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Equifax (NYSE:EFX) ROE %

: 17.53% (As of Sep. 2022)
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ROE % is calculated as Net Income divided by its average Total Stockholders Equity over a certain period of time. Equifax's annualized net income for the quarter that ended in Sep. 2022 was USD663 Mil. Equifax's average Total Stockholders Equity over the quarter that ended in Sep. 2022 was USD3,782 Mil. Therefore, Equifax's annualized ROE % for the quarter that ended in Sep. 2022 was 17.53%.

The historical rank and industry rank for Equifax's ROE % or its related term are showing as below:

EFX' s ROE % Range Over the Past 10 Years
Min: -13.51   Med: 17.36   Max: 22.04
Current: 19.17

During the past 13 years, Equifax's highest ROE % was 22.04%. The lowest was -13.51%. And the median was 17.36%.

EFX's ROE % is ranked better than
76.68% of 1025 companies
in the Business Services industry
Industry Median: 8.75 vs EFX: 19.17

Equifax (NYSE:EFX) ROE % Historical Data

The historical data trend for Equifax's ROE % 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 Dec12 Dec13 Dec14 Dec15 Dec16 Dec17 Dec18 Dec19 Dec20 Dec21
ROE % Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only 20.12 9.89 -13.51 18.10 22.04

Equifax Quarterly Data
Dec17 Mar18 Jun18 Sep18 Dec18 Mar19 Jun19 Sep19 Dec19 Mar20 Jun20 Sep20 Dec20 Mar21 Jun21 Sep21 Dec21 Mar22 Jun22 Sep22
ROE % 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 23.48 13.71 23.92 21.01 17.53

Equifax (NYSE:EFX) ROE % Competitive Comparison

For the Consulting Services subindustry, Equifax's ROE %, along with its competitors' market caps and ROE % 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 (NYSE:EFX) ROE % Distribution

For the Business Services industry and Industrials sector, Equifax's ROE % distribution charts can be found below:

* The bar in red indicates where Equifax's ROE % falls into.



Equifax ROE % Calculation

Equifax's annualized ROE % for the fiscal year that ended in Dec. 2021 is calculated as

ROE %=Net Income (A: Dec. 2021 )/( (Total Stockholders Equity (A: Dec. 2020 )+Total Stockholders Equity (A: Dec. 2021 ))/ count )
=744.2/( (3168.4+3584.4)/ 2 )
=744.2/3376.4
=22.04 %

Equifax's annualized ROE % for the quarter that ended in Sep. 2022 is calculated as

ROE %=Net Income (Q: Sep. 2022 )/( (Total Stockholders Equity (Q: Jun. 2022 )+Total Stockholders Equity (Q: Sep. 2022 ))/ count )
=662.8/( (3805+3759)/ 2 )
=662.8/3782
=17.53 %

* 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.

In the calculation of annual ROE %, the net income of the last fiscal year and the average total shareholder equity over the fiscal year are used. In calculating the quarterly data, the net income data used here is four times the quarterly (Sep. 2022) net income data. ROE % is displayed in the 30-year financial page.


Equifax  (NYSE:EFX) ROE % Explanation

ROE % measures the rate of return on the ownership interest (shareholder's equity) of the common stock owners. It measures a firm's efficiency at generating profits from every unit of shareholders' equity (also known as net assets or assets minus liabilities). ROE % shows how well a company uses investment funds to generate earnings growth. ROE %s between 15% and 20% are considered desirable.

The factors that affect a company's ROE % can be illustrated with the three-step DuPont Analysis:

ROE %(Q: Sep. 2022 )
=Net Income/Total Stockholders Equity
=662.8/3782
=(Net Income / Revenue )*(Revenue / Total Assets)*(Total Assets / Total Stockholders Equity)
=(662.8 / 4977.2)*(4977.2 / 11264.6)*(11264.6 / 3782)
=Net Margin %*Asset Turnover*Equity Multiplier
=13.32 %*0.4418*2.9785
=ROA %*Equity Multiplier
=5.88 %*2.9785
=17.53 %

With this breakdown, it is clear that if a company grows its Net Profit Margin, its Asset Turnover, or its Leverage, it can grow its ROE %.

