TRANSUNION (TRU) Stock Fundamental Analysis
USA - NYSE:TRU - US89400J1079 - Common Stock
85.6 USD
+2.12 (+2.54%)
84.57 USD
-1.03 (-1.2%)
Overall TRU gets a fundamental rating of 4 out of 10. We evaluated TRU against 86 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.
TRU had a positive operating cash flow in the past year.
TRU had positive earnings in 4 of the past 5 years.
TRU had a positive operating cash flow in each of the past 5 years.
1.2 Ratios
With a Return On Assets value of 3.53%, TRU perfoms like the industry average, outperforming 54.65% of the companies in the same industry.
TRU has a Return On Equity (8.67%) which is comparable to the rest of the industry.
TRU's Return On Invested Capital of 6.03% is in line compared to the rest of the industry. TRU outperforms 48.84% of its industry peers.
Measured over the past 3 years, the Average Return On Invested Capital for TRU is significantly below the industry average of 13.28%.
The last Return On Invested Capital (6.03%) for TRU is above the 3 year average (4.87%), which is a sign of increasing profitability.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 3.53% | ||
| ROE | 8.67% | ||
| ROIC | 6.03% |
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
Looking at the Profit Margin, with a value of 8.99%, TRU belongs to the top of the industry, outperforming 81.40% of the companies in the same industry.
In the last couple of years the Profit Margin of TRU has declined.
The Operating Margin of TRU (18.69%) is better than 84.88% of its industry peers.
In the last couple of years the Operating Margin of TRU has declined.
TRU's Gross Margin of 59.24% is fine compared to the rest of the industry. TRU outperforms 74.42% of its industry peers.
In the last couple of years the Gross Margin of TRU has declined.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 18.69% | ||
| PM (TTM) | 8.99% | ||
| GM | 59.24% |
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
TRU has a Return on Invested Capital (ROIC), which is below the Cost of Capital (WACC), which means it is destroying value.
Compared to 1 year ago, TRU has more shares outstanding
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
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's Altman-Z score of 2.58 is in line compared to the rest of the industry. TRU outperforms 47.67% of its industry peers.
The Debt to FCF ratio of TRU is 10.34, which is on the high side as it means it would take TRU, 10.34 years of fcf income to pay off all of its debts.
TRU has a Debt to FCF ratio (10.34) which is in line with its industry peers.
TRU has a Debt/Equity ratio of 1.12. This is a high value indicating a heavy dependency on external financing.
Looking at the Debt to Equity ratio, with a value of 1.12, TRU is doing worse than 72.09% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.12 | ||
| Debt/FCF | 10.34 | ||
| Altman-Z | 2.58 |
ROIC/WACC0.81
WACC7.49%
2.3 Liquidity
A Current Ratio of 2.02 indicates that TRU has no problem at all paying its short term obligations.
TRU has a Current ratio of 2.02. This is in the better half of the industry: TRU outperforms 75.58% of its industry peers.
TRU has a Quick Ratio of 2.02. This indicates that TRU is financially healthy and has no problem in meeting its short term obligations.
TRU's Quick ratio of 2.02 is fine compared to the rest of the industry. TRU outperforms 75.58% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 2.02 | ||
| Quick Ratio | 2.02 |
3. Growth
3.1 Past
The Earnings Per Share has grown by an nice 12.00% over the past year.
The Earnings Per Share has been growing slightly by 6.96% on average over the past years.
Looking at the last year, TRU shows a quite strong growth in Revenue. The Revenue has grown by 9.20% in the last year.
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)12%
EPS 3Y2.04%
EPS 5Y6.96%
EPS Q2Q%5.77%
Revenue 1Y (TTM)9.2%
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 10.83% yearly.
The Revenue is expected to grow by 7.46% on average over the next years.
EPS Next Y7.59%
EPS Next 2Y11.2%
EPS Next 3Y13.41%
EPS Next 5Y10.83%
Revenue Next Year7.18%
Revenue Next 2Y7.77%
Revenue Next 3Y8.19%
Revenue Next 5Y7.46%
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 20.38, which indicates a rather expensive current valuation of TRU.
TRU's Price/Earnings is on the same level as the industry average.
Compared to an average S&P500 Price/Earnings ratio of 26.89, TRU is valued a bit cheaper.
TRU is valuated rather expensively with a Price/Forward Earnings ratio of 17.66.
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 rather cheaply when we compare the Price/Forward Earnings ratio to 22.99, which is the current average of the S&P500 Index.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 20.38 | ||
| Fwd PE | 17.66 |
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 | 33.58 | ||
| EV/EBITDA | 15.45 |
4.3 Compensation for Growth
The high PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates TRU does not grow enough to justify the current Price/Earnings ratio.
A more expensive valuation may be justified as TRU's earnings are expected to grow with 13.41% in the coming years.
PEG (NY)2.69
PEG (5Y)2.93
EPS Next 2Y11.2%
EPS Next 3Y13.41%
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 3.92, TRU pays a bit more dividend than its industry peers.
