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TransUnion TRU

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Morningstar’s Analysis

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1-Star Price

PREMIUM

5-Star Price

PREMIUM

Economic Moat

PREMIUM

Capital Allocation

PREMIUM

TransUnion Makes Big Strategic Moves With Corporate Development Activities; Core Business Healthy

Rajiv Bhatia, CFA Equity Analyst

Analyst Note

| Rajiv Bhatia, CFA |

Wide-moat-rated TransUnion reported a healthy quarter, with 12% organic constant-currency revenue growth. Revenue of $792 million was $16 million above FactSet consensus. Adjusted EBITDA margins were also healthy at 41.3%, up from 38.8% in the year-ago period. TransUnion announced some big moves as well. It announced that it will acquire Sontiq for $638 million and divest its healthcare unit for $1.7 billion. We don’t expect these corporate development activities to result in a large change to our fair value estimate of $108, which we will maintain. We continue to prefer Equifax over TransUnion based on the strength of Equifax’s workforce solutions segment.

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Company Profile

Business Description

TransUnion is one of the leading credit bureaus in the United States, providing the consumer information that is the basis for granting credit. The company also provides fraud detection, marketing, and analytical services. TransUnion operates in over 30 countries, and about one fourth of its revenue comes from international markets.

Contact
555 West Adams Street
Chicago, IL, 60661
T +1 312 985-2000
Sector Industrials
Industry Consulting Services
Most Recent Earnings Sep 30, 2021
Fiscal Year End Dec 31, 2019
Stock Type Aggressive Growth
Employees 8,200