NYSE:TRU

Stock Analysis Report

Executive Summary

TransUnion provides risk and information solutions.


Snowflake Analysis

Reasonable growth potential with proven track record.


Similar Companies

Share Price & News

How has TransUnion's share price performed over time and what events caused price changes?


Latest Share Price and Events

Stable Share Price: TRU has not had significant price volatility in the past 3 months.


Market Performance


7 Day Return

-0.7%

TRU

-1.3%

US Professional Services

-1.1%

US Market


1 Year Return

53.3%

TRU

27.7%

US Professional Services

17.9%

US Market

Return vs Industry: TRU exceeded the US Professional Services industry which returned 27.7% over the past year.

Return vs Market: TRU exceeded the US Market which returned 17.9% over the past year.


Shareholder returns

TRUIndustryMarket
7 Day-0.7%-1.3%-1.1%
30 Day4.9%2.3%1.4%
90 Day14.8%10.9%6.9%
1 Year53.9%53.3%28.8%27.7%20.3%17.9%
3 Year170.1%168.1%60.4%55.2%47.8%38.3%
5 Yearn/a80.5%70.7%71.9%53.0%

Price Volatility Vs. Market

How volatile is TransUnion's share price compared to the market and industry in the last 5 years?


Simply Wall St News

Valuation

Is TransUnion undervalued compared to its fair value and its price relative to the market?

52.04x

Price to Earnings (PE) ratio


Share Price vs. Fair Value

Below Fair Value: TRU ($97.4) is trading above our estimate of fair value ($52.98)

Significantly Below Fair Value: TRU is trading above our estimate of fair value.


Price To Earnings Ratio

PE vs Industry: TRU is poor value based on its PE Ratio (52x) compared to the Professional Services industry average (19x).

PE vs Market: TRU is poor value based on its PE Ratio (52x) compared to the US market (18.2x).


Price to Earnings Growth Ratio

PEG Ratio: TRU is poor value based on its PEG Ratio (3.4x)


Price to Book Ratio

PB vs Industry: TRU is overvalued based on its PB Ratio (8.2x) compared to the US Professional Services industry average (2.8x).


Next Steps

Future Growth

How is TransUnion forecast to perform in the next 1 to 3 years based on estimates from 15 analysts?

15.4%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: TRU's forecast earnings growth (15.4% per year) is above the savings rate (1.7%).

Earnings vs Market: TRU's earnings (15.4% per year) are forecast to grow faster than the US market (14.1% per year).

High Growth Earnings: TRU's earnings are forecast to grow, but not significantly.

Revenue vs Market: TRU's revenue (7.7% per year) is forecast to grow faster than the US market (7.6% per year).

High Growth Revenue: TRU's revenue (7.7% per year) is forecast to grow slower than 20% per year.


Earnings per Share Growth Forecasts


Future Return on Equity

Future ROE: TRU's Return on Equity is forecast to be high in 3 years time (22%)


Next Steps

Past Performance

How has TransUnion performed over the past 5 years?

47.6%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: TRU has high quality earnings.

Growing Profit Margin: TRU's current net profit margins (13.2%) are higher than last year (12%).


Past Earnings Growth Analysis

Earnings Trend: TRU has become profitable over the past 5 years, growing earnings by 47.6% per year.

Accelerating Growth: TRU's earnings growth over the past year (26.4%) is below its 5-year average (47.6% per year).

Earnings vs Industry: TRU earnings growth over the past year (26.4%) exceeded the Professional Services industry 12.3%.


Return on Equity

High ROE: TRU's Return on Equity (15.2%) is considered low.


Return on Assets


Return on Capital Employed


Next Steps

Financial Health

How is TransUnion's financial position?


Financial Position Analysis

Short Term Liabilities: TRU's short term assets ($888.2M) exceed its short term liabilities ($571.4M).

Long Term Liabilities: TRU's short term assets ($888.2M) do not cover its long term liabilities ($4.2B).


Debt to Equity History and Analysis

Debt Level: TRU's debt to equity ratio (158.3%) is considered high.

Reducing Debt: TRU's debt to equity ratio has reduced from 381.5% to 158.3% over the past 5 years.

Debt Coverage: TRU's debt is well covered by operating cash flow (21%).

Interest Coverage: TRU's interest payments on its debt are well covered by EBIT (3.7x coverage).


Balance Sheet

Inventory Level: TRU has a low level of unsold assets or inventory.

Debt Coverage by Assets: TRU's debt is not covered by short term assets (assets are 0.2x debt).


Next Steps

Dividend

What is TransUnion's current dividend yield, its reliability and sustainability?

0.31%

Current Dividend Yield


Dividend Yield vs Market

company0.3%marketbottom25%1.4%markettop25%3.7%industryaverage0.9%forecastin3Years0.3%

Current dividend yield vs market & industry

Notable Dividend: TRU's dividend (0.31%) isn’t notable compared to the bottom 25% of dividend payers in the US market (1.45%).

High Dividend: TRU's dividend (0.31%) is low compared to the top 25% of dividend payers in the US market (3.73%).


Stability and Growth of Payments

Stable Dividend: TRU is not paying a notable dividend for the US market, therefore no need to check if payments are stable.

Growing Dividend: TRU is not paying a notable dividend for the US market, therefore no need to check if payments are increasing.


Current Payout to Shareholders

Dividend Coverage: TRU is not paying a notable dividend for the US market.


Future Payout to Shareholders

Future Dividend Coverage: No need to calculate the sustainability of TRU's dividend in 3 years as they are not forecast to pay a notable one for the US market.


Next Steps

Management

How experienced are the management team and are they aligned to shareholders interests?

