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Equifax Owner Earnings per Share (TTM)

: 6.86 (As of Sep. 2021)
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In 1986 Berkshire Hathaway Shareholder Letter, Warren Buffett defined owner earnings as follows:

"These represent (a) reported earnings plus (b) depreciation, depletion, amortization, and certain other non-cash charges...less (c) the average annual amount of capitalized expenditures for plant and equipment, etc. that the business requires to fully maintain its long-term competitive position and its unit volume (If the business requires additional working capital to maintain its competitive position and unit volume, the increment also should be included in (c))...Our owner-earnings equation does not yield the deceptively precise figures provided by GAAP, since (c) must be a guess - and one sometimes very difficult to make. Despite this problem, we consider the owner earnings figure, not the GAAP figure, to be the relevant item for valuation purposes - both for investors in buying stocks and for managers in buying entire businesses...All of this points up the absurdity of the 'cash flow' numbers that are often set forth in Wall Street reports. These numbers routinely include (a) plus (b) - but do not subtract (c)."

Equifax's Owner Earnings per Share (TTM) ended in Sep. 2021 was $6.86. It's Price-to-Owner-Earnings ratio for today is 40.49.


The historical rank and industry rank for Equifax's Owner Earnings per Share (TTM) or its related term are showing as below:

NYSE:EFX' s Price-to-Owner-Earnings Range Over the Past 10 Years
Min: 14.63   Med: 21.05   Max: 1058.18
Current: 40.47

14.63
1058.18

During the past 13 years, the highest Price-to-Owner-Earnings ratio of Equifax was 1058.18. The lowest was 14.63. And the median was 21.05.


NYSE:EFX's Price-to-Owner-Earnings is ranked higher than
56% of the 122 Companies
in the Business Services industry.

( Industry Median: 19.23 vs. NYSE:EFX: 40.47 )

Equifax's Earnings per Share (Diluted) for the three months ended in Sep. 2021 was $1.66. Its Earnings per Share (Diluted) for the trailing twelve months (TTM) ended in Sep. 2021 was $5.65. It's PE Ratio ratio for today is 49.16.

Equifax's EPS without NRI for the three months ended in Sep. 2021 was $1.66. Its EPS without NRI for the trailing twelve months (TTM) ended in Sep. 2021 was $5.65. It's PE Ratio without NRI ratio for today is 49.16.


Equifax Owner Earnings per Share (TTM) Historical Data

The historical data trend for Equifax's Owner Earnings per Share (TTM) can be seen below:

* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD.
* For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.

* Premium members only.

Equifax Annual Data
Trend Dec11 Dec12 Dec13 Dec14 Dec15 Dec16 Dec17 Dec18 Dec19 Dec20
Owner Earnings per Share (TTM)
Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only 5.91 5.24 3.66 0.15 6.10

Equifax Quarterly Data
Dec16 Mar17 Jun17 Sep17 Dec17 Mar18 Jun18 Sep18 Dec18 Mar19 Jun19 Sep19 Dec19 Mar20 Jun20 Sep20 Dec20 Mar21 Jun21 Sep21
Owner Earnings per Share (TTM) Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only 5.77 6.10 6.54 7.60 6.86

Competitive Comparison

For the Consulting Services subindustry, Equifax's Owner Earnings per Share (TTM), along with its competitors' market caps and Owner Earnings per Share (TTM) data, can be viewed below:

* Competitive companies are chosen from companies within the same industry, with headquarter located in same country, with closest market capitalization; x-axis shows the market cap, and y-axis shows the term value; the bigger the dot, the larger the market cap. Note that "N/A" values will not show up in the chart.

   

Equifax Owner Earnings per Share (TTM) Distribution

For the Business Services industry and Industrials sector, Equifax's Owner Earnings per Share (TTM) distribution charts can be found below:

* The bar in red indicates where Equifax's Owner Earnings per Share (TTM) falls into.



