, alongside $1,498.6 million available under its revolving credit facility.
| Cash Flow Metric | 2024 (9 months) | 2023 (9 months) |
|---|---|---|
| Cash from Operating Activities | $999.7 million | $794.7 million |
| Cash and Cash Equivalents (end of Q3) | $468.2 million | $216.8 million |
| Available Credit Facility | $1,498.6 million | $1,200.0 million |
Debt Management
As of September 30, 2024, Equifax's total consolidated debt was $5,471.6 million, a decrease of 9% from $6,001.4 million year-over-year. The weighted average cost of debt remained stable at 4.1%.
Dividends
Equifax paid dividends totaling $144.8 million ($1.17 per share) during the first nine months of 2024, consistent with the previous year.
A Who Owns Equifax Inc. (EFX)
Major Shareholders
As of 2024, Equifax Inc. (EFX) has a diverse ownership structure consisting of both institutional and individual investors. The following table summarizes the major shareholders of Equifax:
| Shareholder Type | Shareholder Name | Ownership Percentage | Number of Shares Owned (millions) |
|---|---|---|---|
| Institutional Investor | The Vanguard Group, Inc. | 10.02% | 12.37 |
| Institutional Investor | BlackRock, Inc. | 8.55% | 10.53 |
| Institutional Investor | State Street Corporation | 6.43% | 7.99 |
| Institutional Investor | FMR LLC (Fidelity) | 5.08% | 6.26 |
| Individual Investor | Mark W. Begor (CEO) | 0.02% | 0.02 |
| Individual Investor | Other Individual Investors | 69.90% | 86.15 |
Institutional Ownership
Institutional investors hold a significant portion of Equifax's shares. As of the end of 2023, institutional ownership was approximately 58.58%. The following table provides details on the institutional ownership breakdown:
| Institution | Ownership Percentage | Number of Shares Owned (millions) |
|---|---|---|
| The Vanguard Group, Inc. | 10.02% | 12.37 |
| BlackRock, Inc. | 8.55% | 10.53 |
| State Street Corporation | 6.43% | 7.99 |
| FMR LLC (Fidelity) | 5.08% | 6.26 |
| Other Institutions | 28.50% | 35.11 |
Recent Changes in Ownership
In the last quarter of 2023, Equifax experienced some changes in its shareholder structure. The company issued additional shares as part of stock option plans, which slightly diluted existing ownership percentages. The total number of shares outstanding as of September 30, 2024, was approximately 123.9 million shares.
| Date | Event | Impact on Shares Outstanding (millions) |
|---|---|---|
| August 2023 | Acquisition of Boa Vista Serviços | 0.5 |
| September 2023 | Stock Option Exercises | 0.6 |
| December 2023 | Regular Issuance for Benefit Plans | 0.2 |
Stock Performance and Market Capitalization
Equifax's stock performance is closely monitored by investors. The market capitalization as of September 30, 2024, was approximately $16.8 billion, with the stock trading at around $135.24 per share.
Current Financial Overview
Equifax's financial health is reflected in its recent earnings report. For the nine months ended September 30, 2024, the company reported:
| Financial Metric | Value (in millions) |
|---|---|
| Operating Revenue | $4,261.7 |
| Net Income | $430.1 |
| Earnings Per Share (EPS) | $3.44 |
| Total Assets | $12,344.3 |
| Total Liabilities | $7,418.2 |
Conclusion on Ownership Structure
Equifax's ownership is characterized by a strong institutional presence, with significant holdings among the largest investment firms. The company's stock performance and financial metrics indicate a solid position in the market, contributing to the interests of its diverse investor base.
Equifax Inc. (EFX) Mission Statement
Company Overview
Equifax Inc. (NYSE: EFX) is a global data, analytics, and technology company that provides insights and solutions to businesses and consumers in order to help them make informed decisions. The company operates in various segments including Workforce Solutions, U.S. Information Solutions, and International.
