TRANSUNION (TRU) Stock Fundamental Analysis
USA - NYSE:TRU - US89400J1079 - Common Stock
82.88 USD
+2.44 (+3.03%)
82.88 USD
0 (0%)
Overall TRU gets a fundamental rating of 5 out of 10. We evaluated TRU against 86 industry peers in the Professional Services industry. TRU has only an average score on both its financial health and profitability. TRU has a decent growth rate and is not valued too expensively.
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.
Each year in the past 5 years TRU had a positive operating cash flow.
1.2 Ratios
TRU has a Return On Assets of 3.78%. This is comparable to the rest of the industry: TRU outperforms 53.49% of its industry peers.
The Return On Equity of TRU (9.40%) is comparable to the rest of the industry.
TRU has a Return On Invested Capital (6.18%) which 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 22.50%.
The last Return On Invested Capital (6.18%) for TRU is above the 3 year average (4.87%), which is a sign of increasing profitability.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 3.78% | ||
| ROE | 9.4% | ||
| ROIC | 6.18% |
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 better Profit Margin (9.47%) than 80.23% 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 84.88% of its industry peers.
TRU's Operating Margin has declined in the last couple of years.
TRU has a Gross Margin of 59.31%. This is in the better half of the industry: TRU outperforms 74.42% 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) | 9.47% | ||
| GM | 59.31% |
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
Compared to 1 year ago, TRU has an improved debt to assets ratio.
2.2 Solvency
An Altman-Z score of 2.50 indicates that TRU is not a great score, but indicates only limited risk for bankruptcy at the moment.
TRU has a Altman-Z score (2.50) which is in line with its industry peers.
TRU has a debt to FCF ratio of 8.89. This is a slightly negative value and a sign of low solvency as TRU would need 8.89 years to pay back of all of its debts.
With a Debt to FCF ratio value of 8.89, TRU perfoms like the industry average, outperforming 44.19% of the companies in the same industry.
A Debt/Equity ratio of 1.13 is on the high side and indicates that TRU has dependencies on debt financing.
TRU has a worse Debt to Equity ratio (1.13) than 70.93% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.13 | ||
| Debt/FCF | 8.89 | ||
| Altman-Z | 2.5 |
ROIC/WACC0.82
WACC7.54%
2.3 Liquidity
A Current Ratio of 2.01 indicates that TRU has no problem at all paying its short term obligations.
Looking at the Current ratio, with a value of 2.01, TRU is in the better half of the industry, outperforming 73.26% of the companies in the same industry.
A Quick Ratio of 2.01 indicates that TRU has no problem at all paying its short term obligations.
With a decent Quick ratio value of 2.01, TRU is doing good in the industry, outperforming 73.26% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 2.01 | ||
| Quick Ratio | 2.01 |
3. Growth
3.1 Past
The Earnings Per Share has grown by an nice 12.00% over the past year.
TRU shows a small growth in Earnings Per Share. Measured over the last years, the EPS has been growing by 6.96% yearly.
The Revenue has grown by 8.30% in the past year. This is quite good.
Measured over the past years, TRU shows a quite strong growth in Revenue. The Revenue has been growing by 11.18% on average per year.
EPS 1Y (TTM)12%
EPS 3Y2.04%
EPS 5Y6.96%
EPS Q2Q%5.77%
Revenue 1Y (TTM)8.3%
Revenue growth 3Y12.22%
Revenue growth 5Y11.18%
Sales Q2Q%7.79%
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 8.85% on average per year.
The Revenue is expected to grow by 7.16% on average over the next years.
EPS Next Y9.38%
EPS Next 2Y11.61%
EPS Next 3Y12.95%
EPS Next 5Y8.85%
Revenue Next Year8.68%
Revenue Next 2Y7.99%
Revenue Next 3Y8.08%
Revenue Next 5Y7.16%
3.3 Evolution
When comparing the EPS growth rate of the last years to the growth rate of the upcoming years, we see that the growth is accelerating.
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 19.73, which indicates a rather expensive current valuation of TRU.
TRU's Price/Earnings ratio is in line with the industry average.
TRU is valuated rather cheaply when we compare the Price/Earnings ratio to 26.28, which is the current average of the S&P500 Index.
The Price/Forward Earnings ratio is 16.97, which indicates a correct valuation of TRU.
TRU's Price/Forward Earnings ratio is a bit cheaper when compared to the industry. TRU is cheaper than 60.47% of the companies in the same industry.
When comparing the Price/Forward Earnings ratio of TRU to the average of the S&P500 Index (33.61), we can say TRU is valued slightly cheaper.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 19.73 | ||
| Fwd PE | 16.97 |
4.2 Price Multiples
Based on the Enterprise Value to EBITDA ratio, TRU is valued a bit cheaper than the industry average as 62.79% of the companies are valued more expensively.
TRU's Price/Free Cash Flow ratio is in line with the industry average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 28.04 | ||
| EV/EBITDA | 14.37 |
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 12.95% in the coming years.
PEG (NY)2.1
PEG (5Y)2.83
EPS Next 2Y11.61%
EPS Next 3Y12.95%
5. Dividend
5.1 Amount
With a yearly dividend of 0.58%, TRU is not a good candidate for dividend investing.
TRU's Dividend Yield is a higher than the industry average which is at 4.40.
Compared to an average S&P500 Dividend Yield of 2.36, TRU's dividend is way lower than the S&P500 average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.58% |
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
TRU pays out 21.24% 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.
