TransUnion
TransUnion Fundamental Analysis
TransUnion (TRU) shows weak financial fundamentals with a PE ratio of 31.60, profit margin of 9.95%, and ROE of 10.23%. The company generates $4.6B in annual revenue with moderate year-over-year growth of 9.20%.
Key Strengths
Areas of Concern
The stock receives a Fundamental Health Score of 49.2/100 based on profitability, valuation, growth, and balance sheet metrics. The D grade reflects weak fundamentals and significant financial concerns.
Fundamental Health Score
We analyze TRU's fundamental strength across five key dimensions:
Efficiency Score
WeakTRU struggles to generate sufficient returns from assets.
Valuation Score
WeakTRU trades at a premium to fair value.
Growth Score
ModerateTRU shows steady but slowing expansion.
Financial Health Score
ModerateTRU shows balanced financial health with some risks.
Profitability Score
WeakTRU struggles to sustain strong margins.
Key Financial Metrics
Is TRU Expensive or Cheap?
P/E Ratio
TRU trades at 31.60 times earnings. This suggests a premium valuation.
PEG Ratio
When adjusting for growth, TRU's PEG of 3.79 indicates potential overvaluation.
Price to Book
The market values TransUnion at 3.24 times its book value. This suggests the stock is fully valued or overvalued on an asset basis.
EV/EBITDA
Enterprise value stands at 6.95 times EBITDA. This is generally considered low.
How Well Does TRU Make Money?
Net Profit Margin
For every $100 in sales, TransUnion keeps $9.95 as profit after all expenses.
Operating Margin
Core operations generate 18.86 in profit for every $100 in revenue, before interest and taxes.
ROE
Management delivers $10.23 in profit for every $100 of shareholder equity.
ROA
TransUnion generates $4.10 in profit for every $100 in assets, demonstrating efficient asset deployment.
Following the Money - Real Cash Generation
Operating Cash Flow
TransUnion produces operating cash flow of $985.49M, showing steady but balanced cash generation.
Free Cash Flow
TransUnion generates strong free cash flow of $660.19M, providing ample flexibility for dividends, buybacks, or growth.
FCF Per Share
Each share generates $3.40 in free cash annually.
FCF Yield
TRU converts 4.60% of its market value into free cash.
Financial Ratios Analysis
Valuation Ratios
P/E Ratio
Price to earnings ratio
31.60
vs 25 benchmark
PEG Ratio
Price/earnings to growth ratio
3.79
vs 25 benchmark
P/B Ratio
Price to book value ratio
3.24
vs 25 benchmark
P/S Ratio
Price to sales ratio
3.14
vs 25 benchmark
Financial Health
Debt/Equity
Total debt to shareholders' equity
1.15
vs 25 benchmark
Current Ratio
Current assets to current liabilities
1.75
vs 25 benchmark
Efficiency Ratios
ROE
Return on equity percentage
0.10
vs 25 benchmark
ROA
Return on assets percentage
0.04
vs 25 benchmark
ROCE
Return on capital employed
0.09
vs 25 benchmark
How TRU Stacks Against Its Sector Peers
| Metric | TRU Value | Sector Average | Performance |
|---|---|---|---|
| P/E Ratio | 31.60 | 26.71 | Worse (Expensive) |
| ROE | 10.23% | 1311.00% | Weak |
| Net Margin | 9.95% | -29317.00% (disorted) | Weak |
| Debt/Equity | 1.15 | 0.75 | Weak (High Leverage) |
| Current Ratio | 1.75 | 10.53 | Neutral |
| ROA | 4.10% | -1537638.00% (disorted) | Weak |
TRU outperforms its industry in 0 out of 6 key metrics, but lagging in P/E Ratio.
Historical Growth Performance
5-Year Growth Trajectory
This section reviews TransUnion's 5-year compound annual growth rate (CAGR) and compares its performance against the typical investment style of its industry.
Revenue CAGR
64.09%
Industry Style: Cyclical, Value, Infrastructure
High GrowthEPS CAGR
-20.80%
Industry Style: Cyclical, Value, Infrastructure
DecliningFCF CAGR
3.55%
Industry Style: Cyclical, Value, Infrastructure
Growing