TRANSUNION (TRU) Stock Fundamental Analysis
NYSE:TRU - New York Stock Exchange, Inc. - US89400J1079 - Common Stock - Currency: USD
We assign a fundamental rating of 4 out of 10 to TRU. TRU was compared to 82 industry peers in the Professional Services industry. TRU has an average financial health and profitability rating. TRU is valied quite expensively at the moment, while 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.
TRU had positive earnings in 4 of the past 5 years.
In the past 5 years TRU always reported a positive cash flow from operatings.
1.2 Ratios
TRU has a Return On Assets (3.35%) which is in line with its industry peers.
TRU's Return On Equity of 8.37% is in line compared to the rest of the industry. TRU outperforms 53.66% of its industry peers.
TRU's Return On Invested Capital of 6.09% is in line compared to the rest of the industry. TRU outperforms 51.22% of its industry peers.
The Average Return On Invested Capital over the past 3 years for TRU is significantly below the industry average of 12.61%.
The last Return On Invested Capital (6.09%) for TRU is above the 3 year average (4.87%), which is a sign of increasing profitability.
| 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
With a decent Profit Margin value of 8.63%, TRU is doing good in the industry, outperforming 79.27% of the companies in the same industry.
TRU's Profit Margin has declined in the last couple of years.
TRU has a Operating Margin of 19.08%. This is amongst the best in the industry. TRU outperforms 85.37% of its industry peers.
In the last couple of years the Operating Margin of TRU has declined.
TRU has a Gross Margin of 59.78%. This is in the better half of the industry: TRU outperforms 73.17% 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.
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
An Altman-Z score of 2.61 indicates that TRU is not a great score, but indicates only limited risk for bankruptcy at the moment.
TRU's Altman-Z score of 2.61 is in line compared to the rest of the industry. TRU outperforms 46.34% of its industry peers.
TRU has a debt to FCF ratio of 10.08. This is a negative value and a sign of low solvency as TRU would need 10.08 years to pay back of all of its debts.
TRU has a Debt to FCF ratio (10.08) which is in line with its industry peers.
A Debt/Equity ratio of 1.15 is on the high side and indicates that TRU has dependencies on debt financing.
The Debt to Equity ratio of TRU (1.15) is worse than 74.39% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.15 | ||
| Debt/FCF | 10.08 | ||
| Altman-Z | 2.61 |
ROIC/WACC0.75
WACC8.16%
2.3 Liquidity
A Current Ratio of 2.05 indicates that TRU has no problem at all paying its short term obligations.
Looking at the Current ratio, with a value of 2.05, TRU is in the better half of the industry, outperforming 75.61% of the companies in the same industry.
A Quick Ratio of 2.05 indicates that TRU has no problem at all paying its short term obligations.
TRU has a Quick ratio of 2.05. This is in the better half of the industry: TRU outperforms 75.61% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 2.05 | ||
| Quick Ratio | 2.05 |
3. Growth
3.1 Past
TRU shows a strong growth in Earnings Per Share. In the last year, the EPS has been growing by 16.05%, which is quite good.
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.
The Revenue has been growing by 11.18% on average over the past years. This is quite good.
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
The Earnings Per Share is expected to grow by 9.25% on average over the next years. This is quite good.
TRU is expected to show a small growth in Revenue. In the coming years, the Revenue will grow by 7.01% yearly.
EPS Next Y5.53%
EPS Next 2Y10.51%
EPS Next 3Y14.13%
EPS Next 5Y9.25%
Revenue Next Year5.6%
Revenue Next 2Y7.31%
Revenue Next 3Y8.44%
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.
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
A Price/Earnings ratio of 21.69 indicates a rather expensive valuation of TRU.
TRU's Price/Earnings ratio is in line with the industry average.
When comparing the Price/Earnings ratio of TRU to the average of the S&P500 Index (26.43), we can say TRU is valued inline with the index average.
TRU is valuated rather expensively with a Price/Forward Earnings ratio of 18.35.
TRU's Price/Forward Earnings is on the same level as the industry average.
Compared to an average S&P500 Price/Forward Earnings ratio of 22.17, TRU is valued at the same level.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 21.69 | ||
| Fwd PE | 18.35 |
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 | 33.65 | ||
| EV/EBITDA | 15.88 |
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.
TRU's earnings are expected to grow with 14.13% in the coming years. This may justify a more expensive valuation.
PEG (NY)3.92
PEG (5Y)3.12
EPS Next 2Y10.51%
EPS Next 3Y14.13%
5. Dividend
5.1 Amount
TRU has a yearly dividend return of 0.54%, which is pretty low.
Compared to an average industry Dividend Yield of 2.09, TRU pays a bit more dividend than its industry peers.
With a Dividend Yield of 0.54, TRU pays less dividend than the S&P500 average, which is at 2.38.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.54% |
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
23.01% 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.
DP23.01%
EPS Next 2Y10.51%
EPS Next 3Y14.13%
NYSE:TRU (6/5/2025, 12:07:08 PM)
87.835
+0.64 (+0.74%)
Chartmill FA Rating
GICS SectorIndustrials
GICS IndustryGroupCommercial & Professional Services
GICS IndustryProfessional Services
Earnings (Last)
Earnings (Next)
Inst Owners99.02%
Inst Owner Change1.36%
Ins Owners0.26%
Ins Owner Change15.6%
Market Cap17.14B
Analysts80
Price Target106.14 (20.84%)
Short Float %2.51%
Short Ratio2.15
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.54% |
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)-1.13%
PT rev (3m)-10.49%
EPS NQ rev (1m)-0.63%
EPS NQ rev (3m)-3.25%
EPS NY rev (1m)0.67%
EPS NY rev (3m)-0.81%
Revenue NQ rev (1m)-0.09%
Revenue NQ rev (3m)-0.45%
Revenue NY rev (1m)0.61%
Revenue NY rev (3m)0%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 21.69 | ||
| Fwd PE | 18.35 | ||
| P/S | 4.02 | ||
| P/FCF | 33.65 | ||
| P/OCF | 20.62 | ||
| P/B | 3.91 | ||
| P/tB | N/A | ||
| EV/EBITDA | 15.88 |
EPS(TTM)4.05
EY4.61%
EPS(NY)4.79
Fwd EY5.45%
FCF(TTM)2.61
FCFY2.97%
OCF(TTM)4.26
OCFY4.85%
SpS21.83
BVpS22.48
TBVpS-20.41
PEG (NY)3.92
PEG (5Y)3.12
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 | 2.61 |
F-Score7
WACC8.16%
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 Y5.53%
EPS Next 2Y10.51%
EPS Next 3Y14.13%
EPS Next 5Y9.25%
Revenue 1Y (TTM)8.85%
Revenue growth 3Y12.22%
Revenue growth 5Y11.18%
Sales Q2Q%7.3%
Revenue Next Year5.6%
Revenue Next 2Y7.31%
Revenue Next 3Y8.44%
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%