TRANSUNION (TRU) Stock Fundamental Analysis
USA - NYSE:TRU - US89400J1079 - Common Stock
83.78 USD
-1.45 (-1.7%)
83.78 USD
0 (0%)
Taking everything into account, TRU scores 4 out of 10 in our fundamental rating. TRU was compared to 82 industry peers in the Professional Services industry. TRU has only an average score on both its financial health and profitability. 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
Looking at the Return On Assets, with a value of 3.53%, TRU is in line with its industry, outperforming 53.66% of the companies in the same industry.
TRU has a Return On Equity (8.67%) which is comparable to the rest of the industry.
TRU has a Return On Invested Capital of 6.03%. This is comparable to the rest of the industry: TRU outperforms 47.56% 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 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
With an excellent Profit Margin value of 8.99%, TRU belongs to the best of the industry, outperforming 81.71% 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 18.69%. This is amongst the best in the industry. TRU outperforms 84.15% of its industry peers.
In the last couple of years the Operating Margin of TRU has declined.
The Gross Margin of TRU (59.24%) is better than 73.17% 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) | 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
TRU has a Return on Invested Capital (ROIC), which is below the Cost of Capital (WACC), which means it is destroying value.
The number of shares outstanding for TRU has been increased compared to 1 year ago.
Compared to 5 years ago, TRU has more shares outstanding
TRU has a better debt/assets ratio than last year.
2.2 Solvency
An Altman-Z score of 2.57 indicates that TRU is not a great score, but indicates only limited risk for bankruptcy at the moment.
With a Altman-Z score value of 2.57, TRU perfoms like the industry average, outperforming 43.90% of the companies in the same industry.
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.
With a Debt to FCF ratio value of 10.34, TRU perfoms like the industry average, outperforming 40.24% of the companies in the same industry.
TRU has a Debt/Equity ratio of 1.12. This is a high value indicating a heavy dependency on external financing.
TRU has a Debt to Equity ratio of 1.12. This is in the lower half of the industry: TRU underperforms 73.17% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.12 | ||
| Debt/FCF | 10.34 | ||
| Altman-Z | 2.57 |
ROIC/WACC0.79
WACC7.59%
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.
TRU's Quick ratio of 2.02 is fine compared to the rest of the industry. TRU outperforms 76.83% of its industry peers.
| 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.
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.
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
Based on estimates for the next years, TRU will show a quite strong growth in Earnings Per Share. The EPS will grow by 10.83% on average per year.
The Revenue is expected to grow by 7.46% on average over the next years.
EPS Next Y7.47%
EPS Next 2Y11.53%
EPS Next 3Y13.77%
EPS Next 5Y10.83%
Revenue Next Year7.11%
Revenue Next 2Y7.94%
Revenue Next 3Y8.41%
Revenue Next 5Y7.46%
3.3 Evolution
The EPS growth rate is accelerating: in the next years the growth will be better than in the last years.
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
With a Price/Earnings ratio of 20.24, TRU is valued on the expensive side.
The rest of the industry has a similar Price/Earnings ratio as TRU.
TRU is valuated rather cheaply when we compare the Price/Earnings ratio to 27.76, which is the current average of the S&P500 Index.
Based on the Price/Forward Earnings ratio of 17.18, the valuation of TRU can be described as rather expensive.
Compared to the rest of the industry, the Price/Forward Earnings ratio of TRU is on the same level as its industry peers.
Compared to an average S&P500 Price/Forward Earnings ratio of 23.18, TRU is valued a bit cheaper.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 20.24 | ||
| Fwd PE | 17.18 |
4.2 Price Multiples
Compared to the rest of the industry, the Enterprise Value to EBITDA ratio of TRU is on the same level as its industry peers.
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 | 32.86 | ||
| EV/EBITDA | 15.4 |
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 13.77% in the coming years. This may justify a more expensive valuation.
PEG (NY)2.71
PEG (5Y)2.91
EPS Next 2Y11.53%
EPS Next 3Y13.77%
5. Dividend
5.1 Amount
With a yearly dividend of 0.53%, TRU is not a good candidate for dividend investing.
TRU's Dividend Yield is a higher than the industry average which is at 3.16.
Compared to an average S&P500 Dividend Yield of 2.41, TRU's dividend is way lower than the S&P500 average.
| 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.
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 2Y11.53%
EPS Next 3Y13.77%
83.78
-1.45 (-1.7%)
Chartmill FA Rating
GICS SectorIndustrials
GICS IndustryGroupCommercial & Professional Services
GICS IndustryProfessional Services
Earnings (Last)
Earnings (Next)
Inst Owners101.68%
Inst Owner Change1.76%
Ins Owners0.34%
Ins Owner Change4.35%
Market Cap16.32B
Analysts80
Price Target114.75 (36.97%)
Short Float %4.04%
Short Ratio2.71
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.53% |
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)-0.49%
PT rev (3m)7.02%
EPS NQ rev (1m)0%
EPS NQ rev (3m)0.02%
EPS NY rev (1m)0%
EPS NY rev (3m)1.43%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)0.97%
Revenue NY rev (1m)0%
Revenue NY rev (3m)1.37%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 20.24 | ||
| Fwd PE | 17.18 | ||
| P/S | 3.75 | ||
| P/FCF | 32.86 | ||
| P/OCF | 19.73 | ||
| P/B | 3.61 | ||
| P/tB | N/A | ||
| EV/EBITDA | 15.4 |
EPS(TTM)4.14
EY4.94%
EPS(NY)4.88
Fwd EY5.82%
FCF(TTM)2.55
FCFY3.04%
OCF(TTM)4.25
OCFY5.07%
SpS22.37
BVpS23.2
TBVpS-20.41
PEG (NY)2.71
PEG (5Y)2.91
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 | 2.57 |
F-Score8
WACC7.59%
ROIC/WACC0.79
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 2Y11.53%
EPS Next 3Y13.77%
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 Year121.12%
EBIT Next 3Y40.22%
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%