TRANSUNION (TRU) Stock Fundamental Analysis
USA - New York Stock Exchange - NYSE:TRU - US89400J1079 - Common Stock
87.71 USD
+3.37 (+4%)
88.3679 USD
+0.66 (+0.75%)
Taking everything into account, TRU scores 4 out of 10 in our fundamental rating. TRU was compared to 86 industry peers in the Professional Services industry. TRU has only an average score on both its financial health and profitability. TRU is valied quite expensively at the moment, while it does show a decent growth rate.
1. Profitability
1.1 Basic Checks
In the past year TRU was profitable.
In the past year TRU had a positive cash flow from operations.
TRU had positive earnings in 4 of the past 5 years.
Each year in the past 5 years TRU had a positive operating cash flow.
1.2 Ratios
TRU has a Return On Assets (3.78%) which is comparable to the rest of the industry.
TRU has a Return On Equity of 9.40%. This is comparable to the rest of the industry: TRU outperforms 54.65% of its industry peers.
TRU has a Return On Invested Capital (6.18%) which is comparable to the rest of the industry.
TRU had an Average Return On Invested Capital over the past 3 years of 4.87%. This is significantly below the industry average of 11.86%.
The 3 year average ROIC (4.87%) for TRU is below the current ROIC(6.18%), indicating increased profibility in the last year.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 3.78% | ||
| ROE | 9.4% | ||
| ROIC | 6.18% |
ROA(3y)1.01%
ROA(5y)3.74%
ROE(3y)2.69%
ROE(5y)11.41%
ROIC(3y)4.87%
ROIC(5y)4.92%
1.3 Margins
Looking at the Profit Margin, with a value of 9.47%, TRU is in the better half of the industry, outperforming 76.74% of the companies in the same industry.
TRU's Profit Margin has declined in the last couple of years.
TRU has a Operating Margin of 18.69%. This is amongst the best in the industry. TRU outperforms 83.72% of its industry peers.
In the last couple of years the Operating Margin of TRU has declined.
The Gross Margin of TRU (59.31%) is better than 77.91% of its industry peers.
In the last couple of years the Gross Margin of TRU has declined.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 18.69% | ||
| PM (TTM) | 9.47% | ||
| GM | 59.31% |
OM growth 3Y-7.12%
OM growth 5Y-4.43%
PM growth 3Y-47.46%
PM growth 5Y-13.56%
GM growth 3Y-3.37%
GM growth 5Y-2.27%
2. Health
2.1 Basic Checks
With a Return on Invested Capital (ROIC) below the Cost of Capital (WACC), TRU is destroying value.
TRU has more shares outstanding than it did 1 year ago.
The number of shares outstanding for TRU has been increased compared to 5 years ago.
Compared to 1 year ago, TRU has an improved debt to assets ratio.
2.2 Solvency
An Altman-Z score of 2.57 indicates that TRU is not a great score, but indicates only limited risk for bankruptcy at the moment.
The Altman-Z score of TRU (2.57) is comparable to the rest of the industry.
The Debt to FCF ratio of TRU is 8.89, which is on the high side as it means it would take TRU, 8.89 years of fcf income to pay off all of its debts.
The Debt to FCF ratio of TRU (8.89) is comparable to the rest of the industry.
A Debt/Equity ratio of 1.13 is on the high side and indicates that TRU has dependencies on debt financing.
TRU has a Debt to Equity ratio of 1.13. This is in the lower half of the industry: TRU underperforms 70.93% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.13 | ||
| Debt/FCF | 8.89 | ||
| Altman-Z | 2.57 |
ROIC/WACC0.8
WACC7.69%
2.3 Liquidity
TRU has a Current Ratio of 2.01. This indicates that TRU is financially healthy and has no problem in meeting its short term obligations.
TRU has a better Current ratio (2.01) than 73.26% of its industry peers.
TRU has a Quick Ratio of 2.01. This indicates that TRU is financially healthy and has no problem in meeting its short term obligations.
The Quick ratio of TRU (2.01) is better than 75.58% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 2.01 | ||
| Quick Ratio | 2.01 |
3. Growth
3.1 Past
The Earnings Per Share has grown by an nice 12.00% over the past year.
Measured over the past 5 years, TRU shows a small growth in Earnings Per Share. The EPS has been growing by 6.96% on average per year.
Looking at the last year, TRU shows a quite strong growth in Revenue. The Revenue has grown by 8.30% in the last year.
TRU shows quite a strong growth in Revenue. Measured over the last years, the Revenue has been growing by 11.18% yearly.
EPS 1Y (TTM)12%
EPS 3Y2.04%
EPS 5Y6.96%
EPS Q2Q%5.77%
Revenue 1Y (TTM)8.3%
Revenue growth 3Y12.22%
Revenue growth 5Y11.18%
Sales Q2Q%7.79%
3.2 Future
The Earnings Per Share is expected to grow by 8.85% on average over the next years. This is quite good.
