Equifax (EFX) Launches Mortgage Score Select As Investors Weigh Its Valuation

Equifax (EFX) just rolled out Equifax Mortgage Score Select, a new tool that lets mortgage lenders choose from several credit scoring models and re-pull credit files within 24 hours at a lower incremental cost.

Equifax shares trade at US$145.78, with recent momentum mixed. The 7 day share price return of 4.1% contrasts with a 30 day share price decline of 13.7% and a year to date share price fall of 31.9%, while the 1 year total shareholder return is down 36.0%. This points to pressure that this new mortgage product alone has not yet reversed.

Scan beyond Equifax and see how other credit and financial data providers are priced and positioned using our curated list of list of solid balance sheet and fundamentals (25 results).

After a long slide and a sharp recent bounce, Equifax now sits at a level where opinions split. Is most of the recovery already priced in, or does the valuation still leave meaningful upside on the table?

Most Popular Narrative: 29% Undervalued

Against the last close at $145.78, the most widely followed narrative pegs Equifax’s fair value at about $206. This frames the new mortgage scoring launch as one piece of a much larger earnings and cash flow story built around data, verification and margin structure.

Rapidly growing Work Number records, now at 217 million active records with 108 million unique Social Security numbers, along with high margin Workforce Solutions revenue and 52.1% segment EBITDA margins, are increasing the share of recurring verification income and supporting group level margin expansion.

See why 30 investors see Equifax as 29% undervalued.

Result: Fair Value of $206 (UNDERVALUED)

Still, Equifax faces live threats from regulatory shifts around mortgage credit reports and ongoing litigation costs that could pressure margins and derail the upbeat valuation story.

Find out about the key risks to this Equifax narrative.

Next Steps

Mixed signals like these tend to split opinion, so move quickly, test the numbers yourself and weigh both sides of the story through 4 key rewards and 1 important warning sign.

Looking for more investment ideas beyond Equifax?

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This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.

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