TransUnion (TRU) AI Stock Analysis

• Market Cap: $16.06B
• Dividend Yield: 0.53%
• Average Volume (3M): 1.87M
• Price to Earnings (P/E): 55.9
• Beta (1Y): 2.20
• Revenue Growth: 9.20%
• EPS Growth: N/A
• Country: US
• Employees: 13,400
• Sector: Industrials
• Sector Strength: 72
• Industry: Corporate Services
• EPS (TTM): 1.45
• Shares Outstanding: 195,100,000
• 10 Day Avg. Volume: 2,195,002
• 30 Day Avg. Volume: 1,870,444
• PEG Ratio: N/A
• Price to Book (P/B): N/A
• Price to Sales (P/S): 3.77
• Price to Cash Flow (P/CF): 15.50
• P/FCF Ratio: 28.80
• Enterprise Value/Market Cap: N/A
• Enterprise Value/Revenue: N/A
• Enterprise Value/Gross Profit: N/A
• Enterprise Value/Ebitda: N/A
• 1Y Price Target: $117.42
• Price Target Upside: 42.67% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 13

TransUnion's overall stock score reflects strong financial performance and positive corporate developments, which are somewhat offset by high valuation concerns and current bearish technical indicators. The company shows promising growth potential, with successful debt management and strategic acquisitions, yet it faces challenges in valuation and market momentum.

Positive Factors

Dividend and Share Buyback

TRU raised its quarterly dividend and announced a $500 million share repurchase program which was well received by investors.

Earnings

4Q results beat across the board.

Negative Factors

Foreign Exchange

Foreign exchange headwinds, such as the Mexican Peso depreciating 19% year over year in 2024, are a consideration.

Guidance

2025 guidance was weaker than anticipated, but is based on fairly conservative assumptions.

TransUnion Business Overview & Revenue Model

Company Description

TransUnion engages in the provision of information and risk management solutions. It also provides consumer reports, risk scores, analytical services and decision making capabilities to businesses. It operates through the following segments: U.S. Information Services (USIS), International, Consumer Interactive, and Corporate. The USIS segment provides consumer reports, risk scores, analytical services and decision making capabilities to businesses. The International segment provides credit reports, analytics and decision making services and other value-added risk management services. The Consumer Interactive segment offers solutions that help consumers manage their personal finances and take precautions against identity theft. The Corporate segment provides support services to each segment, holds investments and conducts enterprise functions. The company was founded on February 15, 2012 and is headquartered in Chicago, IL.

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 revenue growth and improved profitability, as evident from rising margins and positive cash flows. While leverage remains moderate, improvements in equity and returns suggest a strengthening balance sheet. The company should continue to focus on maintaining operational efficiency to support sustainable growth.

Income Statement

TransUnion shows a strong revenue growth with a total revenue increase from $3.83 billion in 2023 to $4.18 billion in 2024, marking a 9.2% growth rate. The gross profit margin is excellent, as gross profit equals total revenue in 2024. The net profit margin improved significantly from negative in 2023 to 11.95% in 2024, reflecting enhanced profitability. EBIT and EBITDA margins are strong at 15.93% and 16.10% respectively. However, historical EBIT fluctuations suggest some volatility in operational efficiency.

Balance Sheet

The company's debt-to-equity ratio is 1.22 in 2024, indicating moderate leverage, but an improvement from previous years. ROE is robust at 11.85% in 2024, an increase from a negative value in 2023, showcasing improved shareholder returns. The equity ratio stands at 38.40%, suggesting a stable financial structure, though the company maintains a high level of total liabilities relative to assets.

Cash Flow

Operating cash flow increased from $645.4 million in 2023 to $832.5 million in 2024, indicating strong operational cash generation. Free cash flow growth is substantial at 54.37%, while the free cash flow to net income ratio is favorable, highlighting effective cash management. The operating cash flow to net income ratio is 1.67, reflecting efficient cash earnings conversion.

Breakdown
Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement		Total Revenue
4.18B	3.83B	3.71B	2.96B	2.72B
	Gross Profit
2.51B	2.31B	2.49B	1.97B	1.80B
	EBIT
666.70M	128.50M	630.50M	647.70M	567.90M
	EBITDA
1.20B	667.30M	1.17B	1.01B	883.40M
	Net Income Common Stockholders
284.40M	-206.20M	266.30M	370.50M	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: Negative
• Last Price: 82.30
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Negative
• MACD: Positive
• RSI: Neutral
• STOCH: Positive

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 82.3 is below the 20-day moving average (MA) of 91.92, below the 50-day MA of 93.35, and below the 200-day MA of 92.11, indicating a bearish trend. The MACD of -3.02 indicates Positive momentum. The RSI at 32.30 is Neutral, neither overbought nor oversold. The STOCH value of 9.89 is Positive, 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
TRU	69 Neutral	$16.06B	55.92	6.91%	0.53%	9.20%	―
VRSK	64 Neutral	$41.80B	44.79	463.98%	0.52%	7.47%	59.46%
EFX	63 Neutral	$29.70B	51.67	12.95%	0.62%	7.90%	10.00%
FICO	63 Neutral	$42.07B	79.07	-47.82%	―	14.49%	21.85%
Sector *	62 Neutral	$8.16B	12.85	0.64%	3.04%	3.83%	-15.83%
DNB	61 Neutral	$3.55B	―	-0.85%	2.38%	2.93%	39.49%

TransUnion Corporate Events

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.

TransUnion to Acquire Majority Stake in Mexican Unit

On January 16, 2025, TransUnion announced its plan to acquire a majority stake in Trans Union de Mexico, S.A., the consumer credit segment of Buró de Crédito, by increasing its ownership from 26% to 94% for approximately $560 million. This strategic move aims to strengthen TransUnion’s position in Latin America, leveraging its global operating model to enhance services and drive financial inclusion in Mexico, further expanding into FinTech and insurance sectors.