TransUnion (TRU) stock analysis

P/E below its 5-year median

TransUnion's P/E of 19.9 is below its own 5-year median of 40.2.

P/E below the industry

TransUnion's P/E of 19.9 is below the Business Services median of 26.9.

EV/EBITDA below its 5-year median

TransUnion's EV/EBITDA of 12.7 is below its 5-year median of 17.5.

P/B above the industry

TransUnion's price-to-book of 3.22 is above the Business Services median of 2.98.

Trading below fair value

The share price of $81.96 is below our fair value estimate of $123.41.

Margin of safety over 20%

The price is 33.6% below fair value, more than the 20% cushion we look for.

Revenue growing under 10% a year

Revenue grew 7.2% a year over the last three fiscal years, short of the 10% we look for.

EPS growing 10%+ a year

Diluted EPS grew 18.9% a year over the last three fiscal years.

Earnings growth accelerating

Net income grew 89.8% over the last twelve months, against a 5-year average of 5.8% a year.

Growing faster than the industry

Revenue grew 13.4% over the last twelve months; the Business Services median is 9.1%.

Guidance lowered

TransUnion lowered its Three Months Ended September 30, 2026 Revenue growth Organic constant currency outlook on Jul 28, 2026.

Gross margin trend

This company does not report gross profit.

Return on equity under 15%

Return on equity was 17.1% over the last twelve months and averaged 12.4% over five years; we look for 15% on both.

Return on capital under 10%

Return on invested capital was 8.8%, below the 10% that usually covers the cost of capital.

Return on equity above the industry

TransUnion's return on equity of 17.1% is above the Business Services median of 1.4%.

Earnings grew over 5 years

Net income grew 5.8% a year on average over the last five fiscal years.

Net margin above its 5-year average

Net margin was 15.8% over the last twelve months, against a 5-year average of 13.1%.

Net margin above the industry

TransUnion's net margin of 15.8% is above the Business Services median of -1.7%.

High debt

Debt is 113% of shareholders' equity, above the 40% we consider low.

Debt falling against equity

Debt to equity fell from 136% five years ago to 113%.

Debt covered by cash flow

Operating cash flow over the last twelve months equals 22.1% of total debt.

Interest not well covered

Operating income covers interest expense 3.8 times; we look for at least 5.

Short-term assets cover short-term debts

Current assets are 2.03 times current liabilities.

Bankruptcy risk in the grey zone

The Altman Z-score is 2.50; above 3 is the safe zone and below 1.8 the distress zone.

Pays a dividend

TransUnion paid dividends worth 0.6% of the share price over the last twelve months.

Yield below Treasuries

The 0.6% yield is below the 4.4% on a 1-year Treasury.

Yield below the top quarter

The top quarter of US dividend payers yield 3.8% or more; TransUnion yields 0.6%.

Dividend not cut

The dividend per share has not fallen by more than 10% in any of the last 6 fiscal years.

Covered by earnings

Dividends take 12.1% of net income.

Covered by free cash flow

Dividends take 10.6% of free cash flow.