In a bid to increase shareholder value, Equifax (EFX) has authorized a new share buyback plan of $400 million. The company added that the buyback program will be carried out in the open market or through certain transactions depending on market conditions as well as regulatory considerations.

Equifax added that the new buyback plan will be in addition to the $141.7 million remaining under its present plan. The repurchase initiative strengthens Equifax’s commitment to increase value of its shareholders. Per company records, Equifax has returned $2.4 billion through share buybacks and dividends over the last 10-year period.

Also, the company has a solid cash flow generating ability that enables these initiatives. Equifax reported cash flow from operations of $217.8 million in the first six months of fiscal 2014 (ended Jun 30, 2014), compared with $202.8 million in the year-ago period.

Additionally, the company has reported decent growth rates in the last few years. Total revenue grew 11% in 2013, 10.2% in 2012, 5.4% in 2011 and 8.4% in 2010. Revenue growth in 2013 was driven by good management execution and strong performance across all of its business segments. Moreover, modest economic growth in addition to continued general consumer credit activity, product innovations, initiatives to foster enterprise growth and efficient business executions have led Equifax to project long-term average organic revenue growth of 6% to 8%.

It is also worth noting that Equifax reported modest second-quarter results in July. While the bottom line beat the Zacks Consensus Estimate, the top line came in line with the same. Nonetheless, the company’s revenues increased on a year-over-year basis aided by strong growth across most of its business segments. The company also provided a modest third-quarter and fiscal 2014 guidance.

Management’s efforts such as strategic initiatives for product innovation, expansion of data assets through acquisitions and continuous share gains in North America were the encouraging points in the quarter.

Given the company’s strong correlation to consumer and financial markets as well as its U.S. and European exposure, we expect a gradual improvement in results. Moreover, improving mortgage environment could be a positive for the stock. However, stiff competition from Automatic Data Processing Inc. (ADP), Fiserv Inc. (FISV) and Moody’s Corp. (MCO) and uncertainty in the mortgage sector are the concerns.

Currently, Equifax has a Zacks Rank #2 (Buy).

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