Equifax is a global data, analytics and technology company headquartered in Atlanta, Georgia. The company is one of the leading credit bureaus in the U.S., providing critical services for lenders’ credit decisions and helps lower financing costs for borrowers. Equifax benefits from an advantageous business model in which credit and employment data is provided for free from financial institutions and employers, respectively. Equifax leverages its unique data sets and analytical capabilities to provide value-added products and insights to its customers.
Quality Growth Strategy
Quality Value Strategy
Re-Entered Quality Growth Strategy
Entered Global Quality Growth Strategy
Know What You Own
Source: Refinitiv Eikon
Pandemic Standout: 15 Years in the Making
Equifax shares posted exceptional performance during the pandemic period, reflecting strong business results. This resiliency can be traced back to a strategic investment made nearly 15 years ago that transformed EFX into the business it is today.
In 2007, Equifax expanded beyond its core credit bureau business by acquiring TALX, owner of “The Work Number” (TWN), a proprietary database of current and historic income and employment records. By 2020, EFX had grown the database to include over 460 million employment records that are regularly updated by over one million organizations.
Equifax’s Workforce Solutions segment was born through this acquisition and has since grown to become EFX’s largest, fastest growing and most profitable segment. EFX uses this vast TWN database to provide clients with income verification services. This business shined during the pandemic, as mortgage and non-mortgage verification services sales grew over +57% Y/Y in 2020. In addition, the company’s unemployment claims processing, a distinctly counter-cyclical business, sales grew +34% Y/Y in 2020.
Today, Equifax stands as the only company that provides a combination of credit, employment, background check, income, and wealth data to its diversified customer base.
We maintain a positive view of Equifax’s competitive position and long-term growth prospects, driven by its strategy of using unique data sets and analytics to improve customer decisions. A concerted effort to diversify its business mix between more cyclical (e.g., mortgage) and counter-cyclical (e.g., unemployment claims) end markets should allow EFX to grow its business through various market environments.
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