Equifax Inc. (NYSE: EFX)

Equifax Inc. (NYSE: EFX) provides information solutions and human resources business process automation outsourcing services for businesses, governments, and consumers.

As one of the leading credit bureaus in the United States, the company has been impacted by the weakness in the mortgage market.

But the Baron Fintech Fund recently had this to say about Equifax Inc. in its Q1 2022 investor letter:

“Unique to Equifax is its Workforce Solutions business, which maintains a database of employment and income records sourced from employers and payroll processors. Equifax has over 136 million active records representing over 60% of U.S. non-farm payrolls. Businesses and government agencies use this data for employment and income verification, which is needed when someone applies for a mortgage, requests government benefits, or changes jobs.”

“We believe Equifax has by far the largest repository of this valuable data and continues to add new records at a faster pace than competitors. With durable growth coming from new product innovation and its Workforce Solutions business, we believe that Equifax is a high-quality business that is well positioned to grow earnings per share at a mid-teens rate over a multi-year period.”