TRANSUNION (TRU) Stock Fundamental Analysis
NYSE:TRU - US89400J1079 - Common Stock
90.55 USD
-3.16 (-3.37%)
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. Both the profitability and the financial health of TRU get a neutral evaluation. Nothing too spectacular is happening here. 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.
TRU had a positive operating cash flow in the past year.
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
TRU has a Return On Assets (3.53%) which is in line with its industry peers.
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.
TRU had an Average Return On Invested Capital over the past 3 years of 4.87%. This is significantly below the industry average of 12.76%.
The last Return On Invested Capital (6.03%) for TRU is above the 3 year average (4.87%), which is a sign of increasing profitability.
| 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
TRU has a Profit Margin of 8.99%. This is amongst the best in the industry. TRU outperforms 81.71% of its industry peers.
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.
TRU has a better Gross Margin (59.24%) than 73.17% 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) | 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
The Return on Invested Capital (ROIC) is below the Cost of Capital (WACC), so TRU is destroying value.
Compared to 1 year ago, TRU has more shares outstanding
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 2.72 indicates that TRU is not a great score, but indicates only limited risk for bankruptcy at the moment.
Looking at the Altman-Z score, with a value of 2.72, TRU is in line with its industry, outperforming 43.90% of the companies in the same industry.
TRU has a debt to FCF ratio of 10.34. This is a negative value and a sign of low solvency as TRU would need 10.34 years to pay back of all of its debts.
TRU has a Debt to FCF ratio (10.34) which is in line with its industry peers.
A Debt/Equity ratio of 1.12 is on the high side and indicates that TRU has dependencies on debt financing.
The Debt to Equity ratio of TRU (1.12) is worse than 74.39% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.12 | ||
| Debt/FCF | 10.34 | ||
| Altman-Z | 2.72 |
ROIC/WACC0.78
WACC7.69%
2.3 Liquidity
A Current Ratio of 2.02 indicates that TRU has no problem at all paying its short term obligations.
TRU's Current ratio of 2.02 is fine compared to the rest of the industry. TRU outperforms 75.61% of its industry peers.
A Quick Ratio of 2.02 indicates that TRU has no problem at all paying its short term obligations.
The Quick ratio of TRU (2.02) is better than 75.61% 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.
The Earnings Per Share has been growing slightly by 6.96% on average over the past years.
TRU shows quite a strong growth in Revenue. In the last year, the Revenue has grown by 9.34%.
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
TRU is expected to show quite a strong growth in Earnings Per Share. In the coming years, the EPS will grow by 10.83% yearly.
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 Y7.47%
EPS Next 2Y11.56%
EPS Next 3Y13.81%
EPS Next 5Y10.83%
Revenue Next Year7.11%
Revenue Next 2Y7.97%
Revenue Next 3Y8.45%
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
The Price/Earnings ratio is 21.87, 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.
When comparing the Price/Earnings ratio of TRU to the average of the S&P500 Index (27.07), we can say TRU is valued inline with the index average.
With a Price/Forward Earnings ratio of 18.56, TRU is valued on the expensive side.
The rest of the industry has a similar Price/Forward Earnings ratio as TRU.
TRU's Price/Forward Earnings ratio indicates a similar valuation than the S&P500 average which is at 22.59.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 21.87 | ||
| Fwd PE | 18.56 |
4.2 Price Multiples
TRU's Enterprise Value to EBITDA is on the same level as the industry average.
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 | 35.52 | ||
| EV/EBITDA | 16.61 |
4.3 Compensation for Growth
The high PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates an expensive valuation of the company.
A more expensive valuation may be justified as TRU's earnings are expected to grow with 13.81% in the coming years.
PEG (NY)2.93
PEG (5Y)3.14
EPS Next 2Y11.56%
EPS Next 3Y13.81%
5. Dividend
5.1 Amount
TRU has a yearly dividend return of 0.52%, which is pretty low.
TRU's Dividend Yield is a higher than the industry average which is at 2.18.
Compared to an average S&P500 Dividend Yield of 2.46, TRU's dividend is way lower than the S&P500 average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.52% |
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
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 2Y11.56%
EPS Next 3Y13.81%
NYSE:TRU (9/10/2025, 3:17:06 PM)
90.55
-3.16 (-3.37%)
Chartmill FA Rating
GICS SectorIndustrials
GICS IndustryGroupCommercial & Professional Services
GICS IndustryProfessional Services
Earnings (Last)
Earnings (Next)
Inst Owners100.03%
Inst Owner Change1.76%
Ins Owners0.36%
Ins Owner Change4.62%
Market Cap17.64B
Analysts80
Price Target114.6 (26.56%)
Short Float %3.14%
Short Ratio2.89
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.52% |
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)3.35%
PT rev (3m)6.88%
EPS NQ rev (1m)0%
EPS NQ rev (3m)-1.24%
EPS NY rev (1m)1.32%
EPS NY rev (3m)1.84%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)0.79%
Revenue NY rev (1m)0.22%
Revenue NY rev (3m)1.37%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 21.87 | ||
| Fwd PE | 18.56 | ||
| P/S | 4.05 | ||
| P/FCF | 35.52 | ||
| P/OCF | 21.33 | ||
| P/B | 3.9 | ||
| P/tB | N/A | ||
| EV/EBITDA | 16.61 |
EPS(TTM)4.14
EY4.57%
EPS(NY)4.88
Fwd EY5.39%
FCF(TTM)2.55
FCFY2.82%
OCF(TTM)4.25
OCFY4.69%
SpS22.37
BVpS23.2
TBVpS-20.41
PEG (NY)2.93
PEG (5Y)3.14
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 | 2.72 |
F-Score8
WACC7.69%
ROIC/WACC0.78
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 2Y11.56%
EPS Next 3Y13.81%
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 2Y7.97%
Revenue Next 3Y8.45%
Revenue Next 5Y7.46%
EBIT growth 1Y19.73%
EBIT growth 3Y4.23%
EBIT growth 5Y6.25%
EBIT Next Year120.85%
EBIT Next 3Y40.55%
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%