TRANSUNION (TRU) Stock Fundamental Analysis
USA - NYSE:TRU - US89400J1079 - Common Stock
91.7 USD
+1.72 (+1.91%)
91.7 USD
0 (0%)
We assign a fundamental rating of 4 out of 10 to TRU. TRU was compared to 82 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
In the past year TRU was profitable.
In the past year TRU had a positive cash flow from operations.
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
TRU has a Return On Assets (3.53%) which is comparable to the rest of the industry.
TRU's Return On Equity of 8.67% is in line compared to the rest of the industry. TRU outperforms 52.44% of its industry peers.
The Return On Invested Capital of TRU (6.03%) is comparable to the rest of the industry.
TRU had an Average Return On Invested Capital over the past 3 years of 4.87%. This is significantly below the industry average of 12.76%.
The 3 year average ROIC (4.87%) for TRU is below the current ROIC(6.03%), indicating increased profibility in the last year.
| 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
TRU's Profit Margin of 8.99% is amongst the best of the industry. TRU outperforms 81.71% of its industry peers.
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 84.15% of the companies in the same industry.
In the last couple of years the Operating Margin of TRU has declined.
Looking at the Gross Margin, with a value of 59.24%, TRU is in the better half of the industry, outperforming 73.17% of the companies in the same industry.
TRU's Gross Margin has declined in the last couple of years.
| 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
With a Return on Invested Capital (ROIC) below the Cost of Capital (WACC), TRU is destroying value.
The number of shares outstanding for TRU has been increased compared to 1 year ago.
TRU has more shares outstanding than it did 5 years ago.
TRU has a better debt/assets ratio than last year.
2.2 Solvency
An Altman-Z score of 2.69 indicates that TRU is not a great score, but indicates only limited risk for bankruptcy at the moment.
TRU's Altman-Z score of 2.69 is in line compared to the rest of the industry. TRU outperforms 43.90% 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 of 10.34. This is comparable to the rest of the industry: TRU outperforms 40.24% of its industry peers.
TRU has a Debt/Equity ratio of 1.12. This is a high value indicating a heavy dependency on external financing.
With a Debt to Equity ratio value of 1.12, TRU is not doing good in the industry: 73.17% of the companies in the same industry are doing better.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.12 | ||
| Debt/FCF | 10.34 | ||
| Altman-Z | 2.69 |
ROIC/WACC0.8
WACC7.57%
2.3 Liquidity
TRU has a Current Ratio of 2.02. This indicates that TRU is financially healthy and has no problem in meeting its short term obligations.
TRU has a Current ratio of 2.02. This is in the better half of the industry: TRU outperforms 76.83% 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.
With a decent Quick ratio value of 2.02, TRU is doing good in the industry, outperforming 76.83% of the companies in the same industry.
| 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 14.36% 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 9.34% 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)14.36%
EPS 3Y2.04%
EPS 5Y6.96%
EPS Q2Q%9.09%
Revenue 1Y (TTM)9.34%
Revenue growth 3Y12.22%
Revenue growth 5Y11.18%
Sales Q2Q%9.5%
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.
Based on estimates for the next years, TRU will show a small growth in Revenue. The Revenue will grow by 7.46% on average per year.
EPS Next Y7.47%
EPS Next 2Y11.56%
EPS Next 3Y13.81%
EPS Next 5Y10.83%
Revenue Next Year7.11%
Revenue Next 2Y7.94%
Revenue Next 3Y8.41%
Revenue Next 5Y7.46%
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
Based on the Price/Earnings ratio of 22.15, the valuation of TRU can be described as rather expensive.
Compared to the rest of the industry, the Price/Earnings ratio of TRU is on the same level as its industry peers.
Compared to an average S&P500 Price/Earnings ratio of 27.20, TRU is valued at the same level.
The Price/Forward Earnings ratio is 18.80, which indicates a rather expensive current valuation of TRU.
TRU's Price/Forward Earnings is on the same level as the industry average.
TRU's Price/Forward Earnings ratio indicates a similar valuation than the S&P500 average which is at 22.70.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 22.15 | ||
| Fwd PE | 18.8 |
4.2 Price Multiples
The rest of the industry has a similar Enterprise Value to EBITDA ratio as TRU.
The rest of the industry has a similar Price/Free Cash Flow ratio as TRU.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 35.97 | ||
| EV/EBITDA | 16.32 |
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 13.81% in the coming years.
PEG (NY)2.97
PEG (5Y)3.18
EPS Next 2Y11.56%
EPS Next 3Y13.81%
5. Dividend
5.1 Amount
TRU has a yearly dividend return of 0.49%, which is pretty low.
Compared to an average industry Dividend Yield of 2.07, TRU pays a bit more dividend than its industry peers.
Compared to an average S&P500 Dividend Yield of 2.38, TRU's dividend is way lower than the S&P500 average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.49% |
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
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 2Y11.56%
EPS Next 3Y13.81%
91.7
+1.72 (+1.91%)
Chartmill FA Rating
GICS SectorIndustrials
GICS IndustryGroupCommercial & Professional Services
GICS IndustryProfessional Services
Earnings (Last)
Earnings (Next)
Inst Owners100.03%
Inst Owner Change1.76%
Ins Owners0.36%
Ins Owner Change4.35%
Market Cap17.86B
Analysts80
Price Target114.75 (25.14%)
Short Float %3.7%
Short Ratio3.23
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.49% |
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)-0.55%
PT rev (3m)7.02%
EPS NQ rev (1m)-0.05%
EPS NQ rev (3m)0.02%
EPS NY rev (1m)1.32%
EPS NY rev (3m)1.84%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)0.97%
Revenue NY rev (1m)0.22%
Revenue NY rev (3m)1.37%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 22.15 | ||
| Fwd PE | 18.8 | ||
| P/S | 4.1 | ||
| P/FCF | 35.97 | ||
| P/OCF | 21.6 | ||
| P/B | 3.95 | ||
| P/tB | N/A | ||
| EV/EBITDA | 16.32 |
EPS(TTM)4.14
EY4.51%
EPS(NY)4.88
Fwd EY5.32%
FCF(TTM)2.55
FCFY2.78%
OCF(TTM)4.25
OCFY4.63%
SpS22.37
BVpS23.2
TBVpS-20.41
PEG (NY)2.97
PEG (5Y)3.18
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%
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-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 | 2.69 |
F-Score8
WACC7.57%
ROIC/WACC0.8
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)14.36%
EPS 3Y2.04%
EPS 5Y6.96%
EPS Q2Q%9.09%
EPS Next Y7.47%
EPS Next 2Y11.56%
EPS Next 3Y13.81%
EPS Next 5Y10.83%
Revenue 1Y (TTM)9.34%
Revenue growth 3Y12.22%
Revenue growth 5Y11.18%
Sales Q2Q%9.5%
Revenue Next Year7.11%
Revenue Next 2Y7.94%
Revenue Next 3Y8.41%
Revenue Next 5Y7.46%
EBIT growth 1Y19.73%
EBIT growth 3Y4.23%
EBIT growth 5Y6.25%
EBIT Next Year120.85%
EBIT Next 3Y40.55%
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%