TRANSUNION (TRU) Stock Fundamental Analysis
USA - NYSE:TRU - US89400J1079 - Common Stock
85.35 USD
-0.25 (-0.29%)
85.35 USD
0 (0%)
We assign a fundamental rating of 4 out of 10 to TRU. TRU was compared to 86 industry peers in the Professional Services industry. TRU has only an average score on both its financial health and profitability. TRU is quite expensive at the moment. It does show a decent growth rate.
1. Profitability
1.1 Basic Checks
TRU had positive earnings in the past year.
In the past year TRU had a positive cash flow from operations.
TRU had positive earnings in 4 of the past 5 years.
TRU had a positive operating cash flow in each of the past 5 years.
1.2 Ratios
Looking at the Return On Assets, with a value of 3.78%, TRU is in line with its industry, outperforming 54.65% of the companies in the same industry.
TRU has a Return On Equity (9.40%) which is comparable to the rest of the industry.
TRU has a Return On Invested Capital (6.18%) which is comparable to the rest of the industry.
The Average Return On Invested Capital over the past 3 years for TRU is significantly below the industry average of 13.31%.
The last Return On Invested Capital (6.18%) for TRU is above the 3 year average (4.87%), which is a sign of increasing profitability.
| 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
TRU's Profit Margin of 9.47% is amongst the best of the industry. TRU outperforms 81.40% of its industry peers.
TRU's Profit Margin has declined in the last couple of years.
TRU has a better Operating Margin (18.69%) than 84.88% of its industry peers.
In the last couple of years the Operating Margin of TRU has declined.
TRU has a Gross Margin of 59.31%. This is in the better half of the industry: TRU outperforms 74.42% of its industry peers.
TRU's Gross Margin has declined in the last couple of years.
| 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
With a Return on Invested Capital (ROIC) below the Cost of Capital (WACC), TRU is destroying value.
Compared to 1 year ago, TRU has more shares outstanding
The number of shares outstanding for TRU has been increased compared to 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 2.59. 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 has a Altman-Z score (2.59) which is in line with its industry peers.
TRU has a debt to FCF ratio of 8.89. This is a slightly negative value and a sign of low solvency as TRU would need 8.89 years to pay back of all of its debts.
TRU has a Debt to FCF ratio (8.89) which is in line with its industry peers.
A Debt/Equity ratio of 1.13 is on the high side and indicates that TRU has dependencies on debt financing.
With a Debt to Equity ratio value of 1.13, TRU is not doing good in the industry: 72.09% of the companies in the same industry are doing better.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.13 | ||
| Debt/FCF | 8.89 | ||
| Altman-Z | 2.59 |
ROIC/WACC0.83
WACC7.48%
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.
With a decent Current ratio value of 2.01, TRU is doing good in the industry, outperforming 75.58% of the companies in the same industry.
A Quick Ratio of 2.01 indicates that TRU has no problem at all paying its short term obligations.
TRU has a Quick ratio of 2.01. This is in the better half of the industry: TRU outperforms 75.58% 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.
The Earnings Per Share has been growing slightly by 6.96% on average over the past years.
Looking at the last year, TRU shows a quite strong growth in Revenue. The Revenue has grown by 8.30% in the last year.
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
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.
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 Y7.59%
EPS Next 2Y11.2%
EPS Next 3Y13.41%
EPS Next 5Y10.83%
Revenue Next Year7.18%
Revenue Next 2Y7.77%
Revenue Next 3Y8.19%
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
Based on the Price/Earnings ratio of 20.32, the valuation of TRU can be described as rather expensive.
Based on the Price/Earnings ratio, TRU is valued a bit cheaper than the industry average as 60.47% of the companies are valued more expensively.
When comparing the Price/Earnings ratio of TRU to the average of the S&P500 Index (27.08), we can say TRU is valued slightly cheaper.
With a Price/Forward Earnings ratio of 17.61, TRU is valued on the expensive side.
Compared to the rest of the industry, the Price/Forward Earnings ratio of TRU is on the same level as its industry peers.
