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TransUnion
(NYSE:TRU)
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Rating:68Neutral
Price Target:
$83.00
â–²(6.07% Upside)
Action:Reiterated
Date:05/16/26
TRU scores positively on fundamentals and outlook: profitability and cash generation have improved, and the earnings call reinforced sustained revenue/EPS growth expectations despite margin and interest headwinds. Valuation is a clear support (low P/E), but the overall score is held back by weak technicals (downtrend/negative MACD) and balance-sheet leverage that increases sensitivity to execution and rate conditions.
Positive Factors
Recurring, diversified revenue model
TransUnion's business generates recurring and usage-based revenue across multiple durable streams (B2B subscriptions, per-transaction fees, consumer subscriptions and international contracts). This mix fosters sticky cash flows, high customer switching costs, and predictable long-term demand from regulated credit/identity workflows.
Negative Factors
Elevated leverage and sensitivity to rates
Debt on the balance sheet is meaningfully above equity and reported leverage rose after recent acquisitions. Higher leverage increases vulnerability to earnings or interest-rate shocks, limits strategic optionality, and makes debt reduction and cash generation execution critical for long-term stability.
Read all positive and negative factors
Positive Factors
Negative Factors
Recurring, diversified revenue model
TransUnion's business generates recurring and usage-based revenue across multiple durable streams (B2B subscriptions, per-transaction fees, consumer subscriptions and international contracts). This mix fosters sticky cash flows, high customer switching costs, and predictable long-term demand from regulated credit/identity workflows.
Read all positive factors
TransUnion (TRU) vs. SPDR S&P 500 ETF (SPY)
Market Cap
$14.46B
Dividend Yield0.53%
Average Volume (3M)2.66M
Price to Earnings (P/E)20.9
Beta (1Y)1.45
Revenue Growth10.99%
EPS Growth93.17%
CountryUS
Employees13,500
SectorFinancial
Sector Strength70
IndustrySpecialty Business Services
Share Statistics
EPS (TTM)3.64
Shares Outstanding192,800,000
10 Day Avg. Volume2,489,454
30 Day Avg. Volume2,663,215
Financial Highlights & Ratios
PEG Ratio0.61
Price to Book (P/B)3.76
Price to Sales (P/S)3.64
P/FCF Ratio25.20
Enterprise Value/Market Cap1.20
Enterprise Value/Revenue3.68
Enterprise Value/Gross Profit6.97
Enterprise Value/Ebitda10.18
Forecast
1Y Price Target
$88.44Price Target Upside13.02% Upside
Rating ConsensusModerate Buy
Number of Analyst Covering17
EPS Forecast (FY)4.78
Revenue Forecast (FY)$5.13B
TransUnion Business Overview & Revenue Model
Company Description
TransUnion operates as a global consumer credit reporting agency that provides risk and information solutions. The company operates in two segments, U.S. Markets and International. The U.S. Markets segment provides credit reporting, credit marketi...
How the Company Makes Money
TransUnion primarily makes money by selling data-driven products and services—delivered via reports, scores, analytics platforms, and APIs—to business customers and consumers. Major revenue streams include: (1) Business-to-business (B2B) informati...
TransUnion Earnings Call Summary
Earnings Call Date:Apr 28, 2026
(Q1-2026)
| % Change Since: |
Next Earnings Date:Jul 28, 2026
Earnings Call Sentiment Positive
The call highlights strong top-line outperformance (14% reported, 11% organic), double-digit EPS and EBITDA growth, rapid AI-driven product innovation and customer wins, and strategic M&A and capital return activity. Offsetting headwinds are modest margin pressure from FICO royalties and acquisition accounting, near-term international softness in select markets (India, Asia Pacific), a temporary rise in leverage and higher interest expense tied to the Mexico acquisition, and macro/geopolitical uncertainty that prompted conservative guidance posture. Overall the positives (broad-based revenue growth, product/AI momentum, strengthened guidance framework and M&A that expands addressable markets) materially outweigh the contained negatives.Positive Updates
Revenue Outperformance
Total revenue increased 14% year-over-year (11% organic constant currency), exceeding the high end of guidance by $41 million; excluding FICO mortgage royalties, organic growth was 7%.
Negative Updates
Adjusted EBITDA Margin Contraction
Adjusted EBITDA margin declined to 35.2%, down ~100 basis points year-over-year; full-year margin guidance 35.2%–35.4%, down 60–80 basis points.
Read all updates
Q1-2026 Updates
Positive
Negative
Revenue Outperformance
Total revenue increased 14% year-over-year (11% organic constant currency), exceeding the high end of guidance by $41 million; excluding FICO mortgage royalties, organic growth was 7%.
