TRANSUNION (TRU) Stock Fundamental Analysis
USA - NYSE:TRU - US89400J1079 - Common Stock
81.1 USD
-0.77 (-0.94%)
81.1 USD
0 (0%)
We assign a fundamental rating of 5 out of 10 to TRU. TRU was compared to 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. TRU has a correct valuation and a medium 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.
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
With a Return On Assets value of 3.78%, TRU perfoms like the industry average, outperforming 52.33% of the companies in the same industry.
TRU's Return On Equity of 9.40% is in line compared to the rest of the industry. TRU outperforms 52.33% of its industry peers.
TRU has a Return On Invested Capital of 6.18%. This is comparable to the rest of the industry: TRU outperforms 50.00% 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 22.56%.
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
With a decent Profit Margin value of 9.47%, TRU is doing good in the industry, outperforming 79.07% of the companies in the same industry.
TRU's Profit Margin has declined in the last couple of years.
Looking at the Operating Margin, with a value of 18.69%, TRU belongs to the top of the industry, outperforming 83.72% of the companies in the same industry.
In the last couple of years the Operating Margin of TRU has declined.
With a decent Gross Margin value of 59.31%, TRU is doing good in the industry, outperforming 75.58% of the companies in the same industry.
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
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.
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 2.51 indicates that TRU is not a great score, but indicates only limited risk for bankruptcy at the moment.
The Altman-Z score of TRU (2.51) is comparable to the rest of the industry.
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 44.19% 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.
Looking at the Debt to Equity ratio, with a value of 1.13, TRU is doing worse than 72.09% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.13 | ||
| Debt/FCF | 8.89 | ||
| Altman-Z | 2.51 |
ROIC/WACC0.82
WACC7.53%
2.3 Liquidity
TRU has a Current Ratio of 2.01. This indicates that TRU is financially healthy and has no problem in meeting its short term obligations.
The Current ratio of TRU (2.01) is better than 72.09% 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 better Quick ratio (2.01) than 72.09% of its industry peers.
| 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.
TRU shows quite a strong growth in Revenue. In the last year, the Revenue has grown by 8.30%.
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
The Earnings Per Share is expected to grow by 8.85% on average over the next years. This is quite good.
Based on estimates for the next years, TRU will show a small growth in Revenue. The Revenue will grow by 7.16% on average per year.
EPS Next Y9.38%
EPS Next 2Y11.61%
EPS Next 3Y12.95%
EPS Next 5Y8.85%
Revenue Next Year8.68%
Revenue Next 2Y7.99%
Revenue Next 3Y8.08%
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
With a Price/Earnings ratio of 19.31, TRU is valued on the expensive side.
TRU's Price/Earnings is on the same level as the industry average.
When comparing the Price/Earnings ratio of TRU to the average of the S&P500 Index (25.89), we can say TRU is valued slightly cheaper.
With a Price/Forward Earnings ratio of 16.61, TRU is valued correctly.
TRU's Price/Forward Earnings ratio is in line with the industry average.
TRU is valuated cheaply when we compare the Price/Forward Earnings ratio to 34.59, which is the current average of the S&P500 Index.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 19.31 | ||
| Fwd PE | 16.61 |
4.2 Price Multiples
63.95% of the companies in the same industry are more expensive than TRU, based on the Enterprise Value to EBITDA ratio.
The rest of the industry has a similar Price/Free Cash Flow ratio as TRU.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 27.44 | ||
| EV/EBITDA | 14.46 |
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 12.95% in the coming years.
PEG (NY)2.06
PEG (5Y)2.77
EPS Next 2Y11.61%
EPS Next 3Y12.95%
5. Dividend
5.1 Amount
With a yearly dividend of 0.56%, TRU is not a good candidate for dividend investing.
Compared to an average industry Dividend Yield of 4.28, TRU pays a bit more dividend than its industry peers.
With a Dividend Yield of 0.56, TRU pays less dividend than the S&P500 average, which is at 2.44.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.56% |
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.
TRU's earnings are growing more than its dividend. This makes the dividend growth sustainable.
DP21.24%
EPS Next 2Y11.61%
EPS Next 3Y12.95%
81.1
-0.77 (-0.94%)
Chartmill FA Rating
GICS SectorIndustrials
GICS IndustryGroupCommercial & Professional Services
GICS IndustryProfessional Services
Earnings (Last)
Earnings (Next)
Inst Owners101.68%
Inst Owner Change7.97%
Ins Owners0.34%
Ins Owner Change-1.65%
Market Cap15.80B
Revenue(TTM)4.44B
Net Income(TTM)420.50M
Analysts80
Price Target107.25 (32.24%)
Short Float %4.81%
Short Ratio2.5
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.56% |
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)-6.53%
PT rev (3m)-7.04%
EPS NQ rev (1m)2.38%
EPS NQ rev (3m)2.42%
EPS NY rev (1m)1.78%
EPS NY rev (3m)3.13%
Revenue NQ rev (1m)2.32%
Revenue NQ rev (3m)2.32%
Revenue NY rev (1m)1.39%
Revenue NY rev (3m)1.69%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 19.31 | ||
| Fwd PE | 16.61 | ||
| P/S | 3.56 | ||
| P/FCF | 27.44 | ||
| P/OCF | 17.13 | ||
| P/B | 3.53 | ||
| P/tB | N/A | ||
| EV/EBITDA | 14.46 |
EPS(TTM)4.2
EY5.18%
EPS(NY)4.88
Fwd EY6.02%
FCF(TTM)2.96
FCFY3.64%
OCF(TTM)4.73
OCFY5.84%
SpS22.8
BVpS22.96
TBVpS-20.24
PEG (NY)2.06
PEG (5Y)2.77
Graham Number46.58
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 | 2.51 |
F-Score9
WACC7.53%
ROIC/WACC0.82
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 Y9.38%
EPS Next 2Y11.61%
EPS Next 3Y12.95%
EPS Next 5Y8.85%
Revenue 1Y (TTM)8.3%
Revenue growth 3Y12.22%
Revenue growth 5Y11.18%
Sales Q2Q%7.79%
Revenue Next Year8.68%
Revenue Next 2Y7.99%
Revenue Next 3Y8.08%
Revenue Next 5Y7.16%
EBIT growth 1Y18.7%
EBIT growth 3Y4.23%
EBIT growth 5Y6.25%
EBIT Next Year121.12%
EBIT Next 3Y40.22%
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 5 / 10 to TRU.
What is the valuation status for TRU stock?
ChartMill assigns a valuation rating of 4 / 10 to TRANSUNION (TRU). This can be considered as Fairly Valued.
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%.