TRU is valuated rather cheaply when we compare the Price/Forward Earnings ratio to 23.09, which is the current average of the S&P500 Index.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 20.32 | ||
| Fwd PE | 17.61 |
4.2 Price Multiples
Based on the Enterprise Value to EBITDA ratio, TRU is valued a bit cheaper than the industry average as 60.47% of the companies are valued more expensively.
The rest of the industry has a similar Price/Free Cash Flow ratio as TRU.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 28.88 | ||
| EV/EBITDA | 15.05 |
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 13.41% in the coming years. This may justify a more expensive valuation.
PEG (NY)2.68
PEG (5Y)2.92
EPS Next 2Y11.2%
EPS Next 3Y13.41%
5. Dividend
5.1 Amount
TRU has a yearly dividend return of 0.54%, which is pretty low.
TRU's Dividend Yield is a higher than the industry average which is at 3.93.
With a Dividend Yield of 0.54, TRU pays less dividend than the S&P500 average, which is at 2.30.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.54% |
5.2 History
The dividend of TRU is nicely growing with an annual growth rate of 7.03%!
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
TRU pays out 21.24% of its income as dividend. This is a sustainable payout ratio.
TRU's earnings are growing more than its dividend. This makes the dividend growth sustainable.
DP21.24%
EPS Next 2Y11.2%
EPS Next 3Y13.41%
85.35
-0.25 (-0.29%)
Chartmill FA Rating
GICS SectorIndustrials
GICS IndustryGroupCommercial & Professional Services
GICS IndustryProfessional Services
Earnings (Last)
Earnings (Next)
Inst Owners101.68%
Inst Owner Change0.71%
Ins Owners0.34%
Ins Owner Change-0.01%
Market Cap16.63B
Revenue(TTM)4.44B
Net Income(TTM)420.50M
Analysts80.83
Price Target114.75 (34.45%)
Short Float %4.81%
Short Ratio2.5
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.54% |
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)6.24%
Min EPS beat(2)4.54%
Max EPS beat(2)7.93%
EPS beat(4)3
Avg EPS beat(4)4.86%
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)2.59%
Min Revenue beat(2)2.32%
Max Revenue beat(2)2.86%
Revenue beat(4)3
Avg Revenue beat(4)1.61%
Min Revenue beat(4)-0.02%
Max Revenue beat(4)2.86%
Revenue beat(8)7
Avg Revenue beat(8)1.71%
Revenue beat(12)9
Avg Revenue beat(12)0.99%
Revenue beat(16)10
Avg Revenue beat(16)-0.73%
PT rev (1m)0%
PT rev (3m)3.49%
EPS NQ rev (1m)0.32%
EPS NQ rev (3m)-0.12%
EPS NY rev (1m)0.11%
EPS NY rev (3m)1.43%
Revenue NQ rev (1m)0.09%
Revenue NQ rev (3m)0.88%
Revenue NY rev (1m)0.07%
Revenue NY rev (3m)1.41%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 20.32 | ||
| Fwd PE | 17.61 | ||
| P/S | 3.74 | ||
| P/FCF | 28.88 | ||
| P/OCF | 18.03 | ||
| P/B | 3.72 | ||
| P/tB | N/A | ||
| EV/EBITDA | 15.05 |
EPS(TTM)4.2
EY4.92%
EPS(NY)4.85
Fwd EY5.68%
FCF(TTM)2.96
FCFY3.46%
OCF(TTM)4.73
OCFY5.55%
SpS22.8
BVpS22.96
TBVpS-20.24
PEG (NY)2.68
PEG (5Y)2.92
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 | 2.59 |
F-Score9
WACC7.48%
ROIC/WACC0.83
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 Y7.59%
EPS Next 2Y11.2%
EPS Next 3Y13.41%
EPS Next 5Y10.83%
Revenue 1Y (TTM)8.3%
Revenue growth 3Y12.22%
Revenue growth 5Y11.18%
Sales Q2Q%7.79%
Revenue Next Year7.18%
Revenue Next 2Y7.77%
Revenue Next 3Y8.19%
Revenue Next 5Y7.46%
EBIT growth 1Y18.7%
EBIT growth 3Y4.23%
EBIT growth 5Y6.25%
EBIT Next Year121.12%
EBIT Next 3Y40.22%
EBIT Next 5Y26.15%
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%.