TransUnion (TRU) AI Stock Analysis

• Market Cap: $15.25B
• Dividend Yield: 0.53%
• Average Volume (3M): 2.98M
• Price to Earnings (P/E): 33.9
• Beta (1Y): 1.56
• Revenue Growth: 8.30%
• EPS Growth: 86.97%
• Country: US
• Employees: 13,000
• Sector: Financial
• Sector Strength: 70
• Industry: Consulting Services
• EPS (TTM): 1.07
• Shares Outstanding: 194,200,000
• 10 Day Avg. Volume: 2,581,032
• 30 Day Avg. Volume: 2,981,965
• PEG Ratio: 0.61
• Price to Book (P/B): 3.76
• Price to Sales (P/S): 3.64
• P/FCF Ratio: 25.20
• Enterprise Value/Market Cap: 1.28
• Enterprise Value/Revenue: 4.26
• Enterprise Value/Gross Profit: 8.07
• Enterprise Value/Ebitda: 13.40
• 1Y Price Target: $92.31
• Price Target Upside: 17.52% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 14
• EPS Forecast (FY): 4.77
• Revenue Forecast (FY): $4.99B

• Rating: 64 Neutral
• Price Target: $76.00 ▼(-3.25% Downside)
• Action: Reiterated Date: 02/14/26
• Date: Action: Reiterated 02/14/26

The score is driven primarily by improving fundamentals (profitability and cash flow recovery) and upbeat 2026 guidance with strong expected free-cash-flow conversion. These positives are tempered by bearish technicals (price below key moving averages and negative MACD), a relatively high P/E with limited dividend support, and balance-sheet leverage that remains elevated.

Positive Factors

Revenue Growth & U.S. Market Strength

Sustained revenue momentum, led by U.S. Financial Services, reflects durable demand for credit, fraud and analytics solutions. Multi-year growth (2020–2025) and repeat double-digit U.S. strength support a resilient revenue base, diversified end-markets, and durable commercial traction for 2–6 months and beyond.

Improving Cash Generation & FCF

Strengthening operating cash flow and materially higher free cash flow provide durable capacity for buybacks, dividends, M&A and debt payoff. Targeted ≥90% conversion signals management focus on cash conversion; while lumpiness remains, the structural improvement bolsters financial flexibility over the medium term.

Product & Platform Momentum

Rapid product releases and OneTru customer migrations indicate structural strengthening of the platform, accelerating cross-sell and faster product iteration. Platform consolidation improves operating leverage, shortens sales cycles and creates stickier enterprise relationships that support sustainable revenue and margin expansion.

Negative Factors

Elevated Leverage

A still-elevated debt load constrains strategic optionality and raises sensitivity to cash-flow swings. With material net interest and leverage above targets, weaker demand or margin pressure could delay deleveraging, increasing refinancing and covenant risk over the next several quarters.

International Market Weakness

Persistent softness across key international markets reduces geographic diversification and exposes growth to regulatory and macro volatility. Slower recoveries in India and Latin America could keep consolidated growth muted and limit upside from non-U.S. segments for multiple quarters.

Mortgage / FICO Royalty & Margin Uncertainty

Dependence on mortgage-related royalties and the potential for FICO licensing shifts create structural revenue volatility without proportional profit. This dynamic can compress reported margins and complicate forecasting, making near-term margin and cash outcomes more sensitive to industry licensing and volume changes.

