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 81 industry peers in the Professional Services industry. TRU has only an average score on both its financial health and profitability. 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.
In the past year TRU had a positive cash flow from operations.
Of the past 5 years TRU 4 years were profitable.
TRU had a positive operating cash flow in each of the past 5 years.
1.2 Ratios
The Return On Assets of TRU (3.35%) is comparable to the rest of the industry.
TRU has a Return On Equity of 8.37%. This is comparable to the rest of the industry: TRU outperforms 53.09% of its industry peers.
With a Return On Invested Capital value of 6.09%, TRU perfoms like the industry average, outperforming 50.62% of the companies in the same industry.
Measured over the past 3 years, the Average Return On Invested Capital for TRU is significantly below the industry average of 12.53%.
The 3 year average ROIC (4.87%) for TRU is below the current ROIC(6.09%), indicating increased profibility in the last year.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 3.35% | ||
| ROE | 8.37% | ||
| ROIC | 6.09% |
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 8.63%. This is in the better half of the industry: TRU outperforms 79.01% of its industry peers.
In the last couple of years the Profit Margin of TRU has declined.
With an excellent Operating Margin value of 19.08%, TRU belongs to the best of the industry, outperforming 85.19% of the companies in the same industry.
In the last couple of years the Operating Margin of TRU has declined.
TRU has a better Gross Margin (59.78%) than 74.07% of its industry peers.
In the last couple of years the Gross Margin of TRU has declined.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 19.08% | ||
| PM (TTM) | 8.63% | ||
| GM | 59.78% |
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.
Compared to 1 year ago, TRU has more shares outstanding
TRU has more shares outstanding than it did 5 years ago.
Compared to 1 year ago, TRU has an improved debt to assets ratio.
2.2 Solvency
TRU has an Altman-Z score of 2.62. 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.
TRU has a Altman-Z score of 2.62. This is comparable to the rest of the industry: TRU outperforms 44.44% of its industry peers.
The Debt to FCF ratio of TRU is 10.08, which is on the high side as it means it would take TRU, 10.08 years of fcf income to pay off all of its debts.
TRU's Debt to FCF ratio of 10.08 is in line compared to the rest of the industry. TRU outperforms 40.74% of its industry peers.
TRU has a Debt/Equity ratio of 1.15. This is a high value indicating a heavy dependency on external financing.
The Debt to Equity ratio of TRU (1.15) is worse than 74.07% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.15 | ||
| Debt/FCF | 10.08 | ||
| Altman-Z | 2.62 |
ROIC/WACC0.75
WACC8.12%
2.3 Liquidity
A Current Ratio of 2.05 indicates that TRU has no problem at all paying its short term obligations.
The Current ratio of TRU (2.05) is better than 75.31% of its industry peers.
TRU has a Quick Ratio of 2.05. This indicates that TRU is financially healthy and has no problem in meeting its short term obligations.
Looking at the Quick ratio, with a value of 2.05, TRU is in the better half of the industry, outperforming 75.31% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 2.05 | ||
| Quick Ratio | 2.05 |
3. Growth
3.1 Past
The Earnings Per Share has grown by an nice 16.05% 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 8.85% 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)16.05%
EPS 3Y2.04%
EPS 5Y6.96%
EPS Q2Q%14.13%
Revenue 1Y (TTM)8.85%
Revenue growth 3Y12.22%
Revenue growth 5Y11.18%
Sales Q2Q%7.3%
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 9.25% yearly.
The Revenue is expected to grow by 7.01% on average over the next years.
EPS Next Y5.96%
EPS Next 2Y10.8%
EPS Next 3Y14.21%
EPS Next 5Y9.25%
Revenue Next Year5.67%
Revenue Next 2Y7.3%
Revenue Next 3Y8.94%
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 22.20 indicates a rather expensive 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 27.21.
The Price/Forward Earnings ratio is 18.68, which indicates a rather expensive current valuation of TRU.
TRU's Price/Forward Earnings ratio is in line with the industry average.
Compared to an average S&P500 Price/Forward Earnings ratio of 21.70, TRU is valued at the same level.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 22.2 | ||
| Fwd PE | 18.68 |
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 | 34.45 | ||
| EV/EBITDA | 16 |
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 14.21% in the coming years. This may justify a more expensive valuation.
PEG (NY)3.73
PEG (5Y)3.19
EPS Next 2Y10.8%
EPS Next 3Y14.21%
5. Dividend
5.1 Amount
TRU has a yearly dividend return of 0.52%, which is pretty low.
Compared to an average industry Dividend Yield of 2.12, TRU pays a bit more dividend than its industry peers.
Compared to an average S&P500 Dividend Yield of 2.42, TRU's dividend is way lower than the S&P500 average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.52% |
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 Years0
Div Non Decr Years6
5.3 Sustainability
TRU pays out 23.01% of its income as dividend. This is a sustainable payout ratio.