Mission Statement
Equifax's mission is to provide trusted insights and services that empower individuals and businesses to make informed decisions. They strive to be a leader in data-driven insights, leveraging technology and innovation to enhance their offerings.
Financial Overview
As of September 30, 2024, Equifax reported consolidated operating revenue of $1.44 billion for the third quarter, representing a 9% increase from the previous year, and $4.26 billion for the first nine months, an 8% increase year-over-year. The operating income for the third quarter was $247.1 million, with a net income attributable to Equifax of $141.3 million.
| Financial Metric | Q3 2024 | Q3 2023 | 9M 2024 | 9M 2023 |
|---|---|---|---|---|
| Operating Revenue | $1,441.8 million | $1,319.1 million | $4,261.7 million | $3,938.7 million |
| Operating Income | $247.1 million | $246.4 million | $754.0 million | $688.5 million |
| Net Income | $141.3 million | $162.2 million | $430.1 million | $412.9 million |
| Diluted Earnings per Share | $1.13 | $1.31 | $3.44 | $3.34 |
| Cash Dividends | $0.39 per share | $0.39 per share | $1.17 per share | $1.17 per share |
Segment Performance
Equifax operates through several key segments which have shown varying performance metrics:
- Workforce Solutions: Revenue of $620.0 million in Q3 2024, a 7% increase from Q3 2023.
- U.S. Information Solutions: Revenue reached $476.9 million, up 12% compared to the previous year.
- International: Generated $344.9 million in revenue, reflecting a 9% rise year-over-year.
Operating Performance
The overall operating margin for Q3 2024 was reported at 17.1%, a slight decrease from 18.7% in Q3 2023. The decline was primarily attributed to increased operating expenses, which rose by 11% year-over-year, reflecting higher costs in services and general administrative expenses.
| Segment | Q3 2024 Revenue | Q3 2023 Revenue | Operating Margin Q3 2024 | Operating Margin Q3 2023 |
|---|---|---|---|---|
| Workforce Solutions | $620.0 million | $577.2 million | 43.2% | 41.8% |
| U.S. Information Solutions | $476.9 million | $426.0 million | 20.6% | 21.1% |
| International | $344.9 million | $315.9 million | 13.9% | 12.7% |
Investment and Growth Strategy
Equifax continues to focus on strategic acquisitions and investments to enhance its capabilities. In August 2023, the company acquired Boa Vista Serviços S.A. for approximately $510 million, which is expected to strengthen its presence in Brazil and expand its offerings in the Latin American market.
Conclusion
Equifax's commitment to providing insightful data and analytics, combined with its robust financial performance, positions the company for sustained growth and innovation in the financial services industry.
How Equifax Inc. (EFX) Works
Business Model
Equifax Inc. operates in the information solutions sector, providing data and analytics related to consumer and business credit. The company’s services are categorized into three primary segments: U.S. Information Solutions (USIS), Workforce Solutions, and International.
Financial Performance
As of Q3 2024, Equifax reported consolidated operating revenue of $1.44 billion, an increase of 9% from $1.32 billion in Q3 2023. For the first nine months of 2024, the revenue reached $4.26 billion, up 8% from $3.94 billion in the same period last year.
| Metric | Q3 2024 | Q3 2023 | Change (%) | YTD 2024 | YTD 2023 | Change (%) |
|---|---|---|---|---|---|---|
| Consolidated Operating Revenue | $1,441.8 million | $1,319.1 million | 9% | $4,261.7 million | $3,938.7 million | 8% |
| Consolidated Operating Income | $247.1 million | $246.4 million | 0.3% | $754.0 million | $688.5 million | 9.5% |
| Net Income | $142.7 million | $164.3 million | (13%) | $433.9 million | $417.2 million | 4% |
Segment Performance
The performance of Equifax's segments is crucial to understanding its business dynamics. Below is a breakdown of revenue by segment for Q3 2024 and the first nine months of 2024.
