Equifax (EFX)

We see Equifax as a high-quality, capital light, compounder.  In our opinion EWS (56% of EBITDA) is a very attractive fast-growing business, with unique data asset and monopoly like returns and positioning

• EWS long term growth of 13-15% is likely and over the next few years. Any recovery in mortgage volume would be a major driver of earnings growth as it has ~90% incremental EBIDA margins.

• We think Equifax is approximately fair value. However, it looks like a compounder to us, with a monopoly like business that can give us mid-teens returns.

Potential Upside:   $335 (+30%)

Potential Downside:   $200 (-22%)

Research Report

To see our work on Bloomberg:  NH ABU <go>

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