TransUnion [NYSE:TRU]: Analyst Rating and Earnings
Equities traders often pay a significant amount of attention to what top market analysts have to say about a potential stock investment. In regards to TransUnion [TRU], the most recent average analyst recommendation we can read comes from the fiscal quarter ending in December. On average, stock market experts give TRU an Outperform rating. The average 12-month price forecast for this stock is $75.57, with the high estimate being $87.00, the low estimate being $66.00 and the median estimate amounting to $74.00. This is compared to its latest closing price of $56.69.
Wall Street analysts provide their ratings on a scale of 1 to 5, and the current average score for TransUnion [TRU] is sitting at 1.69. This is compared to 1 month ago, when its average rating was 1.69.
For the quarter ending in Sep-18 TransUnion [TRU] generated $0.62 billion in sales. That’s 0.73% higher than the average estimate of $0.62 billion as provided by Wall Street analysts. The three indicators above suggest that overall, this stock is demonstrating a mixed bag of positive appeal and some drawbacks, making it a somewhat risky investment that also has the potential to generate high ROI in the long run.
Keep your eyes on this company’s next financial results, which are scheduled to be made public on Thu 14 Feb (In 33 Days).
Fundamental Analysis of TransUnion [TRU]
Now let’s turn to look at profitability: with a current Operating Margin for TransUnion [TRU] sitting at +24.01 and its Gross Margin at +54.30, this company’s Net Margin is now 19.00%. These measurements indicate that TransUnion [TRU] is generating considerably more profit, after expenses are accounted for, compared to its market peers.
This company’s Return on Total Capital is 11.41, and its Return on Invested Capital has reached 8.60%. Its Return on Equity is 28.54, and its Return on Assets is 8.91. These metrics all suggest that TransUnion is doing well at using the money it earns to generate returns.
Turning to investigate this organization’s capital structure, TransUnion [TRU] has generated a Total Debt to Total Equity ratio of 142.57. Similarly, its Total Debt to Total Capital is 58.77, while its Total Debt to Total Assets stands at 48.15. Looking toward the future, this publicly-traded company’s Long-Term Debt to Equity is 135.67, and its Long-Term Debt to Total Capital is 55.93. This company is not leveraging its assets to take on debt, which stunts its growth and limits the ROI for investors.
What about valuation? This company’s Enterprise Value to EBITDA is 18.12 and its Total Debt to EBITDA Value is 3.51. The Enterprise Value to Sales for this firm is now 5.76, and its Total Debt to Enterprise Value stands at 0.19. TransUnion [TRU] has a Price to Book Ratio of 5.82, a Price to Cash Flow Ratio of 22.30 and P/E Ratio of 25.51. These metrics suggest that this publicly-traded organization will not likely result in investment gains.
Shifting the focus to workforce efficiency, TransUnion [TRU] earns $379,176 for each employee under its payroll. Similarly, this company’s Receivables Turnover is 5.95 and its Total Asset Turnover is 0.39. This publicly-traded organization’s liquidity data is also interesting: its Quick Ratio is 1.28 and its Current Ratio is 1.28. This company, considering these metrics, has a healthy ratio between its short-term liquid assets and its short-term liabilities, making it a less risky investment.
Let’s now turn our attention to trading performance: TransUnion [TRU] has 184.61M shares outstanding, amounting to a total market cap of $10.36B. Its stock price has been found in the range of 52.15 to 79.48. At its current price, it has moved by -29.39% from its 52-week high, and it has moved 7.61% from its 52-week low.
This stock’s Beta value is currently 0.99, which indicates that it is more volatile that the wider market. This stock’s Relative Strength Index (RSI) is at 43.86. This RSI score is good, suggesting this stock is neither overbought or oversold.
Conclusion: Is TransUnion [TRU] a Reliable Buy?
Shares of TransUnion [TRU], overall, appear to be a solid investment option, with Wall Street analysts expecting its price to rise considerably in the next 12 months. This company generates high value from the labor resources and other capital it has available, and while it has heavy Long-Term Debt to Equity, the majority of the metrics point to this investment being highly attractive.