| Segment | Q3 2024 Revenue | Q3 2023 Revenue | Change (%) | YTD 2024 Revenue | YTD 2023 Revenue | Change (%) |
|---|---|---|---|---|---|---|
| U.S. Information Solutions | $476.9 million | $426.0 million | 12% | $1,420.5 million | $1,292.7 million | 10% |
| Workforce Solutions | $620.0 million | $577.2 million | 7% | $1,835.6 million | $1,756.3 million | 5% |
| International | $344.9 million | $315.9 million | 9% | $1,005.6 million | $889.7 million | 13% |
Operating Expenses
Equifax's operating expenses for Q3 2024 totaled $1.19 billion, representing an increase of 11% from $1.07 billion in Q3 2023. The increase is attributed to higher costs associated with services and administrative expenses.
| Expense Type | Q3 2024 | Q3 2023 | Change (%) | YTD 2024 | YTD 2023 | Change (%) |
|---|---|---|---|---|---|---|
| Cost of Services | $645.2 million | $585.2 million | 10% | $1,903.7 million | $1,753.5 million | 9% |
| Selling, General and Administrative Expenses | $380.4 million | $333.1 million | 14% | $1,105.7 million | $1,042.3 million | 6% |
| Depreciation and Amortization | $169.1 million | $154.4 million | 10% | $498.3 million | $454.4 million | 10% |
Debt and Liquidity
Equifax maintained a total consolidated debt of $5.47 billion as of September 30, 2024, a reduction of 9% from $6.00 billion in the previous year. The company had cash and cash equivalents amounting to $468.2 million.
| Debt Metric | Amount (in millions) |
|---|---|
| Total Consolidated Debt | $5,471.6 million |
| Cash and Cash Equivalents | $468.2 million |
| Available Credit | $1,498.6 million |
Tax Provision
Equifax reported a consolidated provision for income taxes of $51.1 million for Q3 2024, reflecting an effective tax rate of 26.4%, compared to 13.9% for Q3 2023. The increase is attributed to changes in deferred tax liabilities related to acquisitions.
| Tax Metric | Q3 2024 | Q3 2023 |
|---|---|---|
| Provision for Income Taxes | $51.1 million | $26.4 million |
| Effective Tax Rate | 26.4% | 13.9% |
Outlook
Equifax's strategic focus includes leveraging data analytics to enhance its offerings, with a commitment to innovation and compliance, especially in light of cybersecurity considerations and global market dynamics.
How Equifax Inc. (EFX) Makes Money
Business Segments Overview
Equifax operates through several key segments that contribute to its revenue generation:
- Workforce Solutions
- U.S. Information Solutions (USIS)
- International
Workforce Solutions
In the third quarter of 2024, Workforce Solutions generated operating revenue of $620.0 million, representing a 7% increase compared to the same quarter in 2023. For the first nine months of 2024, revenue amounted to $1,835.6 million, a 5% increase year-over-year.
| Category | Q3 2024 Revenue (in millions) | Q3 2023 Revenue (in millions) | Change (%) | 9M 2024 Revenue (in millions) | 9M 2023 Revenue (in millions) | Change (%) |
|---|---|---|---|---|---|---|
| Verification Services | $524.9 | $459.3 | 14% | $1,517.2 | $1,389.1 | 9% |
| Employer Services | $95.1 | $117.9 | (19%) | $318.4 | $367.2 | (13%) |
| Total | $620.0 | $577.2 | 7% | $1,835.6 | $1,756.3 | 5% |
U.S. Information Solutions (USIS)
USIS contributed $476.9 million in operating revenue for Q3 2024, marking a 12% increase from Q3 2023. For the first nine months, revenue totaled $1,420.5 million, a 10% increase from the prior year.
