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%)
TRU gets a fundamental rating of 4 out of 10. The analysis compared the fundamentals against 87 industry peers in the Professional Services industry. TRU has an average financial health and profitability rating. TRU is valied quite expensively at the moment, while it does show a decent growth rate.
1. Profitability
1.1 Basic Checks
TRU had positive earnings in the past year.
In the past year TRU had a positive cash flow from operations.
Of the past 5 years TRU 4 years were profitable.
In the past 5 years TRU always reported a positive cash flow from operatings.
1.2 Ratios
TRU has a Return On Assets of 3.78%. This is comparable to the rest of the industry: TRU outperforms 53.49% of its industry peers.
Looking at the Return On Equity, with a value of 9.40%, TRU is in line with its industry, outperforming 54.65% of the companies in the same industry.
Looking at the Return On Invested Capital, with a value of 6.18%, TRU is in line with its industry, outperforming 52.33% 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 11.80%.
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
TRU has a Profit Margin of 9.47%. This is in the better half of the industry: TRU outperforms 76.74% of its industry peers.
TRU's Profit Margin has declined in the last couple of years.
The Operating Margin of TRU (18.69%) is better than 83.72% 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 77.91% 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
With a Return on Invested Capital (ROIC) below the Cost of Capital (WACC), TRU is destroying value.
The number of shares outstanding for TRU has been increased compared to 1 year ago.
The number of shares outstanding for TRU has been increased compared to 5 years ago.
TRU has a better debt/assets ratio than last year.
2.2 Solvency
TRU has an Altman-Z score of 2.63. 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.
Looking at the Altman-Z score, with a value of 2.63, TRU is in line with its industry, outperforming 47.67% of the companies in the same 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.
TRU's Debt to FCF ratio of 8.89 is in line compared to the rest of the industry. TRU outperforms 45.35% of its industry peers.
A Debt/Equity ratio of 1.13 is on the high side and indicates that TRU has dependencies on debt financing.
TRU has a worse Debt to Equity ratio (1.13) than 70.93% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.13 | ||
| Debt/FCF | 8.89 | ||
| Altman-Z | 2.63 |
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.
Looking at the Current ratio, with a value of 2.01, TRU is in the better half of the industry, outperforming 73.26% of the companies in the same industry.
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.
The Revenue has been growing by 11.18% on average over the past years. This is quite good.
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
TRU is expected to show quite a strong growth in Earnings Per Share. In the coming years, the EPS will grow by 13.75% yearly.
Based on estimates for the next years, TRU will show a small growth in Revenue. The Revenue will grow by 7.81% on average per year.
EPS Next Y9.66%
EPS Next 2Y11.52%
EPS Next 3Y13.13%
EPS Next 5Y13.75%
Revenue Next Year8.7%
Revenue Next 2Y8.2%
Revenue Next 3Y8.23%
Revenue Next 5Y7.81%
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.
The Revenue growth rate is decreasing: in the next years the growth will be less than in the last years.
4. Valuation
4.1 Price/Earnings Ratio
A Price/Earnings ratio of 20.88 indicates a rather expensive valuation of TRU.
60.47% of the companies in the same industry are more expensive than TRU, based on the Price/Earnings ratio.
TRU's Price/Earnings ratio indicates a valuation a bit cheaper than the S&P500 average which is at 27.19.
The Price/Forward Earnings ratio is 17.99, which indicates a rather expensive current valuation of TRU.
60.47% of the companies in the same industry are more expensive than TRU, based on the Price/Forward Earnings ratio.
Compared to an average S&P500 Price/Forward Earnings ratio of 23.92, TRU is valued a bit cheaper.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 20.88 | ||
| Fwd PE | 17.99 |
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 is on the same level as the industry average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 29.59 | ||
| EV/EBITDA | 15.34 |
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 13.13% 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 0.55%, which is pretty low.
Compared to an average industry Dividend Yield of 1.48, TRU pays a bit more dividend than its industry peers.
With a Dividend Yield of 0.55, TRU pays less dividend than the S&P500 average, which is at 1.92.
| 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.
TRU's earnings are growing more than its dividend. This makes the dividend growth 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 Change0.02%
Ins Owners0.33%
Ins Owner Change-3.56%
Market Cap17.03B
Revenue(TTM)4.44B
Net Income(TTM)420.50M
Analysts80.8
Price Target107.71 (22.8%)
Short Float %3.44%
Short Ratio3.1
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-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 | 15.34 |
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 | 2.63 |
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 5Y13.75%
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 5Y7.81%
EBIT growth 1Y18.7%
EBIT growth 3Y4.23%
EBIT growth 5Y6.25%
EBIT Next Year124.8%
EBIT Next 3Y40.02%
EBIT Next 5Y25.76%
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.