TRANSUNION (TRU) Stock Fundamental Analysis
NYSE:TRU - New York Stock Exchange, Inc. - US89400J1079 - Common Stock - Currency: USD
Taking everything into account, TRU scores 4 out of 10 in our fundamental rating. TRU was compared to 80 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
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.
In the past 5 years TRU always reported a positive cash flow from operatings.
1.2 Ratios
With a Return On Assets value of 3.53%, TRU perfoms like the industry average, outperforming 52.50% of the companies in the same industry.
TRU has a Return On Equity of 8.67%. This is comparable to the rest of the industry: TRU outperforms 52.50% of its industry peers.
With a Return On Invested Capital value of 6.03%, TRU perfoms like the industry average, outperforming 47.50% of the companies in the same industry.
TRU had an Average Return On Invested Capital over the past 3 years of 4.87%. This is significantly below the industry average of 12.73%.
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
TRU has a Profit Margin of 8.99%. This is amongst the best in the industry. TRU outperforms 81.25% of its industry peers.
In the last couple of years the Profit Margin of TRU has declined.
The Operating Margin of TRU (18.69%) is better than 85.00% 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 72.50% 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
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
TRU has more shares outstanding than it did 5 years ago.
TRU has a better debt/assets ratio than last year.
2.2 Solvency
An Altman-Z score of 2.59 indicates that TRU is not a great score, but indicates only limited risk for bankruptcy at the moment.
The Altman-Z score of TRU (2.59) is comparable to the rest of the 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.
TRU has a Debt to FCF ratio (10.34) which is in line with its industry peers.
TRU has a Debt/Equity ratio of 1.12. This is a high value indicating a heavy dependency on external financing.
TRU's Debt to Equity ratio of 1.12 is on the low side compared to the rest of the industry. TRU is outperformed by 75.00% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.12 | ||
| Debt/FCF | 10.34 | ||
| Altman-Z | 2.59 |
ROIC/WACC0.76
WACC7.94%
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 76.25% of its industry peers.
A Quick Ratio of 2.02 indicates that TRU has no problem at all paying its short term obligations.
TRU has a better Quick ratio (2.02) than 76.25% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 2.02 | ||
| Quick Ratio | 2.02 |
3. Growth
3.1 Past
TRU shows a strong growth in Earnings Per Share. In the last year, the EPS has been growing by 14.36%, which is quite good.
TRU shows a small growth in Earnings Per Share. Measured over the last years, the EPS has been growing by 6.96% yearly.
Looking at the last year, TRU shows a quite strong growth in Revenue. The Revenue has grown by 9.34% in the last year.
The Revenue has been growing by 11.18% on average over the past years. This is quite good.
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 9.25% on average per year.
TRU is expected to show a small growth in Revenue. In the coming years, the Revenue will grow by 7.01% yearly.
EPS Next Y6.07%
EPS Next 2Y10.84%
EPS Next 3Y14.03%
EPS Next 5Y9.25%
Revenue Next Year6.88%
Revenue Next 2Y7.84%
Revenue Next 3Y8.37%
Revenue Next 5Y7.01%
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 21.23, the valuation of TRU can be described as rather expensive.
TRU's Price/Earnings ratio is in line with the industry average.
TRU's Price/Earnings ratio indicates a valuation a bit cheaper than the S&P500 average which is at 26.73.
Based on the Price/Forward Earnings ratio of 18.25, 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 34.61, TRU is valued a bit cheaper.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 21.23 | ||
| Fwd PE | 18.25 |
4.2 Price Multiples
The rest of the industry has a similar Enterprise Value to EBITDA ratio as TRU.
TRU's Price/Free Cash Flow ratio is in line with the industry average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 34.48 | ||
| EV/EBITDA | 15.51 |
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.
A more expensive valuation may be justified as TRU's earnings are expected to grow with 14.03% in the coming years.
PEG (NY)3.5
PEG (5Y)3.05
EPS Next 2Y10.84%
EPS Next 3Y14.03%
5. Dividend
5.1 Amount
With a yearly dividend of 0.51%, TRU is not a good candidate for dividend investing.
TRU's Dividend Yield is a higher than the industry average which is at 2.28.
With a Dividend Yield of 0.51, TRU pays less dividend than the S&P500 average, which is at 2.39.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.51% |
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 22.05% 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.
DP22.05%
EPS Next 2Y10.84%
EPS Next 3Y14.03%
87.89
+1.89 (+2.2%)
Chartmill FA Rating
GICS SectorIndustrials
GICS IndustryGroupCommercial & Professional Services
GICS IndustryProfessional Services
Earnings (Last)
Earnings (Next)
Inst Owners100.03%
Inst Owner Change0.41%
Ins Owners0.36%
Ins Owner Change17.35%
Market Cap17.12B
Analysts80
Price Target115.38 (31.28%)
Short Float %2.72%
Short Ratio2.26
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.51% |
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)7.6%
PT rev (3m)8.7%
EPS NQ rev (1m)-0.1%
EPS NQ rev (3m)-1.24%
EPS NY rev (1m)0%
EPS NY rev (3m)1.18%
Revenue NQ rev (1m)0.88%
Revenue NQ rev (3m)0.79%
Revenue NY rev (1m)1.12%
Revenue NY rev (3m)1.28%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 21.23 | ||
| Fwd PE | 18.25 | ||
| P/S | 3.93 | ||
| P/FCF | 34.48 | ||
| P/OCF | 20.7 | ||
| P/B | 3.79 | ||
| P/tB | N/A | ||
| EV/EBITDA | 15.51 |
EPS(TTM)4.14
EY4.71%
EPS(NY)4.82
Fwd EY5.48%
FCF(TTM)2.55
FCFY2.9%
OCF(TTM)4.25
OCFY4.83%
SpS22.37
BVpS23.2
TBVpS-20.41
PEG (NY)3.5
PEG (5Y)3.05
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 | 2.59 |
F-Score8
WACC7.94%
ROIC/WACC0.76
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 Y6.07%
EPS Next 2Y10.84%
EPS Next 3Y14.03%
EPS Next 5Y9.25%
Revenue 1Y (TTM)9.34%
Revenue growth 3Y12.22%
Revenue growth 5Y11.18%
Sales Q2Q%9.5%
Revenue Next Year6.88%
Revenue Next 2Y7.84%
Revenue Next 3Y8.37%
Revenue Next 5Y7.01%
EBIT growth 1Y19.73%
EBIT growth 3Y4.23%
EBIT growth 5Y6.25%
EBIT Next Year120.85%
EBIT Next 3Y40.55%
EBIT Next 5Y26.01%
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%