Equity prospects

Experian

Theo Wyld, Research Analyst

Price£12.91

52 week high yield£13.04 - £10.17

Net yield2.1%

Hist / pros per23.7 - 20.1

Equity market cap£12,400m

Experian is an information services firm best known for providing consumers and businesses alike with credit reports, but they are also engaged in fraud prevention, targeted marketing offers, and automated processes. Experian generates roughly half of earnings in North America; the remainder is spread relatively evenly across the globe.

Experian is a niche business with high barriers to entry and a strong balance sheet. It is well positioned to benefit from the structural growth in data usage and associated services; the products and services that Experian offer have the potential to materially enhance a given customer’s business and are likely to see significant demand over coming years.

The strategic success story at present, particular in the UK and the US, is the idea of ‘One Experian’; a push to cross-sell within their all-encompassing suite of products, the range of which is not available from competitors.

Alongside implementing ‘One Experian’, the relatively new management team have been effective in returning Consumer Services to growth, and building out a well invested, profitable franchise across all geographies.

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