The dividend of TRU is growing, but earnings are growing more, so the dividend growth is sustainable.
DP23.01%
EPS Next 2Y10.8%
EPS Next 3Y14.21%
89.9
+1.9 (+2.16%)
Chartmill FA Rating
GICS SectorIndustrials
GICS IndustryGroupCommercial & Professional Services
GICS IndustryProfessional Services
Earnings (Last)
Earnings (Next)
Inst Owners100.92%
Inst Owner Change1.36%
Ins Owners0.35%
Ins Owner Change15.59%
Market Cap17.54B
Analysts80
Price Target107.23 (19.28%)
Short Float %2.23%
Short Ratio2.07
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.52% |
Yearly Dividend0.43
Dividend Growth(5Y)7.03%
DP23.01%
Div Incr Years0
Div Non Decr Years6
Ex-Date
Surprises & Revisions
EPS beat(2)1
Avg EPS beat(2)3.48%
Min EPS beat(2)-0.09%
Max EPS beat(2)7.06%
EPS beat(4)3
Avg EPS beat(4)2.36%
Min EPS beat(4)-0.09%
Max EPS beat(4)7.06%
EPS beat(8)6
Avg EPS beat(8)4.11%
EPS beat(12)8
Avg EPS beat(12)2.94%
EPS beat(16)10
Avg EPS beat(16)2.19%
Revenue beat(2)1
Avg Revenue beat(2)0.62%
Min Revenue beat(2)-0.02%
Max Revenue beat(2)1.27%
Revenue beat(4)3
Avg Revenue beat(4)0.78%
Min Revenue beat(4)-0.02%
Max Revenue beat(4)1.31%
Revenue beat(8)6
Avg Revenue beat(8)0.78%
Revenue beat(12)7
Avg Revenue beat(12)0.19%
Revenue beat(16)8
Avg Revenue beat(16)-1.59%
PT rev (1m)1.02%
PT rev (3m)-10%
EPS NQ rev (1m)0%
EPS NQ rev (3m)-3.25%
EPS NY rev (1m)0.41%
EPS NY rev (3m)0.6%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)-0.45%
Revenue NY rev (1m)0.07%
Revenue NY rev (3m)0.41%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 22.2 | ||
| Fwd PE | 18.68 | ||
| P/S | 4.12 | ||
| P/FCF | 34.45 | ||
| P/OCF | 21.11 | ||
| P/B | 4 | ||
| P/tB | N/A | ||
| EV/EBITDA | 16 |
EPS(TTM)4.05
EY4.51%
EPS(NY)4.81
Fwd EY5.35%
FCF(TTM)2.61
FCFY2.9%
OCF(TTM)4.26
OCFY4.74%
SpS21.83
BVpS22.48
TBVpS-20.41
PEG (NY)3.73
PEG (5Y)3.19
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 3.35% | ||
| ROE | 8.37% | ||
| ROCE | 8.08% | ||
| ROIC | 6.09% | ||
| ROICexc | 6.48% | ||
| ROICexgc | 56.72% | ||
| OM | 19.08% | ||
| PM (TTM) | 8.63% | ||
| GM | 59.78% | ||
| FCFM | 11.96% |
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%
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 Turnover0.39
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.15 | ||
| Debt/FCF | 10.08 | ||
| Debt/EBITDA | 3.73 | ||
| Cap/Depr | 59.3% | ||
| Cap/Sales | 7.56% | ||
| Interest Coverage | 250 | ||
| Cash Conversion | 61.31% | ||
| Profit Quality | 138.63% | ||
| Current Ratio | 2.05 | ||
| Quick Ratio | 2.05 | ||
| Altman-Z | 2.62 |
F-Score7
WACC8.12%
ROIC/WACC0.75
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)16.05%
EPS 3Y2.04%
EPS 5Y6.96%
EPS Q2Q%14.13%
EPS Next Y5.96%
EPS Next 2Y10.8%
EPS Next 3Y14.21%
EPS Next 5Y9.25%
Revenue 1Y (TTM)8.85%
Revenue growth 3Y12.22%
Revenue growth 5Y11.18%
Sales Q2Q%7.3%
Revenue Next Year5.67%
Revenue Next 2Y7.3%
Revenue Next 3Y8.94%
Revenue Next 5Y7.01%
EBIT growth 1Y25.4%
EBIT growth 3Y4.23%
EBIT growth 5Y6.25%
EBIT Next Year118.4%
EBIT Next 3Y40.66%
EBIT Next 5Y26.01%
FCF growth 1Y788.66%
FCF growth 3Y-4%
FCF growth 5Y-2.22%
OCF growth 1Y128.67%
OCF growth 3Y0.99%
OCF growth 5Y1.4%