TRANSUNION (TRU)

US89400J1079 - Common Stock

79.8  +1.2 (+1.53%)

After market: 79.8 0 (0%)

Fundamental Rating

3

Overall TRU gets a fundamental rating of 3 out of 10. We evaluated TRU against 81 industry peers in the Professional Services industry. There are concerns on the financial health of TRU while its profitability can be described as average. TRU is valied quite expensively at the moment, while it does show a decent growth rate.



4

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

The Return On Assets of TRU (-2.59%) is worse than 72.50% of its industry peers.
The Return On Equity of TRU (-7.17%) is worse than 73.75% of its industry peers.
With a Return On Invested Capital value of 4.24%, TRU perfoms like the industry average, outperforming 46.25% of the companies in the same industry.
The Average Return On Invested Capital over the past 3 years for TRU is significantly below the industry average of 11.82%.
The 3 year average ROIC (4.08%) for TRU is below the current ROIC(4.24%), indicating increased profibility in the last year.
Industry RankSector Rank
ROA -2.59%
ROE -7.17%
ROIC 4.24%
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

With an excellent Operating Margin value of 16.19%, TRU belongs to the best of the industry, outperforming 85.00% of the companies in the same industry.
In the last couple of years the Operating Margin of TRU has declined.
TRU's Gross Margin of 63.05% is fine compared to the rest of the industry. TRU outperforms 75.00% of its industry peers.
In the last couple of years the Gross Margin of TRU has declined.
Industry RankSector Rank
OM 16.19%
PM (TTM) N/A
GM 63.05%
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

2. Health

2.1 Basic Checks

The Return on Invested Capital (ROIC) is below the Cost of Capital (WACC), so TRU 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 2.16 indicates that TRU is not a great score, but indicates only limited risk for bankruptcy at the moment.
The Altman-Z score of TRU (2.16) is worse than 61.25% of its industry peers.
TRU has a debt to FCF ratio of 15.80. This is a negative value and a sign of low solvency as TRU would need 15.80 years to pay back of all of its debts.
Looking at the Debt to FCF ratio, with a value of 15.80, TRU is doing worse than 72.50% of the companies in the same industry.
TRU has a Debt/Equity ratio of 1.31. This is a high value indicating a heavy dependency on external financing.
TRU has a worse Debt to Equity ratio (1.31) than 83.75% of its industry peers.
Industry RankSector Rank
Debt/Equity 1.31
Debt/FCF 15.8
Altman-Z 2.16
ROIC/WACC0.54
WACC7.87%

2.3 Liquidity

TRU has a Current Ratio of 1.47. This is a normal value and indicates that TRU is financially healthy and should not expect problems in meeting its short term obligations.
TRU's Current ratio of 1.47 is in line compared to the rest of the industry. TRU outperforms 57.50% of its industry peers.
A Quick Ratio of 1.47 indicates that TRU should not have too much problems paying its short term obligations.
TRU has a Quick ratio of 1.47. This is comparable to the rest of the industry: TRU outperforms 58.75% of its industry peers.
Industry RankSector Rank
Current Ratio 1.47
Quick Ratio 1.47

4

3. Growth

3.1 Past

The earnings per share for TRU have decreased by -6.91% in the last year.
Measured over the past 5 years, TRU shows a small growth in Earnings Per Share. The EPS has been growing by 6.15% on average per year.
The Revenue has been growing slightly by 3.27% in the past year.
TRU shows quite a strong growth in Revenue. Measured over the last years, the Revenue has been growing by 10.58% yearly.
EPS 1Y (TTM)-6.91%
EPS 3Y3.95%
EPS 5Y6.15%
EPS growth Q2Q2.56%
Revenue 1Y (TTM)3.27%
Revenue growth 3Y14.83%
Revenue growth 5Y10.58%
Revenue growth Q2Q5.79%

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 15.85% on average per year.
Based on estimates for the next years, TRU will show a small growth in Revenue. The Revenue will grow by 7.64% on average per year.
EPS Next Y9.98%
EPS Next 2Y14.28%
EPS Next 3Y15.33%
EPS Next 5Y15.85%
Revenue Next Year5.46%
Revenue Next 2Y6.7%
Revenue Next 3Y7.61%
Revenue Next 5Y7.64%

3.3 Evolution

The EPS growth rate is accelerating: in the next years the growth will be better than in the last years.
When comparing the Revenue growth rate of the last years to the growth rate of the upcoming years, we see that the growth is decreasing.

