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Equifax (NYSE:EFX) Beneish M-Score

: -2.21 (As of Today)
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The zones of discrimination for M-Score is as such:

An M-Score of equal or less than -1.78 suggests that the company is unlikely to be a manipulator.
An M-Score of greater than -1.78 signals that the company is likely to be a manipulator.

Good Sign:

Beneish M-Score -2.21 no higher than -1.78, which implies that the company is unlikely to be a manipulator.

The historical rank and industry rank for Equifax's Beneish M-Score or its related term are showing as below:

EFX' s Beneish M-Score Range Over the Past 10 Years
Min: -3.78   Med: -2.68   Max: -1.66
Current: -2.21

During the past 13 years, the highest Beneish M-Score of Equifax was -1.66. The lowest was -3.78. And the median was -2.68.


Equifax (NYSE:EFX) Beneish M-Score Historical Data

The historical data trend for Equifax's Beneish M-Score 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
Beneish M-Score Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only -2.60 -2.65 -2.97 -2.59 -2.47

Equifax Quarterly Data
Dec17 Mar18 Jun18 Sep18 Dec18 Mar19 Jun19 Sep19 Dec19 Mar20 Jun20 Sep20 Dec20 Mar21 Jun21 Sep21 Dec21 Mar22 Jun22 Sep22
Beneish M-Score 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 -2.56 -2.47 -2.35 -2.26 -2.21

Equifax (NYSE:EFX) Beneish M-Score Competitive Comparison

For the Consulting Services subindustry, Equifax's Beneish M-Score, along with its competitors' market caps and Beneish M-Score 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) Beneish M-Score Distribution

For the Business Services industry and Industrials sector, Equifax's Beneish M-Score distribution charts can be found below:

* The bar in red indicates where Equifax's Beneish M-Score falls into.



Equifax Beneish M-Score Calculation

The M-score was created by Professor Messod Beneish. Instead of measuring the bankruptcy risk (Altman Z-Score) or business trend (Piotroski F-Score), M-score can be used to detect the risk of earnings manipulation. This is the original research paper on M-score.

The M-Score Variables:

The M-score of Equifax for today is based on a combination of the following eight different indices:

M=-4.84+0.92 * DSRI+0.528 * GMI+0.404 * AQI+0.892 * SGI+0.115 * DEPI
=-4.84+0.92 * 1.1253+0.528 * 1.0234+0.404 * 1.2041+0.892 * 1.0811+0.115 * 0.9816
-0.172 * SGAI+4.679 * TATA-0.327 * LVGI
-0.172 * 0.9138+4.679 * -0.006-0.327 * 0.9775
=-2.21

* 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.

This Year (Sep22) TTM:Last Year (Sep21) TTM:
Total Receivables was $845 Mil.
Revenue was 1244.3 + 1316.7 + 1363.2 + 1253.2 = $5,177 Mil.
Gross Profit was 701.8 + 774.6 + 809.8 + 727.6 = $3,014 Mil.
Total Current Assets was $1,295 Mil.
Total Assets was $11,308 Mil.
Property, Plant and Equipment(Net PPE) was $1,487 Mil.
Depreciation, Depletion and Amortization(DDA) was $559 Mil.
Selling, General, & Admin. Expense(SGA) was $1,332 Mil.
Total Current Liabilities was $2,019 Mil.
Long-Term Debt & Capital Lease Obligation was $4,819 Mil.
Net Income was 165.7 + 200.6 + 221.8 + 122.1 = $710 Mil.
Non Operating Income was 23.9 + 1.8 + 11.1 + -75.5 = $-39 Mil.
Cash Flow from Operations was 354.9 + 275.3 + -198.5 + 385.3 = $817 Mil.
Total Receivables was $695 Mil.
Revenue was 1222.9 + 1234.8 + 1213 + 1118.4 = $4,789 Mil.
Gross Profit was 733.9 + 751.8 + 729.7 + 637.5 = $2,853 Mil.
Total Current Assets was $2,890 Mil.
Total Assets was $11,083 Mil.
Property, Plant and Equipment(Net PPE) was $1,253 Mil.
Depreciation, Depletion and Amortization(DDA) was $459 Mil.
Selling, General, & Admin. Expense(SGA) was $1,348 Mil.
Total Current Liabilities was $1,887 Mil.
Long-Term Debt & Capital Lease Obligation was $4,969 Mil.