The factors that affect a company's ROE % can also be illustrated with the five-step DuPont Analysis:

ROE %(Q: Sep. 2022 )
=Net Income/Total Stockholders Equity
=662.8/3782
=(Net Income / Pre-Tax Income) * (Pre-Tax Income / Operating Income) * (Operating Income / Revenue) * (Revenue / Total Assets) * (Total Assets / Total Stockholders Equity)
= (662.8 / 878.8) * (878.8 / 971.6) * (971.6 / 4977.2) * (4977.2 / 11264.6) * (11264.6 / 3782)
= Tax Burden * Interest Burden * Operating Margin % * Asset Turnover * Equity Multiplier
= 0.7542 * 0.9045 * 19.52 % * 0.4418 * 2.9785
=17.53 %

Note: The net income data used here is four times the quarterly (Sep. 2022) net income data. The Revenue data used here is four times the quarterly (Sep. 2022) revenue data. The same rule applies to Pre-Tax Income and Operating Income.
* In the five-step DuPont Analysis, Operating Income is only available for non-financial companies. Thus, for Insurance companies, we use EBIT as a substitution of Operating Income. For Banks, both Operating Income and EBIT is unavailable. Thus we combined Interest Burden and Operating Margin % into Pretax Margin %, and the DuPont Analysis is divided into four components instead.

* 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

Net Income is used.

Because a company can increase its ROE % by having more financial leverage, it is important to watch the equity multiplier when investing in high ROE % companies. Like ROA %, ROE % is calculated with only 12 months data. Fluctuations in company's earnings or business cycles can affect the ratio drastically. It is important to look at the ratio from a long term perspective.

Asset light businesses require very few assets to generate very high earnings. Their ROE %s can be extremely high.


Equifax ROE % Related Terms

Thank you for viewing the detailed overview of Equifax's ROE % provided by GuruFocus.com. Please click on the following links to see related term pages.


Equifax (NYSE:EFX) Business Description

Equifax logo
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
Nelson Lisa M officer: President-International EQUIFAX INC. 1550 PEACHTREE STREET NW ATLANTA GA 30309
Tillman Audrey B director 1932 WYNNTON RD COLUMBUS GA 31999
Goodwin Melissa D director C/O WRIGHT EXPRESS CORPORATION 97 DARLING AVENUE SOUTH PORTLAND ME 04106
Bindal Sunil officer: SVP, Corp Development EQUIFAX INC. 1550 PEACHTREE STREET NW ATLANTA GA 30309
Parker Lindsay B officer: Chief Marketing Officer EQUIFAX INC 1550 PEACHTREE STREET NW ATLANTA GA 30309
Anderson Beverly J officer: Pres-Global Consumer Solutions 1550 PEACHTREE STREET NW ATLANTA GA 30309
Selander Robert W director MASTERCARD INTERNATIONAL 2000 PURCHASE STREET PURCHASE NY 10577
Marcus Robert D director C/O TIME WARNER CABLE INC. 60 COLUMBUS CIRCLE, 17TH FLOOR NEW YORK NY 10023
Mckinley John A director C/O EQUIFAX INC 1550 PEACHTREE STREET NW ATLANTA GA 30309
Stock Elane B director 351 PHELPS DRIVE IRVING TX 75038
Chaney Carla officer: CVP & Chief HR Officer 5302 LAKE VIEW CLUB DUNWOODY GA 30338
Hough G. Thomas director P.O. BOX 407 LAKELAND FL 33802
Wilson Heather H director 1550 PEACHTREE STREET NW ATLANTA GA 30309
Singh Sid officer: President - USIS 1550 PEACHTREE STREET NW ATLANTA GA 30309
Griggs James M officer: SVP & Corp Controller 1550 PEACHTREE STREET NW ATLANTA GA 30309

Equifax (NYSE:EFX) Headlines

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