Equifax shares fell 4.2% on Sept. 24 to $148.80, a one-year low and about 42% below last year’s high. The article links the decline to rising long-term borrowing costs and weak mortgage activity; revenue is still growing at double-digit rates.
Equifax earns fees when lenders check credit files, so the article says mortgage applications and related inquiries are vulnerable to high borrowing costs. It reports that the 30-year Treasury yield reached its highest level since 2004 that week. Equifax generates about $6.4 billion a year through employment and income verification, U.S. credit files and international operations.
The article says a mortgage regulator’s decision to open scoring to VantageScore ended Fair Isaac’s monopoly; Equifax jointly owns VantageScore with the other two U.S. credit bureaus and is described as a beneficiary. Its Workforce Solutions arm holds employer-provided payroll records used to verify income. Shares traded near 16 times analysts’ forecast earnings for next year; the average analyst price target was above $200.
