TRANSUNION (TRU) Stock Fundamental Analysis
USA - New York Stock Exchange - NYSE:TRU - US89400J1079 - Common Stock
85.75 USD
-1.24 (-1.43%)
85 USD
-0.75 (-0.87%)
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. 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.
In the past year TRU had a positive cash flow from operations.
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 (3.78%) is comparable to the rest of the industry.
TRU has a Return On Equity of 9.40%. This is comparable to the rest of the industry: TRU outperforms 54.65% of its industry peers.
The Return On Invested Capital of TRU (6.18%) is comparable to the rest of the industry.
Measured over the past 3 years, the Average Return On Invested Capital for TRU is significantly below the industry average of 12.04%.
The 3 year average ROIC (4.87%) for TRU is below the current ROIC(6.18%), indicating increased profibility in the last year.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 3.78% | ||
| ROE | 9.4% | ||
| ROIC | 6.18% |
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 better Profit Margin (9.47%) than 76.74% of its industry peers.
TRU's Profit Margin has declined in the last couple of years.
The Operating Margin of TRU (18.69%) is better than 83.72% of its industry peers.
In the last couple of years the Operating Margin of TRU has declined.
TRU's Gross Margin of 59.31% is fine compared to the rest of the industry. TRU outperforms 77.91% 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) | 9.47% | ||
| GM | 59.31% |
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.
TRU has more shares outstanding than it did 1 year ago.
Compared to 5 years ago, TRU has more shares outstanding
TRU has a better debt/assets ratio than last year.
2.2 Solvency
An Altman-Z score of 2.59 indicates that TRU is not a great score, but indicates only limited risk for bankruptcy at the moment.
TRU has a Altman-Z score (2.59) which is in line with its industry peers.
The Debt to FCF ratio of TRU is 8.89, which is on the high side as it means it would take TRU, 8.89 years of fcf income to pay off all of its debts.
With a Debt to FCF ratio value of 8.89, TRU perfoms like the industry average, outperforming 46.51% of the companies in the same industry.
TRU has a Debt/Equity ratio of 1.13. This is a high value indicating a heavy dependency on external financing.
With a Debt to Equity ratio value of 1.13, TRU is not doing good in the industry: 70.93% of the companies in the same industry are doing better.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.13 | ||
| Debt/FCF | 8.89 | ||
| Altman-Z | 2.59 |
ROIC/WACC0.81
WACC7.58%
2.3 Liquidity
A Current Ratio of 2.01 indicates that TRU has no problem at all paying its short term obligations.
TRU has a Current ratio of 2.01. This is in the better half of the industry: TRU outperforms 73.26% of its industry peers.
TRU has a Quick Ratio of 2.01. This indicates that TRU is financially healthy and has no problem in meeting its short term obligations.
TRU has a Quick ratio of 2.01. This is in the better half of the industry: TRU outperforms 75.58% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 2.01 | ||
| Quick Ratio | 2.01 |
3. Growth
3.1 Past
The Earnings Per Share has grown by an nice 12.00% 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.
The Revenue has grown by 8.30% in the past year. This is quite good.
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)12%
EPS 3Y2.04%
EPS 5Y6.96%
EPS Q2Q%5.77%
Revenue 1Y (TTM)8.3%
Revenue growth 3Y12.22%
Revenue growth 5Y11.18%
Sales Q2Q%7.79%
3.2 Future
Based on estimates for the next years, TRU will show a quite strong growth in Earnings Per Share. The EPS will grow by 8.85% on average per year.
The Revenue is expected to grow by 7.16% on average over the next years.
EPS Next Y9.66%
EPS Next 2Y11.52%
EPS Next 3Y13.13%
EPS Next 5Y8.85%
Revenue Next Year8.7%
Revenue Next 2Y8.2%
Revenue Next 3Y8.23%
Revenue Next 5Y7.16%
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
The Price/Earnings ratio is 20.42, which indicates a rather expensive current valuation of TRU.
The rest of the industry has a similar Price/Earnings ratio as TRU.
TRU's Price/Earnings ratio indicates a valuation a bit cheaper than the S&P500 average which is at 26.51.
TRU is valuated rather expensively with a Price/Forward Earnings ratio of 17.59.
Compared to the rest of the industry, the Price/Forward Earnings ratio of TRU is on the same level as its industry peers.
When comparing the Price/Forward Earnings ratio of TRU to the average of the S&P500 Index (23.13), we can say TRU is valued slightly cheaper.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 20.42 | ||
| Fwd PE | 17.59 |
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.
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 | 28.93 | ||
| EV/EBITDA | 15.07 |
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 13.13% in the coming years.
PEG (NY)2.11
PEG (5Y)2.93
EPS Next 2Y11.52%
EPS Next 3Y13.13%
5. Dividend
5.1 Amount
With a yearly dividend of 0.53%, TRU is not a good candidate for dividend investing.
Compared to an average industry Dividend Yield of 1.58, TRU pays a bit more dividend than its industry peers.
Compared to an average S&P500 Dividend Yield of 2.00, TRU's dividend is way lower than the S&P500 average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.53% |
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.