2

4. Valuation

4.1 Price/Earnings Ratio

TRU is valuated rather expensively with a Price/Earnings ratio of 23.68.
The rest of the industry has a similar Price/Earnings ratio as TRU.
TRU's Price/Earnings ratio indicates a similar valuation than the S&P500 average which is at 26.48.
A Price/Forward Earnings ratio of 21.53 indicates a rather expensive valuation of TRU.
TRU's Price/Forward Earnings is on the same level as the industry average.
TRU's Price/Forward Earnings ratio indicates a similar valuation than the S&P500 average which is at 22.79.
Industry RankSector Rank
PE 23.68
Fwd PE 21.53

4.2 Price Multiples

TRU's Enterprise Value to EBITDA is on the same level as the industry average.
Based on the Price/Free Cash Flow ratio, TRU is valued a bit more expensive than the industry average as 65.00% of the companies are valued more cheaply.
Industry RankSector Rank
P/FCF 45.82
EV/EBITDA 17.77

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 15.33% in the coming years. This may justify a more expensive valuation.
PEG (NY)2.37
PEG (5Y)3.85
EPS Next 2Y14.28%
EPS Next 3Y15.33%

4

5. Dividend

5.1 Amount

With a yearly dividend of 0.52%, TRU is not a good candidate for dividend investing.
Compared to an average industry Dividend Yield of 1.96, TRU pays a bit more dividend than its industry peers.
Compared to an average S&P500 Dividend Yield of 2.34, TRU's dividend is way lower than the S&P500 average.
Industry RankSector Rank
Dividend Yield 0.52%

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.
TRU has not decreased its dividend in the past 5 years, so it has a somewhat stable track record.
Dividend Growth(5Y)13.41%
Div Incr Years3
Div Non Decr Years5

5.3 Sustainability

TRU has negative earnings and hence a negative payout ratio. The dividend may be in danger.
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-28.48%
EPS Next 2Y14.28%
EPS Next 3Y15.33%

TRANSUNION

NYSE:TRU (3/28/2024, 8:04:00 PM)

After market: 79.8 0 (0%)

79.8

+1.2 (+1.53%)

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 Cap15.48B
Analysts
Price Target
Dividend
Industry RankSector Rank
Dividend Yield 0.52%
Dividend Growth(5Y)
DP
Div Incr Years
Div Non Decr Years
Ex-Date
Surprises & Revisions
EPS beat(2)
Avg EPS beat(2)
Min EPS beat(2)
Max EPS beat(2)
EPS beat(4)
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EPS beat(8)
Avg EPS beat(8)
EPS beat(12)
Avg EPS beat(12)
EPS beat(16)
Avg EPS beat(16)
Revenue beat(2)
Avg Revenue beat(2)
Min Revenue beat(2)
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Revenue beat(8)
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Revenue beat(12)
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Revenue beat(16)
Avg Revenue beat(16)
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 RankSector Rank
PE 23.68
Fwd PE 21.53
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)2.37
PEG (5Y)3.85
Profitability
Industry RankSector Rank
ROA -2.59%
ROE -7.17%
ROCE
ROIC
ROICexc
ROICexgc
OM 16.19%
PM (TTM) N/A
GM 63.05%
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 Turnover0.34
Health
Industry RankSector Rank
Debt/Equity 1.31
Debt/FCF
Debt/EBITDA
Cap/Depr
Cap/Sales
Interest Coverage
Cash Conversion
Profit Quality
Current Ratio 1.47
Quick Ratio 1.47
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)
Growth
EPS 1Y (TTM)-6.91%
EPS 3Y3.95%
EPS 5Y
EPS growth Q2Q
EPS Next Y9.98%
EPS Next 2Y
EPS Next 3Y
EPS Next 5Y
Revenue 1Y (TTM)3.27%
Revenue growth 3Y14.83%
Revenue growth 5Y
Revenue growth 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