TRANSUNION (TRU)
US89400J1079 - Common Stock
We assign a fundamental rating of 4 out of 10 to TRU. TRU was compared to 80 industry peers in the Professional Services industry. TRU has a medium profitability rating, but doesn't score so well on its financial health evaluation. 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.
Of the past 5 years TRU 4 years were profitable.
In the past 5 years TRU always reported a positive cash flow from operatings.
1.2 Ratios
The Return On Assets of TRU (-2.49%) is worse than 75.00% of its industry peers.
TRU has a worse Return On Equity (-6.74%) than 75.00% of its industry peers.
The Return On Invested Capital of TRU (4.40%) is comparable to the rest of the industry.
Measured over the past 3 years, the Average Return On Invested Capital for TRU is significantly below the industry average of 12.75%.
The 3 year average ROIC (4.08%) for TRU is below the current ROIC(4.40%), indicating increased profibility in the last year.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | -2.49% | ||
| ROE | -6.74% | ||
| ROIC | 4.4% |
ROA(3y)3.81%
ROA(5y)4.2%
ROE(3y)12.27%
ROE(5y)13.16%
ROIC(3y)4.08%
ROIC(5y)4.63%
1.3 Margins
TRU has a Operating Margin of 16.56%. This is amongst the best in the industry. TRU outperforms 85.00% of its industry peers.
TRU's Operating Margin has declined in the last couple of years.
TRU has a better Gross Margin (60.11%) than 68.75% of its industry peers.
TRU's Gross Margin has declined in the last couple of years.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 16.56% | ||
| PM (TTM) | N/A | ||
| GM | 60.11% |
OM growth 3Y-6.45%
OM growth 5Y-6.05%
PM growth 3YN/A
PM growth 5YN/A
GM growth 3Y-3.04%
GM growth 5Y-1.73%
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.
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 2.29 indicates that TRU is not a great score, but indicates only limited risk for bankruptcy at the moment.
TRU has a Altman-Z score (2.29) which is in line with its industry peers.
The Debt to FCF ratio of TRU is 16.90, which is on the high side as it means it would take TRU, 16.90 years of fcf income to pay off all of its debts.
TRU has a worse Debt to FCF ratio (16.90) than 70.00% of its industry peers.
TRU has a Debt/Equity ratio of 1.29. This is a high value indicating a heavy dependency on external financing.
With a Debt to Equity ratio value of 1.29, TRU is not doing good in the industry: 78.75% of the companies in the same industry are doing better.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.29 | ||
| Debt/FCF | 16.9 | ||
| Altman-Z | 2.29 |
ROIC/WACC0.58
WACC7.58%
2.3 Liquidity
TRU has a Current Ratio of 1.65. This is a normal value and indicates that TRU is financially healthy and should not expect problems in meeting its short term obligations.
TRU has a Current ratio of 1.65. This is in the better half of the industry: TRU outperforms 62.50% of its industry peers.
A Quick Ratio of 1.65 indicates that TRU should not have too much problems paying its short term obligations.
TRU has a Quick ratio of 1.65. This is in the better half of the industry: TRU outperforms 62.50% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.65 | ||
| Quick Ratio | 1.65 |
3. Growth
3.1 Past
TRU shows a small growth in Earnings Per Share. In the last year, the EPS has grown by 7.42%.
TRU shows a small growth in Earnings Per Share. Measured over the last years, the EPS has been growing by 6.15% yearly.
TRU shows a small growth in Revenue. In the last year, the Revenue has grown by 3.27%.
Measured over the past years, TRU shows a quite strong growth in Revenue. The Revenue has been growing by 10.58% on average per year.
EPS 1Y (TTM)7.42%
EPS 3Y3.95%
EPS 5Y6.15%
EPS Q2Q%15.12%
Revenue 1Y (TTM)3.27%
Revenue growth 3Y14.83%
Revenue growth 5Y10.58%
Sales Q2Q%7.52%
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 15.67% on average per year.
The Revenue is expected to grow by 7.42% on average over the next years.
EPS Next Y14.51%
EPS Next 2Y16.27%
EPS Next 3Y15.98%
EPS Next 5Y15.67%
Revenue Next Year7.25%
Revenue Next 2Y7.58%
Revenue Next 3Y7.9%
Revenue Next 5Y7.42%
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 23.88, which indicates a rather expensive current valuation of TRU.
Compared to the rest of the industry, the Price/Earnings ratio of TRU is on the same level as its industry peers.
The average S&P500 Price/Earnings ratio is at 24.41. TRU is around the same levels.
Based on the Price/Forward Earnings ratio of 18.98, the valuation of TRU can be described as rather expensive.
TRU's Price/Forward Earnings is on the same level as the industry average.
The average S&P500 Price/Forward Earnings ratio is at 20.59. TRU is around the same levels.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 23.88 | ||
| Fwd PE | 18.98 |
4.2 Price Multiples
TRU's Enterprise Value to EBITDA ratio is in line with the industry average.
