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1. Company Snapshot

1.a. 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.

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1.b. Last Insights on TRU

TransUnion's recent performance faced challenges due to rising fraud costs, with companies worldwide losing 7.7% of their annual revenue to fraud, estimated at $534 billion. The company's Q2 earnings beat and guidance raise had limited impact. Increased demand for risk mitigation solutions, however, positions TransUnion to benefit. A $0.115 per share dividend was declared. The upcoming Q3 earnings release may provide further insights. A whitepaper with MMA Global highlighted undervalued brand building impact.

1.c. Company Highlights

2. TransUnion's Q3 2025 Earnings: Strong Performance and Raised Guidance

TransUnion reported a strong third quarter, with consolidated revenue increasing 8% on a reported and 7% on an organic constant currency basis. Adjusted EBITDA increased 8% with a margin at 36.3%. Adjusted diluted earnings per share was $1.10, ahead of the high end of guidance and an increase of 6%. The company's U.S. Markets revenue was up 7% on an organic constant currency basis versus the prior year, or 13% excluding the impact of last year's large breach win. International revenue grew 6%, with Canada and the UK delivering double-digit growth.

Publication Date: Oct -27

📋 Highlights

Revenue Growth and Segment Performance

The company's revenue growth was driven by strong performance in U.S. Markets and Financial Services. U.S. Markets delivered 13% organic constant currency revenue growth, excluding last year's breach win. Financial services grew 19%, or 12% excluding mortgage. International revenue grew by 6% on an organic constant currency basis. Emerging verticals' strong growth is expected to be sustainable, with a mid-single digit growth rate for the year.

Guidance and Outlook

TransUnion raised its 2025 guidance across all metrics, expecting 8% organic constant currency revenue growth, or 9% excluding last year's large breach win, 9% adjusted EBITDA growth, and 9% adjusted diluted earnings per share growth. The company guides for fourth-quarter revenue of $1.119 billion-$1.139 billion, up 7%-9% on an organic constant currency basis. Adjusted EBITDA is expected to be $393 million-$407 million, up 4%-8%. The company's strong performance and raised guidance reflect its successful transformation program and ability to drive growth in various areas.

Valuation and Growth Prospects

With a P/E Ratio of 39.68 and an EV/EBITDA of 15.01, the market is pricing in a certain level of growth for TransUnion. Analysts estimate next year's revenue growth at 7.5%. The company's ability to outperform market growth rates over the past five years and its diversified portfolio across various markets and verticals support its growth prospects. The actual EPS of $1.1 beat estimates of $1.04, indicating a positive surprise.

Mortgage Market and Competitive Landscape

The company views changes in the mortgage market as a net positive, enabling it to leverage its trended and alternative data. TransUnion will offer VantageScore 4.0 at a lower price point and provide multi-year pricing for credit reports and VantageScore to promote certainty. The company estimates 5-6 million more Americans will qualify for GSE-sponsored mortgages with its trended data and alternative data, presenting an opportunity for growth.

India Growth and Tariff Impact

The company's India growth trajectory was impacted by a 50% tariff imposed on imports from India, which slowed lending to micro, small, and medium businesses. However, the company remains confident in India's long-term growth prospects, with 7% GDP growth and a growth-oriented central bank. India currently accounts for about 7% of the company's total revenue.

3. NewsRoom

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Student Loan Delinquencies Among Renters Double in Early 2025

Dec -04

Source: globenewswire.com

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National CineMedia and TransUnion Partner to Bring Cinema into Cross-Channel Attribution

Dec -01

Source: businesswire.com

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Here's Why Investors Should Retain TransUnion Stock for Now

Nov -28

Source:

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Canadians Take on More Credit Amid Lower Interest Rates as Mortgage Churn Rises and Economic Disparities Deepen

Nov -25

Source: globenewswire.com

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Higher Credit Card Usage Expected Among U.S. Shoppers this Holiday Shopping Season

Nov -20

Source: globenewswire.com

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TransUnion Named a Leader in the 2025 Gartner® Magic Quadrant™ for Marketing Mix Modeling Solutions

Nov -19

Source: globenewswire.com

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TransUnion (TRU) Presents at J.P. Morgan 2025 Ultimate Services Investor Conference Transcript

Nov -18

Source: seekingalpha.com

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TransUnion and Snappt Collaborate to Improve Efficiency in Multifamily Leasing

Nov -18

Source: globenewswire.com

4. Business Breakdown

4.a. Revenues by Country

4.b. Revenues by Segment

5. Expected revenues mid-term growth (6.67%)

6. Segments

U.S. Markets

Expected Growth: 6.5%

The 6.5% growth in U.S. Markets from TransUnion is driven by increasing consumer spending, low unemployment rates, and rising wages. Additionally, the ongoing digital transformation in the financial sector, coupled with the growing adoption of credit cards and personal loans, has contributed to the growth. Furthermore, the expansion of fintech companies and the increasing demand for credit monitoring services have also played a significant role.