TRU has not decreased its dividend in the past 5 years, so it has a somewhat stable track record.
Dividend Growth(5Y)7.03%
Div Incr Years0
Div Non Decr Years6
5.3 Sustainability
21.24% 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.
DP21.24%
EPS Next 2Y11.52%
EPS Next 3Y13.13%
85.75
-1.24 (-1.43%)
Chartmill FA Rating
GICS SectorIndustrials
GICS IndustryGroupCommercial & Professional Services
GICS IndustryProfessional Services
Earnings (Last)
Earnings (Next)
Inst Owners110.29%
Inst Owner Change8.26%
Ins Owners0.33%
Ins Owner Change-1.48%
Market Cap16.65B
Revenue(TTM)4.44B
Net Income(TTM)420.50M
Analysts80
Price Target107.71 (25.61%)
Short Float %3.44%
Short Ratio3.1
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.53% |
Yearly Dividend0.43
Dividend Growth(5Y)7.03%
DP21.24%
Div Incr Years0
Div Non Decr Years6
Ex-DateN/A
Surprises & Revisions
EPS beat(2)2
Avg EPS beat(2)6.21%
Min EPS beat(2)4.49%
Max EPS beat(2)7.93%
EPS beat(4)3
Avg EPS beat(4)4.85%
Min EPS beat(4)-0.09%
Max EPS beat(4)7.93%
EPS beat(8)7
Avg EPS beat(8)5.86%
EPS beat(12)9
Avg EPS beat(12)3.91%
EPS beat(16)10
Avg EPS beat(16)2.24%
Revenue beat(2)2
Avg Revenue beat(2)2.55%
Min Revenue beat(2)2.23%
Max Revenue beat(2)2.86%
Revenue beat(4)3
Avg Revenue beat(4)1.58%
Min Revenue beat(4)-0.02%
Max Revenue beat(4)2.86%
Revenue beat(8)7
Avg Revenue beat(8)1.7%
Revenue beat(12)9
Avg Revenue beat(12)0.98%
Revenue beat(16)10
Avg Revenue beat(16)-0.74%
PT rev (1m)0.19%
PT rev (3m)-6.13%
EPS NQ rev (1m)0.41%
EPS NQ rev (3m)2.83%
EPS NY rev (1m)0.25%
EPS NY rev (3m)2.04%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)2.32%
Revenue NY rev (1m)0.02%
Revenue NY rev (3m)1.48%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 20.42 | ||
| Fwd PE | 17.59 | ||
| P/S | 3.75 | ||
| P/FCF | 28.93 | ||
| P/OCF | 18.06 | ||
| P/B | 3.72 | ||
| P/tB | N/A | ||
| EV/EBITDA | 15.07 |
EPS(TTM)4.2
EY4.9%
EPS(NY)4.88
Fwd EY5.69%
FCF(TTM)2.96
FCFY3.46%
OCF(TTM)4.75
OCFY5.54%
SpS22.87
BVpS23.04
TBVpS-20.3
PEG (NY)2.11
PEG (5Y)2.93
Graham Number46.66
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 3.78% | ||
| ROE | 9.4% | ||
| ROCE | 8.2% | ||
| ROIC | 6.18% | ||
| ROICexc | 6.67% | ||
| ROICexgc | 65.18% | ||
| OM | 18.69% | ||
| PM (TTM) | 9.47% | ||
| GM | 59.31% | ||
| FCFM | 12.96% |
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-Score9
Asset Turnover0.4
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.13 | ||
| Debt/FCF | 8.89 | ||
| Debt/EBITDA | 3.61 | ||
| Cap/Depr | 61.36% | ||
| Cap/Sales | 7.8% | ||
| Interest Coverage | 250 | ||
| Cash Conversion | 66.12% | ||
| Profit Quality | 136.91% | ||
| Current Ratio | 2.01 | ||
| Quick Ratio | 2.01 | ||
| Altman-Z | 2.59 |
F-Score9
WACC7.58%
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 Y9.66%
EPS Next 2Y11.52%
EPS Next 3Y13.13%
EPS Next 5Y8.85%
Revenue 1Y (TTM)8.3%
Revenue growth 3Y12.22%
Revenue growth 5Y11.18%
Sales Q2Q%7.79%
Revenue Next Year8.7%
Revenue Next 2Y8.2%
Revenue Next 3Y8.23%
Revenue Next 5Y7.16%
EBIT growth 1Y18.7%
EBIT growth 3Y4.23%
EBIT growth 5Y6.25%
EBIT Next Year124.8%
EBIT Next 3Y40.02%
EBIT Next 5Y26.03%
FCF growth 1Y66.15%
FCF growth 3Y-4%
FCF growth 5Y-2.22%
OCF growth 1Y38.58%
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 of TRANSUNION (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.
Can you provide the PE and PB ratios for TRU stock?
The Price/Earnings (PE) ratio for TRANSUNION (TRU) is 20.42 and the Price/Book (PB) ratio is 3.72.
What is the financial health of TRANSUNION (TRU) stock?
The financial health rating of TRANSUNION (TRU) is 4 / 10.