DP21.24%
EPS Next 2Y11.61%
EPS Next 3Y12.95%
82.88
+2.44 (+3.03%)
Chartmill FA Rating
GICS SectorIndustrials
GICS IndustryGroupCommercial & Professional Services
GICS IndustryProfessional Services
Earnings (Last)
Earnings (Next)
Inst Owners101.68%
Inst Owner Change0.08%
Ins Owners0.34%
Ins Owner Change-1.23%
Market Cap16.15B
Revenue(TTM)4.44B
Net Income(TTM)420.50M
Analysts80
Price Target107.25 (29.4%)
Short Float %4.81%
Short Ratio2.5
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.58% |
Yearly Dividend0.43
Dividend Growth(5Y)7.03%
DP21.24%
Div Incr Years0
Div Non Decr Years6
Ex-Date
Surprises & Revisions
EPS beat(2)2
Avg EPS beat(2)6.21%
Min EPS beat(2)4.49%
Max EPS beat(2)7.93%
EPS beat(4)3
Avg EPS beat(4)4.85%
Min EPS beat(4)-0.09%
Max EPS beat(4)7.93%
EPS beat(8)7
Avg EPS beat(8)5.86%
EPS beat(12)9
Avg EPS beat(12)3.91%
EPS beat(16)10
Avg EPS beat(16)2.24%
Revenue beat(2)2
Avg Revenue beat(2)2.55%
Min Revenue beat(2)2.23%
Max Revenue beat(2)2.86%
Revenue beat(4)3
Avg Revenue beat(4)1.58%
Min Revenue beat(4)-0.02%
Max Revenue beat(4)2.86%
Revenue beat(8)7
Avg Revenue beat(8)1.7%
Revenue beat(12)9
Avg Revenue beat(12)0.98%
Revenue beat(16)10
Avg Revenue beat(16)-0.74%
PT rev (1m)-6.53%
PT rev (3m)-7.04%
EPS NQ rev (1m)2.44%
EPS NQ rev (3m)2.25%
EPS NY rev (1m)1.78%
EPS NY rev (3m)3.13%
Revenue NQ rev (1m)2.32%
Revenue NQ rev (3m)2.32%
Revenue NY rev (1m)1.39%
Revenue NY rev (3m)1.69%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 19.73 | ||
| Fwd PE | 16.97 | ||
| P/S | 3.63 | ||
| P/FCF | 28.04 | ||
| P/OCF | 17.51 | ||
| P/B | 3.61 | ||
| P/tB | N/A | ||
| EV/EBITDA | 14.37 |
EPS(TTM)4.2
EY5.07%
EPS(NY)4.88
Fwd EY5.89%
FCF(TTM)2.96
FCFY3.57%
OCF(TTM)4.73
OCFY5.71%
SpS22.8
BVpS22.96
TBVpS-20.24
PEG (NY)2.1
PEG (5Y)2.83
Graham Number46.58
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 3.78% | ||
| ROE | 9.4% | ||
| ROCE | 8.2% | ||
| ROIC | 6.18% | ||
| ROICexc | 6.67% | ||
| ROICexgc | 65.18% | ||
| OM | 18.69% | ||
| PM (TTM) | 9.47% | ||
| GM | 59.31% | ||
| FCFM | 12.96% |
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%
ROICexgc growth 3Y-43.22%
ROICexgc 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-Score9
Asset Turnover0.4
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.13 | ||
| Debt/FCF | 8.89 | ||
| Debt/EBITDA | 3.61 | ||
| Cap/Depr | 61.36% | ||
| Cap/Sales | 7.8% | ||
| Interest Coverage | 250 | ||
| Cash Conversion | 66.12% | ||
| Profit Quality | 136.91% | ||
| Current Ratio | 2.01 | ||
| Quick Ratio | 2.01 | ||
| Altman-Z | 2.5 |
F-Score9
WACC7.54%
ROIC/WACC0.82
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)12%
EPS 3Y2.04%
EPS 5Y6.96%
EPS Q2Q%5.77%
EPS Next Y9.38%
EPS Next 2Y11.61%
EPS Next 3Y12.95%
EPS Next 5Y8.85%
Revenue 1Y (TTM)8.3%
Revenue growth 3Y12.22%
Revenue growth 5Y11.18%
Sales Q2Q%7.79%
Revenue Next Year8.68%
Revenue Next 2Y7.99%
Revenue Next 3Y8.08%
Revenue Next 5Y7.16%
EBIT growth 1Y18.7%
EBIT growth 3Y4.23%
EBIT growth 5Y6.25%
EBIT Next Year121.12%
EBIT Next 3Y40.22%
EBIT Next 5Y26.03%
FCF growth 1Y66.15%
FCF growth 3Y-4%
FCF growth 5Y-2.22%
OCF growth 1Y38.58%
OCF growth 3Y0.99%
OCF growth 5Y1.4%
TRANSUNION / TRU FAQ
Can you provide the ChartMill fundamental rating for TRANSUNION?
ChartMill assigns a fundamental rating of 5 / 10 to TRU.
What is the valuation status for TRU stock?
ChartMill assigns a valuation rating of 4 / 10 to TRANSUNION (TRU). This can be considered as Fairly Valued.
How profitable is TRANSUNION (TRU) stock?
TRANSUNION (TRU) has a profitability rating of 5 / 10.
What is the financial health of TRANSUNION (TRU) stock?
The financial health rating of TRANSUNION (TRU) is 4 / 10.
Can you provide the dividend sustainability for TRU stock?
The dividend rating of TRANSUNION (TRU) is 5 / 10 and the dividend payout ratio is 21.24%.