EFX – Market expectations are for Uniform ROA to expand, and management is confident about revenue guidance, payroll record expansion, and their international business

• Equifax Inc. (EFX) currently trades above corporate and historical averages relative to Uniform earnings, with a 39.9x Uniform P/E (Fwd. V/E’).
• At these levels, markets are pricing in expectations for Uniform ROA to expand to 83%, accompanied by 9% Uniform asset growth.
• Meanwhile, analysts expect Uniform ROA to improve to 56% in 2022, accompanied by 5% Uniform asset growth.
• If sustained going forward, these levels would imply a stock price closer to $154, representing approximately 47% equity downside for the firm.
• However, the firm’s most recent earnings call suggests management is confident about revenue guidance, payroll record expansion, and their international business.