Equifax Owner Earnings per Share (TTM) Calculation

In 1986 Berkshire Hathaway Shareholder Letter, Warren Buffett defined owner earnings as follows:

"These represent (a) reported earnings plus (b) depreciation, depletion, amortization, and certain other non-cash charges...less (c) the average annual amount of capitalized expenditures for plant and equipment, etc. that the business requires to fully maintain its long-term competitive position and its unit volume. (If the business requires additional working capital to maintain its competitive position and unit volume, the increment also should be included in (c))...Our owner-earnings equation does not yield the deceptively precise figures provided by GAAP, since (c) must be a guess - and one sometimes very difficult to make. Despite this problem, we consider the owner earnings figure, not the GAAP figure, to be the relevant item for valuation purposes - both for investors in buying stocks and for managers in buying entire businesses...All of this points up the absurdity of the 'cash flow' numbers that are often set forth in Wall Street reports. These numbers routinely include (a) plus (b) - but do not subtract (c)."

To make it simple, then you will have:

Owner Earnings per Share (TTM) = (Net Income + Depreciation, Depletion and Amortization + Change In Deferred Tax - 5Y Average of Maintenance Capital Expenditure + Change In Working Capital) / Shares Outstanding (Diluted Average)

Equifax's Owner Earnings per Share (TTM) Calculation:

TTM / Last Quarter Average of Last 20 Quarters
Net Income 697
Depreciation, Depletion and Amortization 459
Change In Deferred Tax -3
5Y Average of Maintenance Capital Expenditure 322
Change In Working Capital 19
Shares Outstanding (Diluted Average) 124

1. Start with "Net Income" from income statement. Equifax's Net Income for the trailing twelve months (TTM) ended in Sep. 2021 was $697 Mil.

2. "Depreciation, Depletion and Amortization" is from cashflow statement. Equifax's Depreciation, Depletion and Amortization for the trailing twelve months (TTM) ended in Sep. 2021 was $459 Mil. This needs to be added back because company does not actually need to pay cash for it. It is a non-cash item.

3. Other non-cash charges usually include "Stock Based Compensation" and "Change In Deferred Tax":
However, to be conservative, GuruFocus will not add Stock Based Compensation back to net income. Equifax's Change In Deferred Tax for the trailing twelve months (TTM) ended in Sep. 2021 was $-3 Mil.

4. Average maintenance capital expenditure over a business/industry cycle: 5-Year Average Maintenance Capital Expenditure = $322 Mil

It is usually best to take a long-term average of maintenance capital expenditure. Ideally this would be as long as 10 years and include at least one economic downturn. However, since many companies do not have as long as 10-year history, here GuruFocus uses the latest 5 years data to do the calculation. To smooth out unusual years but reflect recent developments, we take an average of the 5 year maintenance capital expenditure.

The following shows how to get maintenance capital expenditure.

First, calculate the revenue change regarding to the previous year. If the revenue decreased from the previous year, then the Maintenance Capital Expenditure = Capital Expenditure (positive).
Second, if the revenue increased from the previous year, then calculate the percentage of Net PPE as of corresponding Revenue.
Growth Capital Expenditure = Percentage of Property, Plant and Equipment as of corresponding Revenue * Revenue Increase
Third, calculate Capital Expenditure (positive) - Growth Capital Expenditure.
If [Capital Expenditure (positive) - Growth Capital Expenditure] was negative, then the Maintenance Capital Expenditure = Capital Expenditure (positive).
If [Capital Expenditure (positive) - Growth Capital Expenditure] was positive, then the Maintenance Capital Expenditure = Capital Expenditure (positive) - Growth Capital Expenditure.
Fourth, get the average of the 5 years maintenance capital expenditure.

Equifax's 5-Year Average Maintenance Capital Expenditure = $322 Mil

5. "Change In Working Capital" is from cashflow statement. Equifax's Change In Working Capital for the trailing twelve months (TTM) ended in Sep. 2021 was $19 Mil.
Note: GuruFocus' Change in Working Capital is provided by Morningstar. It is calculated by adding the items under "Change in operating assets and liabilities" (may refer to a different name for different company) section in Cash Flow Statement from original financial report. And sometimes it includes non-current parts of assets and liabilities.