63.75% of the companies in the same industry are cheaper than TRU, based on the Price/Free Cash Flow ratio.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 53.24 | ||
| EV/EBITDA | 17.99 |
4.3 Compensation for Growth
TRU's PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates a correct valuation of the company.
TRU's earnings are expected to grow with 15.98% in the coming years. This may justify a more expensive valuation.
PEG (NY)1.65
PEG (5Y)3.88
EPS Next 2Y16.27%
EPS Next 3Y15.98%
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 1.98, TRU pays a bit more dividend than its industry peers.
Compared to an average S&P500 Dividend Yield of 2.30, TRU's dividend is way lower than the S&P500 average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.54% |
5.2 History
On average, the dividend of TRU grows each year by 13.41%, 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)13.41%
Div Incr Years3
Div Non Decr Years5
5.3 Sustainability
The earnings of TRU are negative and hence is the payout ratio. TRU will probably not be able to sustain this dividend level.
The dividend of TRU is growing around the same rate as the earnings are growing. If this keeps up the dividend growth is sustainable.
DP-29.84%
EPS Next 2Y16.27%
EPS Next 3Y15.98%
TRANSUNION
NYSE:TRU (7/26/2024, 7:04:00 PM)
After market: 86.46 0 (0%)86.46
+2.65 (+3.16%)
Chartmill FA Rating
GICS SectorIndustrials
GICS IndustryGroupCommercial & Professional Services
GICS IndustryProfessional Services
Earnings (Last)
Earnings (Next)
Inst Owners
Inst Owner Change
Ins Owners
Ins Owner Change
Market Cap16.79B
Analysts
Price Target
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.54% |
Dividend Growth(5Y)
DP
Div Incr Years
Div Non Decr Years
Ex-Date
Surprises & Revisions
EPS beat(2)
Avg EPS beat(2)
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Revenue beat(2)
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PT rev (1m)
PT rev (3m)
EPS NQ rev (1m)
EPS NQ rev (3m)
EPS NY rev (1m)
EPS NY rev (3m)
Revenue NQ rev (1m)
Revenue NQ rev (3m)
Revenue NY rev (1m)
Revenue NY rev (3m)
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 23.88 | ||
| Fwd PE | 18.98 | ||
| P/S | |||
| P/FCF | |||
| P/OCF | |||
| P/B | |||
| P/tB | |||
| EV/EBITDA |
EPS(TTM)
EY
EPS(NY)
Fwd EY
FCF(TTM)
FCFY
OCF(TTM)
OCFY
SpS
BVpS
TBVpS
PEG (NY)1.65
PEG (5Y)3.88
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | -2.49% | ||
| ROE | -6.74% | ||
| ROCE | |||
| ROIC | |||
| ROICexc | |||
| ROICexgc | |||
| OM | 16.56% | ||
| PM (TTM) | N/A | ||
| GM | 60.11% | ||
| FCFM |
ROA(3y)
ROA(5y)
ROE(3y)
ROE(5y)
ROIC(3y)
ROIC(5y)
ROICexc(3y)
ROICexc(5y)
ROICexgc(3y)
ROICexgc(5y)
ROCE(3y)
ROCE(5y)
ROICexcg growth 3Y
ROICexcg growth 5Y
ROICexc growth 3Y
ROICexc growth 5Y
OM growth 3Y
OM growth 5Y
PM growth 3Y
PM growth 5Y
GM growth 3Y
GM growth 5Y
F-Score
Asset Turnover0.35
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.29 | ||
| Debt/FCF | |||
| Debt/EBITDA | |||
| Cap/Depr | |||
| Cap/Sales | |||
| Interest Coverage | |||
| Cash Conversion | |||
| Profit Quality | |||
| Current Ratio | 1.65 | ||
| Quick Ratio | 1.65 | ||
| Altman-Z |
F-Score
WACC
ROIC/WACC
Cap/Depr(3y)
Cap/Depr(5y)
Cap/Sales(3y)
Cap/Sales(5y)
Profit Quality(3y)
Profit Quality(5y)
High Growth Momentum
Growth
EPS 1Y (TTM)7.42%
EPS 3Y3.95%
EPS 5Y
EPS Q2Q%
EPS Next Y14.51%
EPS Next 2Y
EPS Next 3Y
EPS Next 5Y
Revenue 1Y (TTM)3.27%
Revenue growth 3Y14.83%
Revenue growth 5Y
Sales Q2Q%
Revenue Next Year
Revenue Next 2Y
Revenue Next 3Y
Revenue Next 5Y
EBIT growth 1Y
EBIT growth 3Y
EBIT growth 5Y
EBIT Next Year
EBIT Next 3Y
EBIT Next 5Y
FCF growth 1Y
FCF growth 3Y
FCF growth 5Y
OCF growth 1Y
OCF growth 3Y
OCF growth 5Y