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. 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.
Each year in the past 5 years TRU had a positive operating cash flow.
1.2 Ratios
TRU has a Return On Assets (2.59%) which is comparable to the rest of the industry.
The Return On Equity of TRU (6.74%) is comparable to the rest of the industry.
With a Return On Invested Capital value of 5.57%, TRU perfoms like the industry average, outperforming 50.00% 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 13.58%.
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
With a decent Profit Margin value of 6.80%, TRU is doing good in the industry, outperforming 69.51% of the companies in the same industry.
TRU's Profit Margin has declined in the last couple of years.
TRU has a better Operating Margin (17.53%) than 84.15% of its industry peers.
In the last couple of years the Operating Margin of TRU has declined.
Looking at the Gross Margin, with a value of 60.01%, TRU is in the better half of the industry, outperforming 70.73% of the companies in the same industry.
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
The Return on Invested Capital (ROIC) is below the Cost of Capital (WACC), so 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 2.32 indicates that TRU is not a great score, but indicates only limited risk for bankruptcy at the moment.
The Altman-Z score of TRU (2.32) is comparable to the rest of the 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 comparable to the rest of the industry.
TRU has a Debt/Equity ratio of 1.20. This is a high value indicating a heavy dependency on external financing.
TRU has a Debt to Equity ratio of 1.20. This is in the lower half of the industry: TRU underperforms 75.61% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.2 | ||
| Debt/FCF | 9.96 | ||
| Altman-Z | 2.32 |
ROIC/WACC0.68
WACC8.14%
2.3 Liquidity
A Current Ratio of 1.70 indicates that TRU should not have too much problems paying its short term obligations.
Looking at the Current ratio, with a value of 1.70, TRU is in the better half of the industry, outperforming 67.07% of the companies in the same industry.
A Quick Ratio of 1.70 indicates that TRU should not have too much problems paying its short term obligations.
TRU has a better Quick ratio (1.70) than 68.29% of its industry peers.
| 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.
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.
TRU shows quite a strong growth in Revenue. In the last year, the Revenue has grown by 9.20%.
Measured over the past years, TRU shows a quite strong growth in Revenue. The Revenue has been growing by 11.18% on average per year.
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 9.25% on average over the next years. This is quite good.
TRU is expected to show a small growth in Revenue. In the coming years, the Revenue will grow by 7.01% yearly.
EPS Next Y4.83%
EPS Next 2Y10.91%
EPS Next 3Y14.26%
EPS Next 5Y9.25%
Revenue Next Year5.14%
Revenue Next 2Y7.76%
Revenue Next 3Y8.98%
Revenue Next 5Y7.01%
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 19.71 indicates a rather expensive valuation of TRU.
TRU's Price/Earnings ratio is in line with the industry average.
The average S&P500 Price/Earnings ratio is at 28.64. TRU is valued slightly cheaper when compared to this.
With a Price/Forward Earnings ratio of 18.80, TRU is valued on the expensive side.
The rest of the industry has a similar Price/Forward Earnings ratio as TRU.
The average S&P500 Price/Forward Earnings ratio is at 21.44. TRU is around the same levels.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 19.71 | ||
| Fwd PE | 18.8 |
4.2 Price Multiples
TRU's Enterprise Value to EBITDA ratio is in line with the industry average.
TRU's Price/Free Cash Flow is on the same level as the industry average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 29.18 | ||
| EV/EBITDA | 15.37 |
4.3 Compensation for Growth
The high PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates an expensive valuation of the company.
A more expensive valuation may be justified as TRU's earnings are expected to grow with 14.26% in the coming years.
PEG (NY)4.08
PEG (5Y)2.83
EPS Next 2Y10.91%
EPS Next 3Y14.26%
5. Dividend
5.1 Amount
With a yearly dividend of 0.63%, TRU is not a good candidate for dividend investing.
Compared to an average industry Dividend Yield of 2.42, TRU pays a bit more dividend than its industry peers.
With a Dividend Yield of 0.63, TRU pays less dividend than the S&P500 average, which is at 2.52.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.63% |
5.2 History
On average, the dividend of TRU grows each year by 7.03%, 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)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.
TRU's earnings are growing more than its dividend. This makes the dividend growth sustainable.
DP29.09%
EPS Next 2Y10.91%
EPS Next 3Y14.26%
77.26
+1.7 (+2.25%)
Chartmill FA Rating
GICS SectorIndustrials
GICS IndustryGroupCommercial & Professional Services
GICS IndustryProfessional Services
Earnings (Last)
Earnings (Next)
Inst Owners99.02%
Inst Owner Change0.01%
Ins Owners0.26%
Ins Owner Change13.52%
Market Cap15.08B
Analysts81.82
Price Target117.03 (51.48%)
Short Float %2.32%
Short Ratio2.63
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.63% |
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)-2.6%
PT rev (3m)-4.16%
EPS NQ rev (1m)0.32%
EPS NQ rev (3m)-9.9%
EPS NY rev (1m)-1.46%
EPS NY rev (3m)-10.28%
Revenue NQ rev (1m)0.19%
Revenue NQ rev (3m)-3.05%
Revenue NY rev (1m)-0.09%
Revenue NY rev (3m)-2.55%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 19.71 | ||
| Fwd PE | 18.8 | ||
| P/S | 3.6 | ||
| P/FCF | 29.18 | ||
| P/OCF | 18.11 | ||
| P/B | 3.58 | ||
| P/tB | N/A | ||
| EV/EBITDA | 15.37 |
EPS(TTM)3.92
EY5.07%
EPS(NY)4.11
Fwd EY5.32%
FCF(TTM)2.65
FCFY3.43%
OCF(TTM)4.27
OCFY5.52%
SpS21.44
BVpS21.61
TBVpS-21.45
PEG (NY)4.08
PEG (5Y)2.83
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 | 2.32 |
F-Score7
WACC8.14%
ROIC/WACC0.68
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 Y4.83%
EPS Next 2Y10.91%
EPS Next 3Y14.26%
EPS Next 5Y9.25%
Revenue 1Y (TTM)9.2%
Revenue growth 3Y12.22%
Revenue growth 5Y11.18%
Sales Q2Q%8.65%
Revenue Next Year5.14%
Revenue Next 2Y7.76%
Revenue Next 3Y8.98%
Revenue Next 5Y7.01%
EBIT growth 1Y18.74%
EBIT growth 3Y4.23%
EBIT growth 5Y6.25%
EBIT Next Year118.67%
EBIT Next 3Y41.21%
EBIT Next 5Y26.01%
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%