TransUnion Common Stock (TRU)
StalwartFairStock Score: 57/100 — STEADY
Key Financials
| Current Price | $66.26 |
| Market Cap | $14.0B |
| P/E Ratio | 18.35 |
| ROE | 15.25% |
| Dividend Yield | 0.71% |
| Sector | Financial Services |
Strengths
- Generates $753 million in annual free cash flow (5.4% yield on market cap)
- Strong Piotroski F-Score of 8/9 indicating robust financial health across profitability, leverage, and efficiency metrics
- Solid return on equity of 10.6% above cost of capital
- Established organization with 13,500 employees providing operational scale
Concerns
- Trades significantly above Graham Number ($35) with negative 109% margin of safety—limited downside protection
AI Analysis
TransUnion Common Stock is a mid-cap financial services company valued at $14.0 billion. The business generates $4.6 billion in annual revenue with a 2.2% net margin and $753 million in free cash flow. From a quality standpoint, TransUnion shows near-perfect Piotroski F-Score of 8/9 indicating exceptional financial health and Altman Z-Score of 1.9 in the grey zone. On valuation, the stock is trading at a premium 31.5x earnings, with trades far above its Graham Number ($35) with no margin of safety. Growth dynamics show revenue growing at 13.0% and profit growth of 52.9%. Our composite FairStock Score of 57/100 reflects mixed fundamentals overall. Investors should weigh the business quality against the current price and their own margin of safety requirements.
Bull Case
Improving fundamentals and sector tailwinds could drive meaningful earnings growth, compressing the effective multiple for patient investors. With $753 million in annual free cash flow (5.4% yield), management has ample capital for buybacks, dividends, or accretive acquisitions.
Bear Case
At 32x earnings, any growth disappointment triggers rapid multiple compression—a 20% earnings miss plus multiple contraction to 20x implies 40%+ downside. Regulatory changes, input cost inflation, or demand normalization represent underappreciated risks that could materially impact forward estimates.
Data from SEC filings. AI analysis is for educational purposes only — not investment advice. Scoring methodology · Disclaimer