TRANSUNION (TRU) Stock Fundamental Analysis
NYSE:TRU - New York Stock Exchange, Inc. - US89400J1079 - Common Stock - Currency: USD
Overall TRU gets a fundamental rating of 4 out of 10. We evaluated TRU against 82 industry peers in the Professional Services industry. While TRU is still in line with the averages on profitability rating, there are concerns on its financial health. 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.
TRU had a positive operating cash flow in the past year.
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
Looking at the Return On Assets, with a value of 2.03%, TRU is in line with its industry, outperforming 46.84% of the companies in the same industry.
Looking at the Return On Equity, with a value of 5.31%, TRU is in line with its industry, outperforming 48.10% of the companies in the same industry.
With a Return On Invested Capital value of 4.80%, TRU perfoms like the industry average, outperforming 45.57% of the companies in the same industry.
TRU had an Average Return On Invested Capital over the past 3 years of 4.08%. This is significantly below the industry average of 13.46%.
The 3 year average ROIC (4.08%) for TRU is below the current ROIC(4.80%), indicating increased profibility in the last year.
| 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 65.82% of the companies in the same industry.
The Operating Margin of TRU (17.05%) is better than 83.54% of its industry peers.
TRU's Operating Margin has declined in the last couple of years.
TRU's Gross Margin of 58.41% is fine compared to the rest of the industry. TRU outperforms 68.35% 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
The Return on Invested Capital (ROIC) is below the Cost of Capital (WACC), so 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.
The debt/assets ratio for TRU has been reduced compared to a year ago.
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.
With a Altman-Z score value of 2.63, TRU perfoms like the industry average, outperforming 41.77% of the companies in the same industry.
TRU has a debt to FCF ratio of 10.74. This is a negative value and a sign of low solvency as TRU would need 10.74 years to pay back of all of its debts.
Looking at the Debt to FCF ratio, with a value of 10.74, TRU is doing worse than 62.03% of the companies in the same industry.
TRU has a Debt/Equity ratio of 1.22. This is a high value indicating a heavy dependency on external financing.
With a Debt to Equity ratio value of 1.22, TRU is not doing good in the industry: 78.48% 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/WACC0.54
WACC8.82%
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 64.56% of the companies in the same industry.
A Quick Ratio of 1.68 indicates that TRU should not have too much problems paying its short term obligations.
TRU's Quick ratio of 1.68 is fine compared to the rest of the industry. TRU outperforms 65.82% 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.
Measured over the past 5 years, TRU shows a small growth in Earnings Per Share. The EPS has been growing by 6.15% on average per year.
TRU shows quite a strong growth in Revenue. In the last year, the Revenue has grown by 8.53%.
The Revenue has been growing by 10.58% on average over the past years. This is quite good.
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
The Earnings Per Share is expected to grow by 18.25% on average over the next years. This is quite good.
TRU is expected to show quite a strong growth in Revenue. In the coming years, the Revenue will grow by 9.53% yearly.
EPS Next Y17.39%
EPS Next 2Y16.58%
EPS Next 3Y17.32%
EPS Next 5Y18.25%
Revenue Next Year9.7%
Revenue Next 2Y8.58%
Revenue Next 3Y9.11%
Revenue Next 5Y9.53%
3.3 Evolution
The EPS growth rate is accelerating: in the next years the growth will be better than in the last years.
The Revenue growth rate is stable: in the next years the growth will be about the same than in the last years.
4. Valuation
4.1 Price/Earnings Ratio
With a Price/Earnings ratio of 25.81, TRU can be considered very expensive at the moment.
The rest of the industry has a similar Price/Earnings ratio as TRU.
TRU is valuated at similar levels of the S&P average when we compare the Price/Earnings ratio to 28.28, which is the current average of the S&P500 Index.
A Price/Forward Earnings ratio of 21.13 indicates a rather expensive valuation of TRU.
The rest of the industry has a similar Price/Forward Earnings ratio as TRU.
TRU is valuated cheaply when we compare the Price/Forward Earnings ratio to 91.29, which is the current average of the S&P500 Index.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 25.81 | ||
| Fwd PE | 21.13 |
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 | 38.97 | ||
| EV/EBITDA | 19.21 |
4.3 Compensation for Growth
The 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 17.32% in the coming years. This may justify a more expensive valuation.
PEG (NY)1.48
PEG (5Y)4.19
EPS Next 2Y16.58%
EPS Next 3Y17.32%
5. Dividend
5.1 Amount
With a yearly dividend of 0.44%, TRU is not a good candidate for dividend investing.
Compared to an average industry Dividend Yield of 1.81, TRU pays a bit more dividend than its industry peers.
With a Dividend Yield of 0.44, TRU pays less dividend than the S&P500 average, which is at 2.27.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.44% |
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.
TRU has not decreased its dividend in the past 5 years, so it has a somewhat stable track record.
Dividend Growth(5Y)13.41%
Div Incr Years3
Div Non Decr Years6
5.3 Sustainability
TRU pays out 36.64% of its income as dividend. This is a sustainable payout ratio.
TRU's earnings are growing more than its dividend. This makes the dividend growth sustainable.
