TransUnion (TRU) AI Stock Analysis

• Market Cap: $17.51B
• Dividend Yield: 0.5%
• Average Volume (3M): 2.41M
• Price to Earnings (P/E): 46.5
• Beta (1Y): 1.97
• Revenue Growth: 9.34%
• EPS Growth: N/A
• Country: US
• Employees: 13,000
• Sector: Financial
• Sector Strength: 70
• Industry: Consulting Services
• EPS (TTM): 1.08
• Shares Outstanding: 194,800,000
• 10 Day Avg. Volume: 3,860,710
• 30 Day Avg. Volume: 2,409,053
• PEG Ratio: N/A
• Price to Book (P/B): N/A
• Price to Sales (P/S): N/A
• P/FCF Ratio: N/A
• Enterprise Value/Market Cap: 1.25
• Enterprise Value/Revenue: 5.04
• Enterprise Value/Gross Profit: 9.01
• Enterprise Value/Ebitda: 16.38
• 1Y Price Target: $115.50
• Price Target Upside: 28.48% Upside
• Rating Consensus: Strong Buy
• Number of Analyst Covering: 13

• Rating: 74 Outperform
• Price Target: $101.00 ▲(12.35% Upside)

TransUnion's strong financial performance and positive earnings call are the primary drivers of its stock score. However, high valuation metrics and mixed technical indicators present some risks. The company's ability to manage rising debt levels and navigate muted market conditions will be crucial for future performance.

Positive Factors

Revenue Growth

Consistent revenue growth exceeding guidance indicates strong market demand and effective business strategies, supporting long-term expansion.

Innovation and Product Launches

Innovation through AI-driven tools enhances product offerings, boosting competitive advantage and operational efficiency, fostering sustainable growth.

Cash Flow Management

Robust cash flow generation supports operational funding and investment capacity, ensuring financial stability and strategic flexibility.

Negative Factors

Rising Debt Levels

Increasing debt levels may limit financial flexibility and increase risk, potentially impacting long-term financial health if not controlled.

Muted Market Conditions

Stable yet subdued market conditions may constrain growth opportunities, affecting revenue potential in key sectors like auto and mortgage.

Concerns Over U.S. Fiscal Policy

Fiscal policy changes could lead to economic uncertainty, impacting consumer behavior and lending conditions, challenging future growth.

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 core segments: Credit Report Services, Risk and Fraud Solutions, and Marketing Services. The company charges fees for its credit reports, credit scores, and risk assessment tools, which are sold to lenders and financial institutions for evaluating consumer creditworthiness. Additionally, TransUnion earns revenue from its risk and fraud solutions by providing businesses with tools to detect and prevent fraud, which is crucial for sectors like banking and insurance. Marketing services revenue comes from data-driven marketing solutions that help clients optimize customer acquisition and retention strategies. Significant partnerships with financial institutions and technology companies enhance its offerings, while the growing demand for data-driven decision-making continues to drive its earnings.

TransUnion Financial Statement Overview

Summary

TransUnion demonstrates solid financial performance with strong revenue growth and profitability improvements. The company has efficient cash flow management, although rising debt levels warrant monitoring. Overall, TransUnion is in a healthy financial position, well-positioned for sustainable growth.

Income Statement

TransUnion has demonstrated robust revenue growth, with a notable increase in total revenue from $2.53 billion in 2020 to $4.36 billion in TTM (Trailing-Twelve-Months) 2025. The gross profit margin remains strong, supported by a gross profit of $1.26 billion. The net profit margin improved significantly, reaching 13.08% in TTM 2025, showcasing enhanced profitability. Both EBIT and EBITDA margins are healthy, indicating efficient operational management.

Balance Sheet

The balance sheet shows a stable equity base with stockholders' equity at $4.52 billion, contributing to a favorable equity ratio of 40.67%. The company's debt-to-equity ratio is moderate at 1.14, reflecting a balanced approach to leverage. However, there is a notable increase in total debt over the years, which could pose potential risks if not managed properly.

Cash Flow

Cash flow analysis indicates a strong operating cash flow of $827 million, with a positive free cash flow of $496.6 million in TTM 2025. The operating cash flow to net income ratio is robust, which suggests efficient cash generation relative to net income. The free cash flow growth rate has been positive, supporting the company's capacity to fund operations and investments without excessive reliance on external financing.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	4.36B	4.18B	3.83B	3.71B	2.96B	2.53B
Gross Profit	2.44B	2.51B	2.31B	2.32B	1.94B	1.68B
EBITDA	1.34B	1.20B	667.30M	1.13B	995.20M	862.50M
Net Income	391.90M	284.40M	-206.20M	266.30M	1.39B	343.20M
Balance Sheet
Total Assets	11.12B	10.98B	11.11B	11.67B	12.63B	7.31B
Cash, Cash Equivalents and Short-Term Investments	690.00M	682.00M	478.90M	587.90M	1.85B	495.90M
Total Debt	5.20B	5.21B	5.45B	5.81B	6.52B	3.52B
Total Liabilities	6.49B	6.67B	7.00B	7.40B	8.63B	4.68B
Stockholders Equity	4.52B	4.22B	4.01B	4.17B	3.91B	2.54B
Cash Flow
Free Cash Flow	496.60M	516.70M	334.70M	-1.00M	584.10M	573.30M
Operating Cash Flow	827.10M	832.50M	645.40M	297.20M	808.30M	787.40M
Investing Cash Flow	-404.60M	-307.40M	-318.90M	-723.90M	-2.21B	-267.20M
Financing Cash Flow	-285.90M	-308.70M	-438.80M	-820.50M	2.76B	-296.90M

TransUnion Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 89.90
• 50DMA: Negative
• 100DMA: Positive
• 200DMA: Positive
• MACD: Negative
• 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 89.9 is below the 20-day moving average (MA) of 90.10, below the 50-day MA of 91.21, and above the 200-day MA of 89.26, indicating a neutral trend. The MACD of 0.27 indicates Negative momentum. The RSI at 48.79 is Neutral, neither overbought nor oversold. The STOCH value of 42.06 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
EFX	75 Outperform	31.89B	50.37	12.53%	0.69%	6.86%	9.10%
TRU	74 Outperform	$17.51B	46.53	9.06%	0.50%	9.34%	―
VRSK	69 Neutral	34.02B	37.55	293.84%	0.71%	7.60%	5.28%
Sector *	68 Neutral	$18.00B	11.42	9.92%	3.81%	9.73%	1.22%