TRANSUNION (TRU) Stock Fundamental Analysis
USA - New York Stock Exchange - NYSE:TRU - US89400J1079 - Common Stock
87.09 USD
+0.93 (+1.08%)
87.09 USD
0 (0%)
TRU gets a fundamental rating of 4 out of 10. The analysis compared the fundamentals against 87 industry peers in the Professional Services industry. Both the profitability and the financial health of TRU get a neutral evaluation. Nothing too spectacular is happening here. While showing a medium growth rate, TRU is valued expensive at the moment.
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.
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.
The Return On Equity of TRU (9.40%) is comparable to the rest of the industry.
TRU has a Return On Invested Capital (6.18%) which 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 11.98%.
The last Return On Invested Capital (6.18%) for TRU is above the 3 year average (4.87%), which is a sign of increasing profitability.
| 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
Looking at the Profit Margin, with a value of 9.47%, TRU is in the better half of the industry, outperforming 77.01% of the companies in the same industry.
TRU's Profit Margin has declined in the last couple of years.
With an excellent Operating Margin value of 18.69%, TRU belongs to the best of the industry, outperforming 83.91% of the companies in the same industry.
In the last couple of years the Operating Margin of TRU has declined.
The Gross Margin of TRU (59.31%) is better than 75.86% of its industry peers.
TRU's Gross Margin has declined in the last couple of years.
| 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
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.
The debt/assets ratio for TRU has been reduced compared to a year ago.
2.2 Solvency
An Altman-Z score of 2.60 indicates that TRU is not a great score, but indicates only limited risk for bankruptcy at the moment.
TRU has a Altman-Z score (2.60) which is comparable to the rest of the industry.
TRU has a debt to FCF ratio of 8.89. This is a slightly negative value and a sign of low solvency as TRU would need 8.89 years to pay back of all of its debts.
TRU has a Debt to FCF ratio of 8.89. This is comparable to the rest of the industry: TRU outperforms 45.98% of its industry peers.
A Debt/Equity ratio of 1.13 is on the high side and indicates that TRU has dependencies on debt financing.
TRU has a worse Debt to Equity ratio (1.13) than 71.26% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.13 | ||
| Debt/FCF | 8.89 | ||
| Altman-Z | 2.6 |
ROIC/WACC0.81
WACC7.61%
2.3 Liquidity
A Current Ratio of 2.01 indicates that TRU has no problem at all paying its short term obligations.
Looking at the Current ratio, with a value of 2.01, TRU is in the better half of the industry, outperforming 72.41% of the companies in the same industry.
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.
Looking at the Quick ratio, with a value of 2.01, TRU is in the better half of the industry, outperforming 74.71% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 2.01 | ||
| Quick Ratio | 2.01 |
3. Growth
3.1 Past
TRU shows a strong growth in Earnings Per Share. In the last year, the EPS has been growing by 12.00%, 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 6.96% on average per year.
Looking at the last year, TRU shows a quite strong growth in Revenue. The Revenue has grown by 8.30% in the last year.
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.
TRU is expected to show a small growth in Revenue. In the coming years, the Revenue will grow by 7.16% yearly.
EPS Next Y9.49%
EPS Next 2Y11.6%
EPS Next 3Y13.02%
EPS Next 5Y8.85%
Revenue Next Year8.7%
Revenue Next 2Y8.13%
Revenue Next 3Y8.2%
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.
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
TRU is valuated rather expensively with a Price/Earnings ratio of 20.74.
Compared to the rest of the industry, the Price/Earnings ratio of TRU is on the same level as its industry peers.
When comparing the Price/Earnings ratio of TRU to the average of the S&P500 Index (26.38), we can say TRU is valued slightly cheaper.
TRU is valuated rather expensively with a Price/Forward Earnings ratio of 17.84.
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 23.83, which is the current average of the S&P500 Index.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 20.74 | ||
| Fwd PE | 17.84 |
4.2 Price Multiples
TRU's Enterprise Value to EBITDA ratio is in line with the industry average.
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 | 29.38 | ||
| EV/EBITDA | 15.13 |
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 13.02% in the coming years. This may justify a more expensive valuation.
PEG (NY)2.19
PEG (5Y)2.98
EPS Next 2Y11.6%
EPS Next 3Y13.02%
5. Dividend
5.1 Amount
TRU has a yearly dividend return of 0.53%, which is pretty low.
TRU's Dividend Yield is a higher than the industry average which is at 1.55.
With a Dividend Yield of 0.53, TRU pays less dividend than the S&P500 average, which is at 1.87.
| 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.
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 21.24% of its income as dividend. This is a sustainable payout ratio.
TRU's earnings are growing more than its dividend. This makes the dividend growth sustainable.
DP21.24%
EPS Next 2Y11.6%
EPS Next 3Y13.02%
87.09
+0.93 (+1.08%)
Chartmill FA Rating
GICS SectorIndustrials
GICS IndustryGroupCommercial & Professional Services
GICS IndustryProfessional Services
Earnings (Last)
Earnings (Next)
Inst Owners110.29%
Inst Owner Change8.24%
Ins Owners0.33%
Ins Owner Change-1.23%
Market Cap16.91B
Revenue(TTM)4.44B
Net Income(TTM)420.50M
Analysts80
Price Target107.51 (23.45%)
Short Float %4.1%
Short Ratio3.36
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-Date
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)0.24%
PT rev (3m)-6.31%
EPS NQ rev (1m)0.12%
EPS NQ rev (3m)2.54%
EPS NY rev (1m)0.09%
EPS NY rev (3m)1.88%
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 | 20.74 | ||
| Fwd PE | 17.84 | ||
| P/S | 3.81 | ||
| P/FCF | 29.38 | ||
| P/OCF | 18.34 | ||
| P/B | 3.78 | ||
| P/tB | N/A | ||
| EV/EBITDA | 15.13 |
EPS(TTM)4.2
EY4.82%
EPS(NY)4.88
Fwd EY5.61%
FCF(TTM)2.96
FCFY3.4%
OCF(TTM)4.75
OCFY5.45%
SpS22.87
BVpS23.04
TBVpS-20.3
PEG (NY)2.19
PEG (5Y)2.98
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 | 2.6 |
F-Score9
WACC7.61%
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 Y9.49%
EPS Next 2Y11.6%
EPS Next 3Y13.02%
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 2Y8.13%
Revenue Next 3Y8.2%
Revenue Next 5Y7.16%
EBIT growth 1Y18.7%
EBIT growth 3Y4.23%
EBIT growth 5Y6.25%
EBIT Next Year124.66%
EBIT Next 3Y40.06%
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 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 21.24%.