TransUnion Stock Analysis, Valuation (NYSE:TRU)

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$46.49 $0.12 (0.26%) TRU stock closing price Aug 18, 2017 (Closing)
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TransUnion
Updated on : Aug 18, 2017
previous close
TRU 46.5 (0%)
S&P 500 2425.6 (0%)
Closing Price On: Aug 18, 2017
stock rating
RATING: ★★★★★★★★★★ (0/5)
Industry :
Business Information Services
Sector :
Business Services
5 Quarter Revenue
Revenue Growth
2017-Q2
$million
%
YOY GROWTH
Compared to the industry
Operating Profit
Operating Margin:
22.3%
Sector Average:
8.7%
5 Quarter Net Profit
Net Margins
2017-Q2
%
LTM Margin
Compared to the industry
Debt/Equity Ratio
Debt:
2.35B
Debt/Equity Ratio:
 1.6
Compared to the industry
Cash Flow
Operating cash flow:
$106.9M
Net Income:
$64.9M
PROS      CONS
Recent Growth
Operating Margins
Net Margins
Cash Flow
FCF Margin
High Debt Burden
PE Valuation
PS Valuation
Rating: ★★★★★★★★★★ (0/5)
Relative Valuation
TRU PS :
4.7
Industry PS :
1.6
Sector:   Business Services.   *PE adjusted for one time items.
Other Metrics
Return on Invested Capital:
7.9%
Return on Equity:
15.1%
Free Cash Flow Margin:
15.8%
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TransUnion Analysis Video

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View TransUnion stock analysis video. This is our TRU analyst opinion covering the buy and sell arguments for TRU stock.

TransUnion Stock Rating (3.2/5)

Our TransUnion stock opinion is based on fundamentals of the company. This TransUnion stock analysis is based on latest 2017 Q2 earnings. The stock price analysis takes into account the company's valuation metrics.

Should you buy TRU stock?

  • TransUnion's revenue growth came in at 11.5% in 2017 Q2.
  • TransUnion had a healthy average operating margin of 22.3% over the last 4 quarters.
  • Net margins came in at average 12.1% for TransUnion over the last twelve months.
  • The company has an operating cash flow which is 1.6 times the net income.
  • TransUnion has a healthy FCF (Free Cash Flow) margin of 15.8%.

Should you sell TRU stock?

  • TransUnion is debt laden and has a high debt/equity ratio of  1.6.
  • Trading at a PE ratio of 29.6, TRU stock is overvalued in comparison to industry average multiple of 21.8.
  • TRU stock is trading at a PS multiple of 4.7, which is a negative when compared to the Business Information Services industry average multiple of 1.6.

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