NYSE:TRU

Stock Analysis Report

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Executive Summary

TransUnion provides risk and information solutions. More Details


Snowflake Analysis

Adequate balance sheet with limited growth.


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 is less volatile than 75% of US stocks over the past 3 months, typically moving +/- 5% a week.

Volatility Over Time: TRU's weekly volatility (5%) has been stable over the past year.


Market Performance


7 Day Return

-3.1%

TRU

-1.7%

US Professional Services

1.8%

US Market


1 Year Return

7.3%

TRU

22.7%

US Professional Services

20.4%

US Market

Return vs Industry: TRU underperformed the US Professional Services industry which returned 22.7% over the past year.

Return vs Market: TRU underperformed the US Market which returned 20.4% over the past year.


Shareholder returns

TRUIndustryMarket
7 Day-3.1%-1.7%1.8%
30 Day8.1%8.2%6.0%
90 Day8.5%9.1%6.8%
1 Year7.6%7.3%23.6%22.7%23.2%20.4%
3 Year69.1%67.3%59.3%54.7%47.4%37.6%
5 Year256.3%252.5%104.1%93.4%91.9%70.8%

Long-Term 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?

54.36x

Price to Earnings (PE) ratio


Share Price vs. Fair Value

Below Fair Value: TRU ($93.02) is trading above our estimate of fair value ($62.08)

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 (54.4x) compared to the US Professional Services industry average (23.5x).

PE vs Market: TRU is poor value based on its PE Ratio (54.4x) compared to the US market (19.7x).


Price to Earnings Growth Ratio

PEG Ratio: TRU is poor value based on its PEG Ratio (2.6x)


Price to Book Ratio

PB vs Industry: TRU is overvalued based on its PB Ratio (7.7x) compared to the US Professional Services industry average (3x).


Next Steps

Future Growth

How is TransUnion forecast to perform in the next 1 to 3 years based on estimates from 17 analysts?

21.3%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: TRU's forecast earnings growth (21.3% per year) is above the savings rate (2.2%).

Earnings vs Market: TRU's earnings (21.3% per year) are forecast to grow slower than the US market (22.1% per year).

High Growth Earnings: earnings are expected to grow significantly over the next 3 years.

Revenue vs Market: TRU's revenue (7.1% per year) is forecast to grow slower than the US market (10.2% per year).

High Growth Revenue: TRU's revenue (7.1% 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 low in 3 years time (16.4%).


Next Steps

Past Performance

How has TransUnion performed over the past 5 years?

30.3%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: TRU has high quality earnings.

Growing Profit Margin: TRU's current net profit margins (12%) are lower than last year (14.3%).


Past Earnings Growth Analysis

Earnings Trend: TRU has become profitable over the past 5 years, growing earnings by 30.3% per year.

Accelerating Growth: TRU's has had negative earnings growth over the past year, so it can't be compared to its 5-year average.

Earnings vs Industry: TRU had negative earnings growth (-12.5%) over the past year, making it difficult to compare to the Professional Services industry average (-0.06%).


Return on Equity

High ROE: TRU's Return on Equity (14%) is considered low.


Next Steps

Financial Health

How is TransUnion's financial position?


Financial Position Analysis

Short Term Liabilities: TRU's short term assets ($1.2B) exceed its short term liabilities ($618.4M).

Long Term Liabilities: TRU's short term assets ($1.2B) do not cover its long term liabilities ($4.2B).


Debt to Equity History and Analysis

Debt Level: TRU's debt to equity ratio (154.7%) is considered high.

Reducing Debt: TRU's debt to equity ratio has reduced from 159.6% to 154.7% over the past 5 years.

Debt Coverage: TRU's debt is well covered by operating cash flow (20.3%).

Interest Coverage: TRU's interest payments on its debt are well covered by EBIT (4.6x coverage).


Balance Sheet


Next Steps

Dividend

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

0.32%

Current Dividend Yield


Dividend Yield vs Market

Notable Dividend: TRU's dividend (0.32%) isn’t notable compared to the bottom 25% of dividend payers in the US market (1.46%).

High Dividend: TRU's dividend (0.32%) is low compared to the top 25% of dividend payers in the US market (4.05%).


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?

3.3yrs

Average management tenure


CEO

Chris Cartwright (55 yo)

1.5yrs

Tenure

US$8,206,631

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 ($USD8.21M) is about average for companies of similar size in the US market ($USD10.82M).

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


Leadership Team

NamePositionTenureCompensationOwnership
Christopher Cartwright
President1.5yrsUS$8.21m0.0041%
$ 729.3k
Todd Cello
Executive VP & CFO3.25yrsUS$3.09m0.0054%
$ 959.4k
Abhinav Dhar
Executive VP and Chief Information & Technology Officer1.83yrsUS$3.40mno data
David Neenan
President of International8.17yrsUS$4.64m0.033%
$ 5.8m
John Danaher
President of Consumer Interactiveno dataUS$4.35mno data
Richard Mauldin
Executive VP & COO1.5yrsno data0.0021%
$ 364.7k
Timothy Elberfeld
VP, Chief Accounting Officer & Corporate Controller4.83yrsno data0.0039%
$ 688.6k
Aaron Hoffman
Vice President of Investor Relationsno datano datano data
Heather Russell
Executive VP & Chief Legal Officer2.42yrsno datano data
Julie Springer
Executive VP and Chief Marketing & Communications Officer5.83yrsno datano data
Anne Leyden
Executive VP & Chief Human Resources Officer6.83yrsno datano data
James Pieper
Chief Financial Officer of U.S. Information Servicesno datano datano data

3.3yrs

Average Tenure

53yo

Average Age

Experienced Management: TRU's management team is considered experienced (3.3 years average tenure).


Board Members

NamePositionTenureCompensationOwnership
Christopher Cartwright
President1.5yrsUS$8.21m0.0041%
$ 729.3k
Jonathan McDonald
Executive VP of Government Information Solutions Business Unit & Member of Government Advisory Board4.58yrsno datano data
Russell Fradin
Independent Director2.33yrsUS$284.94k0.0036%
$ 635.5k
Pamela Joseph
Independent Chairman0.50yrUS$299.94k0.015%
$ 2.6m
Siddharth Mehta
Independent Director8.58yrsUS$264.94k0.021%
$ 3.8m
Andrew Prozes
Independent Director6.83yrsUS$304.94k0.0043%
$ 764.7k
Thomas Monahan
Independent Director3.42yrsUS$269.94k0.0056%
$ 982.4k
Roger Baker
Member of Government Advisory Board4.58yrsno datano data
James Hodges
Member of Government Advisory Board4.58yrsno datano data
George Awad
Independent Director7yrsUS$269.94k0.0057%
$ 1.0m
W. Basham
Member of Government Advisory Board4.58yrsno datano data
Charles Alsup
Member of Government Advisory Board4.58yrsno datano data

4.6yrs

Average Tenure

61yo

Average Age

Experienced Board: TRU's board of directors are considered experienced (4.6 years average tenure).


Ownership

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


Insider Trading Volume

Insider Buying: TRU insiders have only sold shares 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$17.702b
  • Shares outstanding: 190.30m
  • 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

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, action...


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2020/11/25 00:09
End of Day Share Price2020/11/24 00:00
Earnings2020/09/30
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.