International

Expected Growth: 6.8%

The 6.8% growth of International segment from TransUnion is driven by increasing demand for credit reporting and information solutions across emerging markets, expansion of digital channels, and strategic partnerships. Additionally, growing need for fraud prevention and identity verification solutions, as well as increasing adoption of analytics and decisioning platforms, contribute to this growth.

Consumer Interactive

Expected Growth: 7.2%

The 7.2% growth in Consumer Interactive from TransUnion is driven by increasing demand for credit monitoring and identity theft protection services, fueled by rising concerns over data privacy and security. Additionally, the segment benefits from the growing adoption of digital channels for consumer engagement, and the need for lenders to provide personalized credit offers and risk assessments.

7. Detailed Products

CreditVision

A credit scoring model that provides a more comprehensive view of a consumer's creditworthiness

TLOxp

A search engine that provides access to a vast repository of public and proprietary data

IDVision

A suite of identity verification and authentication solutions

CreditView

A credit reporting platform that provides real-time credit data and analytics

DecisionEdge

A decision management platform that enables businesses to automate and optimize decision-making processes

Princeton Metrics

A data and analytics platform that provides insights into consumer behavior and credit trends

TransRisk

A credit risk assessment solution that provides predictive analytics and scoring models

8. TransUnion's Porter Forces

Forces Ranking

Threat Of Substitutes

TransUnion's credit reporting services are highly specialized and require significant investment in technology and data analytics, making it difficult for substitutes to emerge.

Bargaining Power Of Customers

While customers have some bargaining power due to the availability of alternative credit reporting agencies, TransUnion's strong brand recognition and wide range of services mitigate this power.

Bargaining Power Of Suppliers

TransUnion has a diversified supplier base, and its suppliers have limited bargaining power due to the company's large scale and negotiating power.

Threat Of New Entrants

The credit reporting industry has high barriers to entry, including significant capital requirements and regulatory hurdles, making it difficult for new entrants to emerge.

Intensity Of Rivalry

The credit reporting industry is highly competitive, with three major players (TransUnion, Equifax, and Experian) competing for market share and customers.

9. SWOT Analysis

Strength

Weaknesses

Opportunities

Threats

10. Capital Structure

10.a. Balance Sheet

10.b. Weighted Average Cost of capital

Value
Debt Weight 57.24%
Debt Cost 4.04%
Equity Weight 42.76%
Equity Cost 11.93%
WACC 7.42%
Leverage 133.89%

11. Quality Control: TransUnion passed 3 out of 9 key points

12.a Historical Valuation

12.b Price/Earnings Ratio

12.c Margin Valuation

12.d Peers Valuation

Peers Group Analysis

Stock-Card
Booz Allen Hamilton

A-Score: 5.4/10

Value: 5.2

Growth: 7.7

Quality: 7.4

Yield: 5.0

Momentum: 0.5

Volatility: 6.3

1-Year Total Return ->

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Stock-Card
API Group

A-Score: 5.4/10

Value: 2.5

Growth: 6.4

Quality: 6.4

Yield: 0.0

Momentum: 8.5

Volatility: 8.3

1-Year Total Return ->

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Stock-Card
Exponent

A-Score: 4.5/10

Value: 1.0

Growth: 5.7

Quality: 8.2

Yield: 3.0

Momentum: 1.0

Volatility: 8.3

1-Year Total Return ->

View Full Report
Stock-Card
ICF International

A-Score: 4.3/10

Value: 6.6

Growth: 6.6

Quality: 5.4

Yield: 1.0

Momentum: 0.0

Volatility: 6.3

1-Year Total Return ->

View Full Report
Stock-Card
FTI Consulting

A-Score: 4.2/10

Value: 3.4

Growth: 6.6

Quality: 6.0

Yield: 0.0

Momentum: 0.5

Volatility: 8.7

1-Year Total Return ->

View Full Report
Stock-Card
TransUnion

A-Score: 3.6/10

Value: 2.6

Growth: 5.8

Quality: 5.7

Yield: 0.0

Momentum: 2.5

Volatility: 5.0

1-Year Total Return ->

View Full Report

Peers Metrics

12.e Scoring Insights

12.f DCF BETA

Parameters

Short Term Growth

Short term Time

Long-Term Growth

WACC

Target Price

84.81$

Current Price

84.81$

Potential

-0.00%

Expected Cash-Flows