TransUnion (TRU) AI Stock Analysis

• Market Cap: $16.30B
• Dividend Yield: 0.52%
• Average Volume (3M): 2.45M
• Price to Earnings (P/E): 44.7
• Beta (1Y): 1.99
• Revenue Growth: 8.85%
• EPS Growth: N/A
• Country: US
• Employees: 13,000
• Sector: Industrials
• Sector Strength: 78
• Industry: Consulting Services
• EPS (TTM): 1.87
• Shares Outstanding: 195,140,440
• 10 Day Avg. Volume: 1,970,365
• 30 Day Avg. Volume: 2,449,876
• PEG Ratio: N/A
• Price to Book (P/B): N/A
• Price to Sales (P/S): 0.00
• Price to Cash Flow (P/CF): 0.00
• P/FCF Ratio: 0.00
• Enterprise Value/Market Cap: 1.29
• Enterprise Value/Revenue: N/A
• Enterprise Value/Gross Profit: 8.39
• Enterprise Value/Ebitda: N/A
• 1Y Price Target: $107.31
• Price Target Upside: 28.50% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 15

TransUnion's stock score reflects strong financial performance and positive earnings call sentiment, highlighting robust revenue growth and strategic improvements. However, technical analysis suggests bearish momentum, and valuation metrics indicate potential overvaluation, which weigh down the overall score.

Positive Factors

Product Resilience

The diversified and sticky nature of TRU's product sets highlights its resilience.

Revenue Growth

The company's revenue growth was notably above consensus, primarily driven by strong performance in US Financial Services.

Shareholder Returns

TRU initiated its first share repurchase since 2017 and increased its quarterly dividend by 9.5%.

Negative Factors

Guidance

Full year guide reflects a conservative outlook.

Leverage

Leverage of 2.9x remains above their target.

Macroeconomic Risk

TransUnion carries with it elevated cyclical risk considering recent macroeconomic uncertainty.

TransUnion Business Overview & Revenue Model

Company Description

TransUnion (TRU) is a global information and insights company that operates in the consumer credit reporting industry. Headquartered in Chicago, Illinois, TransUnion provides consumer reports, risk scores, analytical services, and decisioning capabilities to businesses and consumers. Its core services span across consumer lending, insurance, tenant and employment screening, and identity management, enabling businesses to make informed decisions and consumers to access credit and protect their identity.

How the Company Makes Money

TransUnion generates revenue primarily through its credit reporting and analytics services. Key revenue streams include subscriptions and transactional-based sales of consumer credit reports, risk scores, and analytics to a wide range of clients, including financial institutions, insurance companies, and government agencies. Additionally, TransUnion earns income from its specialized services like fraud and identity solutions, which help businesses mitigate risk and prevent fraud. Partnerships with organizations that require credit information, such as lenders and insurers, also play a significant role in revenue generation. Furthermore, TransUnion provides direct-to-consumer services, offering individuals access to their credit scores and monitoring services for a subscription fee. These diverse revenue streams allow TransUnion to maintain a strong presence in the global market.

TransUnion Financial Statement Overview

Summary

TransUnion demonstrates strong financial performance with solid revenue growth and robust profitability margins. The income statement shows efficient cost management with a significant net profit margin of 10.66%. The balance sheet is stable with moderate leverage, while cash flow generation is effective, although attention to free cash flow growth is needed.

Income Statement

TransUnion's TTM (Trailing-Twelve-Months) revenue growth rate is solid, reflecting a positive trajectory with a 1.78% increase from the previous annual period. The gross profit margin stands robustly at 70.22%, indicating strong cost management in relation to revenue. The net profit margin improved significantly over the past year to 10.66%, suggesting enhanced profitability. EBIT and EBITDA margins are healthy at 17.94% and 28.06%, respectively, highlighting efficient operations. Overall, the income statement shows a well-managed and profitable business with consistent revenue and profit growth.

Balance Sheet

The balance sheet reflects a stable financial position, with a debt-to-equity ratio of 1.17, indicating moderate leverage compared to equity. The return on equity (ROE) improved to 10.35%, showcasing effective utilization of shareholder funds to generate profit. The equity ratio is reasonable at 40.06%, suggesting a balanced approach between debt and equity financing. While leverage is manageable, the company should remain cautious of debt levels to ensure long-term financial health.

Cash Flow

TransUnion's cash flow statement reveals a strong operating cash flow to net income ratio of 1.81, indicating efficient cash conversion from earnings. The free cash flow to net income ratio is solid at 1.10, reflecting effective cash generation relative to profits. However, free cash flow growth has been negative at -3.16% compared to the previous annual period, highlighting a slight decline in cash generation. Overall, the cash flow position remains strong, with effective cash management, though attention to free cash flow growth is warranted.

