Is Equifax Inc. (EFX) liquid enough to have short term cash shortfall

The current industry risk have caused rating review to changeStifel Nicolaus analyst Shlomo Rosenbaum lowered his rating on the company to Hold. But company still looks like an attractive risk /reward tradeoffForward-looking indicator at 19.93, is reported lower than P /E of 26.75 but forward growth and EPS estimates are at substantial levels .

Equifax Inc. future growth indicators are at 19.93 indicates future growth does not seem to be on uptrend . Firm is trading in its key support 200 Day avg region at -7.85% and lower to its base line, but we are yet to see a confirmation trend, and the charts show that price is now below its 200 day SMA , influencing higher volatility in returns .

Company current ratio below one at 0.7 is not in thecomfortable zone. Current value of outstanding shares stand at $14211.43 M . Equifax Inc. is seen by investors as growth stocks and given future revenue investors are bullish.

And It’s worth noting that compared to Financial price to earnings , stock prices seem to be over priced by 7.38. Stocks few days back tried but did not break new high due to 0.94 Beta and driven by possibility of a higher growth at 0.94% company also comes with more risk.

Analyst expect company EPS to fall of 0.29% by 2018 . As index is out of sync , present price to earnings 26.75 which is below than the estimated 5Y earnings per share 9.43% might indicate either poorer slow growth or potentially a bargain..

The weak longs were halted out of their position on the second week bears leading to sharp momentum in a relatively small time frame. Analysts believe changing industries could put Equifax Inc. at a disadvantage , but in terms of 26.75 PE company continues to be above Financial sector .

Equifax Inc. profitability ratio has stayed constant at 7.80% in Financial sector , and you can tell, looking in to overhead costs analysts feel management has to find expense reduction measures .

Low current ratio might be short term as firms often use short term cash sources to meet its long term outlook ., with this Equifax Inc. might not appear to have good quick ratio which is 1:0.7.

Recent consolidation has resulted in company dropping -19.51% from its 52 week high . As the trade near yearly high high traders may show increased interest as trade nears either the high or the lows.

Analysts are upbeat as Equifax Inc. has seen encouraging pattern in equity to growth through last fiscal . Sector saw $18552.78mn in upwards price movements, while $18864.77mn pulled the index down ending up at $-311.99mn in total money sector flow, however markets has seen a steady uptrend backed by $-579.32mn in block trades of which $5282.97mn saw weaker sentiment, while $4703.65 were positive movement Currently the Financials index is trading at 6648.99 with 0.69 change.

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