June 12, 2025 a 12:46 pm
EFX: Dividend Analysis - Equifax Inc.
Equifax Inc., a leader in the consumer credit reporting industry, exhibits a solid dividend history spanning over four decades, inclusive of consistent dividend payouts. Despite modest growth in dividend rates, the firm's financial indicators remain robust, offering long-term stability and predictability for investors.
📊 Overview
Equifax Inc. maintains a stable footing in the credit reporting sector. With a modest current dividend yield of 0.64%, the firm provides steady income through a reliable dividend history extending over 41 years, noteworthy for its continuity without recent cuts.
| Indicator | Details |
|---|---|
| Sector | Credit Reporting |
| Dividend yield | 0.64% |
| Current dividend per share | $1.56 |
| Dividend history | 41 years |
| Last cut or suspension | None |
🗣️ Dividend History
The history of Equifax’s dividends highlights resilient financial management, characterized by consistent payments. This historical performance underpins the company's commitment to shareholder returns.
| Year | Dividend Per Share (USD) |
|---|---|
| 2025 | 0.89 |
| 2024 | 1.56 |
| 2023 | 1.56 |
| 2022 | 1.56 |
| 2021 | 1.56 |
📈 Dividend Growth
The growth metrics reveal a static nature in recent years, reflective of broader corporate strategies focused on stability over aggressive expansion.
| Time | Growth |
|---|---|
| 3 years | 0% |
| 5 years | 0% |
The average dividend growth is 0% over 5 years. This shows moderate but steady dividend growth.
✅ Payout Ratio
Payout ratios remain strong and below critical thresholds, indicating a prudent approach where dividends are systematically aligned with earnings and free cash flow.
| Key figure ratio | Percentage |
|---|---|
| EPS-based | 31.63% |
| Free cash flow-based | 23.96% |
A payout ratio of 31.63% (EPS) and 23.96% (FCF) highlights a healthy balance, supporting dividend sustainability without jeopardizing financial flexibility.
⚙️ Cashflow & Capital Efficiency
The cash flow analysis underscores a resilient financial structure with consistent free cash flow generation supporting both operational and strategic initiatives.
| Year | 2024 | 2023 | 2022 |
|---|---|---|---|
| Free Cash Flow Yield | 2.58% | 1.70% | 0.56% |
| Earnings Yield | 1.91% | 1.79% | 2.93% |
| CAPEX to Operating Cash Flow | 37.57% | 53.84% | 82.49% |
| Stock-based Compensation to Revenue | 1.44% | 1.36% | 1.22% |
| Free Cash Flow / Operating Cash Flow Ratio | 61.38% | 46.16% | 17.51% |
The data reflects robust cash flow stability, augmented by efficient capital utilization, pivotal for reinvestment initiatives and shareholder returns.
📉 Balance Sheet & Leverage Analysis
The balance sheet remains well-managed with moderate levels of leverage, ensuring manageable debt obligations and supporting overall financial stability.
| Year | 2024 | 2023 | 2022 |
|---|---|---|---|
| Debt-to-Equity | 1.045 | 1.260 | 1.463 |
| Debt-to-Assets | 0.426 | 0.465 | 0.501 |
| Debt-to-Capital | 0.511 | 0.557 | 0.594 |
| Net Debt to EBITDA | 2.814 | 3.479 | 3.289 |
| Current Ratio | 0.750 | 0.672 | 0.680 |
| Quick Ratio | 0.750 | 0.672 | 0.613 |
| Financial Leverage | 2.451 | 2.708 | 2.919 |
The figures confirm a strategically balanced leverage profile, fostering financial resilience against market fluctuations.
🛠️ Fundamental Strength & Profitability
Indicators of profitability and operational efficiency illustrate Equifax’s capability to generate healthy returns on equity and asset utilization.
| Year | 2024 | 2023 | 2022 |
|---|---|---|---|
| Return on Equity | 12.59% | 12.03% | 17.60% |
| Return on Assets | 5.14% | 4.44% | 6.03% |
| Return on Invested Capital | 7.34% | 6.39% | 7.57% |
| Net Margin | 10.63% | 10.36% | 13.59% |
| EBIT Margin | 18.30% | 18.22% | 21.72% |
| EBITDA Margin | 30.28% | 29.99% | 32.66% |
| Gross Margin | 55.67% | 55.65% | 57.49% |
| Research & Development to Revenue | 0% | 0% | 0% |
Robust margins and high returns reflect Equifax’s effective strategies for profitability and capacity to harness investments efficiently.
📈 Price Development
📊 Dividend Scoring System
| Category | Score | Visual |
|---|---|---|
| Dividend yield | 2 | |
| Dividend Stability | 5 | |
| Dividend growth | 1 | |
| Payout ratio | 4 | |
| Financial stability | 4 | |
| Dividend continuity | 5 | |
| Cashflow Coverage | 4 | |
| Balance Sheet Quality | 4 |
Total Score: 29/40
Rating
The analysis dictates a reliable and stable investment in Equifax Inc. for dividend-driven portfolios. The consistent dividend payments shine against a backdrop of robust financial metrics, making it an ideal choice for investors preferring steady, predictable returns.