TransUnion Business Overview & Revenue Model

Company Description

TransUnion provides risk and information solutions. The company operates in three segments: U.S. Markets, International, and Consumer Interactive. The U.S. Markets segment provides consumer reports, actionable insights, and analytics to businesses. These businesses use its services to acquire new customers; assess consumer ability to pay for services; identify cross-selling opportunities; measure and manage debt portfolio risk; collect debt; verify consumer identities; and mitigate fraud risk. This segment serves various industry vertical markets, including financial services, insurance, tenant and employment, collections and services, technology, commerce and communication, public sector, media, and other markets. The International segment offers credit reports, analytics, technology solutions, and other value-added risk management services; and consumer services, which help consumers to manage their personal finances and consumer credit reporting, insurance and auto information solutions, and commercial credit information services. This segment serves customers in financial services, retail credit, insurance, automotive, collections, public sector, and communications industries through direct and indirect channels. The Consumer Interactive segment provides credit reports and scores, credit monitoring, identity protection and resolution, and financial management solutions that enable consumers to manage their personal finances and take precautions against identity theft. This segment offers its products through online and mobile interfaces, as well as through direct and indirect channels. The company serves customers in approximately 30 countries and territories, including North America, Latin America, Europe, Africa, India, and the Asia Pacific. The company was formerly known as TransUnion Holding Company, Inc. and changed its name to TransUnion in March 2015. TransUnion was founded in 1968 and is headquartered in Chicago, Illinois.

How the Company Makes Money

TransUnion generates revenue through multiple streams, primarily from its Credit Reporting and Analytics segment, which includes the sale of credit reports and scores to lenders and other businesses that require consumer credit data for decision-making. Additionally, the company earns income from its Fraud and Risk Management services, which help organizations prevent identity theft and reduce fraud-related losses. TransUnion also offers specialized solutions for various industries, such as healthcare and telecommunications, contributing to its diversified revenue base. Significant partnerships with financial institutions, data providers, and technology firms enhance its ability to deliver integrated solutions and expand its market reach, further supporting its earnings. The company's ongoing investment in data innovation and analytics capabilities plays a crucial role in driving its growth and profitability.

TransUnion Financial Statement Overview

Summary

Steady multi-year revenue growth and a clear profitability rebound in 2024–2025, supported by stronger operating and free cash flow. The main constraint is the still-elevated debt load and historically lumpy cash conversion, which increases risk if growth or margins soften.

Income Statement

Revenue has grown steadily from $2.53B (2020) to $4.58B (2025), with modest growth in 2025 versus 2024. Profitability has improved meaningfully since the 2023 loss: net profit margin rebounded to ~10.0% in 2025 from ~6.8% in 2024 and negative in 2023, alongside stronger operating profitability (operating margin ~18.9% and EBITDA margin ~31.5% in 2025). Offsetting this, growth is not consistently strong year-to-year and margins are still below the unusually high 2021 net margin level, indicating earnings can be somewhat volatile.

Balance Sheet

Leverage remains elevated, with debt running higher than equity (debt-to-equity ~1.15 in 2025), though it has improved versus 2021–2023 levels. Equity has increased over time ($2.54B in 2020 to $4.44B in 2025), and returns to shareholders recovered to ~10.3% in 2025 after a negative year in 2023. The main weakness is the consistently high debt load (still ~$5.10B in 2025), which can limit flexibility if profitability or cash generation weakens.

Cash Flow

Cash generation has strengthened, with operating cash flow rising to ~$988M in 2025 from ~$833M in 2024 and ~$645M in 2023, and free cash flow improving to ~$662M in 2025. Free cash flow growth was solid in 2025, supporting a healthier cash profile. However, cash conversion is not consistently strong: free cash flow has been lumpy (including near-breakeven in 2022), and operating cash flow relative to reported earnings remains below 1.0 in recent years, suggesting earnings quality and working-capital timing can still be a swing factor.

Breakdown	Dec 2025	Dec 2024	Dec 2023	Dec 2022	Dec 2021
Income Statement
Total Revenue	4.58B	4.18B	3.83B	3.71B	2.96B
Gross Profit	2.70B	2.51B	2.31B	2.32B	1.94B
EBITDA	1.44B	1.20B	667.30M	1.13B	995.20M
Net Income	455.40M	284.40M	-206.20M	266.30M	1.39B
Balance Sheet
Total Assets	11.11B	10.98B	11.11B	11.67B	12.63B
Cash, Cash Equivalents and Short-Term Investments	853.60M	682.00M	478.90M	587.90M	1.85B
Total Debt	5.10B	5.21B	5.45B	5.81B	6.52B
Total Liabilities	6.57B	6.67B	7.00B	7.40B	8.63B
Stockholders Equity	4.44B	4.22B	4.01B	4.17B	3.91B
Cash Flow
Free Cash Flow	661.60M	516.70M	334.70M	-1.00M	584.10M
Operating Cash Flow	987.60M	832.50M	645.40M	297.20M	808.30M
Investing Cash Flow	-331.70M	-307.40M	-318.90M	-723.90M	-2.21B
Financing Cash Flow	-494.60M	-308.70M	-438.80M	-820.50M	2.76B

