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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 has been negatively impacted by insider selling activity. Todd C. Skinner sold 500 shares, and Steven M. Chaouki sold 1,000 shares, contributing to a new 52-week low. Additionally, institutional investors have modified their holdings, with California Public Employees Retirement System lowering its position by 16.6% and Copeland Capital Management LLC reducing its stake by 4.3%. These sales have likely put downward pressure on the stock. (Source: MarketBeat, SEC filings)

1.c. Company Highlights

2. TransUnion's Strong 2025 Performance Sets Stage for Continued Growth in 2026

TransUnion reported a robust fourth quarter, with revenue increasing 13% on a reported basis and 12% on an organic constant currency basis, driven by strong growth in the U.S. market, particularly in Financial Services and Emerging Verticals. Adjusted diluted EPS was $1.07, beating estimates of $1.03. The company's adjusted EBITDA margin was 35.6%, in line with expectations. For the full year 2025, TransUnion delivered revenue growth of 12%, adjusted EBITDA growth of 14%, and adjusted diluted EPS growth of 14% excluding the tax rate reset impact.

Publication Date: Feb -15

📋 Highlights
  • Q4 Revenue and EPS Outperformance: Exceeded revenue (+12% organic), adjusted EBITDA, and adjusted diluted EPS (+10% or +14% excluding tax rate reset) in Q4, with U.S. market growth at 16%.
  • Emerging Verticals Accelerate: Growth surged to 16% in Q4 (vs. 7% in Q3), driven by insurance ($100M revenue quarter), media, and tech, with all verticals posting double-digit growth.
  • 2025 Financial Results: Achieved 12% revenue, 14% adjusted EBITDA, and 14% adjusted diluted EPS growth (excluding tax reset), returning $390M to shareholders via buybacks and dividends.
  • AI-Driven Productivity Gains: AI enhances data consumption, software development speed, and workflow automation, accelerating innovation and customer adoption of newer solutions.
  • 2026 Guidance: Targets 8–9% organic revenue and 8–10% adjusted diluted EPS growth, with margin expansion expected in H2 2026 despite Q1 challenges from India and Asia Pacific declines.

Segment Performance Highlights

The U.S. market was a key driver of growth, with revenue increasing 16% on an organic constant currency basis. Financial Services revenue grew 19%, driven by double-digit growth in mortgage, consumer lending, and auto. Emerging Verticals accelerated to 16% growth, with strength across verticals, including insurance, media, and tech. Internationally, revenue grew 2% on an organic constant currency basis, with Canada and the U.K. growing double digits.

Guidance and Outlook for 2026

TransUnion guided for 8% to 9% organic revenue growth, 7% to 8% adjusted EBITDA growth, and 8% to 10% adjusted diluted EPS growth in 2026. The company expects to deliver results towards the high end of the guidance range, assuming business conditions remain stable. The acquisition of Trans Union de Mexico is expected to be modestly accretive in its first year upon closing.

Valuation and Key Metrics

TransUnion's current P/E Ratio is 31.58, indicating that the market is pricing in a certain level of growth. With an ROE of 10.23% and an ROIC of 6.21%, the company is generating strong returns on equity and invested capital. The Dividend Yield is 0.62%, and the Free Cash Flow Yield is 4.61%, indicating a reasonable payout and cash generation profile. Analysts estimate revenue growth at 8.6% for the next year, which is in line with the company's guidance.

Operational Highlights and AI Impact

Christopher Cartwright, TransUnion's CEO, highlighted the company's focus on driving innovation-led and scalable growth, turbocharging innovation, and deploying AI-powered solutions to boost product predictiveness and capture more value within a customer's workflow. The company is seeing enormous benefits from AI, driving software development productivity, speed of product development, and improving customer and consumer experiences. As Cartwright noted, "We're a highly recurring transactional business with a material chunk of subscription not tied to seat count. We will apply AI to drive productivity internally and expect a dramatic productivity increase in our software developers."

3. NewsRoom

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TransUnion Stock Gains 6% Post Reporting Q4 Earnings & Revenue Beat

Feb -19

Source:

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TransUnion 2026 Originations Forecast Shows Continued Positive Momentum Amidst Moderate Expansion

Feb -19

Source: globenewswire.com

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TransUnion $TRU Stake Decreased by Crow s Nest Holdings LP

Feb -16

Source: defenseworld.net

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Dodge & Cox's Strategic Moves: A Closer Look at Brookfield Corp's Impact

Feb -13

Source: gurufocus.com

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TransUnion Analysts Slash Their Forecasts After Q4 Results

Feb -13

Source: benzinga.com

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TransUnion (TRU) Q4 2025 Earnings Call Transcript

Feb -12

Source: seekingalpha.com

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Compared to Estimates, TransUnion (TRU) Q4 Earnings: A Look at Key Metrics

Feb -12

Source: zacks.com

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Is TransUnion's Q4 Earnings Beat Good Enough to Trigger a Rebound?

Feb -12

Source: 247wallst.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: 5.5

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: 5.0/10

Value: 2.3

Growth: 6.4

Quality: 4.8

Yield: 0.0

Momentum: 9.0

Volatility: 7.7

1-Year Total Return ->

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Stock-Card
Exponent

A-Score: 4.7/10

Value: 1.2

Growth: 5.7

Quality: 8.2

Yield: 3.0

Momentum: 1.5

Volatility: 8.3

1-Year Total Return ->

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Stock-Card
ICF International

A-Score: 4.4/10

Value: 6.3

Growth: 6.4

Quality: 5.4

Yield: 1.0

Momentum: 0.5

Volatility: 6.7

1-Year Total Return ->

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Stock-Card
FTI Consulting

A-Score: 4.3/10

Value: 3.5

Growth: 6.4

Quality: 6.0

Yield: 0.0

Momentum: 1.5

Volatility: 8.7

1-Year Total Return ->

View Full Report
Stock-Card
TransUnion

A-Score: 3.9/10

Value: 2.4

Growth: 5.9

Quality: 5.5

Yield: 0.0

Momentum: 4.5

Volatility: 5.3

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

76.2$

Current Price

76.2$

Potential

-0.00%

Expected Cash-Flows