Compared to an average S&P500 Dividend Yield of 2.31, TRU's dividend is way lower than the S&P500 average.
| 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
22.05% 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.
DP22.05%
EPS Next 2Y11.2%
EPS Next 3Y13.41%
85.6
+2.12 (+2.54%)
Chartmill FA Rating
GICS SectorIndustrials
GICS IndustryGroupCommercial & Professional Services
GICS IndustryProfessional Services
Earnings (Last)
Earnings (Next)
Inst Owners101.68%
Inst Owner Change0.71%
Ins Owners0.34%
Ins Owner Change-0.01%
Market Cap16.67B
Revenue(TTM)4.18B
Net Income(TTM)391.90M
Analysts80.83
Price Target114.75 (34.05%)
Short Float %5.33%
Short Ratio2.76
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.55% |
Yearly Dividend0.43
Dividend Growth(5Y)7.03%
DP22.05%
Div Incr Years0
Div Non Decr Years6
Ex-Date
Surprises & Revisions
EPS beat(2)2
Avg EPS beat(2)7.5%
Min EPS beat(2)7.06%
Max EPS beat(2)7.93%
EPS beat(4)3
Avg EPS beat(4)4.2%
Min EPS beat(4)-0.09%
Max EPS beat(4)7.93%
EPS beat(8)6
Avg EPS beat(8)4.71%
EPS beat(12)9
Avg EPS beat(12)3.62%
EPS beat(16)10
Avg EPS beat(16)2.41%
Revenue beat(2)2
Avg Revenue beat(2)2.06%
Min Revenue beat(2)1.27%
Max Revenue beat(2)2.86%
Revenue beat(4)3
Avg Revenue beat(4)1.35%
Min Revenue beat(4)-0.02%
Max Revenue beat(4)2.86%
Revenue beat(8)6
Avg Revenue beat(8)1.13%
Revenue beat(12)8
Avg Revenue beat(12)0.65%
Revenue beat(16)9
Avg Revenue beat(16)-1.2%
PT rev (1m)0%
PT rev (3m)3.49%
EPS NQ rev (1m)0.32%
EPS NQ rev (3m)-0.12%
EPS NY rev (1m)0.11%
EPS NY rev (3m)1.43%
Revenue NQ rev (1m)0.09%
Revenue NQ rev (3m)0.88%
Revenue NY rev (1m)0.07%
Revenue NY rev (3m)1.41%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 20.38 | ||
| Fwd PE | 17.66 | ||
| P/S | 3.83 | ||
| P/FCF | 33.58 | ||
| P/OCF | 20.16 | ||
| P/B | 3.69 | ||
| P/tB | N/A | ||
| EV/EBITDA | 15.45 |
EPS(TTM)4.2
EY4.91%
EPS(NY)4.85
Fwd EY5.66%
FCF(TTM)2.55
FCFY2.98%
OCF(TTM)4.25
OCFY4.96%
SpS22.37
BVpS23.2
TBVpS-20.41
PEG (NY)2.69
PEG (5Y)2.93
Graham Number46.83
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 3.53% | ||
| ROE | 8.67% | ||
| ROCE | 8% | ||
| ROIC | 6.03% | ||
| ROICexc | 6.47% | ||
| ROICexgc | 61.92% | ||
| OM | 18.69% | ||
| PM (TTM) | 8.99% | ||
| GM | 59.24% | ||
| FCFM | 11.4% |
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-Score8
Asset Turnover0.39
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.12 | ||
| Debt/FCF | 10.34 | ||
| Debt/EBITDA | 3.7 | ||
| Cap/Depr | 59.82% | ||
| Cap/Sales | 7.59% | ||
| Interest Coverage | 250 | ||
| Cash Conversion | 60.51% | ||
| Profit Quality | 126.72% | ||
| Current Ratio | 2.02 | ||
| Quick Ratio | 2.02 | ||
| Altman-Z | 2.58 |
F-Score8
WACC7.49%
ROIC/WACC0.81
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 Y7.59%
EPS Next 2Y11.2%
EPS Next 3Y13.41%
EPS Next 5Y10.83%
Revenue 1Y (TTM)9.2%
Revenue growth 3Y12.22%
Revenue growth 5Y11.18%
Sales Q2Q%7.79%
Revenue Next Year7.18%
Revenue Next 2Y7.77%
Revenue Next 3Y8.19%
Revenue Next 5Y7.46%
EBIT growth 1Y19.73%
EBIT growth 3Y4.23%
EBIT growth 5Y6.25%
EBIT Next Year121.12%
EBIT Next 3Y40.22%
EBIT Next 5Y26.15%
FCF growth 1Y29.12%
FCF growth 3Y-4%
FCF growth 5Y-2.22%
OCF growth 1Y17.3%
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 for 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.
What is the financial health of TRANSUNION (TRU) stock?
The financial health rating of TRANSUNION (TRU) is 4 / 10.
Can you provide the dividend sustainability for TRU stock?
The dividend rating of TRANSUNION (TRU) is 5 / 10 and the dividend payout ratio is 22.05%.