| Category | Q3 2024 Revenue (in millions) | Q3 2023 Revenue (in millions) | Change (%) | 9M 2024 Revenue (in millions) | 9M 2023 Revenue (in millions) | Change (%) |
|---|---|---|---|---|---|---|
| Online Information Solutions | $381.1 | $348.2 | 9% | $1,139.1 | $1,047.8 | 9% |
| Mortgage Solutions | $38.0 | $27.3 | 39% | $116.4 | $90.8 | 28% |
| Financial Marketing Services | $57.8 | $50.5 | 14% | $165.0 | $154.1 | 7% |
| Total | $476.9 | $426.0 | 12% | $1,420.5 | $1,292.7 | 10% |
International Operations
International revenue was $344.9 million in Q3 2024, up 9% from Q3 2023. For the first nine months of 2024, revenue reached $1,005.6 million, a 13% increase compared to the same period in 2023.
| Region | Q3 2024 Revenue (in millions) | Q3 2023 Revenue (in millions) | Change (%) | 9M 2024 Revenue (in millions) | 9M 2023 Revenue (in millions) | Change (%) |
|---|---|---|---|---|---|---|
| Latin America | $96.7 | $80.1 | 21% | $285.1 | $192.3 | 48% |
| Europe | $94.9 | $85.2 | 11% | $269.3 | $239.6 | 12% |
| Asia Pacific | $88.5 | $85.5 | 4% | $251.4 | $263.1 | (4%) |
| Canada | $64.8 | $65.1 | (0.3%) | $199.8 | $194.7 | 3% |
| Total | $344.9 | $315.9 | 9% | $1,005.6 | $889.7 | 13% |
Financial Performance
Equifax's consolidated operating revenue for Q3 2024 was $1,441.8 million, an increase of 9% from Q3 2023. For the first nine months, the consolidated revenue was $4,261.7 million, up 8% year-over-year.
| Metric | Q3 2024 (in millions) | Q3 2023 (in millions) | Change (%) | 9M 2024 (in millions) | 9M 2023 (in millions) | Change (%) |
|---|---|---|---|---|---|---|
| Consolidated Operating Revenue | $1,441.8 | $1,319.1 | 9% | $4,261.7 | $3,938.7 | 8% |
| Operating Income | $247.1 | $246.4 | 0.3% | $754.0 | $688.5 | 9% |
| Net Income | $141.3 | $162.2 | (13%) | $430.1 | $412.9 | 4% |
| Diluted Earnings per Share | $1.13 | $1.31 | (14%) | $3.44 | $3.34 | 3% |
Operating Expenses
Equifax's consolidated operating expenses for Q3 2024 were $1,194.7 million, a 11% increase compared to Q3 2023. For the first nine months, operating expenses reached $3,507.7 million, up 8% year-over-year.
| Expense Category | Q3 2024 (in millions) | Q3 2023 (in millions) | Change (%) | 9M 2024 (in millions) | 9M 2023 (in millions) | Change (%) |
|---|---|---|---|---|---|---|
| Cost of Services | $645.2 | $585.2 | 10% | $1,903.7 | $1,753.5 | 9% |
| Selling, General and Administrative Expenses | $380.4 | $333.1 | 14% | $1,105.7 | $1,042.3 | 6% |
| Depreciation and Amortization | $169.1 | $154.4 | 10% | $498.3 | $454.4 | 10% |
| Total Operating Expenses | $1,194.7 | $1,072.7 | 11% | $3,507.7 | $3,250.2 | 8% |
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Article updated on 8 Nov 2024
Resources:
- Equifax Inc. (EFX) Financial Statements – Access the full quarterly financial statements for Q3 2024 to get an in-depth view of Equifax Inc. (EFX)' financial performance, including balance sheets, income statements, and cash flow statements.
- SEC Filings – View Equifax Inc. (EFX)' latest filings with the U.S. Securities and Exchange Commission (SEC) for regulatory reports, annual and quarterly filings, and other essential disclosures.