TransUnion (1TU) AI Stock Analysis

TransUnion

(Frankfurt:1TU)

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Positive Factors

Diversified organic growthBroad growth across financial services, insurance, and international markets reduces reliance on any single end market. Continued expansion in India and Latin America, alongside U.S. performance, supports a more diversified revenue base and improves the durability of growth over the next several quarters.

Negative Factors

Debt-heavy capital structureAlthough leverage has improved, debt remains high relative to equity and leaves TransUnion more exposed to refinancing conditions and interest costs. A debt-heavy structure can restrict flexibility if growth slows, while required debt service competes with investment and capital-return priorities.

TransUnion (1TU) vs. iShares MSCI Germany ETF (EWG)

Market Cap: EUR 14.64B
Dividend Yield: 0.61%
Average Volume (3M): ―
Price to Earnings (P/E): 18.5
Beta (1Y): 0.97
Revenue Growth: 7.94%
EPS Growth: 81.83%
Country: Germany
Employees: 13,500
Sector: Financial
Sector Strength: 68
Industry: Financial - Data & Stock Exchanges

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 marketing,...

TransUnion Earnings Call Summary

Earnings Call Date:Oct 26, 2026(Q3-2026)|% Change Since:-3.57%|Next Earnings Date:Feb 15, 2027

Earnings Call SentimentPositive

The call was strongly constructive. TransUnion reported broad-based revenue, EBITDA, and EPS growth above guidance; raised the low end of full-year guidance and EPS growth expectations; delivered strong international and insurance performance; advanced OneTru migration and product innovation; and improved leverage while returning capital through repurchases and dividends. Offsetting concerns included higher interest rates, declining mortgage inquiries, lower underlying margin expectations, higher legal and regulatory expenses, softer tenant, employment, media, and selected international trends, and a roughly $60 million expected increase in 2027 net interest expense. Highlights significantly outweighed the stated challenges.

Positive Updates

Third-Quarter Results Exceeded Guidance

TransUnion delivered broad-based growth and exceeded the high end of guidance for revenue, adjusted EBITDA, and adjusted diluted earnings per share. Total revenue increased 12% as reported and 8% on an organic constant currency basis, or approximately 5.5% excluding FICO mortgage royalties. Adjusted EBITDA increased 9%, and adjusted diluted EPS was $1.25, up 14% year over year and $0.04 above the high end of guidance.

Negative Updates

Adjusted EBITDA Margin Declined in the Third Quarter

Adjusted EBITDA margin was 35.4%, down 90 basis points from the prior year. Underlying margins contracted 40 basis points as revenue flow-through was offset by technology and solutions investments and higher legal and regulatory expenses. FICO mortgage royalties created a 60-basis-point drag on consolidated margins.

Company Guidance

Fourth quarter guidance is revenue of $1.264 billion to $1.294 billion, up 8% to 10%, including 3% to 6% organic constant currency growth, a 5 percentage point contribution from acquisitions, and a 0.5 percentage point headwind from foreign exchange; excluding FICO mortgage royalties, organic constant currency growth is expected to be 3% to 5%. Adjusted EBITDA is guided to $450 million to $468 million, up 8% to 12%, with a margin of 35.6% to 36.2%, and adjusted diluted earnings per share of $1.15 to $1.22, up 7% to 14%. Full-year guidance is revenue of $5.131 billion to $5.162 billion, up 12% to 13%, organic constant currency revenue growth of 8% to 9%, or 5% to 6% excluding FICO mortgage royalties, adjusted EBITDA of $1.808 billion to $1.827 billion, up 10% to 11%, and adjusted diluted earnings per share of $4.81 to $4.88, up 12% to 13%; mortgage revenue growth is 28%, or 9% excluding FICO royalties, mortgage inquiries are expected to decline roughly 10% for the full year and more than 20% in the fourth quarter, 2026 net interest expense is expected to be $235 million, and free cash flow conversion is expected to remain above 90% of adjusted net income.

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

Overall Rating

UnderperformOutperform

Sector (68)

Financial Indicators

DE:1TU against its peers
Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
SPGI	79Outperform	$135.25B	27.74	17.54%	0.83%	5.99%	22.20%
MORN	76Outperform	$8.39B	19.63	41.54%	0.88%	9.43%	30.27%
FDS	74Outperform	$11.62B	22.54	25.61%	1.37%	6.65%	-7.20%
MCO	72Outperform	$85.15B	30.03	86.44%	0.82%	9.00%	31.83%
Sector *	68Neutral	$18.00B	11.42	9.92%	3.81%	9.73%	1.22%
MSCI	66Neutral	$44.57B	33.16	-49.71%	1.28%	12.33%	19.69%

* Financial Sector Average

Performance Comparison

DE:1TU and its peers over the selected period
Ticker	Company Name	Price	Change	% Change
DE:1TU	TransUnion Corp.	67.50	-2.05	-2.95%
FDS	Factset Research	329.57	69.65	26.80%
SPGI	S&P Global	466.55	0.58	0.13%
MCO	Moody's	493.91	12.14	2.52%
MORN	Morningstar	226.19	15.20	7.21%
MSCI	MSCI Inc	623.38	50.50	8.82%

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.

TransUnion AI Stock Analysis