TRU is expected to show a small growth in Revenue. In the coming years, the Revenue will grow by 7.16% yearly.
EPS Next Y9.66%
EPS Next 2Y11.52%
EPS Next 3Y13.13%
EPS Next 5Y8.85%
Revenue Next Year8.7%
Revenue Next 2Y8.2%
Revenue Next 3Y8.23%
Revenue Next 5Y7.16%
3.3 Evolution
When comparing the EPS growth rate of the last years to the growth rate of the upcoming years, we see that the growth is accelerating.
When comparing the Revenue growth rate of the last years to the growth rate of the upcoming years, we see that the growth is decreasing.
4. Valuation
4.1 Price/Earnings Ratio
The Price/Earnings ratio is 20.88, which indicates a rather expensive current valuation of TRU.
62.79% of the companies in the same industry are more expensive than TRU, based on the Price/Earnings ratio.
The average S&P500 Price/Earnings ratio is at 27.19. TRU is valued slightly cheaper when compared to this.
Based on the Price/Forward Earnings ratio of 17.99, the valuation of TRU can be described as rather expensive.
Compared to the rest of the industry, the Price/Forward Earnings ratio of TRU indicates a somewhat cheap valuation: TRU is cheaper than 60.47% of the companies listed in the same industry.
Compared to an average S&P500 Price/Forward Earnings ratio of 23.88, TRU is valued a bit cheaper.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 20.88 | ||
| Fwd PE | 17.99 |
4.2 Price Multiples
TRU's Enterprise Value to EBITDA is on the same level as the industry average.
Compared to the rest of the industry, the Price/Free Cash Flow ratio of TRU is on the same level as its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 29.59 | ||
| EV/EBITDA | 14.87 |
4.3 Compensation for Growth
The high PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates TRU does not grow enough to justify the current Price/Earnings ratio.
TRU's earnings are expected to grow with 13.13% in the coming years. This may justify a more expensive valuation.
PEG (NY)2.16
PEG (5Y)3
EPS Next 2Y11.52%
EPS Next 3Y13.13%
5. Dividend
5.1 Amount
TRU has a yearly dividend return of 0.54%, which is pretty low.
TRU's Dividend Yield is a higher than the industry average which is at 1.54.
Compared to an average S&P500 Dividend Yield of 1.94, TRU's dividend is way lower than the S&P500 average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.54% |
5.2 History
On average, the dividend of TRU grows each year by 7.03%, which is quite nice.
TRU has been paying a dividend for over 5 years, so it has already some track record.
As TRU did not decrease their dividend in the past 5 years, we can say the dividend looks stable.
Dividend Growth(5Y)7.03%
Div Incr Years0
Div Non Decr Years6
5.3 Sustainability
21.24% of the earnings are spent on dividend by TRU. This is a low number and sustainable payout ratio.
The dividend of TRU is growing, but earnings are growing more, so the dividend growth is sustainable.
DP21.24%
EPS Next 2Y11.52%
EPS Next 3Y13.13%
87.71
+3.37 (+4%)
Chartmill FA Rating
GICS SectorIndustrials
GICS IndustryGroupCommercial & Professional Services
GICS IndustryProfessional Services
Earnings (Last)
Earnings (Next)
Inst Owners110.35%
Inst Owner Change0%
Ins Owners0.33%
Ins Owner Change-3.57%
Market Cap17.03B
Revenue(TTM)4.44B
Net Income(TTM)420.50M
Analysts80
Price Target107.71 (22.8%)
Short Float %3.44%
Short Ratio3.1
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.54% |
Yearly Dividend0.43
Dividend Growth(5Y)7.03%
DP21.24%
Div Incr Years0
Div Non Decr Years6
Ex-DateN/A
Surprises & Revisions
EPS beat(2)2
