Experian, which was founded back in 1826, is a multinational data broker and consumer credit reporting company that is headquartered in Dublin, Ireland. The company provides credit scoring, data analytics, marketing solutions and identity fraud prevention services to consumers and businesses across North America, Latin America, UK and Ireland, EMEA and Asia Pacific. The company operates through two segments, including Business-to-Business and Customer Services.

Simplifying home buying

Experian announced its multi-year partnership with Haysto and its brand Picnic, a modern mortgage service company, to leverage Haysto's digital mortgage technology with its advanced analytics. Aiming to deliver personalized mortgage services to over 15 million UK customers, this collaboration would simplify the home-buying process and improve eligibility to diverse financial profiles. In addition, by launching innovations, such as Mortgage Co-Pilot, the company aims to strengthen its Customer Services segment, improve digital engagement and reaffirm its commitment to financial inclusion.

Consistent growth trajectory

Experian posted decent performance over FY 22-25, achieving a revenue CAGR of 6.2%, reaching $7.5bn in FY 25, propelled by robust demand for credit and data analytics, expansion of membership, cloud transformation and strategic acquisitions. EBITDA surged at a CAGR of 8.3% to $2.3bn. Consequently, its EBITDA margin expanded from 28.9% to 30.0%.

Over FY 22-25, FCF grew from $1.1bn to $1.5bn, supported by cash inflow from operations improving from $1.8bn to $2bn. This led to cash and cash equivalent rising from $179m to $368m.

Experian delivered consistent revenue and earnings growth over H1 26, driven by positive trajectory across the core business segments, improved demand across North America, Latin America, and EMEA and Asia Pacific regions, AI-driven automation, and better product platforms. In addition, the benchmark EBIT margin trended upwards by 100bp.

In comparison, Equifax Inc., a global peer, reported a revenue CAGR of 4.9% over FY 21-24, reaching $5.7bn in FY 24. EBITDA grew at CAGR of 2.6% to $1.8bn, with its margin contracting from 33.1% to 30.9%.

Peer valuation gap

Over the past year, the company declared annual dividends of $0.6, with a dividend yield of 1.4%.

Experian is currently trading at a P/E of 27.7x, based on the FY 26 estimated EPS of $1.6, which is lower than its 3-year historical average of 36.4x and that of Equifax’s valuation of 38.9x. The company is currently trading at an EV/EBITDA multiple of 15.3x, based on FY 26, estimated EBITDA of $3bn, which is lower than its 3-year historical average of 16.9x and Equifax (16.1x).

Experian is monitored and almost universally liked by 17 analysts, 16 of whom have ‘Buy’ ratings and the other one having a ‘Hold’ rating, for an average target price of $57.3, implying 26.5% upside potential over the share's current price.

Analysts’ views are supported by an estimated EBITDA CAGR of 10.4% over FY 25-28, reaching $3.5bn, with margin of 36.1% in FY 28. In addition, analysts estimate a net profit CAGR of 18.1% to $1.9bn. In comparison, for Equifax, analysts estimate an EBITDA CAGR of 10.5% and net profit CAGR of 22.3% over FY 24-27.

Overall, Experian presented sustained growth and resilience through technological advancement and strategic partnerships. The company's trajectory reflects robust fundamentals underpinning sustainable growth. However, it faces regulatory scrutiny over data privacy and consumer protection compliance, alongside intensifying competition in the credit reporting and data analytics markets.