TRANSUNION (TRU) Stock Fundamental Analysis
USA - NYSE:TRU - US89400J1079 - Common Stock
80.54 USD
+1.54 (+1.95%)
80.54 USD
0 (0%)
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.
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
With a Return On Assets value of 3.78%, TRU perfoms like the industry average, outperforming 55.17% of the companies in the same industry.
With a Return On Equity value of 9.40%, TRU perfoms like the industry average, outperforming 55.17% of the companies in the same industry.
TRU's Return On Invested Capital of 6.18% is in line compared to the rest of the industry. TRU outperforms 50.57% 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 13.43%.
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
Looking at the Profit Margin, with a value of 9.47%, TRU belongs to the top of the industry, outperforming 81.61% of the companies in the same industry.
TRU's Profit Margin has declined in the last couple of years.
TRU has a better Operating Margin (18.69%) than 85.06% 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 74.71% 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
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.
TRU has more shares outstanding than it did 5 years ago.
The debt/assets ratio for TRU has been reduced compared to a year ago.
2.2 Solvency
TRU has an Altman-Z score of 2.50. 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's Altman-Z score of 2.50 is in line compared to the rest of the industry. TRU outperforms 45.98% of 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.
Looking at the Debt to FCF ratio, with a value of 8.89, TRU is in line with its industry, outperforming 45.98% of the companies in the same industry.
A Debt/Equity ratio of 1.13 is on the high side and indicates that TRU has dependencies on debt financing.
TRU has a Debt to Equity ratio of 1.13. This is in the lower half of the industry: TRU underperforms 71.26% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.13 | ||
| Debt/FCF | 8.89 | ||
| Altman-Z | 2.5 |
ROIC/WACC0.82
WACC7.5%
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.
TRU's Current ratio of 2.01 is fine compared to the rest of the industry. TRU outperforms 75.86% of its industry peers.
A Quick Ratio of 2.01 indicates that TRU has no problem at all paying its short term obligations.
TRU's Quick ratio of 2.01 is fine compared to the rest of the industry. TRU outperforms 75.86% 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.
TRU shows a small growth in Earnings Per Share. Measured over the last years, the EPS has been growing by 6.96% yearly.
TRU shows quite a strong growth in Revenue. In the last year, the Revenue has grown by 8.30%.
The Revenue has been growing by 11.18% on average over the past years. This is quite good.
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.
The Revenue is expected to grow by 7.16% on average over the next years.
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.
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 19.18, which indicates a rather expensive current valuation of TRU.
TRU's Price/Earnings ratio is in line with the industry average.
The average S&P500 Price/Earnings ratio is at 26.06. TRU is valued slightly cheaper when compared to this.
TRU is valuated correctly with a Price/Forward Earnings ratio of 16.49.
TRU's Price/Forward Earnings ratio is in line with the industry average.
Compared to an average S&P500 Price/Forward Earnings ratio of 32.73, TRU is valued a bit cheaper.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 19.18 | ||
| Fwd PE | 16.49 |
4.2 Price Multiples
TRU's Enterprise Value to EBITDA ratio is in line with the industry average.
The rest of the industry has a similar Price/Free Cash Flow ratio as TRU.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 27.25 | ||
| EV/EBITDA | 14.38 |
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)2.04
PEG (5Y)2.75
EPS Next 2Y11.61%
EPS Next 3Y12.95%
5. Dividend
5.1 Amount
With a yearly dividend of 0.58%, TRU is not a good candidate for dividend investing.
Compared to an average industry Dividend Yield of 4.51, TRU pays a bit more dividend than its industry peers.
With a Dividend Yield of 0.58, TRU pays less dividend than the S&P500 average, which is at 2.37.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.58% |
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.
The dividend of TRU is growing, but earnings are growing more, so the dividend growth is sustainable.
DP21.24%
EPS Next 2Y11.61%
EPS Next 3Y12.95%
80.54
+1.54 (+1.95%)
Chartmill FA Rating
GICS SectorIndustrials
GICS IndustryGroupCommercial & Professional Services
GICS IndustryProfessional Services
Earnings (Last)
Earnings (Next)
Inst Owners101.68%
Inst Owner Change0.08%
Ins Owners0.34%
Ins Owner Change-1.23%
Market Cap15.69B
Revenue(TTM)4.44B
Net Income(TTM)420.50M
Analysts80
Price Target107.25 (33.16%)
Short Float %4.81%
Short Ratio2.5
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.58% |
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)2.44%
EPS NQ rev (3m)2.25%
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 | 19.18 | ||
| Fwd PE | 16.49 | ||
| P/S | 3.53 | ||
| P/FCF | 27.25 | ||
| P/OCF | 17.01 | ||
| P/B | 3.51 | ||
| P/tB | N/A | ||
| EV/EBITDA | 14.38 |
EPS(TTM)4.2
EY5.21%
EPS(NY)4.88
Fwd EY6.06%
FCF(TTM)2.96
FCFY3.67%
OCF(TTM)4.73
OCFY5.88%
SpS22.8
BVpS22.96
TBVpS-20.24
PEG (NY)2.04
PEG (5Y)2.75
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 | 2.5 |
F-Score9
WACC7.5%
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 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%.