Investors Will Want Equifax's (NYSE:EFX) Growth In ROCE To Persist

Equifax (NYSE:EFX) has been on a tear, with its Return on Capital Employed (ROCE) consistently growing. The company's strategic focus on data, analytics, and technology has driven this growth, as it leverages its unique blend of differentiated data, analytics, and cloud technology to provide real-time insights and drive decision-making. Equifax's investment in new products, data, analytics, and AI capabilities has accelerated its roll-out of new products that 'Only Equifax' can provide, driving growth and higher margins. As a result, Equifax has seen strong revenue growth, with non-mortgage local currency revenue growth of over 10% in 2023, and is expected to deliver higher margins and free cash flow in the future.

Equifax's ROCE growth trajectory is maintained through a combination of strategic acquisitions and organic growth. The company has expanded its presence in growing markets, such as India, and expanded its product offerings through acquisitions like Callcredit Limited in the UK. Equifax has also grown organically, driven by new product innovation and increased market penetration. The company's New Product Vitality Index, which measures the percentage of new products launched in the past year that are still active, was 9% in the first quarter of 2024, indicating that Equifax is successfully launching new products that drive organic growth.

Equifax's strong financial performance is reflected in its stock price, which has increased by 11.54% year-to-date. The company's average price target from 11 Wall Street analysts is $306.50, representing an 11.54% increase from the last price of $274.78. The highest price target is $335.00, while the lowest is $283.00.

Equifax's growth in ROCE is expected to persist, driven by its strategic focus on data, analytics, and technology, as well as its successful acquisitions and organic growth strategies. The company's strong financial performance and stock price increase reflect the market's confidence in Equifax's growth prospects. As an investor, you should consider Equifax as a potential addition to your portfolio if you are looking for a company with a strong track record of growth and a promising future.