TRANSUNION (TRU) Stock Fundamental Analysis
NYSE:TRU - New York Stock Exchange, Inc. - US89400J1079 - Common Stock - Currency: USD
Taking everything into account, TRU scores 4 out of 10 in our fundamental rating. TRU was compared to 81 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. While showing a medium growth rate, TRU is valued expensive at the moment.
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
The Return On Assets of TRU (2.59%) is comparable to the rest of the industry.
Looking at the Return On Equity, with a value of 6.74%, TRU is in line with its industry, outperforming 47.44% of the companies in the same industry.
With a Return On Invested Capital value of 5.57%, TRU perfoms like the industry average, outperforming 46.15% 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 13.70%.
The 3 year average ROIC (4.87%) for TRU is below the current ROIC(5.57%), indicating increased profibility in the last year.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 2.59% | ||
| ROE | 6.74% | ||
| ROIC | 5.57% |
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 6.80%. This is in the better half of the industry: TRU outperforms 70.51% of its industry peers.
TRU's Profit Margin has declined in the last couple of years.
With an excellent Operating Margin value of 17.53%, TRU belongs to the best of the industry, outperforming 83.33% of the companies in the same industry.
In the last couple of years the Operating Margin of TRU has declined.
TRU has a Gross Margin of 60.01%. This is in the better half of the industry: TRU outperforms 69.23% of its industry peers.
TRU's Gross Margin has declined in the last couple of years.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 17.53% | ||
| PM (TTM) | 6.8% | ||
| GM | 60.01% |
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.
Compared to 5 years ago, TRU has more shares outstanding
The debt/assets ratio for TRU has been reduced compared to a year ago.
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.
With a Altman-Z score value of 2.57, TRU perfoms like the industry average, outperforming 42.31% of the companies in the same industry.
TRU has a debt to FCF ratio of 9.96. This is a negative value and a sign of low solvency as TRU would need 9.96 years to pay back of all of its debts.
TRU has a Debt to FCF ratio (9.96) which is in line with its industry peers.
A Debt/Equity ratio of 1.20 is on the high side and indicates that TRU has dependencies on debt financing.
TRU has a Debt to Equity ratio of 1.20. This is amonst the worse of the industry: TRU underperforms 82.05% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.2 | ||
| Debt/FCF | 9.96 | ||
| Altman-Z | 2.57 |
ROIC/WACC0.65
WACC8.54%
2.3 Liquidity
A Current Ratio of 1.70 indicates that TRU should not have too much problems paying its short term obligations.
TRU's Current ratio of 1.70 is fine compared to the rest of the industry. TRU outperforms 66.67% of its industry peers.
TRU has a Quick Ratio of 1.70. This is a normal value and indicates that TRU is financially healthy and should not expect problems in meeting its short term obligations.
With a decent Quick ratio value of 1.70, TRU is doing good in the industry, outperforming 67.95% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.7 | ||
| Quick Ratio | 1.7 |
3. Growth
3.1 Past
The Earnings Per Share has grown by an nice 16.32% over the past year.
The Earnings Per Share has been growing slightly by 6.96% on average over the past years.
The Revenue has grown by 9.20% in the past year. This is quite good.
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)16.32%
EPS 3Y2.04%
EPS 5Y6.96%
EPS Q2Q%21.25%
Revenue 1Y (TTM)9.2%
Revenue growth 3Y12.22%
Revenue growth 5Y11.18%
Sales Q2Q%8.65%
3.2 Future
The Earnings Per Share is expected to grow by 16.54% 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 8.02% yearly.
EPS Next Y6.39%
EPS Next 2Y12.27%
EPS Next 3Y15.7%
EPS Next 5Y16.54%
Revenue Next Year5.6%
Revenue Next 2Y7.58%
Revenue Next 3Y8.72%
Revenue Next 5Y8.02%
3.3 Evolution
The EPS growth rate is accelerating: in the next years the growth will be better than in the last years.
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 23.58, which indicates a rather expensive current valuation of TRU.
TRU's Price/Earnings is on the same level as the industry average.
TRU's Price/Earnings ratio indicates a similar valuation than the S&P500 average which is at 29.43.
The Price/Forward Earnings ratio is 22.16, which indicates a rather expensive current valuation of TRU.
Compared to the rest of the industry, the Price/Forward Earnings ratio of TRU is on the same level as its industry peers.
TRU is valuated at similar levels of the S&P average when we compare the Price/Forward Earnings ratio to 22.67, which is the current average of the S&P500 Index.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 23.58 | ||
| Fwd PE | 22.16 |
4.2 Price Multiples
The rest of the industry has a similar Enterprise Value to EBITDA ratio as TRU.
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 | 34.86 | ||
| EV/EBITDA | 17.56 |
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 15.70% in the coming years. This may justify a more expensive valuation.
PEG (NY)3.69
PEG (5Y)3.39
EPS Next 2Y12.27%
EPS Next 3Y15.7%
5. Dividend
5.1 Amount
TRU has a yearly dividend return of 0.50%, which is pretty low.
