TRANSUNION (TRU) Stock Fundamental Analysis
USA - New York Stock Exchange - NYSE:TRU - US89400J1079 - Common Stock
84.47 USD
+0.28 (+0.33%)
84.45 USD
-0.02 (-0.02%)
Overall TRU gets a fundamental rating of 4 out of 10. We evaluated TRU against 87 industry peers in the Professional Services industry. TRU has an average financial health and profitability rating. TRU is quite expensive at the moment. It does show a decent growth rate.
1. Profitability
1.1 Basic Checks
In the past year TRU was profitable.
TRU had a positive operating cash flow in the past year.
Of the past 5 years TRU 4 years were profitable.
Each year in the past 5 years TRU had a positive operating cash flow.
1.2 Ratios
TRU has a Return On Assets of 3.78%. This is comparable to the rest of the industry: TRU outperforms 54.02% of its industry peers.
TRU's Return On Equity of 9.40% is in line compared to the rest of the industry. TRU outperforms 55.17% of its industry peers.
Looking at the Return On Invested Capital, with a value of 6.18%, TRU is in line with its industry, outperforming 50.57% of the companies in the same 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 12.13%.
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
The Profit Margin of TRU (9.47%) is better than 77.01% of its industry peers.
In the last couple of years the Profit Margin of TRU has declined.
TRU has a Operating Margin of 18.69%. This is amongst the best in the industry. TRU outperforms 83.91% of its industry peers.
TRU's Operating Margin has declined in the last couple of years.
Looking at the Gross Margin, with a value of 59.31%, TRU is in the better half of the industry, outperforming 75.86% of the companies in the same industry.
TRU's Gross Margin has declined in the last couple of years.
| 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
TRU has a Return on Invested Capital (ROIC), which is below the Cost of Capital (WACC), which means it is destroying value.
Compared to 1 year ago, TRU has more shares outstanding
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
TRU has an Altman-Z score of 2.57. This is not the best score and indicates that TRU is in the grey zone with still only limited risk for bankruptcy at the moment.
TRU has a Altman-Z score (2.57) which is in line with its industry peers.
TRU has a debt to FCF ratio of 8.89. This is a slightly negative value and a sign of low solvency as TRU would need 8.89 years to pay back of 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.
The Debt to Equity ratio of TRU (1.13) is worse than 72.41% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.13 | ||
| Debt/FCF | 8.89 | ||
| Altman-Z | 2.57 |
ROIC/WACC0.82
WACC7.56%
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 72.41% of its industry peers.
A Quick Ratio of 2.01 indicates that TRU has no problem at all paying its short term obligations.
With a decent Quick ratio value of 2.01, TRU is doing good in the industry, outperforming 74.71% of the companies in the same industry.
| 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.
The Earnings Per Share has been growing slightly by 6.96% on average over the past years.
TRU shows quite a strong growth in Revenue. In the last year, the Revenue has grown by 8.30%.
Measured over the past years, TRU shows a quite strong growth in Revenue. The Revenue has been growing by 11.18% on average per year.
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.
Based on estimates for the next years, TRU will show a small growth in Revenue. The Revenue will grow by 7.16% on average per year.
EPS Next Y9.49%
EPS Next 2Y11.6%
EPS Next 3Y13.02%
EPS Next 5Y8.85%
Revenue Next Year8.7%
Revenue Next 2Y8.13%
Revenue Next 3Y8.2%
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
TRU is valuated rather expensively with a Price/Earnings ratio of 20.11.
TRU's Price/Earnings is on the same level as the industry average.
TRU is valuated rather cheaply when we compare the Price/Earnings ratio to 26.49, which is the current average of the S&P500 Index.
With a Price/Forward Earnings ratio of 17.30, TRU is valued on the expensive side.
TRU's Price/Forward Earnings ratio is in line with the industry average.
Compared to an average S&P500 Price/Forward Earnings ratio of 23.69, TRU is valued a bit cheaper.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 20.11 | ||
| Fwd PE | 17.3 |
4.2 Price Multiples
Compared to the rest of the industry, the Enterprise Value to EBITDA ratio of TRU is on the same level as its industry peers.
TRU's Price/Free Cash Flow ratio is in line with the industry average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 28.49 | ||
| EV/EBITDA | 14.89 |
4.3 Compensation for Growth
The high PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates an expensive valuation of the company.
TRU's earnings are expected to grow with 13.02% in the coming years. This may justify a more expensive valuation.
PEG (NY)2.12
PEG (5Y)2.89
EPS Next 2Y11.6%
EPS Next 3Y13.02%
5. Dividend
5.1 Amount
With a yearly dividend of 0.55%, TRU is not a good candidate for dividend investing.
TRU's Dividend Yield is a higher than the industry average which is at 4.12.
With a Dividend Yield of 0.55, TRU pays less dividend than the S&P500 average, which is at 2.31.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.55% |
5.2 History
The dividend of TRU is nicely growing with an annual growth rate of 7.03%!
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 2Y11.6%
EPS Next 3Y13.02%
84.47
+0.28 (+0.33%)
Chartmill FA Rating
GICS SectorIndustrials
GICS IndustryGroupCommercial & Professional Services
GICS IndustryProfessional Services
Earnings (Last)
Earnings (Next)
Inst Owners110.29%
Inst Owner Change8.24%
Ins Owners0.33%
Ins Owner Change-1.21%
Market Cap16.40B
Revenue(TTM)4.44B
Net Income(TTM)420.50M
Analysts80
Price Target107.51 (27.28%)
Short Float %4.18%
Short Ratio2.66
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.55% |
Yearly Dividend0.43
Dividend Growth(5Y)7.03%
DP21.24%
Div Incr Years0
Div Non Decr Years6
Ex-Date
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)0.24%
PT rev (3m)-6.19%
EPS NQ rev (1m)0.12%
EPS NQ rev (3m)2.54%
EPS NY rev (1m)0.09%
EPS NY rev (3m)1.88%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)2.32%
Revenue NY rev (1m)0.02%
Revenue NY rev (3m)1.48%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 20.11 | ||
| Fwd PE | 17.3 | ||
| P/S | 3.69 | ||
| P/FCF | 28.49 | ||
| P/OCF | 17.79 | ||
| P/B | 3.67 | ||
| P/tB | N/A | ||
| EV/EBITDA | 14.89 |
EPS(TTM)4.2
EY4.97%
EPS(NY)4.88
Fwd EY5.78%
FCF(TTM)2.96
FCFY3.51%
OCF(TTM)4.75
OCFY5.62%
SpS22.87
BVpS23.04
TBVpS-20.3
PEG (NY)2.12
PEG (5Y)2.89
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
WACC7.56%
ROIC/WACC0.82
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 Y9.49%
EPS Next 2Y11.6%
EPS Next 3Y13.02%
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 2Y8.13%
Revenue Next 3Y8.2%
Revenue Next 5Y7.16%
EBIT growth 1Y18.7%
EBIT growth 3Y4.23%
EBIT growth 5Y6.25%
EBIT Next Year124.66%
EBIT Next 3Y40.06%
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 for 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.
What is the financial health of TRANSUNION (TRU) stock?
The financial health rating of TRANSUNION (TRU) is 4 / 10.
Can you provide the dividend sustainability for TRU stock?
The dividend rating of TRANSUNION (TRU) is 5 / 10 and the dividend payout ratio is 21.24%.