TRANSUNION (TRU) Stock Fundamental Analysis
NYSE:TRU - New York Stock Exchange, Inc. - US89400J1079 - Common Stock - Currency: USD
TRU gets a fundamental rating of 4 out of 10. The analysis compared the fundamentals against 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
TRU had positive earnings in the past year.
TRU had a positive operating cash flow in the past year.
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
TRU's Return On Assets of 3.35% is in line compared to the rest of the industry. TRU outperforms 53.66% of its industry peers.
The Return On Equity of TRU (8.37%) is comparable to the rest of the industry.
The Return On Invested Capital of TRU (6.09%) is comparable to the rest of the 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 12.36%.
The last Return On Invested Capital (6.09%) for TRU is above the 3 year average (4.87%), which is a sign of increasing profitability.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 3.35% | ||
| ROE | 8.37% | ||
| ROIC | 6.09% |
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
The Profit Margin of TRU (8.63%) is better than 79.27% of its industry peers.
TRU's Profit Margin has declined in the last couple of years.
The Operating Margin of TRU (19.08%) is better than 85.37% of its industry peers.
TRU's Operating Margin has declined in the last couple of years.
The Gross Margin of TRU (59.78%) is better than 74.39% of its industry peers.
TRU's Gross Margin has declined in the last couple of years.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 19.08% | ||
| PM (TTM) | 8.63% | ||
| GM | 59.78% |
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
TRU has a Return on Invested Capital (ROIC), which is below the Cost of Capital (WACC), which means it is destroying value.
Compared to 1 year ago, TRU has more shares outstanding
TRU has more shares outstanding than it did 5 years ago.
Compared to 1 year ago, TRU has an improved debt to assets ratio.
2.2 Solvency
An Altman-Z score of 2.64 indicates that TRU is not a great score, but indicates only limited risk for bankruptcy at the moment.
The Altman-Z score of TRU (2.64) is comparable to the rest of the industry.
The Debt to FCF ratio of TRU is 10.08, which is on the high side as it means it would take TRU, 10.08 years of fcf income to pay off all of its debts.
TRU's Debt to FCF ratio of 10.08 is in line compared to the rest of the industry. TRU outperforms 40.24% of its industry peers.
TRU has a Debt/Equity ratio of 1.15. This is a high value indicating a heavy dependency on external financing.
TRU has a worse Debt to Equity ratio (1.15) than 74.39% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.15 | ||
| Debt/FCF | 10.08 | ||
| Altman-Z | 2.64 |
ROIC/WACC0.75
WACC8.09%
2.3 Liquidity
TRU has a Current Ratio of 2.05. This indicates that TRU is financially healthy and has no problem in meeting its short term obligations.
Looking at the Current ratio, with a value of 2.05, TRU is in the better half of the industry, outperforming 75.61% of the companies in the same industry.
TRU has a Quick Ratio of 2.05. This indicates that TRU is financially healthy and has no problem in meeting its short term obligations.
TRU has a better Quick ratio (2.05) than 75.61% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 2.05 | ||
| Quick Ratio | 2.05 |
3. Growth
3.1 Past
TRU shows a strong growth in Earnings Per Share. In the last year, the EPS has been growing by 16.05%, 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 8.85% in the last year.
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)16.05%
EPS 3Y2.04%
EPS 5Y6.96%
EPS Q2Q%14.13%
Revenue 1Y (TTM)8.85%
Revenue growth 3Y12.22%
Revenue growth 5Y11.18%
Sales Q2Q%7.3%
3.2 Future
The Earnings Per Share is expected to grow by 9.25% on average over the next years. This is quite good.
The Revenue is expected to grow by 7.01% on average over the next years.
EPS Next Y5.96%
EPS Next 2Y10.8%
EPS Next 3Y14.21%
EPS Next 5Y9.25%
Revenue Next Year5.67%
Revenue Next 2Y7.3%
Revenue Next 3Y8.94%
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
TRU is valuated rather expensively with a Price/Earnings ratio of 21.55.
TRU's Price/Earnings is on the same level as the industry average.
The average S&P500 Price/Earnings ratio is at 26.92. TRU is around the same levels.
The Price/Forward Earnings ratio is 18.13, which indicates a rather expensive current valuation of TRU.
Compared to the rest of the industry, the Price/Forward Earnings ratio of TRU is on the same level as its industry peers.
When comparing the Price/Forward Earnings ratio of TRU to the average of the S&P500 Index (21.49), we can say TRU is valued inline with the index average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 21.55 | ||
| Fwd PE | 18.13 |
4.2 Price Multiples
The rest of the industry has a similar Enterprise Value to EBITDA ratio as TRU.
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 | 33.43 | ||
| EV/EBITDA | 16.12 |
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 14.21% in the coming years.
PEG (NY)3.62
PEG (5Y)3.1
EPS Next 2Y10.8%
EPS Next 3Y14.21%
5. Dividend
5.1 Amount
With a yearly dividend of 0.54%, TRU is not a good candidate for dividend investing.
