Equifax (EFX, Financial) has reiterated its full-year 2025 revenue forecast, projecting a range of $5.91 billion to $6.03 billion, aligning with market expectations of $5.96 billion. Despite exceeding initial guidance in the first quarter, Equifax remains cautious due to global economic uncertainties, including inflation and interest rate trends in the United States.
The company is optimistic about achieving a 6% increase in local currency revenue growth and anticipates adjusted earnings of $7.45 per share for the year. Equifax also expects to generate nearly $900 million in free cash flow, with a cash conversion ratio close to 95%, consistent with its Long Term Financial Framework.
In a move to reward shareholders, Equifax's Board of Directors has approved a 28% rise in the second quarter dividend to $0.50 per share. Additionally, the company has unveiled a $3 billion share repurchase program, projected to be completed over the next four years. This strategic initiative underscores Equifax's commitment to leveraging its strong balance sheet and free cash flow to enhance shareholder returns. As the company transitions beyond its Cloud-focused phase, it aims to emphasize growth, innovation, and new product development while still ensuring robust cash generation.
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.