1.4yrs

Average management tenure


CEO

Chris Cartwright (54yo)

0.8yrs

Tenure

US$6,257,515

Compensation

Mr. Christopher A. Cartwright, also known as Chris, has been President, Chief Executive Officer and Director of TransUnion and TransUnion LLC since May 8, 2019. Mr. Cartwright served as President of US Inf ...


CEO Compensation Analysis

Compensation vs Market: Chris's total compensation ($USD6.26M) is below average for companies of similar size in the US market ($USD10.81M).

Compensation vs Earnings: Chris's compensation has increased by more than 20% in the past year.


Leadership Team

NamePositionTenureCompensationOwnership
Christopher Cartwright
President0.8yrsUS$6.26m0.022% $4.1m
Todd Cello
Executive VP & CFO2.5yrsUS$2.24m0.0034% $623.4k
James Peck
Consultant & Director7.2yrsUS$12.26m0.13% $24.7m
David Neenan
President of International7.4yrsUS$5.69m0.030% $5.6m
John Danaher
President of Consumer Interactive0yrsUS$2.51m0.040% $7.4m
Richard Mauldin
Executive VP & COO0.8yrsno data0.0012% $215.2k
Timothy Elberfeld
Chief Accounting Officer4.1yrsno data0.0028% $516.7k
Abhinav Dhar
Executive VP and Chief Information & Technology Officer1.1yrsno datano data
Aaron Hoffman
Vice President of Investor Relations0yrsno datano data
Heather Russell
Executive VP & Chief Legal Officer1.7yrsno datano data

1.4yrs

Average Tenure

53yo

Average Age

Experienced Management: TRU's management team is not considered experienced ( 1.4 years average tenure), which suggests a new team.


Board Members

NamePositionTenureCompensationOwnership
Christopher Cartwright
President0.8yrsUS$6.26m0.022% $4.1m
James Peck
Consultant & Director7.2yrsUS$12.26m0.13% $24.7m
Jonathan McDonald
Executive VP of Government Information Solutions Business Unit & Member of Government Advisory Board3.8yrsno datano data
Pamela Joseph
Independent Director4.4yrsUS$274.94k0.014% $2.5m
Leo Mullin
Chairman of the Board5yrsUS$362.44k0.035% $6.4m
Siddharth Mehta
Independent Director7.8yrsUS$234.94k0.020% $3.7m
Andrew Prozes
Independent Director6.1yrsUS$277.44k0.0032% $579.3k
Roger Baker
Member of Government Advisory Board3.8yrsno datano data
George Awad
Independent Director6.3yrsUS$244.94k0.0045% $829.3k
Charles Alsup
Member of Government Advisory Board3.8yrsno datano data

4.7yrs

Average Tenure

60yo

Average Age

Experienced Board: TRU's board of directors are considered experienced (4.7 years average tenure).


Ownership

Who are the major shareholders and have insiders been buying or selling?


Insider Trading Volume

Insider Buying: Insufficient data to determine if insiders have bought more shares than they have sold in the past 3 months.


Recent Insider Transactions

Ownership Breakdown

Dilution of Shares: Shareholders have not been meaningfully diluted in the past year.


Top Shareholders

Company Information

TransUnion's company bio, employee growth, exchange listings and data sources


Key Information

  • Name: TransUnion
  • Ticker: TRU
  • Exchange: NYSE
  • Founded: 1968
  • Industry: Research and Consulting Services
  • Sector: Commercial Services
  • Market Cap: US$18.389b
  • Shares outstanding: 188.80m
  • Website: https://www.transunion.com

Number of Employees


Location

  • TransUnion
  • 555 West Adams
  • Chicago
  • Illinois
  • 60661
  • United States

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
TRUNYSE (New York Stock Exchange)YesCommon StockUSUSDJun 2015
1TUDB (Deutsche Boerse AG)YesCommon StockDEEURJun 2015
1TUBRSE (Berne Stock Exchange)YesCommon StockCHCHFJun 2015

Biography

TransUnion provides risk and information solutions. The company operates in three segments: U.S. Markets, International, and Consumer Interactive. The U.S. Markets segment provides consumer reports, actionable insights, and analytics, such as credit and other scores, as well as decisioning services for businesses. These businesses use its services to acquire new customers; assess consumer ability to pay for services; identify cross-selling opportunities; measure and manage debt portfolio risk; collect debt; verify consumer identities; and investigate potential fraud. This segment serves various verticals, including financial services, insurance, healthcare, collections, tenant and employment, public sector, media, and other markets. The International segment offers credit reports, analytics, decision services, and other value-added risk management services; and consumer services, which enable consumers to manage their personal finances. This segment serves customers in financial services, retail credit, insurance, automotive, collections, public sector, and communications industries through direct and indirect channels. The Consumer Interactive segment provides credit reports and scores, credit monitoring, fraud protection and resolution, and financial management solutions that enable consumers to manage their personal finances and take precautions against identity theft. This segment offers its products through online and mobile interfaces, as well as through direct and indirect channels. The company serves customers in approximately 30 countries and territories, including North America, Latin America, Europe, Africa, the Asia Pacific, and India. The company was formerly known as TransUnion Holding Company, Inc. and changed its name to TransUnion in March 2015. TransUnion was founded in 1968 and is headquartered in Chicago, Illinois. 


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2020/02/23 02:20
End of Day Share Price2020/02/21 00:00
Earnings2019/12/31
Annual Earnings2019/12/31


Unless specified all financial data is based on a yearly period but updated quarterly. This is known as Trailing Twelve Month (TTM) or Last Twelve Month (LTM) Data. Learn more here.