TRU's Dividend Yield is a higher than the industry average which is at 2.15.
With a Dividend Yield of 0.54, TRU pays less dividend than the S&P500 average, which is at 2.44.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.54% |
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
23.01% of the earnings are spent on dividend by TRU. This is a low number and sustainable payout ratio.
TRU's earnings are growing more than its dividend. This makes the dividend growth sustainable.
DP23.01%
EPS Next 2Y10.8%
EPS Next 3Y14.21%
87.26
-1.6 (-1.8%)
Chartmill FA Rating
GICS SectorIndustrials
GICS IndustryGroupCommercial & Professional Services
GICS IndustryProfessional Services
Earnings (Last)
Earnings (Next)
Inst Owners100.92%
Inst Owner Change1.36%
Ins Owners0.35%
Ins Owner Change15.59%
Market Cap17.02B
Analysts80
Price Target107.23 (22.89%)
Short Float %2.89%
Short Ratio2.51
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.54% |
Yearly Dividend0.43
Dividend Growth(5Y)7.03%
DP23.01%
Div Incr Years0
Div Non Decr Years6
Ex-Date
Surprises & Revisions
EPS beat(2)1
Avg EPS beat(2)3.48%
Min EPS beat(2)-0.09%
Max EPS beat(2)7.06%
EPS beat(4)3
Avg EPS beat(4)2.36%
Min EPS beat(4)-0.09%
Max EPS beat(4)7.06%
EPS beat(8)6
Avg EPS beat(8)4.11%
EPS beat(12)8
Avg EPS beat(12)2.94%
EPS beat(16)10
Avg EPS beat(16)2.19%
Revenue beat(2)1
Avg Revenue beat(2)0.62%
Min Revenue beat(2)-0.02%
Max Revenue beat(2)1.27%
Revenue beat(4)3
Avg Revenue beat(4)0.78%
Min Revenue beat(4)-0.02%
Max Revenue beat(4)1.31%
Revenue beat(8)6
Avg Revenue beat(8)0.78%
Revenue beat(12)7
Avg Revenue beat(12)0.19%
Revenue beat(16)8
Avg Revenue beat(16)-1.59%
PT rev (1m)1.02%
PT rev (3m)-10.76%
EPS NQ rev (1m)0%
EPS NQ rev (3m)-3.25%
EPS NY rev (1m)0.41%
EPS NY rev (3m)-0.4%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)-0.45%
Revenue NY rev (1m)0.07%
Revenue NY rev (3m)0.41%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 21.55 | ||
| Fwd PE | 18.13 | ||
| P/S | 4 | ||
| P/FCF | 33.43 | ||
| P/OCF | 20.49 | ||
| P/B | 3.88 | ||
| P/tB | N/A | ||
| EV/EBITDA | 16.12 |
EPS(TTM)4.05
EY4.64%
EPS(NY)4.81
Fwd EY5.52%
FCF(TTM)2.61
FCFY2.99%
OCF(TTM)4.26
OCFY4.88%
SpS21.83
BVpS22.48
TBVpS-20.41
PEG (NY)3.62
PEG (5Y)3.1
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 3.35% | ||
| ROE | 8.37% | ||
| ROCE | 8.08% | ||
| ROIC | 6.09% | ||
| ROICexc | 6.48% | ||
| ROICexgc | 56.72% | ||
| OM | 19.08% | ||
| PM (TTM) | 8.63% | ||
| GM | 59.78% | ||
| FCFM | 11.96% |
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%
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-Score7
Asset Turnover0.39
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.15 | ||
| Debt/FCF | 10.08 | ||
| Debt/EBITDA | 3.73 | ||
| Cap/Depr | 59.3% | ||
| Cap/Sales | 7.56% | ||
| Interest Coverage | 250 | ||
| Cash Conversion | 61.31% | ||
| Profit Quality | 138.63% | ||
| Current Ratio | 2.05 | ||
| Quick Ratio | 2.05 | ||
| Altman-Z | 2.64 |
F-Score7
WACC8.09%
ROIC/WACC0.75
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)16.05%
EPS 3Y2.04%
EPS 5Y6.96%
EPS Q2Q%14.13%
EPS Next Y5.96%
EPS Next 2Y10.8%
EPS Next 3Y14.21%
EPS Next 5Y9.25%
Revenue 1Y (TTM)8.85%
Revenue growth 3Y12.22%
Revenue growth 5Y11.18%
Sales Q2Q%7.3%
Revenue Next Year5.67%
Revenue Next 2Y7.3%
Revenue Next 3Y8.94%
Revenue Next 5Y7.01%
EBIT growth 1Y25.4%
EBIT growth 3Y4.23%
EBIT growth 5Y6.25%
EBIT Next Year118.4%
EBIT Next 3Y40.66%
EBIT Next 5Y26.01%
FCF growth 1Y788.66%
FCF growth 3Y-4%
FCF growth 5Y-2.22%
OCF growth 1Y128.67%
OCF growth 3Y0.99%
OCF growth 5Y1.4%