Experian plc (EXPN) is a leading consulting services business based in the UK. Experian is listed on the London Stock Exchange (LSE) and employs 17,800 staff. All prices are listed in pence sterling.
|52-week range||1799.8634p - 3180.1641p|
|50-day moving average||2761.6177p|
|200-day moving average||2848.4858p|
|Wall St. target price||25.64p|
|Dividend yield||0.37p (1.39%)|
|Earnings per share (TTM)||72p|
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The technical analysis gauge below displays real-time ratings for the timeframes you select. This is not a recommendation, however. It represents a technical analysis based on the most popular technical indicators: Moving Averages, Oscillators and Pivots. Finder might not concur and takes no responsibility.
Valuing Experian stock is incredibly difficult, and any metric has to be viewed as part of a bigger picture of Experian's overall performance. However, analysts commonly use some key metrics to help gauge the value of a stock.
Experian's current share price divided by its per-share earnings (EPS) over a 12-month period gives a "trailing price/earnings ratio" of roughly 37x. In other words, Experian shares trade at around 37x recent earnings.
That's relatively high compared to, say, the trailing 12-month P/E ratio for the FTSE 250 at the end of September 2019 (19.71). The high P/E ratio could mean that investors are optimistic about the outlook for the shares or simply that they're over-valued.
However, Experian's P/E ratio is best considered in relation to those of others within the consulting services industry or those of similar companies.
Experian's "price/earnings-to-growth ratio" can be calculated by dividing its P/E ratio by its growth – to give 2.0612. A low ratio can be interpreted as meaning the shares offer better value, while a higher ratio can be interpreted as meaning the shares offer worse value.
The PEG ratio provides a broader view than just the P/E ratio, as it gives more insight into Experian's future profitability. By accounting for growth, it could also help you if you're comparing the share prices of multiple high-growth companies.
However, it's sensible to consider Experian's PEG ratio in relation to those of similar companies.
Experian's EBITDA (earnings before interest, taxes, depreciation and amortisation) is a whopping £1.6 billion.
The EBITDA is a measure of a Experian's overall financial performance and is widely used to measure a its profitability.
To put Experian's EBITDA into context you can compare it against that of similar companies.
|Revenue TTM||£5.2 billion|
|Operating margin TTM||23.75%|
|Gross profit TTM||£2.2 billion|
|Return on assets TTM||8.64%|
|Return on equity TTM||26.76%|
|Market capitalisation||£24.2 billion|
TTM: trailing 12 months
Environmental, social and governance (known as ESG) criteria are a set of three factors used to measure the sustainability and social impact of companies like Experian.
When it comes to ESG scores, lower is better, and lower scores are generally associated with lower risk for would-be investors.
Total ESG risk: 22.45
Socially conscious investors use ESG scores to screen how an investment aligns with their worldview, and Experian's overall score of 22.45 (as at 01/01/2019) is pretty good – landing it in it in the 28th percentile of companies rated in the same sector.
ESG scores are increasingly used to estimate the level of risk a company like Experian is exposed to within the areas of "environmental" (carbon footprint, resource use etc.), "social" (health and safety, human rights etc.), and "governance" (anti-corruption, tax transparency etc.).
To gain some more context, you can compare Experian's total ESG risk score against those of similar companies.
Environmental score: 2.02/100
Experian's environmental score of 2.02 puts it squarely in the 3rd percentile of companies rated in the same sector. This could suggest that Experian is a leader in its sector terms of its environmental impact, and exposed to a lower level of risk.
Social score: 14.86/100
Experian's social score of 14.86 puts it squarely in the 3rd percentile of companies rated in the same sector. This could suggest that Experian is a leader in its sector when it comes to taking good care of its workforce and the communities it impacts.
Governance score: 6.57/100
Experian's governance score puts it squarely in the 3rd percentile of companies rated in the same sector. That could suggest that Experian is a leader in its sector when it comes to responsible management and strategy, and exposed to a lower level of risk.
Controversy score: 3/5
ESG scores also evaluate any incidences of controversy that a company has been involved in. A high-profile company, Experian scored a 3 out of 5 for controversy – a middle-of-the-table result reflecting that Experian hasn't always managed to keep its nose clean.
Wondering how that compares? Below are the controversy scores of similar companies.
|Total ESG score||22.45|
|Total ESG percentile||27.74|
|Environmental score percentile||3|
|Social score percentile||3|
|Governance score percentile||3|
|Level of controversy||3|
Dividend payout ratio: 64.6% of net profits
Recently Experian has paid out, on average, around 64.6% of net profits as dividends. That has enabled analysts to estimate a "forward annual dividend yield" of 1.39% of the current stock value. This means that over a year, based on recent payouts (which are sadly no guarantee of future payouts), Experian shareholders could enjoy a 1.39% return on their shares, in the form of dividend payments. In Experian's case, that would currently equate to about 0.37p per share.
Experian's payout ratio would broadly be considered high, and as such this stock could appeal to those looking to generate an income. Bear in mind however that companies should normally also look to re-invest a decent amount of net profits to ensure future growth.
The latest dividend was paid out to all shareholders who bought their shares by 7 January 2021 (the "ex-dividend date").
Experian's dividend payout ratio is perhaps best considered in relation to those of similar companies.
Over the last 12 months, Experian's shares have ranged in value from as little as 1799.8634p up to 3180.1641p. A popular way to gauge a stock's volatility is its "beta".
Beta is a measure of a share's volatility in relation to the market. The market (LSE average) beta is 1, while Experian's is 0.2308. This would suggest that Experian's shares are less volatile than average (for this exchange).
To put Experian's beta into context you can compare it against those of similar companies.
Experian plc, together with its subsidiaries, operates as a technology company. The company operates through two segments, Business-to-Business and Consumer Services. It provides data services to identify and understand their customers, as well as to manage the risks related with lending. The company also offers analytical and decision tools that enhance businesses to manage their customers, minimize the risk of fraud, comply with legal requirements, and automate decisions and processes. In addition, it provides financial education, free access to Experian credit reports and scores, online educational tools, and applications to manage their financial position, access credit offers, and protect themselves from identity fraud. The company serves customers in financial service, direct-to-consumer, health, retail, automotive, software and professional services, telecommunications and utility, insurance, media and technology, government and public, and other sectors. It operates in North America, Latin America, the United Kingdom, Ireland, Europe, the Middle East, Africa, and the Asia Pacific. Experian plc was formerly known as Experian Group Limited and changed its name to Experian plc in July 2008. Experian plc was founded in 1897 and is headquartered in Dublin, Ireland.
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