NYSE:TRU

Stock Analysis Report

Executive Summary

TransUnion provides risk and information solutions.

Snowflake

Fundamentals

Reasonable growth potential with mediocre balance sheet.


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


Market Performance


7 Day Return

1.2%

TRU

0.5%

US Professional Services

1.0%

US Market


1 Year Return

25.7%

TRU

19.8%

US Professional Services

8.0%

US Market

Return vs Industry: TRU exceeded the US Professional Services industry which returned 19.8% over the past year.

Return vs Market: TRU exceeded the US Market which returned 8% over the past year.


Shareholder returns

TRUIndustryMarket
7 Day1.2%0.5%1.0%
30 Day2.0%-0.1%-0.07%
90 Day1.4%-0.3%-1.0%
1 Year26.3%25.7%21.0%19.8%10.4%8.0%
3 Year156.8%155.2%55.5%50.3%46.2%36.7%
5 Yearn/a86.9%76.8%64.3%46.2%

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?

47.03x

Price to Earnings (PE) ratio


Share Price vs. Fair Value

Below Fair Value: TRU ($82.62) is trading above our estimate of fair value ($75.37)

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 (47x) compared to the Professional Services industry average (20.8x).

PE vs Market: TRU is poor value based on its PE Ratio (47x) compared to the US market (17.6x).


Price to Earnings Growth Ratio

PEG Ratio: TRU is poor value based on its PEG Ratio (2.3x)


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 (2.4x).


Next Steps

Future Growth

How is TransUnion forecast to perform in the next 1 to 3 years based on estimates from 13 analysts?

20.7%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: TRU's forecast earnings growth (20.7% per year) is above the savings rate (2.7%).

Earnings vs Market: TRU's earnings (20.7% per year) are forecast to grow faster than the US market (14.5% per year).

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

Revenue vs Market: TRU's revenue (8.1% per year) is forecast to grow faster than the US market (7.2% per year).

High Growth Revenue: TRU's revenue (8.1% 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 (19.1%).


Next Steps

Past Performance

How has TransUnion performed over the past 5 years?

57.9%

Historical annual earnings growth


Earnings and Revenue History


Past Earnings Growth Analysis

Earnings Trend: TRU has become profitable over the past 5 years, growing earnings by 57.9% 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 (-26%) over the past year, making it difficult to compare to the Professional Services industry average (36.8%).


Return on Equity

High ROE: TRU's Return on Equity (16%) is considered low.


Return on Assets

ROA vs Industry: TRU's Return on Assets is below or equal to the Professional Services industry average last year.


Return on Capital Employed

ROCE Improving: TRU has significantly improved its Return on Capital Employed over the past 3 years.


Next Steps

Financial Health

How is TransUnion's financial position?


Financial Position Analysis

Short Term Liabilities: TRU's short term assets ($869.6M) exceeds its short term liabilities ($575.7M)

Long Term Liabilities: TRU's short term assets (869.6M) do not cover its long term liabilities (4.4B)


Debt to Equity History and Analysis

Debt Level: TRU's debt to equity ratio (188.1%) is considered high

Reducing Debt: TRU's debt to equity ratio has reduced from 355.5% to 188.1% over the past 5 years.

Debt Coverage: TRU's debt is not well covered by operating cash flow (15.8%).

Interest Coverage: TRU's interest payments on its debt are well covered by EBIT (3.1x 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?

0.36%

Current Dividend Yield


Dividend Yield vs Market

company0.4%marketbottom25%1.4%markettop25%3.7%industryaverage1.5%forecastin3Years0.4%

Current dividend yield vs market & industry


Stability and Growth of Payments

Notable Dividend: TRU's dividend (0.36%) isn’t notable compared to the bottom 25% of dividend payers in the US market (1.44%).

High Dividend: TRU's dividend (0.36%) is low compared to the top 25% of dividend payers in the US market (3.68%).

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

What is the CEO of TransUnion's salary, the management and board of directors tenure and is there insider trading?

1.0yrs

Average management tenure


CEO

Chris Cartwright (54yo)

0.4yrs

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 has recently become CEO, making it difficult to compare their total compensation against companies of similar size in the US market.