TransUnion Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 78.55
• 50DMA: Negative
• 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 Negative. The current price of 78.55 is above the 20-day moving average (MA) of 73.90, below the 50-day MA of 80.46, and below the 200-day MA of 84.82, indicating a neutral trend. The MACD of -1.14 indicates Negative momentum. The RSI at 54.14 is Neutral, neither overbought nor oversold. The STOCH value of 86.94 is Negative, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for TRU.

TransUnion Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
Sector *	68 Neutral	$18.00B	11.42	9.92%	3.81%	9.73%	1.22%
EFX	67 Neutral	$25.13B	39.27	14.05%	0.86%	6.35%	16.91%
TRU	64 Neutral	$15.25B	33.86	10.52%	0.53%	8.30%	86.97%
VRSK	62 Neutral	$28.63B	32.01	444.05%	0.82%	7.30%	2.03%

TransUnion Corporate Events

TransUnion Posts Strong Q4 Results, Issues Upbeat 2026 Outlook

On February 11, 2026, TransUnion Intermediate Holdings, Trans Union LLC and certain subsidiaries amended their existing credit agreement to add $400 million of incremental revolving credit commitments, lifting total revolving commitments to $1 billion and reaffirming secured guarantees across substantially all assets. The move enhances the company’s liquidity and financial flexibility while maintaining existing covenant structures, underscoring continued lender support for its balance sheet and growth strategy.

On February 12, 2026, TransUnion reported strong fourth-quarter and full-year 2025 results, with quarterly revenue up 13 percent to $1.17 billion and full-year revenue up 9 percent to $4.58 billion, driven by 19 percent growth in U.S. Financial Services and 16 percent in Emerging Verticals. Net income, adjusted earnings and Adjusted EBITDA all increased year over year, supporting $300 million of 2025 share repurchases, a higher quarterly dividend and initial 2026 guidance calling for high single-digit revenue and earnings growth, signaling confidence in its strategic transformation and operating momentum.

Segment performance in the fourth quarter of 2025 showed particularly robust gains in U.S. Markets, where total revenue grew 16 percent and Adjusted EBITDA rose 12 percent, while International revenue increased 4 percent with mixed regional trends. Strong cash generation lifted year-end cash to $854 million, and higher operating cash flow alongside targeted acquisitions and capital spending highlighted TransUnion’s capacity to invest for growth while returning capital to shareholders.

The most recent analyst rating on (TRU) stock is a Hold with a $74.00 price target. To see the full list of analyst forecasts on TransUnion stock, see the TRU Stock Forecast page.

TransUnion expands board with technology and AI leaders

On December 19, 2025, TransUnion’s board of directors voted to expand its size from 10 to 12 members and appointed former Workday executive Sayan Chakraborty and former Microsoft executive Charlotte Yarkoni as new directors, with their appointments effective January 5, 2026 and terms running until the 2026 annual shareholders’ meeting. Chakraborty, who will join the Technology Committee, and Yarkoni, who will serve on the Compensation Committee, bring deep experience in AI, cloud, and large-scale product and platform transformation, a move that underscores TransUnion’s strategic push to bolster its capabilities in AI-enabled, technology-driven information solutions and strengthen its positioning as a leader in data, analytics and digital platforms for global financial and commercial markets.

The most recent analyst rating on (TRU) stock is a Buy with a $118.00 price target. To see the full list of analyst forecasts on TransUnion stock, see the TRU Stock Forecast page.