Strong Cash Yield: Is Equifax Stock A Buy?

March 21st, 2026 by Trefis Team
EFX: Equifax logo
EFX
Equifax

Equifax (EFX) could be a good pick for your portfolio, with its high cash yield, good fundamentals, and discounted valuation. Companies like this can use cash to fuel additional revenue growth, or simply pay their shareholders through dividends or buybacks. Either move makes them attractive to the market

EFX Has Good Fundamentals

  • Good Cash Yield: Not many stocks offer free cash flow yield of 5.2%, but Equifax stock does
  • Strong Margin: Last 12 month operating margin of 18.0%
  • Growth: Last 12 revenue growth of 6.9% – low growth, but this selection is all about high yield and margin
  • Valuation: EFX stock currently trading at 41% below 2Y high, 15% below 1M high, and at a PS lower than 3Y average.

Below is a quick comparison of EFX fundamentals with S&P medians.

  EFX S&P Median
Sector Industrials –
Industry Research & Consulting Services –
Free Cash Flow Yield 5.2% 4.4%
   
Revenue Growth LTM 6.9% 6.6%
Revenue Growth 3YAVG 5.9% 5.5%
   
Operating Margin LTM 18.0% 18.7%
Operating Margin 3YAVG 18.0% 18.2%
   
PE Ratio 32.8 23.4

*LTM: Last Twelve Months

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But What Is The Risk Involved?

While EFX stock may be a compelling investment opportunity, it’s always helpful to be aware of a stock’s history of drawdown. EFX took a hit of nearly 57% in the Global Financial Crisis and dropped close to 49% during the Dot-Com Bubble. The Inflation Shock wasn’t far behind, with about a 49% fall as well. Even the smaller sell-offs in 2018 and the Covid Pandemic dragged the stock down by around 37% and 36%, respectively. So, despite solid fundamentals, EFX isn’t immune when the market turns sour. Some risk always sticks around. But the risk is not limited to major market crashes. Stocks fall even when markets are good – think events like earnings, business updates, outlook changes. Read EFX Dip Buyer Analyses to see how the stock has recovered from sharp dips in the past.

For more details and our view, see Buy or Sell EFX Stock.

Stocks Like EFX

Not ready to act on EFX? Consider these alternatives:

  1. Qualcomm (QCOM)
  2. Kimberly-Clark (KMB)
  3. Kraft Heinz (KHC)

We chose these stocks using the following criteria:

  1. Greater than $2 Bil in market cap
  2. Dipped last month & meaningfully below 2Y high
  3. Current P/S < last few year average
  4. Strong operating margin with no instances of large margin collapse
  5. High free cash flow yield

A portfolio of stocks with the criteria above would have performed has follows since 12/31/2016:

  • Average 6-month and 12-month forward returns of 10.4% and 20.4% respectively
  • Win rate (percentage of picks returning positive) of about 74% for 12-month period
  • Strategy consistent across market cycles

Portfolios Are The Smarter Way To Invest

Individual stocks can soar or tank but one thing matters: staying invested. The right portfolio can help you stay invested, capture upside and mitigate the downside associated with any individual stock.

Why settle for average market returns? The Trefis High Quality (HQ) Portfolio invests in a diverse group of 30 stocks that have collectively delivered stronger upside with reduced volatility compared to the broader indices. Discover the methodology behind these smoother, higher returns by checking the HQ Portfolio performance data.