TRANSUNION (TRU)
US89400J1079 - Common Stock
We assign a fundamental rating of 4 out of 10 to TRU. TRU was compared to 81 industry peers in the Professional Services industry. TRU has a medium profitability rating, but doesn't score so well on its financial health evaluation. 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.
In the past year TRU had a positive cash flow from operations.
TRU had positive earnings in 4 of the past 5 years.
TRU had a positive operating cash flow in each of the past 5 years.
1.2 Ratios
TRU's Return On Assets of 2.03% is in line compared to the rest of the industry. TRU outperforms 48.05% of its industry peers.
TRU's Return On Equity of 5.31% is in line compared to the rest of the industry. TRU outperforms 49.35% of its industry peers.
Looking at the Return On Invested Capital, with a value of 4.80%, TRU is in line with its industry, outperforming 44.16% of the companies in the same industry.
The Average Return On Invested Capital over the past 3 years for TRU is significantly below the industry average of 12.35%.
The last Return On Invested Capital (4.80%) for TRU is above the 3 year average (4.08%), which is a sign of increasing profitability.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 2.03% | ||
| ROE | 5.31% | ||
| ROIC | 4.8% |
ROA(3y)3.81%
ROA(5y)4.2%
ROE(3y)12.27%
ROE(5y)13.16%
ROIC(3y)4.08%
ROIC(5y)4.63%
1.3 Margins
With a decent Profit Margin value of 5.46%, TRU is doing good in the industry, outperforming 66.23% of the companies in the same industry.
TRU has a better Operating Margin (17.05%) than 84.42% of its industry peers.
TRU's Operating Margin has declined in the last couple of years.
TRU has a Gross Margin of 58.41%. This is in the better half of the industry: TRU outperforms 66.23% of its industry peers.
In the last couple of years the Gross Margin of TRU has declined.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 17.05% | ||
| PM (TTM) | 5.46% | ||
| GM | 58.41% |
OM growth 3Y-6.45%
OM growth 5Y-6.05%
PM growth 3YN/A
PM growth 5YN/A
GM growth 3Y-3.04%
GM growth 5Y-1.73%
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 2.63 indicates that TRU is not a great score, but indicates only limited risk for bankruptcy at the moment.
The Altman-Z score of TRU (2.63) is worse than 61.04% of its industry peers.
The Debt to FCF ratio of TRU is 10.74, which is on the high side as it means it would take TRU, 10.74 years of fcf income to pay off all of its debts.
TRU has a worse Debt to FCF ratio (10.74) than 62.34% of its industry peers.
A Debt/Equity ratio of 1.22 is on the high side and indicates that TRU has dependencies on debt financing.
With a Debt to Equity ratio value of 1.22, TRU is not doing good in the industry: 76.62% of the companies in the same industry are doing better.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.22 | ||
| Debt/FCF | 10.74 | ||
| Altman-Z | 2.63 |
ROIC/WACC0.59
WACC8.1%
2.3 Liquidity
TRU has a Current Ratio of 1.68. This is a normal value and indicates that TRU is financially healthy and should not expect problems in meeting its short term obligations.
Looking at the Current ratio, with a value of 1.68, TRU is in the better half of the industry, outperforming 61.04% of the companies in the same industry.
TRU has a Quick Ratio of 1.68. This is a normal value and indicates that TRU is financially healthy and should not expect problems in meeting its short term obligations.
TRU has a Quick ratio of 1.68. This is in the better half of the industry: TRU outperforms 63.64% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.68 | ||
| Quick Ratio | 1.68 |
3. Growth
3.1 Past
The Earnings Per Share has grown by an nice 11.94% over the past year.
The Earnings Per Share has been growing slightly by 6.15% on average over the past years.
The Revenue has grown by 8.53% in the past year. This is quite good.
Measured over the past years, TRU shows a quite strong growth in Revenue. The Revenue has been growing by 10.58% on average per year.
EPS 1Y (TTM)11.94%
EPS 3Y3.95%
EPS 5Y6.15%
EPS Q2Q%14.29%
Revenue 1Y (TTM)8.53%
Revenue growth 3Y14.83%
Revenue growth 5Y10.58%
Sales Q2Q%12.01%
3.2 Future
Based on estimates for the next years, TRU will show a quite strong growth in Earnings Per Share. The EPS will grow by 15.67% on average per year.
TRU is expected to show a small growth in Revenue. In the coming years, the Revenue will grow by 7.42% yearly.
EPS Next Y17.34%
EPS Next 2Y16.98%
EPS Next 3Y17.46%
EPS Next 5Y15.67%
Revenue Next Year9.72%
Revenue Next 2Y8.84%
Revenue Next 3Y9.15%
Revenue Next 5Y7.42%
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
A Price/Earnings ratio of 26.49 indicates a quite expensive valuation of TRU.
Compared to the rest of the industry, the Price/Earnings ratio of TRU is on the same level as its industry peers.
When comparing the Price/Earnings ratio of TRU to the average of the S&P500 Index (28.96), we can say TRU is valued inline with the index average.
Based on the Price/Forward Earnings ratio of 21.54, the valuation of TRU can be described as rather expensive.
TRU's Price/Forward Earnings ratio is in line with the industry average.
TRU's Price/Forward Earnings ratio indicates a similar valuation than the S&P500 average which is at 23.82.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 26.49 | ||
| Fwd PE | 21.54 |
4.2 Price Multiples
TRU's Enterprise Value to EBITDA is on the same level as the industry average.
