TRANSUNION (TRU)
US89400J1079 - Common Stock
Overall TRU gets a fundamental rating of 4 out of 10. We evaluated TRU against 80 industry peers in the Professional Services industry. There are concerns on the financial health of TRU while its profitability can be described as average. While showing a medium growth rate, TRU is valued expensive at the moment.
1. Profitability
1.1 Basic Checks
In the past year TRU was profitable.
In the past year TRU had a positive cash flow from operations.
Of the past 5 years TRU 4 years were profitable.
Each year in the past 5 years TRU had a positive operating cash flow.
1.2 Ratios
TRU's Return On Assets of 2.03% is in line compared to the rest of the industry. TRU outperforms 47.44% of its industry peers.
The Return On Equity of TRU (5.31%) is comparable to the rest of the industry.
The Return On Invested Capital of TRU (4.80%) is comparable to the rest of the industry.
The Average Return On Invested Capital over the past 3 years for TRU is significantly below the industry average of 17.76%.
The 3 year average ROIC (4.08%) for TRU is below the current ROIC(4.80%), indicating increased profibility in the last year.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 2.03% | ||
| ROE | 5.31% | ||
| ROIC | 4.8% |
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 Profit Margin of 5.46%. This is in the better half of the industry: TRU outperforms 65.38% of its industry peers.
TRU has a Operating Margin of 17.05%. This is amongst the best in the industry. TRU outperforms 83.33% of its industry peers.
In the last couple of years the Operating Margin of TRU has declined.
TRU's Gross Margin of 58.41% is fine compared to the rest of the industry. TRU outperforms 67.95% of its industry peers.
TRU's Gross Margin has declined in the last couple of years.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 17.05% | ||
| PM (TTM) | 5.46% | ||
| GM | 58.41% |
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
With a Return on Invested Capital (ROIC) below the Cost of Capital (WACC), TRU is destroying value.
The number of shares outstanding for TRU has been increased compared to 1 year ago.
The number of shares outstanding for TRU has been increased compared to 5 years ago.
TRU has a better debt/assets ratio than last year.
2.2 Solvency
TRU has an Altman-Z score of 2.63. This is not the best score and indicates that TRU is in the grey zone with still only limited risk for bankruptcy at the moment.
TRU has a Altman-Z score of 2.63. This is in the lower half of the industry: TRU underperforms 61.54% of its industry peers.
The Debt to FCF ratio of TRU is 10.74, which is on the high side as it means it would take TRU, 10.74 years of fcf income to pay off all of its debts.
TRU has a Debt to FCF ratio of 10.74. This is in the lower half of the industry: TRU underperforms 64.10% of its industry peers.
TRU has a Debt/Equity ratio of 1.22. This is a high value indicating a heavy dependency on external financing.
TRU's Debt to Equity ratio of 1.22 is on the low side compared to the rest of the industry. TRU is outperformed by 76.92% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.22 | ||
| Debt/FCF | 10.74 | ||
| Altman-Z | 2.63 |
ROIC/WACC0.56
WACC8.58%
2.3 Liquidity
A Current Ratio of 1.68 indicates that TRU should not have too much problems paying its short term obligations.
Looking at the Current ratio, with a value of 1.68, TRU is in the better half of the industry, outperforming 62.82% of the companies in the same industry.
A Quick Ratio of 1.68 indicates that TRU should not have too much problems paying its short term obligations.
TRU has a Quick ratio of 1.68. This is in the better half of the industry: TRU outperforms 65.38% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.68 | ||
| Quick Ratio | 1.68 |
3. Growth
3.1 Past
The Earnings Per Share has grown by an nice 11.94% over the past 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.
Looking at the last year, TRU shows a quite strong growth in Revenue. The Revenue has grown by 8.53% in the last year.
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)11.94%
EPS 3Y3.95%
EPS 5Y6.15%
EPS Q2Q%14.29%
Revenue 1Y (TTM)8.53%
Revenue growth 3Y14.83%
Revenue growth 5Y10.58%
Sales Q2Q%12.01%
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 15.67% yearly.
The Revenue is expected to grow by 7.42% on average over the next years.
EPS Next Y17.32%
EPS Next 2Y16.95%
EPS Next 3Y17.42%
EPS Next 5Y15.67%
Revenue Next Year9.7%
Revenue Next 2Y8.79%
Revenue Next 3Y9.45%
Revenue Next 5Y7.42%
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.
4. Valuation
4.1 Price/Earnings Ratio
TRU is valuated quite expensively with a Price/Earnings ratio of 26.58.
TRU's Price/Earnings is on the same level as the industry average.
When comparing the Price/Earnings ratio of TRU to the average of the S&P500 Index (29.48), we can say TRU is valued inline with the index average.
TRU is valuated rather expensively with a Price/Forward Earnings ratio of 21.62.
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 23.95.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 26.58 | ||
| Fwd PE | 21.62 |
4.2 Price Multiples
TRU's Enterprise Value to EBITDA ratio is in line with the industry average.
TRU's Price/Free Cash Flow ratio is in line with the industry average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 40.13 | ||
| EV/EBITDA | 19.25 |
4.3 Compensation for Growth
The 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 17.42% in the coming years. This may justify a more expensive valuation.
PEG (NY)1.53
PEG (5Y)4.32
EPS Next 2Y16.95%
EPS Next 3Y17.42%
5. Dividend
5.1 Amount
With a yearly dividend of 0.43%, TRU is not a good candidate for dividend investing.
Compared to an average industry Dividend Yield of 1.73, TRU pays a bit more dividend than its industry peers.
Compared to an average S&P500 Dividend Yield of 2.16, TRU's dividend is way lower than the S&P500 average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.43% |
5.2 History
The dividend of TRU is nicely growing with an annual growth rate of 13.41%!
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 Years6
5.3 Sustainability
36.64% of the earnings are spent on dividend by TRU. This is a low number and sustainable payout ratio.
TRU's earnings are growing around the same pace than its dividend. As long as the earnings growth is kept the dividend growth is sustainable.
DP36.64%
EPS Next 2Y16.95%
EPS Next 3Y17.42%
TRANSUNION
NYSE:TRU (12/6/2024, 8:18:51 PM)
After market: 99.67 0 (0%)99.67
+1.25 (+1.27%)
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 Cap19.43B
Analysts
Price Target
Short Float %
Short Ratio
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.43% |
Dividend Growth(5Y)
DP
Div Incr Years
Div Non Decr Years
Ex-Date
Surprises & Revisions
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PT rev (1m)
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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 | 26.58 | ||
| Fwd PE | 21.62 | ||
| 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)1.53
PEG (5Y)4.32
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 2.03% | ||
| ROE | 5.31% | ||
| ROCE | |||
| ROIC | |||
| ROICexc | |||
| ROICexgc | |||
| OM | 17.05% | ||
| PM (TTM) | 5.46% | ||
| GM | 58.41% | ||
| 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 Turnover0.37
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.22 | ||
| Debt/FCF | |||
| Debt/EBITDA | |||
| Cap/Depr | |||
| Cap/Sales | |||
| Interest Coverage | |||
| Cash Conversion | |||
| Profit Quality | |||
| Current Ratio | 1.68 | ||
| Quick Ratio | 1.68 | ||
| 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)11.94%
EPS 3Y3.95%
EPS 5Y
EPS Q2Q%
EPS Next Y17.32%
EPS Next 2Y
EPS Next 3Y
EPS Next 5Y
Revenue 1Y (TTM)8.53%
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