Assessing TransUnion: Insights From 3 Financial Analysts

In the preceding three months, 3 analysts have released ratings for TransUnion TRU, presenting a wide array of perspectives from bullish to bearish.

The following table encapsulates their recent ratings, offering a glimpse into the evolving sentiments over the past 30 days and comparing them to the preceding months.

Analysts provide deeper insights through their assessments of 12-month price targets, revealing an average target of $96.0, a high estimate of $104.00, and a low estimate of $92.00. This upward trend is evident, with the current average reflecting a 4.92% increase from the previous average price target of $91.50.

Decoding Analyst Ratings: A Detailed Look

The standing of TransUnion among financial experts becomes clear with a thorough analysis of recent analyst actions. The summary below outlines key analysts, their recent evaluations, and adjustments to ratings and price targets.

Key Insights:

• Action Taken: Analysts respond to changes in market conditions and company performance, frequently updating their recommendations. Whether they 'Maintain', 'Raise' or 'Lower' their stance, it reflects their reaction to recent developments related to TransUnion. This information offers a snapshot of how analysts perceive the current state of the company.
• Rating: Offering insights into predictions, analysts assign qualitative values, from 'Outperform' to 'Underperform'. These ratings convey expectations for the relative performance of TransUnion compared to the broader market.
• Price Targets: Delving into movements, analysts provide estimates for the future value of TransUnion's stock. This analysis reveals shifts in analysts' expectations over time.

For valuable insights into TransUnion's market performance, consider these analyst evaluations alongside crucial financial indicators. Stay well-informed and make prudent decisions using our Ratings Table.

Stay up to date on TransUnion analyst ratings.

Delving into TransUnion's Background

TransUnion is one of the three 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 a quarter of its revenue comes from international markets.

TransUnion's Financial Performance

Market Capitalization: Exceeding industry standards, the company's market capitalization places it above industry average in size relative to peers. This emphasizes its significant scale and robust market position.

Revenue Growth: Over the 3 months period, TransUnion showcased positive performance, achieving a revenue growth rate of 8.6% as of 31 March, 2024. This reflects a substantial increase in the company's top-line earnings. As compared to competitors, the company encountered difficulties, with a growth rate lower than the average among peers in the Industrials sector.

Net Margin: TransUnion's net margin surpasses industry standards, highlighting the company's exceptional financial performance. With an impressive 6.37% net margin, the company effectively manages costs and achieves strong profitability.

Return on Equity (ROE): The company's ROE is below industry benchmarks, signaling potential difficulties in efficiently using equity capital. With an ROE of 1.61%, the company may need to address challenges in generating satisfactory returns for shareholders.

Return on Assets (ROA): TransUnion's ROA is below industry standards, pointing towards difficulties in efficiently utilizing assets. With an ROA of 0.59%, the company may encounter challenges in delivering satisfactory returns from its assets.

Debt Management: TransUnion's debt-to-equity ratio is notably higher than the industry average. With a ratio of 1.34, the company relies more heavily on borrowed funds, indicating a higher level of financial risk.

The Core of Analyst Ratings: What Every Investor Should Know

Experts in banking and financial systems, analysts specialize in reporting for specific stocks or defined sectors. Their comprehensive research involves attending company conference calls and meetings, analyzing financial statements, and engaging with insiders to generate what are known as analyst ratings for stocks. Typically, analysts assess and rate each stock once per quarter.

Analysts may enhance their evaluations by incorporating forecasts for metrics like growth estimates, earnings, and revenue, delivering additional guidance to investors. It is vital to acknowledge that, although experts in stocks and sectors, analysts are human and express their opinions when providing insights.

This article was generated by Benzinga's automated content engine and reviewed by an editor.