TRU's Price/Free Cash Flow is on the same level as the industry average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 39.99 | ||
| EV/EBITDA | 19.29 |
4.3 Compensation for Growth
TRU's PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates a correct valuation of the company.
TRU's earnings are expected to grow with 17.46% in the coming years. This may justify a more expensive valuation.
PEG (NY)1.53
PEG (5Y)4.3
EPS Next 2Y16.98%
EPS Next 3Y17.46%
5. Dividend
5.1 Amount
With a yearly dividend of 0.42%, TRU is not a good candidate for dividend investing.
TRU's Dividend Yield is a higher than the industry average which is at 1.81.
Compared to an average S&P500 Dividend Yield of 2.23, TRU's dividend is way lower than the S&P500 average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.42% |
5.2 History
On average, the dividend of TRU grows each year by 13.41%, 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)13.41%
Div Incr Years3
Div Non Decr Years5
5.3 Sustainability
36.64% of the earnings are spent on dividend by TRU. This is a low number and sustainable payout ratio.
TRU's earnings are growing around the same pace than its dividend. As long as the earnings growth is kept the dividend growth is sustainable.
DP36.64%
EPS Next 2Y16.98%
EPS Next 3Y17.46%
TRANSUNION
NYSE:TRU (11/22/2024, 10:30:03 AM)
99.32
+0.72 (+0.73%)
Chartmill FA Rating
GICS SectorIndustrials
GICS IndustryGroupCommercial & Professional Services
GICS IndustryProfessional Services
Earnings (Last)
Earnings (Next)
Inst Owners
Inst Owner Change
Ins Owners
Ins Owner Change
Market Cap19.36B
Analysts
Price Target
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.42% |
Dividend Growth(5Y)
DP
Div Incr Years
Div Non Decr Years
Ex-Date
Surprises & Revisions
EPS beat(2)
Avg EPS beat(2)
Min EPS beat(2)
Max EPS beat(2)
EPS beat(4)
Avg EPS beat(4)
Min EPS beat(4)
Max EPS beat(4)
EPS beat(8)
Avg EPS beat(8)
EPS beat(12)
Avg EPS beat(12)
EPS beat(16)
Avg EPS beat(16)
Revenue beat(2)
Avg Revenue beat(2)
Min Revenue beat(2)
Max Revenue beat(2)
Revenue beat(4)
Avg Revenue beat(4)
Min Revenue beat(4)
Max Revenue beat(4)
Revenue beat(8)
Avg Revenue beat(8)
Revenue beat(12)
Avg Revenue beat(12)
Revenue beat(16)
Avg Revenue beat(16)
PT rev (1m)
PT rev (3m)
EPS NQ rev (1m)
EPS NQ rev (3m)
EPS NY rev (1m)
EPS NY rev (3m)
Revenue NQ rev (1m)
Revenue NQ rev (3m)
Revenue NY rev (1m)
Revenue NY rev (3m)
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 26.49 | ||
| Fwd PE | 21.54 | ||
| P/S | |||
| P/FCF | |||
| P/OCF | |||
| P/B | |||
| P/tB | |||
| EV/EBITDA |
EPS(TTM)
EY
EPS(NY)
Fwd EY
FCF(TTM)
FCFY
OCF(TTM)
OCFY
SpS
BVpS
TBVpS
PEG (NY)1.53
PEG (5Y)4.3
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 2.03% | ||
| ROE | 5.31% | ||
| ROCE | |||
| ROIC | |||
| ROICexc | |||
| ROICexgc | |||
| OM | 17.05% | ||
| PM (TTM) | 5.46% | ||
| GM | 58.41% | ||
| FCFM |
ROA(3y)
ROA(5y)
ROE(3y)
ROE(5y)
ROIC(3y)
ROIC(5y)
ROICexc(3y)
ROICexc(5y)
ROICexgc(3y)
ROICexgc(5y)
ROCE(3y)
ROCE(5y)
ROICexcg growth 3Y
ROICexcg growth 5Y
ROICexc growth 3Y
ROICexc growth 5Y
OM growth 3Y
OM growth 5Y
PM growth 3Y
PM growth 5Y
GM growth 3Y
GM growth 5Y
F-Score
Asset Turnover0.37
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.22 | ||
| Debt/FCF | |||
| Debt/EBITDA | |||
| Cap/Depr | |||
| Cap/Sales | |||
| Interest Coverage | |||
| Cash Conversion | |||
| Profit Quality | |||
| Current Ratio | 1.68 | ||
| Quick Ratio | 1.68 | ||
| Altman-Z |
F-Score
WACC
ROIC/WACC
Cap/Depr(3y)
Cap/Depr(5y)
Cap/Sales(3y)
Cap/Sales(5y)
Profit Quality(3y)
Profit Quality(5y)
High Growth Momentum
Growth
EPS 1Y (TTM)11.94%
EPS 3Y3.95%
EPS 5Y
EPS Q2Q%
EPS Next Y17.34%
EPS Next 2Y
EPS Next 3Y
EPS Next 5Y
Revenue 1Y (TTM)8.53%
Revenue growth 3Y14.83%
Revenue growth 5Y
Sales Q2Q%
Revenue Next Year
Revenue Next 2Y
Revenue Next 3Y
Revenue Next 5Y
EBIT growth 1Y
EBIT growth 3Y
EBIT growth 5Y
EBIT Next Year
EBIT Next 3Y
EBIT Next 5Y
FCF growth 1Y
FCF growth 3Y
FCF growth 5Y
OCF growth 1Y
OCF growth 3Y
OCF growth 5Y