6. Equifax's Shares Outstanding (Diluted Average) for the months ended in Sep. 2021 was 123.700 Mil.

Equifax's Onwer Earnings Per Share for Sep. 2021 is calculated as:

Owner Earnings per Share (TTM)
=( Net Income+Depreciation, Depletion and Amortization+Change In Deferred Tax
=( 696.5 +459+-3.1
-5Y Avg of Maintenance CAPEX+Change In Working Capital )/Shares Outstanding (Diluted Average)
-322.40566330892+18.9)/123.700
=6.86

Price-to-Owner-Earnings=Current Price/Owner Earnings per Share (TTM)
=277.74/6.86
=40.49

* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD.
* For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.


Be Aware

Assumption: Companies usually do not report maintenance capital expenditures and growth capital expenditures separately. Here we use estimated numbers and average them over 5 years. The method to estimate maintenance capital expenditures can be found in above part 4.

Note: GuruFocus' Change In Working Capital is provided by Morningstar. It is calculated by adding the items under "Change in operating assets and liabilities" (may refer to a different name for different company) section in Cash Flow Statement from original financial report. And it includes non-current parts of assets and liabilities.


Equifax Owner Earnings per Share (TTM) Related Terms

Thank you for viewing the detailed overview of Equifax's Owner Earnings per Share (TTM) provided by GuruFocus.com. Please click on the following links to see related term pages.


Equifax Business Description

Equifax logo
Industry
Industrials » Business Services NAICS : 561450 SIC : 7323
Traded in Other Exchanges
Address
1550 Peachtree Street N.W., Atlanta, GA, USA, 30309
Along with Experian and TransUnion, Equifax is one of the leading credit bureaus in the United States. Equifax's credit reports provide credit histories on millions of consumers, and the firm's services are critical to lenders' credit decisions. In addition, about a third of the firm's revenue comes from workforce solutions, which provides income verification and employer human resources services. Equifax generates over 20% of its revenue from outside the United States.
Executives
Bindal Sunil officer: SVP, Corp Development EQUIFAX INC. 1550 PEACHTREE STREET NW ATLANTA GA 30309
Marshall Siri S director NUMBER ONE GENERAL MILLS BLVD MINNEAPOLIS MN 55426
Stock Elane B director 351 PHELPS DRIVE IRVING TX 75038
Houston Julia A officer: Chief Transformation Officer 1155 PERIMETER CENTER WEST ATLANTA GA 30338
Dhore Prasanna officer: Chief Data & Analytics Officer 10375 PROFESSIONAL CIRCLE RENO NV 89521
Griggs James M officer: SVP & Corp Controller 1550 PEACHTREE STREET NW ATLANTA GA 30309
Gamble John W Jr officer: Chief Financial Officer ONE LEXMARK CENTRE DR 740 WEST NEW CIRCLE RD LEXINGTON KY 40550
Koehler Bryson R officer: Chief Technology Officer 1550 PEACHTREE STREET NW ATLANTA GA 30309
Kelley John J Iii officer: Chief Legal Officer 1550 PEACHTREE STREET, NW ATLANTA GA 30309
Mcgregor Scott A director 5300 CALIFORNIA AVENUE IRVINE CA 92617
Wilson Heather H director 1550 PEACHTREE STREET NW ATLANTA 2Q 30309
Hough G. Thomas director P.O. BOX 407 LAKELAND FL 33802
Mckinley John A director C/O EQUIFAX INC 1550 PEACHTREE STREET NW ATLANTA GA 30309
Marcus Robert D director C/O TIME WARNER CABLE INC. 60 COLUMBUS CIRCLE, 17TH FLOOR NEW YORK NY 10023
Selander Robert W director MASTERCARD INTERNATIONAL 2000 PURCHASE STREET PURCHASE NY 10577

Equifax Headlines

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