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1. Company Snapshot

1.a. Company Description

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 the 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.The company was formerly known as Experian Group Limited and changed its name to Experian plc in July 2008.Experian plc was founded in 1826 and is headquartered in Dublin, Ireland.

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1.b. Last Insights on EXPN

Experian's recent performance has been impacted by concerns over slowing growth and evolving business conditions. A new program announced by Fair Isaac Corporation to license mortgage credit scores directly to lenders, potentially bypassing credit bureaus, has raised concerns. This move may threaten Experian's business model, as it currently charges a markup for score resales. Additionally, analysts have noted a modest uptick in the company's stock price target, but with a balanced discussion of the company's capacity for steady revenue growth and operational execution.

1.c. Company Highlights

2. Experian's Strong H1 Results Driven by Organic Growth and Acquisitions

Experian delivered a robust first-half performance, with organic revenue growth accelerating to 9% in Q2, averaging 8% for the half, and total constant currency revenue growth reaching 12%. The company's EBIT margin expanded by 50 basis points at constant currency, and benchmark EPS grew double-digit. The actual EPS came out at $0.644, in line with estimates. North America's performance was particularly strong, with organic growth of 12% in Q2, driven by client wins, expansions, and improving lender activity.

Publication Date: Nov -13

📋 Highlights
  • Strong Revenue Growth:: Experian achieved 12% total constant currency revenue growth (H1), with organic growth averaging 8% and 9% in Q2 alone.
  • North America Outperformance:: North America delivered 12% Q2 organic growth, driven by client wins and lender activity, contributing significantly to overall performance.
  • Margin Expansion:: EBIT margin expanded 50 basis points at constant currency, reflecting operational efficiency and productivity improvements.
  • Consumer Services Growth:: Consumer Services grew 9% (H1), reaching 208 million free members, with HomeHub and Cashflow Score enhancing data offerings.
  • AI and Cloud Momentum:: AI-driven products like Patient Access Curator and cloud migrations (85% cloud processing in U.S./Brazil) position Experian for innovation and margin progression.

Regional Performance

Regional performance was strong across various geographies, with North America delivering 10% H1 organic revenue growth, Latin America seeing Consumer Services grow 18%, and UK&I posting 1% organic revenue growth, led by Consumer Services. EMEA and Asia Pacific also reported 6% organic revenue growth.

Business Segment Performance

The B2B organic revenue growth was 7% in Q2, with good growth across both financial services and verticals, underpinned by client wins, cross-sell, and new product innovations. The Consumer Services trend rebounded to 12% globally in Q2 and 13% in North America, with over 208 million free members.

AI and Innovation

The company is driving AI initiatives across its business, leveraging its vast and complex data sets to fuel innovation and productivity improvements. Experian has AI products in the market, such as Patient Access Curator, and platforms like Ascend and Activate, which are modular and allow for easy introduction of new functionality. The company expects AI to drive revenue growth, with evidence so far indicating it is revenue additive.

Valuation and Outlook

With a P/E Ratio of 34.98 and an EV/EBITDA of 17.41, the market appears to be pricing in a certain level of growth. Experian's ROIC is around 12.71%, and ROE is 23.79%, indicating a strong return on capital. The company expects organic revenue growth for the full year to be around 8% at the top end of the previous guidance range and a 3% inorganic contribution from completed acquisitions. Analysts estimate next year's revenue growth at 9.9%.

Capital Allocation and Dividend

The company has a strong financing position, with a net debt-to-EBITDA ratio at 1.8x. Experian raised its interim dividend by 10% and has completed its share repurchase guidance for the year. The Dividend Yield is around 1.41%, providing a relatively stable return for investors.

3. NewsRoom

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Electric Vehicle (EV) Financing Gains Momentum as the EV Tax Credit Comes to an End, According to New Data From Experian Automotive

Dec -04

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Why car prices won’t stop rising

Dec -03

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AI Takes Center Stage as the Major Threat to Cybersecurity in 2026

Dec -02

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New Agentic Capabilities in AWS Transform Enable Rapid Modernization of Any Code or Application

Dec -01

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This millionaire says one simple move will put middle-class Americans on the path to making millions

Dec -01

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Equifax Inc. (EFX): A Bull Case Theory

Nov -27

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Are Business Services Stocks Lagging CompoSecure (CMPO) This Year?

Nov -24

Source: zacks.com

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What Catalysts Are Shaping the Changing Story for Experian?