1. DSRI = Days Sales in Receivables Index

Measured as the ratio of Revenue in Total Receivables in year t to year t-1.

A large increase in DSR could be indicative of revenue inflation.

DSRI=(Receivables_t / Revenue_t) / (Receivables_t-1 / Revenue_t-1)
=(845 / 5177.4) / (694.6 / 4789.1)
=0.16320933 / 0.14503769
=1.1253

2. GMI = Gross Margin Index

Measured as the ratio of gross margin in year t-1 to gross margin in year t.

Gross margin has deteriorated when this index is above 1. A firm with poorer prospects is more likely to manipulate earnings.

GMI=GrossMargin_t-1 / GrossMargin_t
=(GrossProfit_t-1 / Revenue_t-1) / (GrossProfit_t / Revenue_t)
=(2852.9 / 4789.1) / (3013.8 / 5177.4)
=0.59570692 / 0.58210685
=1.0234

3. AQI = Asset Quality Index

AQI is the ratio of asset quality in year t to year t-1.

Asset quality is measured as the ratio of non-current assets other than Property, Plant and Equipment to Total Assets.

AQI=(1 - (CurrentAssets_t + PPE_t) / TotalAssets_t) / (1 - (CurrentAssets_t-1 + PPE_t-1) / TotalAssets_t-1)
=(1 - (1294.9 + 1487) / 11308) / (1 - (2890.3 + 1252.9) / 11083.3)
=0.75398833 / 0.62617632
=1.2041

4. SGI = Sales Growth Index

Ratio of Revenue in year t to sales in year t-1.

Sales growth is not itself a measure of manipulation. However, growth companies are likely to find themselves under pressure to manipulate in order to keep up appearances.

SGI=Sales_t / Sales_t-1
=Revenue_t / Revenue_t-1
=5177.4 / 4789.1
=1.0811

5. DEPI = Depreciation Index

Measured as the ratio of the rate of Depreciation, Depletion and Amortization in year t-1 to the corresponding rate in year t.

DEPI greater than 1 indicates that assets are being depreciated at a slower rate. This suggests that the firm might be revising useful asset life assumptions upwards, or adopting a new method that is income friendly.

DEPI=(Depreciation_t-1 / (Depreciaton_t-1 + PPE_t-1)) / (Depreciation_t / (Depreciaton_t + PPE_t))
=(459 / (459 + 1252.9)) / (558.8 / (558.8 + 1487))
=0.26812314 / 0.27314498
=0.9816

Note: If the Depreciation, Depletion and Amortization data is not available, we assume that the depreciation rate is constant and set the Depreciation Index to 1.

6. SGAI = Sales, General and Administrative expenses Index

The ratio of Selling, General, & Admin. Expense(SGA) to Sales in year t relative to year t-1.

SGA expenses index > 1 means that the company is becoming less efficient in generate sales.

SGAI=(SGA_t / Sales_t) / (SGA_t-1 /Sales_t-1)
=(1331.7 / 5177.4) / (1348 / 4789.1)
=0.25721405 / 0.28147251
=0.9138

7. LVGI = Leverage Index

The ratio of total debt to Total Assets in year t relative to yeat t-1.

An LVGI > 1 indicates an increase in leverage

LVGI=((LTD_t + CurrentLiabilities_t) / TotalAssets_t) / ((LTD_t-1 + CurrentLiabilities_t-1) / TotalAssets_t-1)
=((4819.2 + 2018.7) / 11308) / ((4969.4 + 1886.9) / 11083.3)
=0.60469579 / 0.61861539
=0.9775

8. TATA = Total Accruals to Total Assets

Total accruals calculated as the change in working capital accounts other than cash less depreciation.

TATA=(IncomefromContinuingOperations_t - CashFlowsfromOperations_t) / TotalAssets_t
=(NetIncome_t - NonOperatingIncome_t - CashFlowsfromOperations_t) / TotalAssets_t
=(710.2 - -38.7 - 817) / 11308
=-0.006

An M-Score of equal or less than -1.78 suggests that the company is unlikely to be a manipulator. An M-Score of greater than -1.78 signals that the company is likely to be a manipulator.

Equifax has a M-score of -2.21 suggests that the company is unlikely to be a manipulator.


Equifax Beneish M-Score Related Terms

Thank you for viewing the detailed overview of Equifax's Beneish M-Score 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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