Equifax (EFX, Financial) is holding steady on its financial outlook for fiscal year 2025, projecting a 6% growth in local currency revenue and adjusted earnings per share of $7.45. Despite the company's robust first-quarter results surpassing initial guidance, ongoing global economic volatility and concerns around U.S. inflation and interest rates underpin their decision to maintain the existing forecast.
Looking ahead to 2025, Equifax anticipates generating close to $900 million in free cash flow, with a cash conversion ratio nearing 95%, aligning with its Long Term Financial Framework. In response to its strong cash flow and financial position, the board has approved a 28% increase in the second-quarter dividend, raising it to $0.50 per share, alongside initiating a $3 billion share buyback plan set to take place over the next four years.
The company is channeling its efforts post-Cloud transition, focusing on growth, innovation, and free cash flow generation. With over 85% of its revenue now stemming from the EFX Cloud, Equifax is leveraging these capabilities to advance new product innovation by utilizing its unique data assets. Investments in emerging products, data analytics, and EFX.AI capabilities are expected to fuel growth through 2025 and beyond.
Equifax is optimistic about its strategic vision—named EFX2027—which aims to deliver increased growth, improved margins, and enhanced free cash flow. The company remains committed to returning value to shareholders while continuing to invest in its future growth initiatives.
Wall Street Analysts Forecast
Based on the one-year price targets offered by 18 analysts, the average target price for Equifax Inc (EFX, Financial) is $276.29 with a high estimate of $310.00 and a low estimate of $230.00. The average target implies an upside of 28.33% from the current price of $215.29. More detailed estimate data can be found on the Equifax Inc (EFX) Forecast page.
Based on the consensus recommendation from 22 brokerage firms, Equifax Inc's (EFX, Financial) average brokerage recommendation is currently 1.9, indicating "Outperform" status. The rating scale ranges from 1 to 5, where 1 signifies Strong Buy, and 5 denotes Sell.
Based on GuruFocus estimates, the estimated GF Value for Equifax Inc (EFX, Financial) in one year is $264.69, suggesting a upside of 22.95% from the current price of $215.29. GF Value is GuruFocus' estimate of the fair value that the stock should be traded at. It is calculated based on the historical multiples the stock has traded at previously, as well as past business growth and the future estimates of the business' performance. More detailed data can be found on the Equifax Inc (EFX) Summary page.