Nov -22

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4. Business Breakdown

4.a. Revenues by Country

4.b. Revenues by Segment

5. Expected revenues mid-term growth (8.25%)

6. Segments

Business-To-Business

Expected Growth: 7.4%

Experian’s B2B segment is expected to grow driven by increasing demand for data and analytics from businesses, the need for accurate risk assessment, and the adoption of digital technologies, such as artificial intelligence and machine learning, which are increasingly being used to drive business decision-making.

Consumer Services

Expected Growth: 10.5%

Experian's Consumer Services segment is driven by increasing consumer awareness of identity theft and credit monitoring, coupled with stringent regulations and growing demand for digital identity protection

7. Detailed Products

Credit Reports

Comprehensive credit reports providing detailed information on an individual's or business's credit history, payment behavior, and creditworthiness.

Identity Verification

Advanced identity verification solutions to prevent fraud, ensure compliance, and protect sensitive information.

Credit Scores

Three-digit credit scores that summarize an individual's or business's credit history and creditworthiness.

Fraud Detection

Advanced fraud detection solutions to identify and prevent fraudulent activities.

Marketing Services

Data-driven marketing solutions to help businesses acquire, retain, and grow customer relationships.

Data and Analytics

Comprehensive data and analytics solutions to help businesses make informed decisions.

Decisioning Solutions

Automated decisioning solutions to streamline credit decisions, reduce risk, and improve customer experience.

Business Credit Reports

Comprehensive business credit reports providing detailed information on a company's credit history and creditworthiness.

8. Experian plc's Porter Forces

Forces Ranking

Threat Of Substitutes

Experian plc operates in a highly competitive market, but the threat of substitutes is mitigated by the company's strong brand recognition and diversified product offerings.

Bargaining Power Of Customers

Experian plc's customers are largely dependent on the company's services, which reduces their bargaining power. Additionally, the company's diversified customer base reduces the impact of any single customer.

Bargaining Power Of Suppliers

Experian plc has a diversified supplier base, which reduces the bargaining power of individual suppliers. The company's strong financial position also gives it negotiating power with suppliers.

Threat Of New Entrants

The threat of new entrants is low due to the high barriers to entry in the credit reporting and information services industry. Experian plc's strong brand recognition and established customer base also make it difficult for new entrants to gain traction.

Intensity Of Rivalry

The credit reporting and information services industry is highly competitive, with several established players competing for market share. Experian plc must continually innovate and invest in its products and services to maintain its market position.

9. SWOT Analysis

Strength

Weaknesses

Opportunities

Threats

10. Capital Structure

10.a. Balance Sheet

10.b. Weighted Average Cost of capital

Value
Debt Weight 51.06%
Debt Cost 5.08%
Equity Weight 48.94%
Equity Cost 7.19%
WACC 6.11%
Leverage 104.33%

11. Quality Control: Experian plc passed 5 out of 9 key points

12.a Historical Valuation

12.b Price/Earnings Ratio

12.c Margin Valuation

12.d Peers Valuation

Peers Group Analysis

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Aena

A-Score: 7.5/10

Value: 6.7

Growth: 7.1

Quality: 8.2

Yield: 6.9

Momentum: 6.5

Volatility: 9.3

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Vinci

A-Score: 6.6/10

Value: 6.3

Growth: 6.2

Quality: 4.6

Yield: 6.9

Momentum: 6.0

Volatility: 9.3

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Volvo

A-Score: 6.1/10

Value: 4.7

Growth: 6.4

Quality: 4.4

Yield: 9.4

Momentum: 5.0

Volatility: 6.7

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BAE Systems

A-Score: 5.7/10

Value: 2.4

Growth: 6.9

Quality: 4.8

Yield: 4.4

Momentum: 9.5

Volatility: 6.3

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Saint-Gobain

A-Score: 5.2/10

Value: 4.8

Growth: 5.8

Quality: 4.3

Yield: 4.4

Momentum: 6.5

Volatility: 5.7

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Experian

A-Score: 4.5/10

Value: 1.4

Growth: 5.0

Quality: 7.1

Yield: 1.9

Momentum: 3.5

Volatility: 8.3

1-Year Total Return ->

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Peers Metrics

12.e Scoring Insights

12.f DCF BETA

Parameters

Short Term Growth

Short term Time

Long-Term Growth

WACC

Target Price

33.24$

Current Price

33.24$

Potential

-0.00%

Expected Cash-Flows