Experian PLC (EXPN.L), headquartered in Dublin, Ireland, is a prominent player in the Industrials sector, specifically within Consulting Services. With a significant market capitalization of $32.29 billion, Experian enjoys a robust presence across North America, Latin America, the UK, Europe, the Middle East, Africa, and the Asia Pacific. The company specializes in data aggregation, analytics, and technology solutions, serving a diverse client base that spans financial services, healthcare, telecommunications, and more.
Currently trading at 3,530 GBp, Experian’s stock has experienced a wide range over the past year, fluctuating between 3,091 GBp and 4,088 GBp. Despite a slight dip of 6.00 GBp recently, which reflects a 0.00% change, the stock offers a tantalizing potential upside of 25.19% as per the average target price set by analysts at 4,419.17 GBp.
Investors should note that Experian’s valuation metrics present a mixed bag. The forward P/E ratio stands at a staggering 1,772.60, which could raise eyebrows regarding the stock’s current valuation compared to its earnings potential. This is juxtaposed with a lack of data on trailing P/E, PEG, and Price/Book ratios, which might leave some investors seeking more comprehensive valuation insights. Nonetheless, the company’s robust revenue growth of 6.00% and a healthy return on equity of 23.98% paint a picture of operational efficiency and profitability.
Experian’s financial health is further underscored by its free cash flow of approximately $1.37 billion, providing the company with ample liquidity to fuel future growth initiatives or potential shareholder returns. The company’s dividend yield of 1.34% with a payout ratio of 47.53% offers a modest income stream for investors, aligning well with its growth trajectory.
From an analyst perspective, Experian garners a favorable outlook with 13 buy ratings against 3 holds and a singular sell rating. This consensus indicates confidence in the company’s strategic direction and market positioning. The stock’s target price range, spanning from 3,077.83 GBp to 5,589.26 GBp, reflects varied assessments of its growth potential.
Technical indicators suggest a cautious approach. The stock’s RSI (14) of 38.42 implies it is nearing oversold territory, while the MACD of -78.77, below its signal line of -65.49, signals potential bearish momentum in the short term. The 50-day and 200-day moving averages, at 3,776.22 GBp and 3,747.04 GBp respectively, suggest the stock is currently trading below its recent trends, which might appeal to value-focused investors eyeing a potential entry point.
Experian’s expansive portfolio, which includes credit risk and fraud prevention tools, alongside its data-driven offerings, positions it well for continued relevance in an increasingly digital and data-centric world. While valuation metrics prompt careful consideration, the company’s strong cash flow, strategic global presence, and solid analyst backing make Experian PLC a compelling consideration for investors seeking growth opportunities within the data and technology landscape.