TRU's Dividend Yield is a higher than the industry average which is at 1.93.
Compared to an average S&P500 Dividend Yield of 2.28, TRU's dividend is way lower than the S&P500 average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.5% |
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 Years3
Div Non Decr Years6
5.3 Sustainability
29.09% 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.
DP29.09%
EPS Next 2Y12.27%
EPS Next 3Y15.7%
92.43
+0.75 (+0.82%)
Chartmill FA Rating
GICS SectorIndustrials
GICS IndustryGroupCommercial & Professional Services
GICS IndustryProfessional Services
Earnings (Last)
Earnings (Next)
Inst Owners99.02%
Inst Owner Change-1.71%
Ins Owners0.26%
Ins Owner Change-4.94%
Market Cap18.01B
Analysts81.82
Price Target118.58 (28.29%)
Short Float %1.84%
Short Ratio2.45
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.5% |
Yearly Dividend0.43
Dividend Growth(5Y)7.03%
DP29.09%
Div Incr Years3
Div Non Decr Years6
Ex-Date
Surprises & Revisions
EPS beat(2)1
Avg EPS beat(2)0.91%
Min EPS beat(2)-0.09%
Max EPS beat(2)1.91%
EPS beat(4)3
Avg EPS beat(4)3.91%
Min EPS beat(4)-0.09%
Max EPS beat(4)13.26%
EPS beat(8)6
Avg EPS beat(8)4.17%
EPS beat(12)7
Avg EPS beat(12)2.35%
EPS beat(16)10
Avg EPS beat(16)2.58%
Revenue beat(2)1
Avg Revenue beat(2)0.64%
Min Revenue beat(2)-0.02%
Max Revenue beat(2)1.31%
Revenue beat(4)3
Avg Revenue beat(4)1.31%
Min Revenue beat(4)-0.02%
Max Revenue beat(4)3.37%
Revenue beat(8)6
Avg Revenue beat(8)0.86%
Revenue beat(12)7
Avg Revenue beat(12)0.1%
Revenue beat(16)7
Avg Revenue beat(16)-1.78%
PT rev (1m)-2.89%
PT rev (3m)-2.89%
EPS NQ rev (1m)-2.83%
EPS NQ rev (3m)-2.9%
EPS NY rev (1m)-8.94%
EPS NY rev (3m)-9.57%
Revenue NQ rev (1m)-0.81%
Revenue NQ rev (3m)0.64%
Revenue NY rev (1m)-1.76%
Revenue NY rev (3m)-2.24%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 23.58 | ||
| Fwd PE | 22.16 | ||
| P/S | 4.31 | ||
| P/FCF | 34.86 | ||
| P/OCF | 21.64 | ||
| P/B | 4.27 | ||
| P/tB | N/A | ||
| EV/EBITDA | 17.56 |
EPS(TTM)3.92
EY4.24%
EPS(NY)4.17
Fwd EY4.51%
FCF(TTM)2.65
FCFY2.87%
OCF(TTM)4.27
OCFY4.62%
SpS21.47
BVpS21.64
TBVpS-21.47
PEG (NY)3.69
PEG (5Y)3.39
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 2.59% | ||
| ROE | 6.74% | ||
| ROCE | 7.39% | ||
| ROIC | 5.57% | ||
| ROICexc | 5.98% | ||
| ROICexgc | 65.71% | ||
| OM | 17.53% | ||
| PM (TTM) | 6.8% | ||
| GM | 60.01% | ||
| FCFM | 12.35% |
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%
ROICexcg growth 3Y-43.22%
ROICexcg 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-Score7
Asset Turnover0.38
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.2 | ||
| Debt/FCF | 9.96 | ||
| Debt/EBITDA | 3.99 | ||
| Cap/Depr | 58.72% | ||
| Cap/Sales | 7.55% | ||
| Interest Coverage | 2.81 | ||
| Cash Conversion | 65.48% | ||
| Profit Quality | 181.75% | ||
| Current Ratio | 1.7 | ||
| Quick Ratio | 1.7 | ||
| Altman-Z | 2.57 |
F-Score7
WACC8.54%
ROIC/WACC0.65
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)16.32%
EPS 3Y2.04%
EPS 5Y6.96%
EPS Q2Q%21.25%
EPS Next Y6.39%
EPS Next 2Y12.27%
EPS Next 3Y15.7%
EPS Next 5Y16.54%
Revenue 1Y (TTM)9.2%
Revenue growth 3Y12.22%
Revenue growth 5Y11.18%
Sales Q2Q%8.65%
Revenue Next Year5.6%
Revenue Next 2Y7.58%
Revenue Next 3Y8.72%
Revenue Next 5Y8.02%
EBIT growth 1Y18.74%
EBIT growth 3Y4.23%
EBIT growth 5Y6.25%
EBIT Next Year126.43%
EBIT Next 3Y43.69%
EBIT Next 5Y32.18%
FCF growth 1Y54.38%
FCF growth 3Y-4%
FCF growth 5Y-2.22%
OCF growth 1Y28.99%
OCF growth 3Y0.99%
OCF growth 5Y1.4%