DP36.64%
EPS Next 2Y16.58%
EPS Next 3Y17.32%
TRANSUNION
NYSE:TRU (1/29/2025, 8:04:00 PM)
After market: 96.79 0 (0%)96.79
-1.42 (-1.45%)
Chartmill FA Rating
GICS SectorIndustrials
GICS IndustryGroupCommercial & Professional Services
GICS IndustryProfessional Services
Earnings (Last)
Earnings (Next)
Inst Owners105.14%
Inst Owner Change-0.23%
Ins Owners0.28%
Ins Owner Change-7.64%
Market Cap18.86B
Analysts81.74
Price Target122.1 (26.15%)
Short Float %1.92%
Short Ratio2.53
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.44% |
Yearly Dividend0.42
Dividend Growth(5Y)13.41%
DP36.64%
Div Incr Years3
Div Non Decr Years6
Ex-DateN/A
Surprises & Revisions
EPS beat(2)2
Avg EPS beat(2)1.23%
Min EPS beat(2)0.56%
Max EPS beat(2)1.91%
EPS beat(4)4
Avg EPS beat(4)6.86%
Min EPS beat(4)0.56%
Max EPS beat(4)13.26%
EPS beat(8)6
Avg EPS beat(8)3.44%
EPS beat(12)7
Avg EPS beat(12)1.36%
EPS beat(16)10
Avg EPS beat(16)2.57%
Revenue beat(2)2
Avg Revenue beat(2)0.93%
Min Revenue beat(2)0.56%
Max Revenue beat(2)1.31%
Revenue beat(4)4
Avg Revenue beat(4)1.81%
Min Revenue beat(4)0.56%
Max Revenue beat(4)3.37%
Revenue beat(8)6
Avg Revenue beat(8)0.68%
Revenue beat(12)7
Avg Revenue beat(12)-1.51%
Revenue beat(16)7
Avg Revenue beat(16)-3.47%
PT rev (1m)0.94%
PT rev (3m)5.47%
EPS NQ rev (1m)0%
EPS NQ rev (3m)-0.13%
EPS NY rev (1m)0%
EPS NY rev (3m)0.83%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)0%
Revenue NY rev (1m)0.02%
Revenue NY rev (3m)0.96%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 25.81 | ||
| Fwd PE | 21.13 | ||
| P/S | 4.6 | ||
| P/FCF | 38.97 | ||
| P/OCF | 24.18 | ||
| P/B | 4.47 | ||
| P/tB | N/A | ||
| EV/EBITDA | 19.21 |
EPS(TTM)3.75
EY3.87%
EPS(NY)4.58
Fwd EY4.73%
FCF(TTM)2.48
FCFY2.57%
OCF(TTM)4
OCFY4.14%
SpS21.04
BVpS21.63
TBVpS-22.19
PEG (NY)1.48
PEG (5Y)4.19
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 2.03% | ||
| ROE | 5.31% | ||
| ROCE | 6.95% | ||
| ROIC | 4.8% | ||
| ROICexc | 5.13% | ||
| ROICexgc | 55.44% | ||
| OM | 17.05% | ||
| PM (TTM) | 5.46% | ||
| GM | 58.41% | ||
| FCFM | 11.8% |
ROA(3y)3.81%
ROA(5y)4.2%
ROE(3y)12.27%
ROE(5y)13.16%
ROIC(3y)4.08%
ROIC(5y)4.63%
ROICexc(3y)4.49%
ROICexc(5y)5.02%
ROICexgc(3y)140.31%
ROICexgc(5y)109.57%
ROCE(3y)5.91%
ROCE(5y)6.71%
ROICexcg growth 3Y-0.14%
ROICexcg growth 5Y-10.73%
ROICexc growth 3Y-7.48%
ROICexc growth 5Y-4.62%
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%
F-Score7
Asset Turnover0.37
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.22 | ||
| Debt/FCF | 10.74 | ||
| Debt/EBITDA | 4.16 | ||
| Cap/Depr | 55.49% | ||
| Cap/Sales | 7.22% | ||
| Interest Coverage | 250 | ||
| Cash Conversion | 63.28% | ||
| Profit Quality | 216.02% | ||
| Current Ratio | 1.68 | ||
| Quick Ratio | 1.68 | ||
| Altman-Z | 2.63 |
F-Score7
WACC8.82%
ROIC/WACC0.54
Cap/Depr(3y)58.72%
Cap/Depr(5y)57.84%
Cap/Sales(3y)7.91%
Cap/Sales(5y)8.05%
Profit Quality(3y)N/A
Profit Quality(5y)N/A
High Growth Momentum
Growth
EPS 1Y (TTM)11.94%
EPS 3Y3.95%
EPS 5Y6.15%
EPS Q2Q%14.29%
EPS Next Y17.39%
EPS Next 2Y16.58%
EPS Next 3Y17.32%
EPS Next 5Y18.25%
Revenue 1Y (TTM)8.53%
Revenue growth 3Y14.83%
Revenue growth 5Y10.58%
Sales Q2Q%12.01%
Revenue Next Year9.7%
Revenue Next 2Y8.58%
Revenue Next 3Y9.11%
Revenue Next 5Y9.53%
EBIT growth 1Y11.92%
EBIT growth 3Y7.42%
EBIT growth 5Y3.89%
EBIT Next Year708.2%
EBIT Next 3Y116.46%
EBIT Next 5Y66.14%
FCF growth 1Y1479.2%
FCF growth 3Y-16.42%
FCF growth 5Y-2.28%
OCF growth 1Y249.13%
OCF growth 3Y-6.41%
OCF growth 5Y3.04%