Avg EPS beat(2)6.21%
Min EPS beat(2)4.49%
Max EPS beat(2)7.93%
EPS beat(4)3
Avg EPS beat(4)4.85%
Min EPS beat(4)-0.09%
Max EPS beat(4)7.93%
EPS beat(8)7
Avg EPS beat(8)5.86%
EPS beat(12)9
Avg EPS beat(12)3.91%
EPS beat(16)10
Avg EPS beat(16)2.24%
Revenue beat(2)2
Avg Revenue beat(2)2.55%
Min Revenue beat(2)2.23%
Max Revenue beat(2)2.86%
Revenue beat(4)3
Avg Revenue beat(4)1.58%
Min Revenue beat(4)-0.02%
Max Revenue beat(4)2.86%
Revenue beat(8)7
Avg Revenue beat(8)1.7%
Revenue beat(12)9
Avg Revenue beat(12)0.98%
Revenue beat(16)10
Avg Revenue beat(16)-0.74%
PT rev (1m)0.19%
PT rev (3m)-6.13%
EPS NQ rev (1m)0.29%
EPS NQ rev (3m)2.86%
EPS NY rev (1m)0.16%
EPS NY rev (3m)2.04%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)2.32%
Revenue NY rev (1m)0%
Revenue NY rev (3m)1.42%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 20.88 | ||
| Fwd PE | 17.99 | ||
| P/S | 3.83 | ||
| P/FCF | 29.59 | ||
| P/OCF | 18.47 | ||
| P/B | 3.81 | ||
| P/tB | N/A | ||
| EV/EBITDA | 14.87 |
EPS(TTM)4.2
EY4.79%
EPS(NY)4.88
Fwd EY5.56%
FCF(TTM)2.96
FCFY3.38%
OCF(TTM)4.75
OCFY5.41%
SpS22.87
BVpS23.04
TBVpS-20.3
PEG (NY)2.16
PEG (5Y)3
Graham Number46.66
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 3.78% | ||
| ROE | 9.4% | ||
| ROCE | 8.2% | ||
| ROIC | 6.18% | ||
| ROICexc | 6.67% | ||
| ROICexgc | 65.18% | ||
| OM | 18.69% | ||
| PM (TTM) | 9.47% | ||
| GM | 59.31% | ||
| FCFM | 12.96% |
ROA(3y)1.01%
ROA(5y)3.74%
ROE(3y)2.69%
ROE(5y)11.41%
ROIC(3y)4.87%
ROIC(5y)4.92%
ROICexc(3y)5.17%
ROICexc(5y)5.36%
ROICexgc(3y)55.44%
ROICexgc(5y)115.16%
ROCE(3y)6.46%
ROCE(5y)6.53%
ROICexgc growth 3Y-43.22%
ROICexgc growth 5Y-5.67%
ROICexc growth 3Y4.94%
ROICexc growth 5Y-1.8%
OM growth 3Y-7.12%
OM growth 5Y-4.43%
PM growth 3Y-47.46%
PM growth 5Y-13.56%
GM growth 3Y-3.37%
GM growth 5Y-2.27%
F-Score9
Asset Turnover0.4
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.13 | ||
| Debt/FCF | 8.89 | ||
| Debt/EBITDA | 3.61 | ||
| Cap/Depr | 61.36% | ||
| Cap/Sales | 7.8% | ||
| Interest Coverage | 250 | ||
| Cash Conversion | 66.12% | ||
| Profit Quality | 136.91% | ||
| Current Ratio | 2.01 | ||
| Quick Ratio | 2.01 | ||
| Altman-Z | 2.57 |
F-Score9
WACC7.69%
ROIC/WACC0.8
Cap/Depr(3y)58.48%
Cap/Depr(5y)58.62%
Cap/Sales(3y)7.9%
Cap/Sales(5y)7.95%
Profit Quality(3y)N/A
Profit Quality(5y)N/A
High Growth Momentum
Growth
EPS 1Y (TTM)12%
EPS 3Y2.04%
EPS 5Y6.96%
EPS Q2Q%5.77%
EPS Next Y9.66%
EPS Next 2Y11.52%
EPS Next 3Y13.13%
EPS Next 5Y8.85%
Revenue 1Y (TTM)8.3%
Revenue growth 3Y12.22%
Revenue growth 5Y11.18%
Sales Q2Q%7.79%
Revenue Next Year8.7%
Revenue Next 2Y8.2%
Revenue Next 3Y8.23%
Revenue Next 5Y7.16%
EBIT growth 1Y18.7%
EBIT growth 3Y4.23%
EBIT growth 5Y6.25%
EBIT Next Year124.8%
EBIT Next 3Y40.02%
EBIT Next 5Y26.03%
FCF growth 1Y66.15%
FCF growth 3Y-4%
FCF growth 5Y-2.22%
OCF growth 1Y38.58%
OCF growth 3Y0.99%
OCF growth 5Y1.4%
TRANSUNION / TRU FAQ
Can you provide the ChartMill fundamental rating for TRANSUNION?
ChartMill assigns a fundamental rating of 4 / 10 to TRU.
What is the valuation status of TRANSUNION (TRU) stock?
ChartMill assigns a valuation rating of 3 / 10 to TRANSUNION (TRU). This can be considered as Overvalued.
How profitable is TRANSUNION (TRU) stock?
TRANSUNION (TRU) has a profitability rating of 5 / 10.
Can you provide the PE and PB ratios for TRU stock?
The Price/Earnings (PE) ratio for TRANSUNION (TRU) is 20.88 and the Price/Book (PB) ratio is 3.81.
What is the financial health of TRANSUNION (TRU) stock?
The financial health rating of TRANSUNION (TRU) is 4 / 10.