TRANSUNION (TRU)
US89400J1079 - Common Stock
Overall TRU gets a fundamental rating of 4 out of 10. We evaluated TRU against 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.
TRU had a positive operating cash flow in the past year.
TRU had positive earnings in 4 of the past 5 years.
In the past 5 years TRU always reported a positive cash flow from operatings.
1.2 Ratios
TRU has a Return On Assets (2.03%) which is comparable to the rest of the industry.
TRU has a Return On Equity (5.31%) which is comparable to the rest of the industry.
TRU has a Return On Invested Capital of 4.80%. This is comparable to the rest of the industry: TRU outperforms 44.87% of its industry peers.
TRU had an Average Return On Invested Capital over the past 3 years of 4.08%. This is significantly below the industry average of 17.86%.
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
The Profit Margin of TRU (5.46%) is better than 65.38% of its industry peers.
The Operating Margin of TRU (17.05%) is better than 83.33% 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 69.23% 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
TRU has a Return on Invested Capital (ROIC), which is below the Cost of Capital (WACC), which means it 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.
TRU has a better debt/assets ratio than last year.
2.2 Solvency
An Altman-Z score of 2.58 indicates that TRU is not a great score, but indicates only limited risk for bankruptcy at the moment.
TRU has a Altman-Z score (2.58) which is comparable to the rest of the industry.
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 62.82% 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.
The Debt to Equity ratio of TRU (1.22) is worse than 78.21% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.22 | ||
| Debt/FCF | 10.74 | ||
| Altman-Z | 2.58 |
ROIC/WACC0.54
WACC8.93%
2.3 Liquidity
A Current Ratio of 1.68 indicates that TRU should not have too much problems paying its short term obligations.
With a decent Current ratio value of 1.68, TRU is doing good in the industry, outperforming 62.82% 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.
The Quick ratio of TRU (1.68) is better than 65.38% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.68 | ||
| Quick Ratio | 1.68 |
3. Growth
3.1 Past
TRU shows a strong growth in Earnings Per Share. In the last year, the EPS has been growing by 11.94%, which is quite good.
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%.
TRU shows quite a strong growth in Revenue. Measured over the last years, the Revenue has been growing by 10.58% yearly.
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.
The Revenue is expected to grow by 9.53% on average over the next years. This is quite good.
EPS Next Y17.39%
EPS Next 2Y16.58%
EPS Next 3Y17.32%
EPS Next 5Y18.25%
Revenue Next Year9.67%
Revenue Next 2Y8.8%
Revenue Next 3Y9.53%
Revenue Next 5Y9.53%
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 stable.
4. Valuation
4.1 Price/Earnings Ratio
Based on the Price/Earnings ratio of 25.47, the valuation of TRU can be described as expensive.
The rest of the industry has a similar Price/Earnings ratio as TRU.
TRU's Price/Earnings ratio indicates a similar valuation than the S&P500 average which is at 27.54.
A Price/Forward Earnings ratio of 20.86 indicates a rather expensive valuation of TRU.
The rest of the industry has a similar Price/Forward Earnings ratio as TRU.
TRU is valuated at similar levels of the S&P average when we compare the Price/Forward Earnings ratio to 23.99, which is the current average of the S&P500 Index.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 25.47 | ||
| Fwd PE | 20.86 |
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 ratio is in line with the industry average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 38.46 | ||
| EV/EBITDA | 18.79 |
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 17.32% in the coming years. This may justify a more expensive valuation.
PEG (NY)1.46
PEG (5Y)4.14
EPS Next 2Y16.58%
EPS Next 3Y17.32%
5. Dividend
5.1 Amount
With a yearly dividend of 0.45%, TRU is not a good candidate for dividend investing.
TRU's Dividend Yield is a higher than the industry average which is at 1.85.
With a Dividend Yield of 0.45, TRU pays less dividend than the S&P500 average, which is at 2.36.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.45% |
5.2 History
The dividend of TRU is nicely growing with an annual growth rate of 13.41%!
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
36.64% 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.
DP36.64%
EPS Next 2Y16.58%
EPS Next 3Y17.32%
TRANSUNION
NYSE:TRU (12/24/2024, 7:42:14 PM)
Premarket: 96.41 +0.88 (+0.92%)95.53
+1.19 (+1.26%)
Chartmill FA Rating
GICS SectorIndustrials
GICS IndustryGroupCommercial & Professional Services
GICS IndustryProfessional Services
Earnings (Last)
Earnings (Next)
Inst Owners105.14%
Inst Owner Change1.9%
Ins Owners0.28%
Ins Owner Change-8.46%
Market Cap18.62B
Analysts81.74
Price Target120.96 (26.62%)
Short Float %1.99%
Short Ratio2.46
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.45% |
Dividend Growth(5Y)13.41%
DP36.64%
Div Incr Years3
Div Non Decr Years6
Ex-Date
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)4.48%
PT rev (3m)21.78%
EPS NQ rev (1m)0%
EPS NQ rev (3m)1.94%
EPS NY rev (1m)0.05%
EPS NY rev (3m)0.83%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)1.96%
Revenue NY rev (1m)-0.05%
Revenue NY rev (3m)0.91%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 25.47 | ||
| Fwd PE | 20.86 | ||
| P/S | 4.54 | ||
| P/FCF | 38.46 | ||
| P/OCF | 23.86 | ||
| P/B | 4.42 | ||
| P/tB | N/A | ||
| EV/EBITDA | 18.79 |
EPS(TTM)3.75
EY3.93%
EPS(NY)4.58
Fwd EY4.79%
FCF(TTM)2.48
FCFY2.6%
OCF(TTM)4
OCFY4.19%
SpS21.04
BVpS21.63
TBVpS-22.19
PEG (NY)1.46
PEG (5Y)4.14
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 | 2.58 |
F-Score7
WACC8.93%
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 Year9.67%
Revenue Next 2Y8.8%
Revenue Next 3Y9.53%
Revenue Next 5Y9.53%
EBIT growth 1Y11.92%
EBIT growth 3Y7.42%
EBIT growth 5Y3.89%
EBIT Next Year708.2%
EBIT Next 3Y116.88%
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%