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

1.9%

NYSE:TRU

0.7%

US Professional Services

0.9%

US Market


1 Year Return

13.5%

NYSE:TRU

9.3%

US Professional Services

0.3%

US Market

TRU outperformed the Professional Services industry which returned 8.5% over the past year.

TRU outperformed the Market in United States of America which returned -0.5% over the past year.


Share holder returns

TRUIndustryMarket
7 Day1.9%0.7%0.9%
30 Day11.5%1.3%-1.9%
90 Day26.7%9.4%1.6%
1 Year13.9%13.5%10.2%9.3%2.6%0.3%
3 Year155.1%153.7%50.6%45.9%41.0%31.8%
5 Yearn/a73.8%64.9%55.2%38.0%

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 based on future cash flows and its price relative to the stock market?

47.62x

Price to Earnings (PE) ratio


Intrinsic Value Based on Future Cash Flows

TransUnion's share price is above the future cash flow value, it's not available at a moderate discount (< 20%).

TransUnion's share price is above the future cash flow value, it's not available at a substantial discount (< 40%).


Price Based on Earnings

TransUnion is overvalued based on earnings compared to the US Professional Services industry average.

TransUnion is overvalued based on earnings compared to the United States of America market.


Price Based on Expected Growth

TransUnion is poor value based on expected growth next year.


Price Based on Value of Assets

TransUnion is overvalued based on assets compared to the US Professional Services industry average.


Next Steps

Future Growth

How is TransUnion expected to perform in the next 1 to 3 years based on estimates from 14 analysts?

21.1%

Forecasted annual earnings growth


Earnings and Revenue Growth Estimates


Future Annual Growth Analysis

TransUnion's revenue is expected to grow by 8.1% yearly, however this is not considered high growth (20% yearly).

TransUnion's earnings are expected to grow significantly at over 20% yearly.

TransUnion's revenue growth is expected to exceed the United States of America market average.

TransUnion's earnings growth is expected to exceed the United States of America market average.

TransUnion's earnings growth is expected to exceed the low risk savings rate of 2.7%.


Earnings per Share Growth Estimates


Future Return on Equity

TransUnion is not expected to efficiently use shareholders’ funds in the future (Return on Equity less than 20%).


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

TransUnion has delivered over 20% year on year earnings growth in the past 5 years.

TransUnion's 1-year earnings growth is negative, it can't be compared to the 5-year average.

TransUnion's 1-year earnings growth is negative, it can't be compared to the US Professional Services industry average.


Return on Equity

TransUnion has not efficiently used shareholders’ funds last year (Return on Equity less than 20%).


Return on Assets

TransUnion used its assets less efficiently than the US Professional Services industry average last year based on Return on Assets.


Return on Capital Employed

TransUnion has significantly improved its use of capital last year versus 3 years ago (Return on Capital Employed).


Next Steps

Financial Health

How is TransUnion's financial position?


Financial Position Analysis

TransUnion is able to meet its short term (1 year) commitments with its holdings of cash and other short term assets.

TransUnion's long term commitments exceed its cash and other short term assets.


Debt to Equity History and Analysis

TransUnion's level of debt (188.1%) compared to net worth is high (greater than 40%).

The level of debt compared to net worth has been reduced over the past 5 years (355.5% vs 188.1% today).

Debt is not well covered by operating cash flow (15.8%, less than 20% of total debt).

Interest payments on debt are well covered by earnings (EBIT is 3.1x coverage).


Balance Sheet

Low level of unsold assets.

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?

0.39%

Expected Dividend Yield


Upcoming Dividend Payment

Purchase TransUnion before the 'Buy Limit' to receive their next dividend payment.


Dividend Yield and Payments Analysis

TransUnion's pays a lower dividend yield than the bottom 25% of dividend payers in United States of America (1.49%).

TransUnion's dividend is below the markets top 25% of dividend payers in United States of America (3.84%).

TransUnion is not paying a notable dividend for United States of America, therefore no need to check if the payments are stable.

TransUnion is not paying a notable dividend for United States of America, therefore no need to check if the payments are increasing.


Current Payout to Shareholders

No need to calculate the sustainability of TransUnion's dividends as it is not paying a notable one for United States of America.


Future Payout to Shareholders

No need to calculate the sustainability of TransUnion's dividends in 3 years as they are not expected to pay a notable one for United States of America.


Next Steps

Management

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

0.9yrs

Average management tenure


CEO

Chris Cartwright (54yo)

0.3yrs

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

Chris's remuneration is lower than average for companies of similar size in United States of America.

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

0.9yrs

Average Tenure

53yo

Average Age

The average tenure for the TransUnion management team is less than 2 years, this suggests a new team.


Board Age and Tenure

4.2yrs

Average Tenure

60yo

Average Age

The tenure for the TransUnion board of directors is about average.


Insider Trading

TransUnion individual insiders have only sold shares in the past 3 months.


Recent Insider Transactions

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: 0.0yrs
    • Compensation: US$2.51m
  • Chris Cartwright (54yo)

    President

    • Tenure: 0.3yrs
    • Compensation: US$6.26m
  • Jim Peck (56yo)

    Consultant & Director

    • Tenure: 6.7yrs
    • Compensation: US$12.26m
  • David Neenan (53yo)

    Executive Vice President of International

    • Tenure: 6.9yrs
    • Compensation: US$5.69m
  • Abhi Dhar (47yo)

    Executive VP and Chief Information & Technology Officer

    • Tenure: 0.6yrs
  • Aaron Hoffman

    Vice President of Investor Relations

    • Tenure: 0.0yrs
  • Tim Elberfeld

    Chief Accounting Officer

    • Tenure: 3.6yrs
  • Heather Russell (47yo)

    Executive VP & Chief Legal Officer

    • Tenure: 1.2yrs
  • Todd Cello (43yo)

    Executive VP & CFO

    • Tenure: 2.0yrs
    • Compensation: US$2.24m
  • Richard Mauldin

    Executive Vice President of Operations

    • Tenure: 0.3yrs

Board Members

  • Pam Joseph (60yo)

    Director

    • Tenure: 3.9yrs
    • Compensation: US$274.94k
  • Leo Mullin (76yo)

    Chairman of the Board

    • Tenure: 4.5yrs
    • Compensation: US$362.44k
  • Bobby Mehta (61yo)

    Director

    • Tenure: 7.3yrs
    • Compensation: US$234.94k
  • Andrew Prozes (73yo)

    Director

    • Tenure: 5.6yrs
    • Compensation: US$277.44k
  • Roger Baker

    Member of Government Advisory Board

    • Tenure: 3.3yrs
  • Chris Cartwright (54yo)

    President

    • Tenure: 0.3yrs
    • Compensation: US$6.26m
  • George Awad (59yo)

    Director

    • Tenure: 5.8yrs
    • Compensation: US$244.94k
  • Jim Peck (56yo)

    Consultant & Director

    • Tenure: 6.7yrs
    • Compensation: US$12.26m
  • Jonathan McDonald

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

    • Tenure: 3.3yrs
  • Chuck Alsup

    Member of Government Advisory Board

    • Tenure: 3.3yrs

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$15.709b
  • 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 Analysis2019/08/20 00:29
End of Day Share Price2019/08/19 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.