Read all positive updates
Company Guidance
TransUnion maintained its 2026 guidance while providing updated near‑term and full‑year metrics: Q2 revenue is guided to $1.271–$1.283B (up 12–13%) with organic constant‑currency growth of 8–9% (5–6% ex‑FICO) and ~4% contribution from acquisitions; Q2 adjusted EBITDA $439–$445M (34.5–34.7% margin) and adjusted diluted EPS $1.13–$1.15 (+4–6%). Full‑year revenue is $5.10–$5.135B (+11–12%) with organic growth 8–9% (5–6% ex‑FICO), acquisitions +3.5% and FX immaterial; mortgage revenue is expected +28% (6% ex‑FICO) vs. mid‑single‑digit inquiry declines and international growth mid‑single digits. Full‑year adjusted EBITDA is $1.796–$1.816B (+9–10%) implying a 35.2–35.4% margin (down 60–80 bps; underlying margin expansion +50–70 bps offset by ~90 bps FICO royalty headwind and ~40 bps M&A impact); adjusted diluted EPS is $4.68–$4.75 (+9–11%). Other guidance items: D&A ≈$640M (≈$320M ex step‑up), net interest ≈$245M (up $25M), adjusted tax rate ~25.5%, CapEx ≈6% of revenue, free cash‑flow conversion ≥90% of adjusted net income, Q1 leverage 2.8x with a long‑term target <2.5x, $25M repurchased YTD with a $1B buyback authorization; the increase to the high end of guidance primarily reflects consolidation of TransUnion Mexico (adds roughly $154M revenue, $39M adjusted EBITDA and ~$0.04 EPS).TransUnion Financial Statement Overview
Summary
Income Statement
74
Positive
Balance Sheet
62
Positive
Cash Flow
69
Positive
| Breakdown | TTM | Dec 2025 | Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 |
|---|---|---|---|---|---|---|
Income Statement | ||||||
| Total Revenue | 4.73B | 4.58B | 4.18B | 3.83B | 3.71B | 2.96B |
| Gross Profit | 2.49B | 2.70B | 2.51B | 2.31B | 2.32B | 1.94B |
| EBITDA | 1.71B | 1.45B | 1.20B | 667.30M | 1.13B | 995.20M |
| Net Income | 704.60M | 455.40M | 284.40M | -206.20M | 266.30M | 1.39B |
Balance Sheet | ||||||
| Total Assets | 12.05B | 11.11B | 10.98B | 11.11B | 11.67B | 12.63B |
| Cash, Cash Equivalents and Short-Term Investments | 732.50M | 856.30M | 682.00M | 478.90M | 587.90M | 1.85B |
| Total Debt | 5.68B | 5.16B | 5.21B | 5.45B | 5.81B | 6.52B |
| Total Liabilities | 7.13B | 6.57B | 6.67B | 7.00B | 7.40B | 8.63B |
| Stockholders Equity | 4.75B | 4.44B | 4.22B | 4.01B | 4.17B | 3.91B |
Cash Flow | ||||||
| Free Cash Flow | 696.50M | 661.60M | 516.70M | 334.70M | -1.00M | 584.10M |
| Operating Cash Flow | 1.02B | 987.60M | 832.50M | 645.40M | 297.20M | 808.30M |
| Investing Cash Flow | -831.80M | -331.70M | -307.40M | -318.90M | -723.90M | -2.21B |
| Financing Cash Flow | -53.00M | -494.60M | -308.70M | -438.80M | -820.50M | 2.76B |
TransUnion Technical Analysis
Positive
78.25
Price Trends
70.30
Positive
71.45
Positive
76.37
Negative
Market Momentum
2.13
Negative
60.04
Neutral
58.04
Neutral
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For TRU, the sentiment is Positive. The current price of 78.25 is above the 20-day moving average (MA) of 71.31, above the 50-day MA of 70.30, and above the 200-day MA of 76.37, indicating a neutral trend. The MACD of 2.13 indicates Negative momentum. The RSI at 60.04 is Neutral, neither overbought nor oversold. The STOCH value of 58.04 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for TRU.
TransUnion Risk Analysis
TransUnion disclosed 37 risk factors in its most recent earnings report. TransUnion reported the most risks in the "Finance & Corporate" category.
Finance & Corporate - Financial and accounting risks. Risks related to the execution of corporate activity and strategy
Latest Risks Added 0 New Risks
TransUnion Peers Comparison
UnderperformOutperform
Sector (68)
TRU
TransUnion
76.21
-13.73
-15.26%
EFX
Equifax
172.61
-82.09
-32.23%
VRSK
Verisk Analytics
193.73
-103.71
-34.87%
TransUnion Corporate Events
Executive/Board ChangesShareholder Meetings
TransUnion Shareholders Back Board, Auditor and Governance Changes
Positive
May 15, 2026
TransUnion held its Annual Meeting of Stockholders on May 12, 2026, at which shareholders elected twelve directors to one-year terms expiring at the 2027 meeting and ratified PricewaterhouseCoopers LLP as the company’s independent auditor fo...
Business Operations and StrategyFinancial DisclosuresM&A Transactions
TransUnion Raises 2026 Outlook After Strong Q1 Results
Positive
Apr 28, 2026
TransUnion reported strong first-quarter 2026 results on April 28, 2026, with revenue rising 14% year over year to $1.25 billion, or 11% on an organic constant-currency basis, led by 24% growth in U.S. Financial Services and solid gains across mos...
Glossary
BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
Disclaimer
This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.