TransUnion Stock Analysis, Valuation (NYSE:TRU)

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$58.45 $1.13 (1.97%) TRU stock closing price Feb 23, 2018 (Closing)
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TransUnion
Updated on : Feb 23, 2018
previous close
TRU 58.5 (0%)
S&P 500 2747.3 (0%)
Closing Price On: Feb 23, 2018
stock rating
RATING: ★★★★★★★★★★ (0/5)
Industry :
Business Information Services
Sector :
Business Services
5 Quarter Revenue
Revenue Growth
2017-Q4
$million
%
YOY GROWTH
Compared to the industry
Operating Profit
Operating Margin:
24%
Sector Average:
8.4%
5 Quarter Net Profit
Net Margins
2017-Q4
%
LTM Margin
Compared to the industry
Debt/Equity Ratio
Debt:
2.46B
Debt/Equity Ratio:
 1.35
Compared to the industry
Cash Flow
Operating cash flow:
$119.1M
Net Income:
$245.2M
PROS      CONS
Recent Growth
Operating Margins
Net Margins
ROE
FCF Margin
High Debt Burden
Cash Flow
PE Valuation
PS Valuation
Rating: ★★★★★★★★★★ (0/5)
Relative Valuation
TRU PS :
5.5
Industry PS :
1.6
Sector:   Business Services.   *PE adjusted for one time items.
Other Metrics
Return on Invested Capital:
7.9%
Return on Equity:
28.3%
Free Cash Flow Margin:
14.8%
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TransUnion Stock Analysis

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Take a look at Amigobulls TransUnion stock analysis video. Our TRU analysis video highlights revenue and profit trends along with other important metrics such as valuation to find what makes the stock attractive.

Note: Amigobulls stock rating is our opinion based on the historical performance of the company's fundamentals. It is not indicative of the future performance of the stock.

TransUnion Stock Rating 3.4/5

Amigobulls TRU stock analysis takes into account various financial ratios like relative valuation, TransUnion revenue, growth and return on equity based on latest quarter 2017 Q3 financial statements. We also check TransUnion dividend performance. We also use relative valuation metrics like PE ratio and price to sales ratio for TransUnion valuation analysis. Our TransUnion stock rating is based on company's fundamentals like balance sheet risk and cash flow position.

Should you buy TRU stock?

  • TransUnion's revenue growth came in at 16.1% in 2017 Q4.
  • The TTM operating margin was good at 24% for TransUnion.
  • Net margins came in at average 22.8% for TransUnion over the last twelve months.
  • Return On Equity (ROE) which is a measure of the company's profitability, looks great for TransUnion at 28.3%.
  • The company has a good Free Cash Flow (FCF) margin of 14.8%.

Should you sell TRU stock?

  • TransUnion is debt laden and has a high debt/equity ratio of  1.35.
  • Cash flow from operations is low at 0.5 times the net income.
  • The TRU stock currently trades at a PE of 34, which is expensive, compared to the industry average of 22.1.
  • TRU stock is trading at a PS multiple of 5.5, which is a negative when compared to the Business Information Services industry average multiple of 1.6.

Comments on this video and TransUnion stock

Investors can make use of the Amigobulls TransUnion stock analysis to ascertain how TRU stock fares in fundamental analysis investment criteria. Fundamentals of a company give detailed information which helps in making invesment decisions.

TransUnion revenue growth and profit or net income are the main underlying forces which could detremine the direction of the share price. Investors could make use of TRU technical analysis to check whether the fundamental story is reflected in the market sentiment.