Experian: AI may eat software but Experian owns the pantry. Reinstate with Buy rating.

研报英文原文证据摘录

Experian: AI may eat software but Experian owns the pantry. Reinstate with Buy rating.

iQprofile SM Experian

Key Income Statement Data (Mar) 2025A 2026A 2027E 2028E 2029E Company Sector

(US$ Millions) Business Services

Sales 7,523 8,445 9,139 9,756 10,399

EBITDA Adjusted 2,630 3,010 3,327 3,593 3,873

Depreciation & Amortization (547) (613) (665) (710) (757) Company Description EBIT Adjusted 2,083 2,397 2,662 2,884 3,116

Net Interest & Other Income (246) (98.0) (221) (215) (215) Experian is a unique collection of credit bureau, scoring,

Tax Expense / Benefit (487) (563) (635) (694) (754) software, marketing and internet services. The business

Net Income (Adjusted) 1,434 1,642 1,799 1,968 2,140 model is scalable, with high returns, strong cash flow and

Average Fully Diluted Shares Outstanding 922 919 888 856 827 limited competition in its more mature, core business.

Key Cash Flow Statement Data

Net Income (Reported) 1,166 1,502 1,589 1,743 1,900

Depreciation & Amortization 438 492 591 631 672 Investment Rationale

Change in Working Capital (54.0) (163) 34.4 30.6 31.9 We have a Buy rating on Experian reflecting the quality

Deferred Taxation Charge 0 0 0 0 0

characteristics of the business (FCF conversion 100%, ROIC

Other CFO 455 408 366 390 415

Cash Flow from Operations 2,005 2,239 2,580 2,794 3,020 18%) and its growth potential. The company target high

Capital Expenditure (689) (688) (731) (732) (728) single digit organic growth which we see as achievable and

(Acquisition) / Disposal of Investments (1,180) (677) (286) 0 0 underpinned by AI centric megatrends. Scaling the business

Other CFI 0 0 0 0 0 supports margin expansion and the cash generative nature

Cash Flow from Investing (1,869) (1,365) (1,017) (732) (728)

of the business supports bolt-on M&A and large scale cash