Breakdown
Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement		Total Revenue
4.18B	3.83B	3.71B	2.96B	2.53B
	Gross Profit
2.51B	2.31B	2.32B	1.94B	1.68B
	EBIT
666.70M	128.50M	626.30M	651.90M	500.30M
	EBITDA
1.20B	667.30M	1.13B	995.20M	862.50M
	Net Income Common Stockholders
284.40M	-206.20M	266.30M	1.39B	343.20M
Balance Sheet		Cash, Cash Equivalents and Short-Term Investments
682.00M	478.90M	585.30M	1.84B	493.00M
	Total Assets
10.98B	11.11B	11.67B	12.63B	7.31B
	Total Debt
5.21B	5.45B	5.67B	6.37B	3.45B
	Net Debt
4.53B	4.97B	5.08B	4.52B	2.96B
	Total Liabilities
6.67B	7.00B	7.40B	8.63B	4.68B
	Stockholders Equity
4.22B	4.01B	4.17B	3.91B	2.54B
Cash Flow		Free Cash Flow
516.70M	334.70M	-1.00M	584.10M	573.30M
	Operating Cash Flow
832.50M	645.40M	297.20M	808.30M	787.40M
	Investing Cash Flow
-307.40M	-318.90M	-723.90M	-2.21B	-267.20M
	Financing Cash Flow
-308.70M	-438.80M	-820.50M	2.76B	-296.90M

TransUnion Technical Analysis

• Technical Analysis Sentiment: Neutral
• Last Price: 83.51
• 50DMA: Positive
• 100DMA: Negative
• 200DMA: Negative
• MACD: Negative
• RSI: Neutral
• STOCH: Negative

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For TRU, the sentiment is Neutral. The current price of 83.51 is above the 20-day moving average (MA) of 76.39, above the 50-day MA of 82.75, and below the 200-day MA of 93.16, indicating a neutral trend. The MACD of 0.08 indicates Negative momentum. The RSI at 56.45 is Neutral, neither overbought nor oversold. The STOCH value of 94.19 is Negative, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Neutral sentiment for TRU.

TransUnion Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
EFX	73 Outperform	$32.37B	53.22	12.83%	0.60%	7.12%	9.05%
TRU	72 Outperform	$16.30B	44.73	8.68%	0.52%	8.85%	―
Sector *	63 Neutral	$4.21B	11.55	5.28%	250.72%	4.13%	-9.42%
VRSK	61 Neutral	$40.85B	43.51	463.98%	0.55%	7.47%	59.46%

TransUnion Corporate Events

TransUnion Reports Strong Q1 2025 Financial Results

On April 24, 2025, TransUnion announced its financial results for the first quarter of 2025, reporting a total revenue of $1,096 million, which marks a 7% increase from the previous year. The company exceeded its financial guidance across all key metrics, with significant growth in U.S. Financial Services and Emerging Verticals. Despite challenging market conditions, TransUnion maintained its revenue growth guidance for 2025 and highlighted its ability to navigate potential economic downturns through a diversified portfolio and strategic cost management.

Spark’s Take on TRU Stock

According to Spark, TipRanks’ AI Analyst, TRU is a Neutral.

TransUnion’s overall stock score reflects its robust financial performance with strong revenue growth and improving profitability. The positive sentiment from the earnings call and strategic initiatives like the share repurchase program further enhance its outlook. However, the current technical indicators suggest bearish momentum and a potentially overvalued stock, which weigh down the score.

To see Spark’s full report on TRU stock, click here.

TransUnion Amends Employee Stock Purchase Plan

On February 19, 2025, TransUnion’s Board of Directors approved an amendment to the company’s 2015 Employee Stock Purchase Plan (ESPP). This amendment removes the ten-year term limit, allowing the plan to terminate either by the Board’s decision or upon the issuance of all available shares. This change may impact the company’s employee stock purchase strategy and provide more flexibility in managing stock distributions.

TransUnion Reports Strong Q4 2024 Financial Results

On February 13, 2025, TransUnion announced its fourth quarter and full-year 2024 financial results, highlighting a 9% revenue increase driven by the U.S. Markets Financial Services and Insurance verticals, and the International segment. The company reported strong earnings, with net income rising significantly from the previous year. TransUnion also unveiled a new freemium direct-to-consumer credit education offering and refreshed its capital allocation framework, including a $500 million share repurchase program, signaling a strategic focus on enhancing shareholder value and operational transformation.

TransUnion Announces Retirement Plans for Key Executive

Timothy J. Martin, Executive Vice President and Chief Global Solutions Officer at TransUnion, announced his intention to retire in September 2026. Until then, he will continue in his current role until a successor is appointed, after which he will serve in an advisory role. Under the Retirement Agreement effective January 31, 2025, Martin will maintain a base salary of $612,000 until his successor is in place, after which it will be reduced to $500,000. He is also eligible for annual incentive bonuses and a long-term incentive grant, subject to performance and approval by the Compensation Committee.