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


Management Age and Tenure

1.0yrs

Average Tenure

53yo

Average Age

Experienced Management: TRU's management team is not considered experienced ( 1 years average tenure), which suggests a new team.


Board Age and Tenure

4.4yrs

Average Tenure

60yo

Average Age

Experienced Board: TRU's board of directors are considered experienced (4.4 years average tenure).


Insider Trading

Insider Buying: TRU insiders have only sold shares in the past 3 months.


Recent Insider Transactions

SellUS$418,75020 Aug 19
David Wojczynski
EntityIndividual
Shares5,000
Max PriceUS$83.75
SellUS$1,409,10014 Aug 19
Harrow Neenan Llc
EntityCompany
Shares16,775
Max PriceUS$84.00
SellUS$631,51806 Aug 19
Andrew Prozes
EntityIndividual
Role
Member of the Board of Directors
Director
Shares7,703
Max PriceUS$82.01
SellUS$241,57631 Jul 19
Richard Mauldin
EntityIndividual
Role
Chief Operating Officer
Executive Vice President of Operations
Shares2,919
Max PriceUS$82.76
SellUS$3,668,53230 Jul 19
Christopher Cartwright
EntityIndividual
Role
Chief Executive Officer
President
Shares44,040
Max PriceUS$83.30

Ownership Breakdown


Management Team

  • John Danaher (55yo)

    Executive Vice President of Consumer Interactive

    • Tenure: 0yrs
    • Compensation: US$2.51m
  • Chris Cartwright (54yo)

    President

    • Tenure: 0.4yrs
    • Compensation: US$6.26m
  • Jim Peck (56yo)

    Consultant & Director

    • Tenure: 6.8yrs
    • Compensation: US$12.26m
  • David Neenan (53yo)

    Executive Vice President of International

    • Tenure: 7.1yrs
    • Compensation: US$5.69m
  • Abhi Dhar (47yo)

    Executive VP and Chief Information & Technology Officer

    • Tenure: 0.8yrs
  • Aaron Hoffman

    Vice President of Investor Relations

    • Tenure: 0yrs
  • Tim Elberfeld

    Chief Accounting Officer

    • Tenure: 3.8yrs
  • Heather Russell (47yo)

    Executive VP & Chief Legal Officer

    • Tenure: 1.3yrs
  • Todd Cello (43yo)

    Executive VP & CFO

    • Tenure: 2.2yrs
    • Compensation: US$2.24m
  • Richard Mauldin

    Executive Vice President of Operations

    • Tenure: 0.4yrs

Board Members

  • Pam Joseph (60yo)

    Director

    • Tenure: 4.1yrs
    • Compensation: US$274.94k
  • Leo Mullin (76yo)

    Chairman of the Board

    • Tenure: 4.7yrs
    • Compensation: US$362.44k
  • Bobby Mehta (61yo)

    Director

    • Tenure: 7.5yrs
    • Compensation: US$234.94k
  • Andrew Prozes (73yo)

    Director

    • Tenure: 5.8yrs
    • Compensation: US$277.44k
  • Roger Baker

    Member of Government Advisory Board

    • Tenure: 3.5yrs
  • Chris Cartwright (54yo)

    President

    • Tenure: 0.4yrs
    • Compensation: US$6.26m
  • George Awad (59yo)

    Director

    • Tenure: 5.9yrs
    • Compensation: US$244.94k
  • Jim Peck (56yo)

    Consultant & Director

    • Tenure: 6.8yrs
    • Compensation: US$12.26m
  • Jonathan McDonald

    Executive VP of Government Information Solutions Business Unit & Member of Government Advisory Board

    • Tenure: 3.5yrs
  • Chuck Alsup

    Member of Government Advisory Board

    • Tenure: 3.5yrs

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$15.516b
  • Shares outstanding: 187.80m
  • Website: https://www.transunion.com

Number of Employees


Location

  • TransUnion
  • 555 West Adams Street
  • 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. Information Services (USIS), International, and Consumer Interactive. The USIS segment provides consumer rep ...


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2019/10/22 00:23
End of Day Share Price2019/10/21 00:00
Earnings2019/06/30
Annual Earnings2018/12/31


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.