TransUnion (TRU) AI Stock Analysis

• Market Cap: $14.14B
• Dividend Yield: 0.59%
• Average Volume (3M): 2.54M
• Price to Earnings (P/E): 50.1
• Beta (1Y): 1.97
• Revenue Growth: 9.20%
• EPS Growth: N/A
• Country: US
• Employees: 13,400
• Sector: Industrials
• Sector Strength: 69
• Industry: Consulting Services
• EPS (TTM): 1.45
• Shares Outstanding: 195,140,440
• 10 Day Avg. Volume: 3,536,832
• 30 Day Avg. Volume: 2,544,387
• PEG Ratio: N/A
• Price to Book (P/B): N/A
• Price to Sales (P/S): 3.98
• Price to Cash Flow (P/CF): 16.40
• P/FCF Ratio: 30.40
• 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: $111.85
• Price Target Upside: 54.40% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 15

TransUnion displays strong financial performance with impressive revenue and profitability growth, supported by strategic corporate events. However, the high P/E ratio suggests a potentially overvalued stock, and technical analysis points to short-term weaknesses. The positive sentiment from the earnings call and corporate initiatives offer a balanced outlook, warranting a cautious but optimistic view on the stock.

Positive Factors

Growth Opportunities

Significant growth opportunity in emerging economies due to large populations and low credit penetration.

Strategic Partnerships

The partnership with Credit Sesame and pending acquisition of Monevo are set to enhance TransUnion's competitive position in the market.

Technological Transformation

TransUnion's transition to the OneTru platform is expected to unlock faster revenue growth and strong margin expansion.

Negative Factors

Guidance Challenges

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

International Concerns

International outlook is less clear due to concerns in India and tariffs.

Valuation Concerns

Valuation already reflects the free cash flow acceleration.

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 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	2.53B
	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: Negative
• Last Price: 72.44
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Negative
• MACD: Positive
• RSI: Neutral
• STOCH: Neutral

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 72.44 is below the 20-day moving average (MA) of 80.90, below the 50-day MA of 87.54, and below the 200-day MA of 93.02, indicating a bearish trend. The MACD of -4.09 indicates Positive momentum. The RSI at 38.91 is Neutral, neither overbought nor oversold. The STOCH value of 45.40 is Neutral, 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	$14.14B	50.10	6.91%	0.59%	9.20%	―
VRSK	64 Neutral	$40.85B	43.51	463.98%	0.56%	7.47%	59.46%
EFX	63 Neutral	$27.49B	45.54	12.95%	0.71%	7.90%	10.00%
Sector *	62 Neutral	$7.62B	13.01	3.19%	3.32%	3.77%	-14.28%

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.